Federal Statutory Rights
Hendricks also observed that “Green Tree speaks to the vindication of federal statutory rights, and that Plaintiff’s rights under the CLRA and UCL the basis for his argument that he is entitled to broad injunctive relief - are state rights.” The distinction was based upon yet another AT&T case, Kaliwasser v. AT&T Mobility LLC, No. 07-411, 2011 U.S. Dist. LEXIS 106783, 2011 WL 4381748, at *5 (N.D. Cal. Sept. 20, 2011), in which the court observed that “it is not clear that Green Tree’s solicitude for the vindication of rights applies to rights arising under state law." When you Start your business in California firstly, hire a small business lawyer who specializes in small business.
Nevertheless, the Court quoted Kaltwasser at some length in narrowing the scope of Green Tree after Concepcion in holding that ‘“If the Concepcion majority had intended to allow for the plaintiffs to avoid class-action waivers by offering evidence about particular costs of proof they would face - essentially applying the underlying rationale of Discover Bank without relying on Discover Bank as a rule - one would expect it to have drawn attention to such a significant point in response to the dissent.’ Of course, it did not do so.” It based the decision, in part, upon the practical determination that “it is simply unworkable for ‘every court evaluating a motion to compel arbitration’ to ‘have to make a fact-specific comparison of the potential value of a plaintiff’s award with the potential cost of proving the plaintiff; ’ is case.’
District courts should not be faced with disputes over experts’ qualifications, methodology, and rates at the motion to compel stage of litigation.” (Citing and quoting Kaltwasser, and citing Moses H. Cone Mem’l Hosp., 460 U.S. at 22 (discussing “Congress’s clear intent, in the Arbitration Act, to move the parties to an arbitrable dispute out of court and into arbitration as quickly and easily as possible”. The Court then approvingly observed that “These considerations led Judge Fogel [in Kaltwasser} to conclude: ‘If Green Tree has any continuing applicability it must be confined to circumstances in which a plaintiff argues that costs specific to the arbitration process, such as filing fees and arbitrator’s fees, prevent her from vindicating her claims . . . Concepcion forecloses plaintiffs from objecting to class-action waivers in arbitration agreements on the basis that the potential cost of proving a claim exceed potential individual damages.’”
And as with other challenges after Concepcion, the Broughton/Cruz principles have like¬wise been held to have been overruled by Concepcion. For its analysis, Hendricks relies on the analysis in a case against T- Mobile (i.e. not AT&T) - Arellano v. T- Mobile USA, Inc., No. C 10-5663 WHA, 2011 U.S. Dist. LEXIS 52142, 2011 WL 1842712 (N.D. Cal. May 16, 2011).
While Arellano also finds that Concepcion forecloses the argument that an arbitration agreement is void because small claims might be prohibitively expensive to pursue on an individual basis, Hendricks relies upon Arellano for the conclusion that the prohibition on injunctive relief in arbitration for CLRA and UCL claims is unenforceable “at least for actions in federal court.
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