This Stroock Special Bulletin provides an update with respect to
litigation involving arbitration provisions. Recently, a California
federal district court held that relief sought in a putative class
action was not "public injunctive" relief that would
render the defendant bank's arbitration provision unenforceable
under the California Supreme Court's decision in McGill v.
Citibank, N.A., 2 Cal. 5th 945 (2017).
Following the California Supreme Court's decision in
McGill v. Citibank, N.A., 2 Cal. 5th 945 (2017), the issue
of whether relief sought in a putative class action is "public
injunctive" relief has been a focus of arbitration-related
litigation. The issue is critical because the California Supreme
Court held in McGill that claims seeking public injunctive
relief are not subject to arbitration unless the parties'
arbitration provision allows the arbitrator to award such
relief.
