Case Report (free download)
Case Report by Sara Susnjar, Edited by Maria Kostytska
In a decision rendered on April 27, 2011, the United States Supreme Court considered whether the Federal Arbitration Act prohibits States from conditioning the enforceability of certain arbitration agreements on the availability of class wide arbitration procedures. Interpreting Section 2 of the Federal Arbitration Act, the Court found that the Act preempts the State laws that prohibit contracts from disallowing class action lawsuits. Such law was previously upheld by the California Supreme Court in Discover Banks v. Superior Court, which held that class waivers in consumer arbitration agreements are unconscionable. This decision took a differing view to the majority decision in Abaclat and Others v. Argentine Republic (formerly known as Giovanna a Beccara and Others v. Argentine Republic), ICSID Case No. ARB/07/5.
Case report provided by International Arbitration Case Law (IACL)
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