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Class Action Waivers in Commercial Agreements
In recent years, commercial parties such as franchisors have become increasingly proactive in addressing their exposure to class actions. One preventative measure that parties often take is to include clauses in their commercial agreements requiring that all disputes be resolved by arbitration. Many such clauses also include language specifying that a right to participate in a class action (or a class-wide arbitration) is waived. Despite agreeing to such class action waivers, plaintiffs in certain cases have nevertheless attempted to bring class actions, arguing that the waivers are unconscionable, and therefore unenforceable. While the legal status of class action waivers is evolving in the United States, largely due to a U.S. Supreme Court decision earlier this year, franchisors that operate in the United States and Canada also should be aware of the differences in how the two countries address this important element of franchise contracts.
First, a quick review. Earlier this year, the U.S. Supreme Court considered the enforceability of class action waivers in AT&T Mobility LLC v. Concepcion et ux., 131 S. Ct. 1740 (2011). In that case, a clause in a cellular telephone contract specified that all disputes arising from the agreement be referred to arbitration, and prohibited class-wide arbitrations. After a dispute arose regarding a tax payable on free phones, the plaintiffs sued AT&T in California federal District Court. AT&T sought to enforce the class action waiver and stay the proceeding. The plaintiffs cited a California rule that invalidated most class action waivers in consumer contracts. Writing for a 5-4 majority, Justice Antonin Scalia overturned the California rule, enforced the waiver, and stayed the action.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.