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

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.

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This Alert was republished by AIG in the Fall 2013 edition of Legal Insights.