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

On August 23, 2013 by Schnader

Stephen A. Fogdall, John K. Gisleson, and Christopher A. Reese co-authored the article “The “Effective Vindication” Doctrine is a Dead Letter After American Express Co. v. Italian Colors Restaurant” which was published in the August 2013 edition of the International Association of Defense Counsel’s (IADC) Business Litigation Committee Newsletter. 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.