Rejection Applicability Of FAA, Federal Court Nonetheless Holds Rideshare Drivers Claims Are Arbitrable Under State Law

In MD Islam v. Lyft, the Southern District of New York, noting “that this is a close question that has divided courts to date, sided with those holding “that rideshare drivers in the United States are a ‘class of workers engaged in . . . interstate commerce,’ 9 U.S.C. § 1, such that the Federal Arbitration Act cannot be the basis to compel Plaintiff to arbitrate his claims.” Victory for the putative plaintiff class of Lyft drivers was short-lived, however, as the court held that under New York state law arbitration still was required in that “[t]he language of the contract, which repeatedly emphasizes that the parties ‘agree[d] to waive [their] respective rights to resolution of disputes in a court of law…clearly demonstrates the parties’ intent to arbitrate disputes.'”

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