2017 | Abril 10
In a long-awaited decision, the California Supreme Court has declined to enforce an arbitration agreement due to a provision allegedly waiving plaintiff’s ability to seek “public injunctive relief” under California’s consumer protection statutes. The court’s rationale seems contrary, if not openly hostile, to the recent U.S. Supreme Court precedent enforcing such agreements under the Federal Arbitration Act (FAA).
In McGill v. Citibank, plaintiff filed a putative class action challenging Citibank’s credit protection plan. Citibank petitioned to compel arbitration pursuant to the arbitration agreement in plaintiff’s cardholder account agreement. The arbitration agreement required individual arbitration of all claims arising thereunder and precluded the arbitrator from awarding relief “for or against anyone who is not a party.”