U.S. Supreme Court Bars Class-Action Arbitration Absent Contractual Agreement

more+
less-

In Stolt-Nielsen S.A. v. AnimalFeeds International Corporation, the United States Supreme Court recently held that a party may not be compelled under the Federal Arbitration Act (“FAA”) to submit to class arbitration unless there is a contractual basis for concluding that the party agreed to do so. No. 08-1198 (decided April 27, 2010). In an opinion authored by Justice Alito, the Court ruled that the arbitrators had exceeded their powers by imposing their own policy choice favoring class arbitration instead of applying a rule of decision for construing silent arbitration clauses derived from either the FAA, maritime or New York state law.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Alternative Dispute Resolution (ADR) Updates, Civil Procedure Updates, General Business Updates, Finance & Banking Updates, Consumer Protection Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© David Almeida | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »