I once read the way to get rich was not to do a thousand things a few times, but to do one thing well a million times. Corporate America and Corporate China knows this technique very well and this is why they insert arbitration clauses in all agreements. Arbitration clauses force consumers into Corporate America’s Courts where corporate lawyers judge consumer complaints. It’s where the little guy gets little justice. The story comes to us from several sources along with several different points of view.
Daniel Fisher, Forbes Staff Writer, Class-Action Lawyers Lose Big At Supreme Court With American Express Case – Yes they did but the consumer lost more.
American Express Co. et al v. Italian Colors Restaurant et al. (No. 12-133) – Published Opinion
And from our friends at Faegre Baker Daniels, Blog – The decision in American Express vs. Italian Colors goes far beyond antitrust disputes, however. Scalia took direct aim at the idea, never firmly expressed in a Supreme Court decision but repeatedly cited by courts over the years, that contracts requiring parties to arbitrate their disputes could be invalid if they serve to discourage lawsuits because the dollar amount in each individual case is too low.
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The Federal Arbitration Act does not permit courts to invalidate a contractual waiver of class arbitration on the ground that the plaintiff's cost of individually arbitrating a federal statutory claim exceeds the potential recovery. American Express Co. et al v. Italian Colors Restaurant et al. (No. 12-133). Read more. This is the Congress' way of paying back all those fat cats who donated millions of dollars to their re-election campaigns. Well done boys...
Link to the case, copy and paste into your browser: http://www.supremecourt.gov/opinions/12pdf/12-133_19m1.pdf