Originally published by Gene Roberts.
On December 14, 2015, the United States Supreme Court issued its opinion in DirectTV, Inc. v. Imburgia. The US Supreme Court held that the Federal Arbitration Act requires the enforcement of an arbitration agreement despite language that the agreement was unenforceable if the “law of your state” made class arbitration waivers unenforceable.
DirectTV and its customers entered into service agreements that contained an arbitration provision that also waived class arbitrations. The contract stated that it would be unenforceable if the “law of your state” made class arbitration waivers unenforceable. Any arbitration was governed by the Federal Arbitration Act.
At the time that Imburgia entered into the contract with DirectTV, California law made class arbitration waivers unenforceable because they were unconscionable. The trial court denied DirectTV’s request to arbitrate and that decision was affirmed by the California Court of Appeal.
While California law did invalidate class action arbitration waivers, the …
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