Stroock Special Bulletin
"California Court Of Appeal Issues Important Federal Arbitration Act Preemption Ruling"
On December 18, 2014, the California Court of Appeal, Fourth Appellate District, decided McGill v. Citibank, N.A., No. G049838 (Dec. 18, 2014), holding that California’s state-law rule against arbitrating claims for public injunctive relief under California’s Unfair Competition Law, Bus. & Prof. Code § 17200, et seq. (“UCL”), False Advertising Act, Bus. & Prof. Code § 17500, et seq. (“FAL”), and Consumer Legal Remedies Act, Civ. Code § 1750, et seq. (“CLRA”) is preempted by the Federal Arbitration Act (“FAA”) and the United States Supreme Court’s decision in AT&T Mobility v. Concepcion, __ U.S. __, 131 S. Ct. 1740 (2011). The decision is the first California appellate decision to directly address this important arbitration issue and joins several federal court decisions, including from the Ninth Circuit, in so holding.