Stolt-Nielsen S.A., et al. v AnimalFeeds International Corp.

Case Updates

The Supreme Court ruled that class arbitration may not be imposed on parties who have not consented to it. The Supreme Court's decision ensures that arbitration will continue to be a fair, faster, and cheaper alternative to litigation.

NCLC urged the Supreme Court to reverse a Second Circuit decision permitting class arbitration where the arbitration agreement is silent as to class arbitration. In this case, the plaintiffs accused Stolt-Nielsen of conspiring to restrain the world market for parcel tanker shipping services. In the subsequent arbitration dispute, AnimalFeeds filed a demand to proceed as a class. However, the original arbitration agreement between the two parties is silent as to class arbitration. In its brief, NCLC argued that the silence on class arbitration does not permit courts or arbitrators to impose class arbitration. Given the high stakes and costs imposed by class arbitration, it undermines the purpose of arbitration as a fair, faster, and cheaper alternative to litigation.

Click here to view the Chamber's brief.