JOE MALDONADO et al., Plaintiffs and Respondents, v. FAST AUTO LOANS, INC., Defendant and Appellant., 60 Cal. App. 5th 710

Summary

HOLDINGS: [1]-A trial court properly denied a lender's motion to compel arbitration of customers' putative class action for violations of California's Consumers Legal Remedies Act (CLRA) and UCL where the arbitration provision, which contained a class action waiver, in the customers' loan agreements was invalid and unenforceable under the McGill Rule because it required consumers to waive their right to pursue public injunctive relief; [2]-The McGill rule applied because the customers sought public injunctive relief under the UCL and CLRA, given that their complaint and prayer did not limit the requested remedies for only some class members, but rather encompassed all consumers and members of the public, and that an injunction under the CLRA against the lender's unlawful practices would not directly benefit the customers; [3]-The Federal Arbitration Act did not preempt the McGill Rule.