United States Third Circuit

In a class action, district court's dismissal of plaintiffs' complaint with prejudice in favor of individual arbitration is reversed where: 1) the Federal Arbitration Act does not preclude the circuit court from applying state law unconscionability principles to void a class-arbitration waiver; and 2) under New Jersey choice of law principles, if the claims at issue are of such a low value as effectively to preclude relief if decided individually then the application of Utah law to the class-arbitration waiver is invalid and the waiver is unconscionable.

Appellate Information

• Argued 12/01/2008
• Decided 02/24/2009
• Published 02/24/2009

Judges

• Before:  AMBRO, WEIS, and VAN ANTWERPEN, Circuit Judges.

Court

• United States Third Circuit

Counsel

• For Appellant:
  
• F. Paul Bland, Jr., Esq. (Argued), Public Justice, Washington, D.C., Gary S. Graifman, Esq., Kantrowitz, Goldhamer & Graifman, Montvale, NJ, for Appellant.


• For Appellees:
  
• Julia B. Strickland, Esq. (Argued), David W. Moon, Esq., Stroock, Stroock & Lavan, Los Angeles, CA, Louis A. Smith, Esq., Greenberg Traurig, Florham Park, NJ, for Appellees.