Tuesday, October 29, 2013

9th Circuit requires arbitration for consumer protection claims

Ferguson v. Corinthian Colleges, Inc., --- F.3d ----, No. 11–56965, 2013 WL 5779514 (9th Cir. 2013)

Plaintiffs were former students at for-profit schools owned by Corinthian and sued alleging that Corinthian used deceptive practices to get them to enroll.  The court of appeals, reversing the district court, compelled arbitration of the claims under the UCL, FAL and CLRA, holding that the California Supreme Court’s exemption of claims for “public injunctive relief” from arbitration was preempted by the Federal Arbitration Act. 


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