The First Circuit Court of Appeals recently issued a decision
that has a significant impact on the ability of employers to avoid
class-wide arbitration. In Fantastic Sams Franchise Corporation v.
FSRO Association Ltd., the First Circuit joined the Second and
Third Circuit Courts of Appeals in limiting the application of the
U.S. Supreme Court's decision in Stolt-Nielsen, S.A. v.
AnimalFeeds International Corp. In Stolt-Nielsen, a consumer case,
the Supreme Court held that parties could not be compelled to
arbitrate class-wide claims unless they agreed to do so. In the
wake of Stolt-Nielsen, many legal observers and defense counsel
believed that Stolt-Nielsen would enable them to avoid class
arbitration unless the arbitration agreement specifically provided
for it, even if the agreement did not include an express provision
prohibiting class arbitration. However, in decisions rendered after
Stolt-Nielsen, the Second and Third Circuits, and now the First
Circuit, have
