The Ninth Circuit today upheld a Washington district court’s refusal to enforce a ban on joining multiple claimants in a single class-wide arbitration.  The court followed a Washington Supreme Court decision, which struck down a similar ban on class arbitrations, and its own earlier ruling, in which it held that the federal Arbitration Act doesn’t override state law unconscionability principles as they apply to arbitration agreements.  Lowden v. T-Mobile USA, Inc., No. 06-35395 (9th Cir. Jan. 22, 2008) 

The court distinguished a seemingly contrary Third Circuit opinion on the ground that it appeared to involve state law that invalidated a class arbitration ban because it required arbitration. Lowden, slip op. at 855 n.3 (distinguishing Gay v. CreditInform, No. 06-4036 (3d Cir. Dec. 19, 2007) (applying Pennsylvania law).  Blawgletter discussed Gay when it came out.  See the post here.

Feedicon14x14_2 Contingent business law.