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Validity of Class Action Waiver in Arbitration Agreement Decided by Court, Not Arbitrator

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In this case, the Third Circuit Court of Appeals held that the court, rather than an arbitrator, must decide the validity of a class action waiver contained in an arbitration agreement. This decision is consistent with Muhammad v. Cty. Bank of Rehoboth Beach, Delaware, 189 N.J. 1 (2006), in which the New Jersey Supreme Court likewise concluded that it is for the court, rather than the arbitrator, to decide whether a class action waiver is valid.

Puleo v. Chase Bank USA, N.A., 2010 WL 1838762 (3d Cir., May 10, 2010) – In this case, the Third Circuit Court of Appeals held that the court, rather than an arbitrator, must decide the validity of a class action waiver contained in an arbitration agreement. This decision is consistent with Muhammad v. Cty. Bank of Rehoboth Beach, Delaware, 189 N.J. 1 (2006), in which the New Jersey Supreme Court likewise concluded that it is for the court, rather than the arbitrator, to decide whether a class action waiver is valid. Although these cases are not employment cases, their holdings apply in the employment context as well.

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Class Action , Employment Law

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