Supreme Court to Take Yet Another Look at Arbitration
Consumer rights are on the line as the Supreme Court decides to take up mandatory binding arbitration clauses once again. Last time, in 2011’s AT&T Mobility v. Concepcion decision, the Supreme Court held that corporations can effectively ban class actions—both in court and in arbitration—via class action waivers in consumer contracts that force consumers to arbitrate their claims. Since then, it appeared as though consumers could still bring class actions in court for antitrust violations, as they would be unable to “effectively vindicate their rights” due to the high cost of arbitrating what would be small claims individually. But that could all change with the Supreme Court’s ruling in American Express v. Italian Colors Restaurant, No. 12-0133, set for oral argument early next year, with a decision by the end of June.
Read more at Bloomberg.