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Joseph R. Wetzel Greenberg Traurig LLP

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California appellate court holds that FAA preempts CLRA prohibition against class action waivers *

USA - August 13 2012
Recently, the California Court of Appeal (Fourth Appellate District, Division Three) in Caron v. Mercedes-Benz Financial Services USA LLC (filed June 29, 2012, published July 30, 2012) held that the Federal Arbitration Act (“FAA”) preempts the California Consumer Legal Remedy Act (“CLRA”) prohibition against class action waivers (Cal. Civ. Code section 1751) in arbitration agreements.

Co-authors: Jeff E. Scott.