Supreme Court decision in American Express Co. v. Italian Colors Restaurant
20 June 2013Class Action Alert
Today a divided Supreme Court held that courts must enforce class arbitration waivers even where a plaintiff shows that it is economically infeasible to arbitrate individually. The five-to-three decision (with one Justice recused) explained that under the Federal Arbitration Act (FAA), courts must “rigorously enforce” the terms of arbitration agreements that are freely entered into. Courts cannot avoid this obligation simply by finding that enforcing an arbitration agreement would make it impracticable for plaintiffs to bring claims enforcing federal statutory rights.