District of Rhode Island Rules that Class Action Waivers are Not Enforceable Outside of Arbitration
Earlier this month, in Elsie Metcalfe v. Grieco Hyundai, LLC, the Rhode Island Federal District Court invalidated a class action waiver in an agreement without an arbitration clause that was therefore not subject to the Federal Arbitration Act.
In Metcalfe, Plaintiff Elsie Metcalfe leased a car from Defendant Grieco Hyundai, LLC, in May 2019. The lease agreement included an option to purchase the vehicle at a specific price at the end of the lease. When the Defendant raised the price, Ms. Metcalfe brought a class action for breach of contract and violation of the Rhode Island Deceptive Trade Practices Act, among other claims. The Defendant moved to dismiss based on a provision in the lease agreement that waived the lessor’s right to bring or join a class action related to the lease.
Class Action Waivers Held to Violate Rhode Island and Massachusetts Public Policy
The District Court held the waiver