Corporate America Wins Again With Supreme Court Ruling Against Class Action Small ClaimsBy: David Dayen - FDL
Wednesday April 27, 2011 12:27 pm
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The Supreme Court didn’t hold a press conference, but they made a major contribution to the lives of Americans in a ruling today. And wonder of wonders, it benefits corporations at the expense of regular people.The Supreme Court gave corporations a major win Wednesday, ruling in a 5-4 decision that companies can block their disgruntled customers from joining together in a class-action lawsuit. The ruling arose from a California lawsuit involving cellphones, but it will have a nationwide impact.
In the past, consumers who bought a product or a service had been free to join a class-action lawsuit if they were dissatisfied or felt they had been cheated. By combining these small claims, they could bring a major lawsuit against a corporation.
But in Wednesday’s decision, the high court said that under the Federal Arbitration Act companies can force these disgruntled customers to arbitrate their complaints individually, not as part of a group. Consumer-rights advocates said this rule would spell the end for small claims involving products or services.
This was a typical 5-4 special, with Kennedy swinging to the conservatives. John Roberts continues his unblemished record of siding with corporate interests.
Plus...
UPDATE: As Scarecrow notes, the real issue here is binding arbitration. Phone plans have arbitration clauses that the justices are basically using here to supersede small claims court. Sens. Al Franken and Richard Blumenthal, along with Rep. Hank Johnson, have legislation that would deal with this. From their release:
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More:
http://news.firedoglake.com/2011/04/27/corporate-america-wins-again-with-supreme-court-ruling-against-class-action-small-claims/:mad:
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