Second Circuit Holds That Stolt-Nielsen Does Block A Class Action Based On An Arbitration Agreement Waiver

While the U.S. Supreme Court's ruling last year in Stolt-Nielsen S.A. v. AnimalFeeds Int'l Corp., 130 S. Ct. 1758 (2010), constituted a “game-changer” in the field of class arbitration, the scope and breadth of this ruling continues to be a hotly debated topic in class action litigation. 

In 2009, the Second Circuit considered the enforceability of a mandatory class action waiver clause in American Express’ Card Acceptance Agreements. See In Re American Express Merchants’ Litigation, 554 F.3d 300 (2d Cir. 2009) ("Amex I"). In Amex I, the Second Circuit found the class action waiver unenforceable, “because enforcement of the clause would effectively preclude any action seeking to vindicate the statutory rights asserted by the plaintiffs.” Id. at 304. The U.S. Supreme Court granted certiorari and vacated the opinion, remanding it to the Second Circuit for reconsideration in light of Stolt-Nielsen.

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