Federal Judge Denies Arbitration Motion Based On ‘Unlawful’ Lease Clause

Mealey's (March 3, 2021, 7:23 AM EST) -- SAN DIEGO — A federal judge on Feb. 22 denied a defendant’s motion to compel arbitration and stay a suit claiming violations of California’s Song-Beverly Consumer Warranty Act and unfair competition law (UCL), ruling that the arbitration clause in a vehicle lease agreement on which the motion was based is “unlawful and unenforceable” because it waives the plaintiff’s statutory right to select a neutral arbitrator under the California Arbitration Act (CAA.)...