US: Supreme Court Restricts Arbitrators' Power to Order Class Arbitration

Tuesday, 22 June 2010

On 27 April 2010, in a 5–3 decision, the US Supreme Court ruled in Stolt-Nielsen SA v AnimalFeeds International Corp No. 08–1198 (2010) that an arbitration tribunal that compels class arbitration, without concluding that the parties contractually agreed to it (either expressly or as construed under the applicable law), exceeded its powers under the Federal Arbitration Act. Mark Beckett, David McLean, Rachel Thorn, Marc Suskin and Timothy Ho of Latham & Watkins report on a case which will diminish the use of class arbitration in the US, although it will continue to be available at least in some circumstances

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