Financial Services Litigation Bulletin - January 2012
U.S. Supreme Court Enforces Credit Card Arbitration Agreement in Class Action
Class action plaintiff lawyers have long complained of binding arbitration agreements. To avoid them, savvy lawyers include claims that are not subject to arbitration. The plaintiffs employed such a tactic in Compucredit Corp. v. Greenwood, but the U.S. Supreme Court found on January 10, 2012 that the federal claim pled was subject to arbitration under the Federal Arbitration Act because the statute did not itself expressly prohibit arbitration.