Supreme Court Rules Against Inference of Class Arbitration in "Silent" Contracts
Patrick Hulla - Ogletree, Deakins, Nash, Smoak, & Stewart, P.C.
June 21, 2010
April 27, 2010, with Justice Samuel Alito writing for the 5-3 majority (Justice Sonia Sotomayor abstained), the U.S. Supreme Court addressed class-action arbitration when the parties' agreement was silent regarding the aggregation of multiple parties' claims. According to the Court, the arbitration panel's imposition of class arbitration – despite the parties' stipulation that they had not reached an agreement on this issue – is "fundamentally at war" with the Federal Arbitration Act (FAA) principle that arbitration is a matter of consent.
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