Articles Posted in Procedural Issues

In the recent case of DirectTV, Inc. v. Imburgia, the Supreme Court issued a key decision interpreting the scope of arbitration agreements under the Federal Arbitration Act. In the lawsuit, the plaintiffs sought to enforce a class action arbitration waiver, which included a provision providing that the entire clause was not enforceable if the law in the signing party’s state dictated that class action waivers are not enforceable. When the defendants executed the contract, California law stated that class action waivers were not enforceable. The lower court ultimately ruled that the class action arbitration waiver was unconscionable and refused to enforce it.

In reaching this holding, the California courts relied on the language in the contract that said “the law of your state,” finding that this allowed the court a basis for avoiding preemption pursuant to the Federal Arbitration Act. The lower court determined that Sections 1751 and 1781 of the California Remedies Act required the provision to be deemed invalid, notwithstanding the application of the Federal Arbitration Act.

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Earlier this year, the Eleventh Circuit Court of Appeals upheld a lower court’s dismissal of a proposed class action based on the plaintiffs’ failure to meet a number of the four required elements of class certification.

In Karhu v. Vital Pharm, Inc., the defendant manufactured and marketed a dietary supplement intended to help users lose weight. The defendant marketed the product for this purpose. The plaintiffs’ class action lawsuit alleged that the product did not in fact aid with weight loss as the defendant claimed. The plaintiffs sought to certify a class of product users nationwide.

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