American Express Arbitration Agreement

It was only last Friday that the Supreme Court agreed to review a second trial that allowed for a class action, despite arguments that the arbitration clause excludes class action. The granting of these petitions is an appropriate way to end a year in which there are important discussions about the application of… In a dispute involving fraudulent fees, the District of Connecticut asked American Express and the card member to resolve their problem in arbitration proceedings, pursuant to cardmember`s agreement as amended. AmEx informed the arbitration decision in a document entitled “Significant Changes to Your Account Conditions,” in which changes to the arbitration provision were explained and card members have the option of rejecting the provision, which the card member did not do here. The card member “claimed that he did not have the recollection of an arbitral provision contained in his Cardmember contract, nor a reminder of a certain modification of his Cardmember agreement that imposed an arbitration provision or required him to opt out of an arbitration. Nevertheless, the card member acknowledged that “he and his accounts were subject at all times under a Cardmember contract.” This case was tried at the request of the defendant American Express National Bank an Compel arbitration (doc. 17). Since there is a valid and binding arbitration agreement between the parties, I recommend that the application be accepted and that the matter be referred to arbitration. Chase, however, began to include forced conciliation on many of its cards in August 2019 for new and current customers. New cardholders will have the opportunity to opt out for a specified period of time, said Mary Jane Rogers, head of communications for card and distributor services at Chase. When considering an arbitration application, the court may consider evidence outside of the briefs.

Banks v. Cashcall, Inc., 188 F. Supp.3d 1296, 1303 n.3 (M.D. Fla. 2016). It is entirely possible that the existence of significant arbitration fees could exclude a complainant like Randolph effectively justifying their federal legal rights in the arbitration forum.   But the record does not show that Randolph will bear such costs by going to arbitration.   Indeed, it contains little information about it.

The protocol merely reveals the silence of the arbitration agreement on this subject, and this fact alone is clearly not sufficient to render it unenforceable.   The “risk” of Randolph being subject to prohibitive costs is too speculative to justify the cancellation of an arbitration agreement.  A. Skill. Article 16 bis(3) of the FAA, 9 U.C No. 16 bis (3) provides that an appeal may be filed under “a final decision concerning an arbitration procedure submitted to this title.”   Indeed, “an order requiring a party to arbitration and reject the underlying claims is a “final decision regarding an arbitration proceeding,” “Green Tree Fin. Corp.-Alabama v. Randolph, 531 U.S. 79, 82, 121 S.C.513, 148 L.Ed.2d 373 (2000), it is indisputable that this Court has jurisdiction to rule on an immediate appeal. At Mitsubishi, the Supreme Court stated that there is no necessary reason to prevent the sending of a Sherman Act, because “as long as the potential plaintiff can effectively justify his legal cause of action in the arbitration forum, the status will continue to serve both its function of reparation and deterrence.”  473 U.S.

Categories: Uncategorized