Eversheds Sutherland 11th Circuit Business Blog
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Kardashians Left Blushing, Can’t Compel Arbitration in Makeup Case

Kimberly, Kourtney, and Khloe Kardashian will find themselves back in court after the Eleventh Circuit affirmed the denial of their motion to compel arbitration in Kroma Makeup EU, LLC v. Boldface Licensing + Branding, Inc., No. 15-15060 (11th Cir. Jan. 18, 2017). The Kardashians sought to enforce an arbitration clause against a party to the underlying contract despite the fact that...

Tribal Arbitration Agreement in Payday Loan Not Enforced

An arbitration provision in a payday loan agreement was held unenforceable because the provision’s exclusive designated arbitrator, the Cheyenne River Sioux Tribal Nation, was unavailable and no substitute could be appointed. Parm v. Nat’l Bank of Cal., N.A., 2016 WL 4501661 (11th Cir. Aug. 29, 2016) (Dubina, J.). The lender, Western Sky Financial, conceded that the designated...

Statutory Non-Waiver Provision Does Not Prevent Severance of Unlawful Terms and Arbitration Enforcement

Where an arbitration provision includes substantive limitations on the relief otherwise available to a party under a federal statute, there are three possible judicial responses: sever the offending provisions and enforce the agreement; enforce the agreement and leave any invalidity questions to the arbitrator, as in PacifiCare Health Systems, Inc. v. Book, 538 U.S. 401 (2003); or...

Failure of Proof of Online Consumer Arbitration Agreement

Does an arbitration agreement included in a credit cardholder agreement cover claims made under the Fair Debt Collection Practices Act arising from collection of resulting credit card debt? In the Eleventh Circuit’s July 5, 2016 decision in Bazemore v. Jefferson Capital Systems, LLC, 2016 WL 3608961, the district court had held that the collection claim, brought as a putative class...