Bankruptcy Court Holds Class-Action Waiver in Arb Agreement Violates NLRA [Delaware Business Court Insider]

Mark Felger, chair of Cozen O’Connor’s Bankruptcy, Insolvency & Restructuring Practice Group, and Barry Klayman, a member of the firm’s Bankruptcy, Insolvency & Restructuring Practice Group, discuss a recent Delaware bankruptcy court decision in The Delaware Business Court Insider. In In Chan v. Fresh & Easy, U.S. Bankruptcy Judge Brendan Shannon held that a class-action waiver provision in an arbitration agreement between employer and employee violates the National Labor Relations Act (NLRA) and is unenforceable, and that an opt-out provision in such an agreement does not save it so that the agreement  is enforceable. This case is significant because it decided an issue of first impression in the circuit while acknowledging that other circuits have split on the issue.

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Mark E. Felger

Co-Chair, Bankruptcy, Insolvency & Restructuring

mfelger@cozen.com

(302) 295-2087

Barry M. Klayman

Member

bklayman@cozen.com

(302) 295-2035


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