U.S. District Judge James Lawrence King ruled this week that Wells Fargo cannot force unnamed class members’ claims into arbitration in five lawsuits arising out of alleged improper re-ordering of overdraft fees that have been consolidated in multidistrict litigation in Florida. The ruling came in three cases originally filed by Wells Fargo customers in Oregon, New Mexico, and Washington, as well as two cases that originated in Florida and California over the alleged conduct of Wachovia Bank NA, which Wells Fargo Bank NA later absorbed. Read more…
Class Actions Blog
Archive for the ‘Forced Arbitration’ Category
Wells Fargo got away with setting up sham accounts for 5 years because of forced arbitration clauses
According to a story published in the Hill, Wells Fargo’s scandalous practice of secretly opening more than 2 million sham deposit and credit card accounts dragged on for at least five years, because Wells Fargo contract provisions blocked consumers from suing the bank in court. Read more…
Respected US District Judge Jed Rakoff refuses to enforce Uber’s arbitration and class action waiver clauses
In a strongly worded decision, Judge Rakoff began his opinion by raising suspicion about whether the Federal Arbitration Act could properly be applied in today’s commercial context:
Application of [the federal policy favoring arbitration] to the Internet is said to inhere in the Federal Arbitration Act, as if the Congress that enacted that Act in 1925 remotely contemplated the vicissitudes of the World Wide Web. Nevertheless, in this brave new world, consumers are routinely forced to waive their constitutional right to a jury and their very access to courts, and to submit instead to arbitration, on the theory that they have voluntarily agreed to do so in response to endless, turgid, often impenetrable sets of terms and conditions, to which, by pressing a button, they have indicated their agreement.
New York Times article suggests forced arbitration clauses (like those in Gretchen Carlson case) protect sexual predators
Here is the link to a New York Times article that is critical of the Forced Arbitration Clause in Gretchen Carlson’s Fox News Contract. http://www.nytimes.com/2016/07/14/business/media/gretchen-carlsons-contract-could-shroud-her-case-in-secrecy.html?ref=business&_r=0
The Oregonian is reporting that people that sign up to use the Biketown bikes in Portland, Oregon have 30 days to opt out of the Forced Arbitration Clause in the sign-up agreement.
Here is the link: http://www.oregonlive.com/commuting/index.ssf/2016/07/how_to_keep_your_right_to_sue.html.
Preparations are underway for the Democratic Convention in Philadelphia. The Draft Democratic Platform unequivocally supports an individual’s right to his or her day in court and efforts to limit forced arbitration clauses in employment and service contracts. Read more…