Claimant Must Submit to Individual Arbitration Per Concepcion, 3rd Cir. Rules

PHILADELPHIA - An American Express cardholder must submit to individual arbitration in accordance with the parties' arbitration agreement, a federal appeals court has affirmed, citing AT&T Mobility LLC v. Concepcion, which states that the right to class arbitration depends on the contractual parties' agreement.

On Aug. 22, the 3rd Circuit U.S. Court of Appeals noted that under Concepcion, the Federal Arbitration Act preempts state law invalidating the waiver of a right to class arbitration.

G.R. Homa sued American Express Co. in the U.S. District Court for the District of New Jersey under the New Jersey Consumer Fraud Act, seeking …