The 1st Circuit is the second federal circuit to tell a company offering consumer services that it cannot simply ban class actions by inserting a provision in an arbitration clause in its contracts. Consumer lawyers have lauded the court's decision as the first to recognize that bans deprive plaintiffs of the ability to exercise their statutory rights under federal antitrust law. The 9th Circuit and the California Supreme Court have struck down class action waivers as illegal under California law.
May 16, 2006 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
The 1st U.S. Circuit Court of Appeals is the second federal circuit to tell a company offering consumer services that it cannot simply ban class actions by inserting a provision in an arbitration clause in its contracts.
Consumer lawyers have lauded the court’s decision in Kristian v. Comcast Corp., No. 04-2619 and No. 04-2655 (1st Cir. April 2006), as the first to recognize that the bans deprive plaintiffs of the ability to exercise their statutory rights under federal antitrust law.
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