SCOTUS - Class Arbitration Waiver Is Enforceable

The Supreme Court issued its decision in American Express v. Italian Colors, holding that the Federal Arbitration Act ("FAA") does not permit a court to invalidate a contractual waiver of class arbitration on the ground that the claimant's cost of individually arbitrating a federal statutory claim exceeds the claimant's potential recovery. The "effective vindication" exception that originated as dictum in Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc. does not invalidate a class arbitration waiver.

The Respondents were a group of merchants who accept credit cards. Each had entered into an agreement with Amex requiring all disputes to be resolved in arbitration, and specifically waiving any right to arbitrate claims on a class basis. The merchants nevertheless brought a class action against Amex alleging violations of federal antitrust laws by using its monopoly power to force merchants to pay higher fees. Amex moved to compel individual arbitration under