Legal News You May Have Missed (February 24, 2013)
By: Jeffrey Lapin This week’s Legal News You May Have Missed covers the week February 17 through 24, 2013. The news items include cell phones, Facebook, mortgage servicers, arbitration and the FBI.
AMEX Changing the Rules: Arbitration Instead of Court
By: Jeffrey Lapin At least since October 2012, American Express (“AMEX”) has changed its Cardmember Agreement to permit it to select binding arbitration for consumer disputes. Before this change, cardmembers could select either arbitration or a trial by jury. Now, unless a cardholder opts-out, AMEX can require arbitration.
Arbitration Clauses Favor Companies Over Consumers
Approximately one year ago, the United States Supreme Court in AT&T Mobility LLC v. Concepcion, upheld forced arbitration clauses and prohibited consumers from pursuing many claims in class action lawsuits. A recent article finds that consumers are disadvantaged by forced arbitration clauses. Companies, not consumers, benefit when disputes are arbitrated rather than litigated and decided