Arbitration Agreements and Class Actions: Supreme Court Enforces Arbitration Agreement with Class Action Waiver, Narrowing the Scope of Ability to Avoid Such Agreements

Sullivan & Cromwell LLP - June 21, 2013

The United States Supreme Court yesterday continued its rigorous enforcement of arbitration agreements, including those containing waivers of class arbitration. The Court in American Express Co. v. Italian Colors Restaurant held that a contractual waiver of class arbitration is enforceable under the Federal Arbitration Act despite the plaintiffs’ claims that the cost of individually arbitrating a federal statutory claim would exceed the potential recovery.