The Supreme Court today issued its opinion in American Express v. Italian Colors Restaurant. The Court holds, 5-3, in an opinion by Scalia, that an arbitration clause that bans class actions can be enforced under the Federal Arbitration Act even if the expense of individual arbitration makes it impossible to pursue a claim.
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We posted last month (here and here) about abuses perpetrated by the concert and sports entertainment industry, which often makes it impossible for consumers to buy tickets at face value. Music-industry celebrities are sometimes part of the problem. The office of New York City councilman Dan Garodnick has followed CL&P's coverage of the issue and alterted […]
Brian's post below mentions the recent New York Times article about automakers' efforts to avail themselves of their dealers' arbitration agreements with customers, as well as the Ninth Circuit's decision in Kramer v. Toyota rejecting one such effort. Anyone interested in these subjects might also want to know that Toyota has filed a petition for a […]
This article by Christopher Jensen explains that the big automakers are trying to use aribtration clauses in consumers' contracts with auto dealers to escape liability in court in class actions and with respect to individual claims under state "lemon laws." I posted in February about a Ninth Circuit ruling rejecting an effort by Toyota to […]
Consumer advocates have long been outraged by the phenomenon of "pay for delay" in the prescription drug business, whereby brand-name drug companies pay off potential generic competitors to stay out of the market. In return for the payments, the generics drop their challenges to the brand name companies' patents, and the brand name and generic […]
In a blog post last June, we noted an Alabama Supreme Court ruling that a patient who took a generic version of a drug may sue a brand-name drug manufacturer for failing to warn about a drug’s risks. The court had reasoned that the brand-name manufacturer could have foreseen that a physician prescribing the brand-name […]
by Brian Wolfman We posted in March when a state trial court in New York threw out New York City's ban on the sale of sugary drinks larger than 16 ounces. We have posted many times on the ban, including here, here, here, and here. On Tuesday, New York's appeal was argued in the New […]
In recent years, Supreme Court decisions have narrowed the circumstances in which class actions can be maintained under Federal Rule of Civil Procedure 23. In "Walking the Class Action Maze: Toward a More Functional Rule 23," law professor Robert Bone says that because these Supreme Court decisions are interpretations of the federal rule, the rule […]
This morning, the Massachusetts Supreme Judicial Court (SJC) issued two opinions addressing whether there remain any circumstances in which an arbitration agreement that bans class actions can still be challenged after the Supreme Court's decision in AT&T Mobility LLC v. Concepcion. The SJC strongly aligned itself with the view that Concepcion does not make class […]
The Consumer Financial Protection Bureau has issued this study on bank and credit union overdraft practices. As explained in the agency's press release, the study raises concerns about whether the overdraft costs on consumer checking accounts can be anticipated and avoided. The report shows big differences across financial institutions when it comes to overdraft coverage […]