Class Arbitration May Meet Its Demise At High Court This Term

Law360 (September 21, 2020, 3:13 PM EDT) -- In Stolt-Nielsen SA v. AnimalFeeds International Corp., the U.S. Supreme Court held that "a party may not be compelled under the [Federal Arbitration Act] to submit to class arbitration unless there is a contractual basis for concluding that the party agreed to do so."[1] Because the agreement in Stolt-Nielsen was silent on the issue, the court ruled that class arbitration was not available.[2]

Although Stolt-Nielsen's directive seemed clear, courts and arbitrators struggled to apply the court's ruling to situations when the agreement is not silent, but rather ambiguous on the issue of class arbitration.

The Supreme Court recently put this issue...

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