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Major arbitration firm won't enforce clauses barring class actions.

Publication: Trial
Publication Date: 01-FEB-05 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
Judicial Arbitration and Mediation Services (JAMS), one of the nation's largest private alternative dispute resolution (ADR) companies, recently announced that it will no longer enforce provisions in consumer contracts that prohibit class action arbitration. In a statement announcing the policy, JAMS called on companies to remove class-action preclusion clauses from contracts, "understanding that the inclusion of such clauses is an unfair restriction on the rights of the consumer."

Plaintiff attorneys applauded the move, saying it would restore important legal rights to consumers. "It's a very principled, balanced, and fair rule," said Stuart Rossman, litigation director at the National Consumer Law Center in Boston.

"If you're going to...

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