| Volume 135 Number 5 |
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The People’s Lawyer’s Tip of the Day
Texas doesn’t have alimony, but in some cases a spouse may be awarded “spousal support.” If you have been married at least ten years and cannot support yourself, the court may order your spouse to pay support following a divorce. Click here for more.
Four automakers settle airbag case for $553 million
Four automakers have agreed to pay $553 million to settle a class-action lawsuit filed on behalf of owners of 16 million vehicles that were recalled because they contained potentially defective Takata airbag inflators. The inflators can explode with excessive force and spew small shards of metal into the passenger compartment, injuring or killing occupants. At least 16 deaths and more than 180 injuries have been blamed on the inflators worldwide. Toyota is paying the biggest share of the settlement, $278 million, followed by BMW, Mazda, and Subaru. The companies said they settled because of the scope and severity of the recall, but they did not admit fault. Takata itself was not a party in the case, and other automakers still face similar suits.
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Your Money
Credit cards can be a dangerous thing when abused, but when used correctly, they actually offer a number advantages that cash simply can't match. To make the most of your credit card, be sure to steer clear of these major blunders: (1) Paying your bills late; (2) only making your minimum payments; maxing out your credit card limits; (4) closing an old credit card for no good reason; (5) ignoring your credit card terms; (6) not asking for better terms; (7) paying an annual fee for nothing in return; (8) falling into the deferred interest trap; (9) not immediately reporting a lost or stolen card; and (10) letting your rewards expire. Click here for more.
For the Lawyers
Arbitration agreement unenforceable because of choice of law provision. Borrower was required to sign an agreement containing a choice of law provision stating that tribal law would apply, and that “no other state or federal law or regulation shall apply.” The agreement further provided that any dispute would be resolved by arbitration in accordance with tribal law. In finding the agreement unenforceable, the Fourth Circuit noted arbitration agreements that operate “as a prospective waiver of a party’s right to pursue statutory remedies” are not enforceable because they are in violation of public policy. Under the “prospective waiver” doctrine, courts will not enforce an arbitration agreement if doing so would prevent a litigant from vindicating federal substantive statutory rights. The court also refuse to sever the choice of law provision, “[b]ecause these choice of law provisions were essential to the purpose of the arbitration agreement, [the bank’s] consent to application of federal law would defeat the purpose of the arbitration agreement in its entirety.” James Dillon v. BMO Harris Bank, N.A. (4th Cir. 2017). Click here for more.