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Expert Analysis

Attempting To Limit Class Action Waivers And The FAA

By John Hansen ( July 25, 2017, 12:07 PM EDT) -- Relying on expansive U. S. Supreme Court interpretations of the Federal Arbitration Act, 9 U. S. C. § 1 et seq. (FAA), businesses have found a way to kill class actions by consumers and employees who allege they, among many others, have relatively small-dollar-amount claims against their vendor or employer. The Supreme Court has held that the FAA permits businesses, as a condition of sales, services or employment, to require consumers and employees to sign contracts agreeing to bring their complaints only in arbitration proceedings, not in courts, and to waive the right to represent a class with similar complaints. . . .

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