In American Express Co. v. Italian Colors Restaurant, a divided Supreme Court today reversed the Second Circuit and held that plaintiffs may not invalidate an arbitration agreement containing a class action waiver merely because proving their claims on an individual basis would cost many times more than their potential recovery. In doing so, Justice
SCOTUS Hears AmEx III: Argument highlights
The Supreme Court heard arguments in AmEx III today, the case that presents the question whether an arbitration agreement precluding class actions can be invalid if it makes it impossible for plaintiffs to vindicate federal statutory rights (in this case, because individual antitrust cases would be prohibitively expensive). The full transcript is available here.
2012 in Arbitration Law: Is Class Arbitration Naughty or Nice?
The big issue in arbitration law in 2012 was class arbitration. Many state court opinions that had found class arbitration waivers unconscionable were preempted under federal law based on application of Concepcion. And the federal circuit courts developed a split on how to interpret Stolt-Nielsen in cases where the parties’ arbitration agreement lacks language
Preview of SCOTUS's 2013 Double-Feature on Class Arbitration
Just last Friday, the Supreme Court agreed to review a second circuit court case that allowed a class action to proceed, despite arguments that the arbitration clause precluded any collective actions. The granting of these petitions is a fitting way to end a year in which there has been considerable discussion about how to apply
Amex, The Threequel: Second Circuit Keeps Alive Notion That Prohibitive Expense Is Basis To Invalidate Arbitration Agreements
In the latest serve in a four-year ping-pong match between it and the Supreme Court, the Second Circuit has re-re-affirmed its holding that American Express may not compel arbitration of antitrust claims by a class of national merchants. In Re Am. Express Merchants’ Litig., ___ F.3d ___, 2012 WL 284518 (2d Cir. Feb. 1,