3rd Circuit Deals Blow to Class-Arbitration Waivers

, The Legal Intelligencer

Consumers and the lawyers who aim to represent them en masse scored a major victory Tuesday when the 3rd Circuit held that arbitration clauses may be struck down -- under state law -- as unconscionable if they prohibit the class action vehicle in cases where a large number of consumers have claims that would individually yield only small sums -- even if the contract included a choice-of-law provision that called for applying the law of a state that is decidedly amenable to such pro-business provisions.

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