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US Bank Can’t Arbitrate Fee Suit After 9th Circ. Clarifies McGill

Tiomkin Law Offices of Elliott Tiomkin > Legal News  > US Bank Can’t Arbitrate Fee Suit After 9th Circ. Clarifies McGill

US Bank Can’t Arbitrate Fee Suit After 9th Circ. Clarifies McGill

Law360 (August 10, 2020, 9:31 PM EDT) — A California federal judge on Monday rescinded her prior decision sending a proposed class action challenging U.S. Bank’s fees to arbitration, finding that the arbitration provision is invalid in light of the Ninth Circuit’s recent rulings that clarify the state high court’s McGill v. Citibank precedent.

In a three-page order, U.S. District Judge Cathy Ann Bencivengo concluded that a public injunction waiver in Reyna McGovern’s contract with the bank is invalid, based on two recently decided Ninth Circuit opinions that clarify the scope of the California Supreme Court’s McGill v. Citibank NA ruling.

The McGill ruling held that provisions that stop…

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