In DIRECTV, Inc. v. Imburgia, a decision released this week, the United States Supreme Court rejected the California Court of Appeal’s interpretation of a binding arbitration provision that would have rendered unenforceable a class arbitration waiver provision. In doing this, the Supreme Court once again affirmed the primacy of the Federal Arbitration Act (“FAA”) and the invalidity of attempts by state courts to limit the enforceability of class arbitration waiver provisions.
DIRECTV involved a claim by consumers that DIRECTV’s early termination fees violate California law. The service agreement at issue in the action provided that any claims would be resolved by binding arbitration. The agreement contained a class arbitration waiver but provided that if the “laws of your state” made the waiver unenforceable, then the entire arbitration provision “is unenforceable.” The lawsuit was filed in 2008, prior to the United States Supreme Court’s 2011 decision in AT&T Mobility, LLC v. Concepcion holding that the FAA preempted California case law deeming class arbitration waiver provisions unenforceable.Continue Reading United States Supreme Court Once Again Rejects California’s Attempt To Void Class Arbitration Waivers