3rd Circ. Deals FedEx A Blow In Arbitration Suit

Law360, New York (January 12, 2009, 12:00 AM EST) -- A federal appeals court has rejected FedEx Ground Package Systems Inc.'s challenge to a New Jersey judge's finding that the arbitration provisions in the operating agreements between FedEx and a group of ex-delivery drivers were unenforceable.

The U.S. Court of Appeals for the Third Circuit handed down its opinion on Thursday, upholding U.S. District Judge Renee Marie Bumb's October 2007 decision denying FedEx's bid to force the plaintiffs to arbitrate their claims because the arbitration provision was unconscionable, and thus, unenforceable.

Under Pennsylvania law — which...
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