The defendants in
Pearce were advisors to individuals who were nearing a state of insolvency and were seeking to restructure their debt. Several former customers alleged the defendants were operating illegally and sought a return of fees paid and damages.
The former customers sought to have their claims certified as a class action proceeding. Some of these customers had entered into a standard form contract with the defendants that contained a class action waiver clause. The clause purported to prevent the customers from bringing class action proceedings. The defendants opposed class certification, and sought a stay of proceedings against some customers based on the class action waiver clause, among other grounds.