High Court Nixes Class Arbitration In Stolt-Nielsen Case

By Ben James (April 27, 2010, 4:46 PM EDT) -- The U.S. Supreme Court ruled in favor of petitioners including Stolt-Nielsen SA on Tuesday in a closely watched antitrust case that could have broad effects on arbitration, holding that imposing class arbitration on parties that haven't agreed to class arbitration conflicts with the Federal Arbitration Act.

In a 5-3 decision delivered by Justice Samuel Alito, the nation's highest court reversed a panel decision by the U.S. Court of Appeals for the Second Circuit, which had confirmed an arbitration panel's ruling that gave Animalfeeds International Corp. a green light to pursue class arbitration against several shipping companies over alleged price-fixing.

The Supreme...

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