Companies can block customers' class-action lawsuits, Supreme Court rules

[MrScorpio]

Justices rule in a Southern California case that firms can force customers to arbitrate their complaints individually. The ruling is seen as a major victory for corporations.

By David G. Savage, Los Angeles Times
April 28, 2011
Reporting from Washington— The Supreme Court dealt a blow to class-action lawsuits that involve small claims affecting thousands or even millions of people by ruling that corporations may use arbitration clauses to block dissatisfied consumers or disgruntled employees from joining together.

In a 5-4 decision, the justices said Wednesday the Federal Arbitration Act of 1925, originally aimed at disputes over maritime and rail shipments, trumps state laws and court rulings in California and about half the states that limit arbitration clauses deemed to be "unfair" to consumers.

The ruling was "the biggest ever" on class actions, said Vanderbilt University law professor Brian Fitzpatrick, an expert on such litigation.

"It gives companies a green light to exempt themselves from all class actions from their customers or from their employees," Fitzpatrick said. "Companies can basically escape from the civil justice system. And why wouldn't a company take advantage of that?"

It has become routine now that when someone opens a bank account, subscribes to a cable TV service, buys a cellphone, a computer or a new car or makes a purchase online, he or she agrees to let disputes go to arbitration.

Many employers include the same kind of fine print for new hires, blocking class-action suits for employees with discrimination or wage complaints.

http://www.latimes.com/business/la-fi-court-class-action-20110428,0,4701430.story

[vi5]

1. Wow, what a bombshell...

Couldn't have seen this coming 20 miles away.

[Overseas]

2. Sad K&R.

More judicial activism from the Roberts Court.

Wish it could be overturned or the Federalist Society members could be impeached.

[MaeScott]

3. Kick this people. nt

[rurallib]

4. another brick in the wall for the corporations.

[ArcticFox]

5. This is the end.

Beautiful friend, the end.

[happyslug]

6. Dupilcate subject from Yesterday, 4-27-2011

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4829629

[spanone]

7. this court is destroying america

[sinkingfeeling]

8. Guess what will happen when they 'rule' on the Wal-Mart suit?

[MedleyMisty]

9. But hey, we can work within the system

ROFL.

Does the Supreme Court have to come right out and declare corporations as our dictators before people realize that the system is broken?