FAA Preempts Rule Barring Arbitration of Public Injunctive Relief Claims, 9th Cir. Rules

SAN FRANCISCO - The Federal Arbitration Act preempts a California rule barring arbitration of claims for public injunctive relief, the 9th Circuit U.S. Court of Appeals has ruled, reversing a California federal court decision that had been issued before AT&T v. Concepcion had been decided. Kilgore, et al. v. Keybank, National Association, et al., Nos. 09-16703, 10-15934 (9th Cir.).

The appellate court reversed the district court's denial of a motion to compel arbitration of the case, ruling that California's Broughton-Cruz rule could not survive Concepcion because it "prohibits outright the arbitration of a particular type of claim."

Two former students …