Search

The article reports on two rulings in California concerning the validity of class arbitration waivers. The California Court of Appeal found that a credit cardholder agreement in the Boehr v. Discover Bank case is under Delaware law and that the waiver can be enforced. The decision in the Aral v. Earthlink case stated that a waiver could not be enforced even though a provision indicated it was under Georgia law. An explanation is given for the two decisions to show why they are not inconsistent. The topics of choice-of-law provision and class action waivers are mentioned.

The article presents information related to voluntary and knowing litigation waiver. In "Caley v. Gulfstream Aerospace Corp.," the 10th District Court agreed to the motion filed by the company to enforce arbitration of the putative employment class action under the company's Dispute Resolution Policy. The provisions under the policy are given in the article. The accusers chose to go against the motion to compel, contending that Georgia's constitution guarantees the right to a jury trial and that any waiver of the right to litigate must be knowing and voluntary. The 11th Circuit did not oblige and ruled that a district court may deny enforcement of an arbitration clause under the Federal Arbitration Act based on general contract defenses. The 11th Circuit also ruled that prohibitions in arbitration agreements on class action arbitration are enforceable and not unconscionable. In 2005, the 11th Circuit ruled in "Jenkins v. First American Cash Advance of Georgia" that class action relinquishment does not prevent accusers from vindicating their statutory rights.