Ninth Circuit Nixes Live Nation's 'Unconscionable' Arbitration Agreement

What You Need To Know

• The Ninth Circuit upheld a district court decision finding that Live Nation's terms, which incorporate arbitration provider New Era's rules, are unenforceable. Live Nation is expected to appeal.
• The ruling highlighted courts' continued hostility toward arbitration and the steps some companies have taken to manage mass arbitrations.
• Specifically, certain batching and bellwether provisions employed by arbitration providers and/or included in arbitration clauses continue to generate disapproval from the courts.
• Companies may evaluate their terms of service, and any potential arbitration provider's rules, for procedures that could be interpreted as limiting individualized arbitration with bilateral processes and procedures.