Class Arbitration Denied in Kinecta

Federal Arbitration Act Requires Arbitration to be Consensual

Metropolitan News-Enterprise
April 25, 2012

Kinecta Alternative Financial Solutions, Inc. v. Superior Court (Malone) (cite as 09-16703), filed March 25, 2012, determined that an arbitration provision that made no reference to class arbitration of disputes and expressly limited arbitration to the named parties,did not allow for class claims. In issuing the writ of mandate to direct the trial court to dismiss the class claims, the Court relied on AT&T Mobility LLC v. Concepcion (2011) 131 S.Ct. 1740 and Stolt-Nielsen v. Animalfeeds International Corp. (2010) 130 S.Ct. 1758 and reiterated that the Federal Arbitration Act requires that arbitration be consensual in nature.

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