In a case closely watched by the class action bar, the California Supreme Court has punted on deciding whether to jettison a long-standing rule that bars consumer suits seeking broad injunctive relief from being pushed into arbitration.
Thursday’s unanimous ruling, in McGill v. Citibank, sets the stage for a potential clash before the U.S. Supreme Court, which has repeatedly sided against California in key arbitration cases. One such case was the 2011 Supreme Court decision in AT&T v. Concepcion, which found that the Federal Arbitration Act pre-empted California’s ban on class action waivers in arbitration clauses.
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