In April 2011, the U.S. Supreme Court issued a landmark opinion addressing whether arbitration agreements drafted to prohibit class relief are enforceable. AT&T Mobility LLC v. Concepcion, 131 S.Ct. 1740 (2011) reiterated the Court's strong and consistent message that arbitration agreements must be enforced according to their terms.
It emphasized in its holding that the parties' expectations must be honored even if those terms include class or collective action waivers, because "arbitration is a matter of contract." In fact, the Concepcion Court went further and noted the incompatibility between arbitration's demonstrated efficiencies in resolving individual disputes compared with the statistical inefficiency of class relief. It concluded that class relief is inappropriate in arbitration unless the parties' agreement specifically authorizes it.
To read more about this topic, please see full article by clicking here, which was published in the October 2012 issue of the LJN Franchising Business & Law Alert.
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