Kilgore v. KeyBank, Nat'l Ass'n

Summarized by:

  • Court: 9th Circuit Court of Appeals Archives
  • Area(s) of Law: Preemption
  • Date Filed: 03-07-2012
  • Case #: 09-16703
  • Judge(s)/Court Below: Circuit Judge Trott for the Court; Circuit Judge Bea and District Judge Pallmeyer
  • Full Text Opinion

The Federal Arbitration Act preempts state law when enforcing arbitration agreements in contracts; unless there is some reason to revoke the contract.

KeyBank appeals from the district courts denial of a motion to compel arbitration. The district court denied the motion on the basis of California's Broughton-Cruz rule, which prohibits arbitration for claims of public injunctive relief. The Court held that in light of the recent Supreme Court case, AT&T Mobility LLC v. Concepcion, the Broughton-Cruz rule is no longer good law. 131 S. Ct. 1740 (2011). Concepcion reemphasized that the Federal Arbitration Act (FAA) preempts state law and that the savings clause only prevents arbitration in cases that would have a claim for contract revocation, such as fraud, duress, or unconscionability. The court held that since the contract was clear and did not provide any procedural unconscionability, the FAA required that the arbitration clause be enforced. REVERSED, VACATED and REMANDED.

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