Arbitration Contracts Can Ban Class Actions: High Court

Law360, New York (April 27, 2011, 2:11 PM EDT) -- The U.S. Supreme Court ruled Wednesday in a case over AT&T Mobility LLC customer contracts that the Federal Arbitration Act preempts state laws that invalidate class action arbitration waivers, a decision that could spell doom for classwide arbitration, attorneys say.

Coupled with the high court's recent ruling in Stolt-Nielsen SA v. AnimalFeeds International Corp., experts say the high court's 5-4 decision to overturn a Ninth Circuit ruling striking down the class action ban in AT&T's consumer arbitration agreements as unconscionable under state law comes as a...
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