U.S. Supreme Court Upholds Arbitration Clause In Credit Card Agreement

The case is captioned CompuCredit Corp. v. Greenwood, No. 10-948.


Over the past 20 years, the United States Supreme Court has upheld arbitration clauses from many challenges.  The latest, upholding an arbitration clause in a credit card agreement, will force those who want to make claims against credit card companies to file arbitration proceedings.  Business groups currently prefer arbitration to claims in the court systems.  How this will work over the long-term in anybody's guess.


One result is that the plaintiff's class action against the credit card company will soon be a thing of the past.  Each wronged plaintiff must now file for arbitration.


Sometimes defendants are shocked when they force people to arbitration.  The fees can be steep and most arbitration organizations make the defendants pay the bulk of the fees.  Often the fees exceed the amount at issue.


The undersigned has acted as counsel in cases where the arbitrator's fees exceeded the total amount due to the plaintiff.  Many times, litigants, particularly employers, can be stunned by the size of such fees.


Edward X. Clinton, Jr.


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