Arbitration Agreements Win a Big Battle in the Supreme Court

In the past, class action lawsuits have been more akin to extortion than resolution.  The Washington post writes, the Supreme Court voted 5 to 3 to hold up the arbitration agreement in a case between American Express and a group of retailers.

My opinion is that most class action law suits are about making money for the lawyers and the “victims” get a couple bucks.  The travesty is that these class action law suits pit your own lawyers against you by amassing gratuitous legal fees for the defending party.  Rather than settle a class action law suite quickly, the attorney(s) drag it out to inflate their legal fees.

Does this mean that customers have lost their recourse?  Of course not.  They just have to go through an independent third party arbitrator first.  Arbitration is not cheap, but it’s better than the vultures.

You can read more about arbitration agreements at

Here are few class action lawsuits that settled for large sums in the cash advance industry:

$7.5m  Dennis Herrera v. Check N’ Go of California, Inc., et al.

$1.6m Cardegna v. Buckeye Check Cashing (dba CheckSmart)

$600k Reuter v. Ace Cash Express




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