The AAA recently announced a new set of rules of mass arbitrations, as well as new fee schedules for consumer and worker arbitrations. We and some of our colleagues wrote a Legal Update about the changes, how they impact businesses,
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Supreme Court rejects Due Process Clause challenge to Pennsylvania statute requiring out-of-state corporations to consent to jurisdiction as a condition of registering to do business
The Supreme Court’s recent decision in Mallory v. Norfolk Southern Railway Co. creates substantial uncertainty over whether companies that register to do business in certain states can be subject to personal jurisdiction for claims unrelated to the forum—because those states…
Supreme Court holds that district courts must stay proceedings pending appeals of orders denying arbitration
Today the Supreme Court held that when a party files an immediate appeal of a federal district court order denying arbitration, the district court must stay its proceedings relating to the merits (including discovery) during the appeal. The decision in Coinbase…
D.C. Circuit rejects freestanding rule against “fail-safe” classes
The D.C. Circuit recently deepened a circuit split over whether district courts may certify a “fail-safe” class. In In re White, 64 F.4th 302 (D.C. Cir. 2023),the D.C. Circuit agreed that fail-safe classes are generally improper, but rejected the…
The importance of scrutinizing standing to seek injunctive relief in defending or settling false-advertising suits
State consumer-protection statutes frequently authorize claims for class-wide injunctive relief; notably, California courts have fashioned a similar remedy allowing for injunctions on behalf of the “general public.” Plaintiffs bringing class actions alleging that a company’s advertising is deceptive or misleading…
Supreme Court declines to hear challenge to validity of incentive awards
A common feature in class action settlements is an incentive (or service) award for each named plaintiff—an extra payment above and beyond what they would receive as ordinary class members that is in theory designed to compensate them for the…
Supreme Court hears oral argument in cases involving stays pending appeals of orders denying motions to compel arbitration
This morning we attended the Supreme Court’s oral arguments in Coinbase, Inc. v. Bielski. The issue presented in Coinbase is a procedural one, but of tremendous practical importance to defendants that seek to enforce arbitration agreements: does an appeal…
US Chamber of Commerce Institute of Legal Reform releases report on mass arbitration, its abuses, and how to prevent them
The plaintiffs’ bar has been trying to kill arbitration for more than a decade. But the courts have repeatedly rejected efforts to invalidate arbitration agreements. These lawyers have therefore switched to a different tactic: mass filing of arbitration demands.
When…
Fifth Circuit affirms striking class allegations at the pleadings stage
Win or lose, class actions that make it past the pleadings threaten businesses with enormous defense costs, especially the costs associated with class-wide discovery. As we’ve discussed before on this blog, one powerful tool for defendants to avoid these…
Illinois Supreme Court’s Most Recent BIPA Decision Exponentially Increases Potential Exposure for Businesses
The Illinois Supreme Court recently issued another decision interpreting the Biometric Information Privacy Act (“BIPA”) to expand potential liability for businesses. The court held in Cothron v. White Castle that each time a business collects or discloses an individual’s biometric data without…