The Supreme Court has issued a summary order in the American Express Merchants’ Litigation that suggests that it believes that Stolt-Nielsen, S.A. v. AnimalFeeds Int’l Corp., 559 U.S. ___ , slip op. (2010) renders class arbitration waivers enforceable despite public policy and other challenges. Readers may recall that on May 29, 2009 American Express filed a petition for a writ of certiorari in the American Express Merchants’ Litigation, in which the United States Court of Appeals for the Second Circuit held that a provision in an arbitration agreement forbidding class action arbitration was invalid and unenforceable under federal public policy grounds in the circumstances presented by the case. See Re American Express Merchants’ Litigation, 554 F.3d 300 (2d Cir. 2009), vacated and remanded sub. nom., American Express Co. v. Italian Colors Restaurant, No. 08-1473 (May 3, 2010).
On May 3, 2010 the United States Supreme Court issued a summary order in American Express Co. v. Italian Colors Restaurant, No. 08-1473 granting certiorari, summarily vacating the judgment of the United States Court of Appeals for the Second Circuit, and remanding it “for further consideration in light of” Stolt-Nielsen. Justice Sonia M. Sotomayor “took no part in the consideration or decision” of the petition. Italian Colors, No. 08-1473 (May 3, 2010) (summary disposition).
It will be interesting to see what the Second Circuit does with the case on remand.
Tags: American Express Merchants' Litigation, Class Action Waiver, Class Arbitration, Class Arbitration Waiver, Stolt Nielsen S.A. v. Animalfeeds Int'l Corp., United States Court of Appeals for the Second Circuit, United States Supreme Court
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