California's McGill rule holds that agreements waiving the right to seek public injunctive relief in any forum are unenforceable. The relief must primarily benefit the public rather than the individual plaintiff.
Federal preemption arguments have largely failed.
Alternative Names:
Public Injunction|McGill Relief
Why it Matters?
The McGill rule provides a route around arbitration agreements for claims seeking public injunctive relief, since a waiver of that relief in all forums is unenforceable and courts have declined to find FAA preemption, which means a consumer claim framed to seek public injunctive relief may proceed in court despite an otherwise enforceable arbitration clause. Drafting arbitration agreements to permit such relief in arbitration addresses the exposure.
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Frequently asked questions
What does the McGill rule provide?
What drafting addresses it?
