With the continuous upheaval in California’s interpretation of arbitration provisions, and the ongoing friction between California and federal courts, companies subject to the jurisdiction of California courts should be strategic in how to get the most out of their arbitration provisions.
The penalties for failing to comply with the California Automatic Renewal Law (ARL) are severe. If a company fails to follow the ARL's very specific and detailed rules, the law deems all "goods, wares, merchandise or products" sold as "unconditional gifts." This has allowed plaintiffs' attorneys to argue that a company which violates the ARL must return 100% of its proceeds to every single California customer since 2010.
If you are a litigator, there is a very good chance that you have just become a member of a class action. Congratulations! This is because several advocacy groups (the National Veterans Legal Services Program, the National Consumer Law Center and the Alliance For Justice) filed a class action against the U.S. Government for overcharging users of PACER (Public Access to Court Electronic Records).