We previously reported on California courts refusing to enforce waivers contained in arbitration agreements of representative claims under California’s Private Attorneys General Act of 2004 (“PAGA”). These cases have generally held that rights provided under PAGA were not waivable (the “Ishkanian rule”) and not preempted by the Federal Arbitration Act (“FAA”). Two recent cases within the Ninth Circuit upheld these rulings, but held that arbitration agreements containing provisions purporting to waive representative claims do not automatically render the whole agreement unconscionable; the purported waivers may be severed, if possible. Hopkins v. BCI Coca-Cola Bottling Co. of Los Angeles, Case No. 13-56126 (C.D.Ca. Feb. 19, 2016); Sierra v. Oakley Sales Corp., Case No. 13-55891 (9th Cir. Feb. 18, 2016).
This post written by Joshua S. Wirth.
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