Saturday, December 14, 2013
Last week, I posted about the ongoing impact of the SCOTUS Concepcion decision. In an interesting twist, the 9th Circuit (the same circuit that was overturned in Concepcion) carved out an exception to that case and its negative impact on class arbitration . In a December 12, 2013 Smith v. JEM Group Inc. decision, the court held, in finding the arbitration contract procedurally unconscionable, that law firms cannot hide behind arbitration provisions that prohibit class arbitration in instances where the clients are not properly advised on the ramifications of the provision.
Alison Frankel provides a very good case analysis in her Reuters opinion post here.