Overview: breach of good faith

HOLDINGS: [1]-A provision in a predispute arbitration agreement that waives the statutory right to seek in any forum public injunctive relief under California's Consumers Legal Remedies Act (CLRA), unfair competition law (UCL), or false advertising law is contrary to California public policy and is thus unenforceable under California law; [2]-The Federal Arbitration Act does not preempt this rule of California law or require enforcement of the waiver provision; [3]-Because public injunctive relief remained a remedy available to private plaintiffs under the UCL and the false advertising law, as well as under the CLRA, the arbitration provision at issue in credit card account documents was invalid and unenforceable under state law insofar as it purported to waive the credit card customer's statutory right to seek such relief against the credit card company.

Outcome

Court of appeal's judgment reversed and matter remanded.

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