Supreme Court Rejects Class Arbitration
April 28, 2010
On April 27, 2010, the Supreme Court issued its decision in Stolt-Nielsen S.A. et al. v. AnimalFeeds Int'l Corp., holding that imposing class arbitration on parties who have not agreed to it is inconsistent with the Federal Arbitration Act. The decision, discussed in the below memo, clarifies the Court's view on an arbitrator's ability to impose class arbitration where the parties' contract is silent on the issue, and addresses several important issues pertaining to the review of arbitral awards.