Last fall, JAMS declared that it was inappropriate for a corporation to bar its customers or employees from being part of a class action in an arbitration clause. JAMS later withdrew that policy, (after being pressured by angry corporations). Now JAMS has clarified its current policy: “Until either the United States Supreme Court decides the issues or lawmakers create a consistent legislative policy, JAMS will resolve all issues relating to class action arbitration preclusion clauses on a case-by-case basis in accordance with the law of the jurisdiction in which the arbitration is to take place. In consumer cases, if the arbitration agreement is found to contain a class action preclusion provision, then JAMS will follow the law in the jurisdiction where the arbitration is to take place. If there is no clear law within the jurisdiction regarding the validity of a class action preclusion clause, JAMS will apply the clause as written and will not administer the case as a class action unless a court declares the class action preclusion clause unenforceable.”
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