Green Tree Financial Corp. v. Bazzle
- Case Date: 2/24/2003
- Project Name: Class Action Reform
On June 23, 2003, the U.S. Supreme Court overturned a South Carolina decision that superimposed class action procedures onto arbitration proceedings despite the absence of any agreement among the parties to proceed in that manner. The decision was a victory for WLF, which filed a brief urging that the South Carolina decision be overturned. WLF argued that allowing arbitrations to proceed as class actions will undermine the effectiveness of arbitration as an efficient alternative to litigation. WLF argued that had the lower-court decision permitting class actions been allowed to stand, parties to a contract would be far more reluctant to enter into arbitration agreements as an alternative means of settling future disputes. The Court agreed with WLF that it is up to the arbitrator, not the state courts, to decide whether the parties in an arbitration proceeding actually agreed that their dispute could be decided on a class-wide basis.
More Information and Downloads:
2/24/2003: Download the Brief
Litigation Update: Court Overturns Use of Class Actions in Arbitration Proceedings
Press Release: Court Urged To Bar Class Actions In Arbitration Proceedings