Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Samuel Estreicher and Holly H. Weiss Samuel Estreicher and Holly H. Weiss

On Wednesday, April 24, 2019, the U.S. Supreme Court issued an opinion in Lamps Plus v. Varela, 587 U.S. ___ (2019), holding that courts cannot construe ambiguous arbitration clauses to permit class arbitration. The decision follows from the court’s 2010 decision in Stolt-Nielsen S.A. v. AnimalFeeds Int’l, 559 U.S. 662, 668 (2010), in which the court held that courts cannot compel class arbitration when an agreement is silent on the availability of class arbitration. In that case, the parties had entered into an arbitration contract that permitted individual arbitration but stipulated that the agreement was silent about class arbitration. The Stolt-Nielsen court emphasized that the core benefits of arbitration consist of its informality which allows for greater speed and efficiency with lower costs. Class arbitration, by contrast, did not offer the same benefits and introduced new risks. As the court would later explain in Epic Systems v. Lewis, 138 S. Ct. 1612, 1623 (2018), with class arbitration, “the virtues Congress originally saw in arbitration, its speed and simplicity and inexpensiveness, would be shorn away and arbitration would wind up looking like the litigation it was meant to displace.” Because of the “risks and costs for both sides” inherent in class arbitration, consent to individual arbitration cannot be read as tantamount to consent to class arbitration; “courts may not infer consent to participate in class arbitration absent an affirmative ‘contractual basis for concluding that the parties had agreed to do so.’” Lamps Plus, 587 U.S. __ (quoting Stolt-Nielsen S.A. v. AnimalFeeds Int’l, 559 U.S. 662, 684 (2010)).

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.