NEWS ITEM

Ninth Circuit Rejects Indian Company's Efforts to Force Overseas Workers to Arbitrate in Mumbai

Concludes Arbitration Agreement is Unenforceable

On July 31, 2009 -- Altshuler Berzon partner Michael Rubin won a unanimous decision from the Ninth Circuit today, holding that Tata International, India's largest conglomerate, could not force its overseas workers to arbitrate employment disputes before Tata's hand-picked arbitrators in Mumbai.

Without having to reach the workers' challenge to the legal validity of Tata's one-sided mandatory arbitration agreement, the Ninth Circuit agreed that Tata's form arbitration agreements did not cover workplace claims arising in California under California law. That being so, the Ninth Circuit concluded that the workers have the right to pursue their class action claims for wrongful deductions and unpaid overtime in federal court in San Francisco.

Back To News Item Index