This One Goes Into Arbitration, Even The Request For An Injunction.

Plaintiffs allege a for-profit school misled prospective students in order to entice enrollment by misrepresenting the quality of education, its accreditation, the career prospects for its graduates and the actual cost of education. In their action, plaintiffs pray for both damages and injunctive relief. Pursuant to the school’s petition, based upon arbitration agreements contained in its enrollment documents, the district court ordered all but the claim for an injunction into arbitration. The Ninth Circuit reversed and directed the trial court to grant the motion to compel arbitration as to all claims, stating: “In the event that the arbitrator concludes that [the school] has violated the UCL, FAL, or CLRA, and that entry of an injunction might be appropriate, but further determines that it lacks the authority under the agreements at issue to grant the requested injunction, Plaintiffs may seek the requested injunction in court. We express no opinion about the merits of such action.”  (Ferguson v. Corinthian Colleges, Inc. (Ninth Cir.; October 28, 2013) 733 F.3d 928.)