Enforcing Class Arbitration Waivers: The FAA and Unconscionability
June 4, 2009
[This article was originally published in ReinsuranceFocus.com, and does not constitute legal or other professional advice or service by JORDEN BURT LLP and/or its attorneys. John Pitblado is an associate with Jorden Burt LLP at the firm's Simsbury, Conn. office.]
The 3rd Circuit Court of Appeals recently joined the 9th Circuit in ruling that the Federal Arbitration Act is superseded by state common law principles of unconscionability as applied to an arbitration agreement's class action waiver provision, rendering the provision unenforceable. In Homa v. American Express Company,1 the court held that the FAA was superseded by New Jersey …
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