Second Circuit Refuses to Enforce Class Action Waiver in Arbitration Agreement

The Second Circuit ruled today that a class action arbitration waiver contained in credit card agreement was unenforceable. See In Re: American Express Merchants’ Litigation, No. 06-871 (2d Cir. 2009). The relevant part of the arbitration agreement stated: IF ARBITRATION IS CHOSEN BY ANY PARTY WITH RESPECT TO A CLAIM, NEITHER YOU NOR WE WILL … Continue reading Second Circuit Refuses to Enforce Class Action Waiver in Arbitration Agreement

Class Action Arbitration Waiver in Consumer Contract Enforceable

A federal district court in New Jersey held that a class action arbitration waiver contained in an arbitration agreement between a consumer and a business is enforceable even though the state court had held that such waivers are unconscionable. Litman v. Cellco Partnership, No. 07-CV-4886 (2008). See http://www.wileyrein.com/docs/docs/215.pdf The federal court found that the Federal … Continue reading Class Action Arbitration Waiver in Consumer Contract Enforceable