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U.S. PIRG Consumer Blog
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June 28, 2005
California Supremes Uphold Class Action Rights
In an important case argued by PIRG ally Paul Bland of the public interest law firm Trial Lawyers For Public Justice, "the California Supreme Court held that corporations cannot use clauses in their form contracts to bar customers from bringing or participating in class actions against them under California law. The Court also held that the Federal Arbitration Act does not preempt or override California’s prohibition of class action bans, even if the contract provision banning class actions is included within a binding mandatory arbitration clause." TLPJ, PIRG and other groups have a joint campaign (www.stopbma.org) against the use of binding mandatory arbitration (BMA) in consumer, labor and small farmer contracts.
Posted by Ed Mierzwinski at June 28, 2005 09:56 AM
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