Two recent unpublished opinions address "no-class-action" arbitration clauses:
Firchow v. Citibank (South Dakota), N.A. (January 10, 2007), no. B187081 (Second Appellate District, Division Seven). In Firchow, the Court of Appeal affirmed the trial court's holding that the defendant's "no class action" arbitration clause was unconscionable under Discover Bank.
In re Cingular Cases (January 16, 2007), no. D047603 (Fourth Appellate District, Division One). In this case, the Court of Appeal also affirmed the trial court's holding that the defendant's "no class action" arbitration clause was unconscionable under Discover Bank. The court also held that the Federal Arbitration Act (9 U.S.C. section 2) did not preempt California law concerning the interpretation of arbitration clauses and whether they are unconscionable or not. [I learned about the Cingular case at the MCLE program "Class Action Hurdles from the Plaintiff's Perspective," which was excellent.]
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