Developments of Interest

New Cases of Interest - May 15, 2017

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05/15/2017

McGill v. Citibank, N.A. (2017) 2 Cal.5th 945.  This was an action brought as a class action by a credit card customer who alleged a number of claims including claims under the unfair competition law, the consumer legal remedies act and the false advertising law.  There was an arbitration provision in a notice of change in terms with respect to the credit card agreement that the customer had entered into with Citibank which required arbitration on an individual, rather than a class basis.

The Supreme Court held that as a matter of public policy a provision in a pre-dispute arbitration agreement that waives the right to seek public injunctive relief, that is injunctive relief which has as its primary purpose and effect prohibiting unlawful acts that threaten future injury to the general public, is contrary to public policy and therefore unenforceable.

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