Court won’t rehear AmEx’s arbitration clause case

2nd Circuit panel ruled in February that arbitration clause could not prevent class actions

The 2nd Circuit said yesterday that it would not rehear a case centered on an arbitration clause that would prevent American Express merchant customers from filing antitrust lawsuits against the company.

For 13 years, AmEx has included a clause in its customer agreements mandating its merchant customers to agree to arbitration and waive their rights to sue the company in a class action. The two-judge panel ruled in February that the clause is unenforceable because it violates the customers’ rights under federal antitrust laws. A group of merchants in California and New York initiated the lawsuit in 2003.


Cathleen Flahardy

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