Class arbitrations have primarily been viewed as an instrument of the US legal system. However, given the international capability and procedural flexibility of arbitration, the scope that they offer for collective redress by consumers is attracting increasing interest.
Tag: Class arbitration
The US Supreme Court recently issued two key decisions regarding the enforceability of class arbitration waivers and arbitrators’ powers to interpret arbitration agreements. In American Express Co. v Italian Colors Restaurant, the Court found that a class arbitration waiver was enforceable even though it thwarted a claimant from pursuing a federal claim due to prohibitive costs. In Oxford Health Plans LLC v Sutter, the Court permitted class arbitration without addressing whether the arbitrator’s interpretation of the arbitration clause was correct. These rulings continue the pro-arbitration federal policy and emphasise that careful drafting of arbitration provisions remains of paramount importance to ensure that arbitrators and the courts effectuate the parties’ intent.