The “Effective Vindication” Doctrine is a Dead Letter After American Express Co. v. Italian Colors Restaurant

Schnader Alert by Stephen A. Fogdall:

The U.S. Supreme Court has ruled that the Federal Arbitration Act requires courts to enforce a contractual waiver of class action procedures in an arbitration clause, even where the practical effect of such a waiver is to bar claimants from asserting claims under federal law because they have no economic incentive to arbitrate them on an individual basis. The Court’s ruling rejects the doctrine that such waivers prevent the “effective vindication” of a federal statutory right.

Please click here to read the full Alert.

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