California Supreme Court says arbitration clauses that bar injunctive relief are unenforceable

April 6, 2017 by

On April 6, 2017, the California Supreme Court unanimously held that an arbitration agreement that waives the right to public injunctive relief is contrary to California public policy and therefore is unenforceable under California law.

The decision reverses an appellate court’s interpretation that the U.S. Supreme Court’s Concepcion decision preempts state-law arbitration rules.

The California Supreme Court was deciding whether Citibank can force arbitration of a class of consumers injunctive relief claims. The California Supreme Court determined that public injunctive relief remained a remedy available to private plaintiffs under the state’s Unfair Competition and False Advertising Law, as well as under the Consumer Legal Remedies Act.

Steve Larson
An experienced trial lawyer who handles both hourly and contingent fee cases, Steve has expertise in class actions, consumer cases, antitrust litigation, securities litigation, corporate disputes, intellectual property disputes, unfair competition claims, employment matters, and disputes involving family wealth. Steve regularly represents individuals and businesses in federal and state court and has obtained class-wide recovery in multiple class actions. A veteran practitioner, Steve's clients value his creative approach to resolving complex litigation matters.

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