Arbitrator (and NAA member) Lise Gelenter comments in the Workplace Prof Blog about a recent decision by the Fourth Circuit striking an arbitration clause used by an online lending company (Hayes v. Delbert Services Corp.)
Professor Szalai provides additional commentary in Outsourcing Justice.
In Hayes v. Delbert Services Corp., the court notes:
We both respect and appreciate the support of Congress and the Supreme Court for an arbitration procedure that reduces the costs and delays of civil litigation. Our review of the record leads us to conclude, however, that the arbitration agreement in this case is unenforceable. The agreement purportedly fashions a system of alternative dispute resolution while simultaneously rendering that system all but impotent through a categorical rejection of the requirements of state and federal law. The FAA does not protect the sort of arbitration agreement that unambiguously forbids an arbitrator from even applying the applicable law.