December 27, 2017 / 10:50 PM / a year ago

California bad check dispute not subject to arbitration - U.S. appeals court

A federal appeals court on Wednesday said people who claimed that a private company coerced them into participating in a California bad check restitution program may pursue their claims in federal court, rather than face mandatory arbitration.

By a 3-0 vote, the 9th U.S. Circuit Court of Appeals in San Francisco said agreements between Victim Services Inc, which administered the program on behalf of local district attorneys’ offices, and accused writers of bad checks were not private contracts subject to the Federal Arbitration Act (FAA).

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