Class Arbitration: U.S. Supreme Court Holds That an Ambiguous Arbitration Agreement Cannot Support Class Arbitration

Sullivan & Cromwell LLP - April 26, 2019

Earlier this week, the U.S. Supreme Court held in Lamps Plus, Inc. v. Varela that under the Federal Arbitration Act (FAA), courts cannot infer an agreement to arbitrate on a class basis from an arbitration clause that is ambiguous on the question of class claims. The Court’s decision is likely to mean that agreements that do not mention class arbitration expressly will rarely be held to permit that form of arbitration.