Behind the "Magic-8 Ball": Supreme Court Hears Argument in Sutter

Can an employer that has agreed to arbitrate “all disputes” with its employees be required to participate in “class arbitration,” even if its arbitration agreement doesn’t mention class proceedings? 

The Supreme Court heard argument this morning in Oxford Health Plans LLC v. Sutter, a case that will likely have an important impact on the answer to this question.

Sutter arose from a suit by a physician (Dr. John Sutter) claiming that a health insurer (Oxford Health) breached a physician-reimbursement contract.  The contract called for arbitration of all disputes arising out of the contract and Oxford Health succeeded in having the dispute submitted to arbitration.

The contract said nothing about class arbitration.  Nevertheless , the arbitrator interpreted the general arbitration clause as an agreement to participate in class arbitration.  Dr. Sutter estimated that the class arbitration would include reimbursement claims by up to 20,000 physicians.

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