Credit card was marketed to be used to “rebuild poor credit.” The company was sued in a class action for misrepresentation. Credit card users signed arbitration agreement in the application. But the Credit Repair Organizations Act [CROA; 15 U.S.C. §1679c(a)] states: “You have a right to sue a credit repair organization that violates the [Act].” […]
Arbitration Clause In Employment Application Unconscionable And Unenforceable.
Here’s what it says: “I hereby agree to submit to binding arbitration all disputes and claims arising out of the submission of this application. I further agree, in the event that I am hired by AccentCare, that all disputes that cannot be resolved by informal internal resolution which might arise out of my employment with […]
Undertaking Not Required When Injunction Granted.
CCP §529(a) requires the court to order an undertaking when it grants a preliminary injunction to protect a defendant against losses that may be incurred if the defendant prevails on the merits. But when the court granted the injunction here, it also ruled on the merits of the underlying claim, and, thus, could not order […]
Tenant’s Release For Landlord’s Negligence Enforceable.
Civil Code §1953 says it’s against public policy for “any” provision in a lease to require a lessee to waive a landlord’s exercise of due care to prevent personal injury or property damage. Here tenant waived liability for landlord’s negligence in operating a tenant-only health club and exercise facility. The Court of Appeal said the […]
Client Has To Pay Lawyer Twice.
Client hired lawyer to represent him in a probate matter but disputed the fees charged by his lawyer, and demanded a mandatory fee arbitration. So the lawyer hired his own lawyer to represent him in the fee arbitration. The arbitrator found in favor of the lawyer and ordered the client to pay $33,000 in unpaid […]
Equitable Relief Permitted Under ERISA.
An employee was seriously injured in a car accident involving a drunk driver. Her past and future medical expenses, wages and pain and suffering totaled $1,757,943.08. She recovered $376,906.84 from the tortfeasor. The employer’s benefit plan gave the employer a right to full reimbursement for medical expenses paid by a third party tortfeasor, regardless of […]
Court Erred In Finding A Lack Of Mutual Assent.
A commodities merchandiser entered into 12 contracts. It sued the buyer alleging it failed to accept and pay for some of the merchandise. After a bench trial, the court found there was no mutual assent for lack of certain contract terms. Judgment was entered for the buyer. The Court of Appeal reversed, stating in part: […]
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