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US: SCOTUS arbitration clause case against AMEX could swing either way

By  |  February 28, 2013

The probable outcome of the US Supreme Court case concerning arbitration clauses remains unclear after Wednesday’s oral arguments, especially as Justice Anthony Kennedy suggested the record may be underdeveloped. Kennedy, considered a possible swing vote, added that the merchants’ claims against American Express Co – that the company’s arbitration clause improperly barred the merchants to effectively bring a claim against the company – may not be able to be determined. Reports, however, say both sides remain optimistic at their chances. Previous Supreme Court cases have secured the existence of the clauses, which prevent class actions from being taken up against companies. In this case, the merchants are arguing in American Express Co v. Italian Colors Restaurant that the clauses bar merchants from effectively bringing federal claims to court. Lawsuits filed against the credit card company have been filed by other merchants in California and New York considering the matter.

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