Discover Bank v. Superior Court

Strange & Carpenter, Brian R. Strange and Gretchen Carpenter; Law Offices of Barry L. Kramer and Barry L. Kramer, Los Angeles, for Real Party in Interest.

According to Blue Cross of California v. Superior Court (1998) 67 Cal.App.4th 42 , 78 Cal.Rptr.2d 779 ( Blue Cross ), where an arbitration agreement governed by the Federal Arbitration Act ( 9 U.S.C. § 1 et seq.) (FAA) is silent with regard to classwide arbitration, section 4 [1] of the FAA does not bar state courts from ordering classwide arbitration where permitted by California law. ( Blue Cross, supra, 67 Cal. App.4th at pp. 62-63, 78 Cal.Rptr.2d 779 .) Blue Cross also found that permitting the plaintiff to proceed with class certification efforts in such instances would not violate section 2 [2] of the FAA: "In the absence of an express agreement not to proceed to arbitration on a classwide basis, ordering the parties to arbitrate class claims as authorized by state law does not conflict with their contractual arrangement." ( Id. at p. 64, 78 Cal.Rptr.2d 779 .)

The present case concerns a Discover Bank cardholder agreement that also contains an arbitration clause governed by the FAA. Unlike the arbitration…