Class Action

BREAKING NEWS: U.S. Supreme Court denies review in class action arbitration case: Circuit City Stores v. Gentry

By Kimberly A. Kralowec

Yesterday, the U.S. Supreme Court denied the petition for a writ of certiorari in Circuit City Stores, Inc. v. Gentry, no. 07-998 (order list dated 03/31/08). Circuit City was attempting to challenge the California Supreme Court's decision in Gentry v. Superior Court (Circuit City Stores, Inc.), 42 Cal.4th 443 (2007). According to the docket, the Chamber of Commerce, the Pacific Legal Foundation, and other conservative interests filed amici curiae briefs in support of the cert. petition.

In Gentry, the California Supreme Court held that the lower courts had improperly enforced a "no class action" arbitration clause in an employment contract, remanding for further proceedings on whether the clause was unconscionable and therefore unenforceable. Presumably, the cert. petition was based on the argument that the Federal Arbitration Act preempts California law regarding unconscionability of contract provisions -- an argument that the California Supreme Court rejected not only in Gentry but also in in Discover Bank v. Superior Court (Boehr), 36 Cal.4th 148 (2005).

[Hat tip: The Daily Journal]

Full post as published by The UCL Practitioner on April 01, 2008 (boomark / email).