U.S. Supreme Court Limits Class Arbitration
View Debevoise Update
- The Supreme Court held that classwide arbitration is barred unless the arbitration agreement expressly authorizes it.
- The Federal Arbitration Act preempts state contract law principles that construe ambiguous agreements as authorizing classwide arbitration.
- Businesses that wish to permit classwide arbitration should review the wording of their arbitration agreements to confirm that they explicitly provide for class procedures.