US: Closing remarks made in credit card arbitration clause case

Closing arguments by American Express Co., Discover Financial Services and Citigroup Inc were heard by a Manhattan judge earlier this week as a major case involving contractual arbitration clauses comes to a close. The three credit card giants are accused of colluding to include the clauses in their contracts with customers, preventing them from banning together in class action filings. Attorneys for the companies told the judge that there was “no proof” of the alleged collusion occurring at meetings, and that the companies had independently decided to include such clauses in their contracts. The plaintiffs argue that meetings attended by the companies provided a stage for the companies to conspire to all include the clauses, as arbitration was discussed at those meetings. The plaintiffs’ lawyer Merrill Davidoff argued there would be no other reason for competing rivals to meet 28 times between 1999 and 2003. According to reports, the issuers all adopted the arbitration clauses, which has lead to a “flourishing of harmful practices” by the companies, said Davidoff.

Full Content: Thomson Reuters

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