Ninth Circuit Clears Airline’s Arbitration by Estoppel Argument for Takeoff

Earlier this month, in Herrera v. Cathay Pacific Airways Ltd., a divided Ninth Circuit panel reversed the district court’s order denying Cathay Pacific Airways Ltd.’s motion to compel arbitration of a putative class action brought by airline ticket purchasers.

Plaintiffs, who purchased international flights on Cathay Pacific using the website of third-party vendor ASAP Tickets, alleged that the airline breached its contract with plaintiffs when it failed to issue a refund for a cancelled flight. In an email from Cathay Pacific notifying plaintiffs of the cancellation, plaintiffs were instructed to contract their travel agent to request a refund. When plaintiffs contacted ASAP, whose Terms and Conditions stated that it would process refunds subject to certain restrictions and fees, plaintiffs were told Cathay Pacific would only offer travel vouchers and not a monetary refund. Cathay Pacific, maintaining that it never received a refund request from either plaintiffs or ASAP on behalf of plaintiffs, moved to dismiss or compel arbitration based on a theory of equitable estoppel.

Read the full story here.

Featured Arbitrators

ad
View all

Read these next

Category

6 Hours of Social Media Blackout in Arbitration? The Cybersecurity Perspective

Did Monday 6th October 2021 feel like a snow or rain day to you? With Facebook, Facebook Messenger, Instagram, and WhatsApp down for nearly six hours, panic and confusion took...

By Katie Hyman, Wendy Gonzales
Category

Arbitration Conversation No. 33: Prof. Nicolás Lozada Pimiento from Universidad Externado de Colombia

In this episode of the Arbitration Conversation Amy interviews Nicolás Lozada Pimiento, a partner of the firm Rincón Cuéllar & Asociados and professor of arbitration, trade and business law at...

By Nicolas Pimiento, Amy Schmitz
Category

Arbitration Conversation No. 4: Amy Interviews Prof. Benjamin Davis of University of Toledo College of Law

In this episode Amy Schmitz interviews Ben Davis about diversity in arbitration, with a particular focus on the new Diversity and Inclusion Policy that was recently issued by ICCA (the...

By Benjamin Davis, Amy Schmitz

Find an Arbitrator