X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
John M. Baker and Katherine M. Swenson John M. Baker and Katherine M. Swenson

8th Circuit SpotlightUnder the Federal Arbitration Act, a court can invalidate an arbitration agreement based on the traditional contract defenses, including unconscionability. 9 U.S.C. §2 (arbitration clauses “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract”); Kindred Nursing Ctrs. Ltd. P’ship v. Clark, 137 S. Ct. 1421, 1426 (2017). The Eighth Circuit has considered whether to strike down arbitration clauses as unconscionable in a variety of contexts, including credit-cardholder agreements (Cicle v. Chase Bank USA, 583 F.3d 549 (8th Cir. 2009)), employment agreements (EEOC v. Woodmen of World Life Ins. Soc’y, 479 F.3d 561 (8th Cir. 2007)), construction contracts (Pro Tech Indus. v. URS, 377 F.3d 868 (8th Cir. 2004)), and mobile-home purchase agreements (Dobbins v. Hawk’s Enters., 198 F.3d 715 (8th Cir. 1999)). But it was not until October 2019, in Plummer v. McSweeney, No. 18-3059, ____ F.3d. ___ (8th Cir. Oct. 23, 2019), that the Eighth Circuit analyzed the unconscionability of an arbitration clause in a retainer agreement between a law firm and its client. The Eighth Circuit concluded, without fully addressing the issue of unconscionability, that the law firm cured any potential substantive unconscionability by offering to pay the client’s share of the arbitration costs—but left open the possibility that arbitration fees might render an agreement unconscionable in another case.

Want to continue reading?
Become a Free ALM Digital Reader.

Benefits of a Digital Membership:

  • Free access to 3 articles* every 30 days
  • Access to the entire ALM network of websites
  • Unlimited access to the ALM suite of newsletters
  • Build custom alerts on any search topic of your choosing
  • Search by a wide range of topics

*May exclude premium content
Already have an account?

Law Firms Mentioned

 

Appellate Practice in Federal and State CourtsBook

A new 'Bible' for appellate practice.... Part treatise, part do-it-yourself manual, and part map of the road through an appeal. Luther Munford, The Appella...

Get More Information
 

America's Claims Executive (ACE) 2020Event

ACE Leadership Forum & Expo is the annual conference for Senior Claims Managers in Insurance organizations.

Get More Information
 

Banking Litigation & Regulation Forum 2020Event

Delivers the key insights and practical solutions to acutely address the complex minefield of UK banking litigation & regulation.

Get More Information
 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.