Rejecting the reasoning of two decisions by the Pennsylvania Superior Court, the 3rd Circuit has ruled that arbitration agreements cannot be deemed "unconscionable" solely on the grounds that they require consumers to waive the right to pursue class action claims. A unanimous three-judge panel said it recognized that the two opinions gave the plaintiff support for a claim that the arbitration provision is unconscionable. But the panel also found that the decisions conflict with the Federal Arbitration Act.
3rd Circuit Rejects Superior Court Precedents in Arbitration Case
The Legal Intelligencer
December 21, 2007