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Third Circuit Emphasizes the Need to Provide Reasonable Notice of Arbitration Clauses

March 30, 2017 - ABA Class Actions & Derivative Suits
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by Jennifer Mesko and Michael Ruttinger, published in ABA Class Actions & Derivative Suits

On March 3, 2017, the United States Court of Appeals for the Third Circuit held that the arbitration clause (and class action waiver) contained on page 93 of the Samsung Galaxy Gear S Smartwatch "Health and Safety and Warranty Guide" was not a valid term of the parties' contract because the consumer did not have reasonable notice of it. Noble v. Samsung Electronics Am., Inc., No. 16-1903, --- F. App’x ----, 2017 WL 838269 (3rd Cir. Mar. 3, 2017). This holding is consistent with the Ninth Circuit’s holding in a nearly identical case, Norcia v. Samsung Telecommunications America, LLC, 845 F.3d 1279 (9th Cir. 2017). Read the article here.