San Francisco partner Michael Stortz was quoted in a Business Insurance article titled “Narrow Citibank Arbitration Ruling Opens Door to Supreme Court.”
The California Supreme Court recently handed down a decision in Sharon McGill v. Citibank N.A., which addresses a Citibank arbitration provision clause. The court’s ruling, which reversed a California Court of Appeal ruling, found that the particular agreement was too broad to be enforceable and was contrary to the state’s policies governing such agreements. The limited scope of the ruling may ultimately lead to the United States Supreme Court weighing in on the matter.
Mike noted that “the ruling is an attempt by the [California] Supreme Court to sidestep an issue that has been percolating in the [9th U.S. Circuit Court of Appeals] and other courts.” He also observed that “the issue is whether states can prohibit arbitration of claims for injunctive relief, and the California Supreme Court avoided that question and issued a ruling on a narrower issue regarding whether consumers can waive claims for public injunctive relief.”