U.S. Supreme Court Enforces Contracts Barring Class Arbitration Despite High Litigation Costs
On June 20, 2013, the U.S. Supreme Court issued its opinion in American Express v. Italian Colors Restaurant, holding that contract agreements that require arbitration and prohibit class-action claims are enforceable under the Federal Arbitration Act (“FAA”), even when the potential recovery is overshadowed by costs of individual arbitration. The 5-3 opinion, which was authored… Read More