american express co et al italian colors restaurant et argued february decided june agreement petitioners american express subsidiary respondents merchants accept american express cards requires disputes resolved arbitration provides shall right authority claims arbitrated class action basis respondents nonetheless filed class action claiming petitioners violated sherman act seeking treble damages class clayton act petitioners moved compel individual arbitration federal arbitration act faa respondents countered cost expert analysis necessary prove antitrust claims greatly exceed maximum recovery individual plaintiff district granted motion dismissed lawsuits second circuit reversed remanded holding prohibitive costs respondents face arbitrate waiver unenforceable arbitration proceed circuit stood reversal remanded light animalfeeds international held party may compelled submit class arbitration absent agreement held faa permit courts invalidate contractual waiver class arbitration ground plaintiff cost individually arbitrating federal statutory claim exceeds potential recovery pp faa reflects overarching principle arbitration matter contract see west jackson courts must rigorously enforce arbitration agreements according terms dean witter reynolds byrd even claims alleging violation federal statute unless faa mandate contrary congressional command compucredit greenwood pp contrary congressional command requires rejection waiver antitrust laws guarantee affordable procedural path vindication every claim see rodriguez evince intention preclude waiver procedure mitsubishi motors congressional approval federal rule civil procedure establish entitlement class proceedings vindication statutory rights rule imposes stringent requirements certification exclude claims rejected assertion requirement must dispensed prohibitively high cost compliance frustrate plaintiff attempt vindicate policies underlying antitrust laws eisen carlisle jacquelin pp effective vindication exception originated dictum mitsubishi motors soler also invalidate instant arbitration agreement exception comes desire prevent prospective waiver party right pursue statutory remedies fact worth expense involved proving statutory remedy constitute elimination right pursue remedy cf gilmer lane vimar seguros reaseguros sky reefer mobility llc concepcion resolves case finding law conditioned enforcement arbitration availability class procedure interfered fundamental arbitration attributes specifically rejected argument class arbitration necessary prosecute claims might otherwise slip legal system pp reversed scalia delivered opinion roberts kennedy thomas alito joined thomas filed concurring opinion kagan filed dissenting opinion ginsburg breyer joined sotomayor took part consideration decision case opinion notice opinion subject formal revision publication preliminary print reports readers requested notify reporter decisions washington typographical formal errors order corrections may made preliminary print goes press american express company et petitioners italian colors restaurant et al writ certiorari appeals second circuit june justice scalia delivered opinion consider whether contractual waiver class arbitration enforceable federal arbitration act plaintiff cost individually arbitrating federal statutory claim exceeds potential recovery respondents merchants accept american express cards agreement petitioners american express wholly owned subsidiary contains clause requires disputes parties resolved arbitration agreement also provides shall right authority claims arbitrated class action basis american express merchants litigation respondents brought class action petitioners violations federal antitrust laws according respondents american express used monopoly power market charge cards force merchants accept credit cards rates approximately higher fees competing credit tying arrangement respondents said violated sherman act sought treble damages class clayton act petitioners moved compel individual arbitration federal arbitration act faa et seq resisting motion respondents submitted declaration economist estimated cost expert analysis necessary prove antitrust claims least several hundred thousand dollars might exceed million maximum recovery individual plaintiff trebled app district granted motion dismissed lawsuits appeals reversed remanded proceedings held respondents established incur prohibitive costs compelled arbitrate class action waiver waiver unenforceable arbitration proceed american express merchants litigation granted certiorari vacated judgment remanded consideration light animalfeeds held party may compelled submit class arbitration absent agreement american express italian colors restaurant appeals stood reversal stating earlier ruling compel class arbitration american express merchants litigation sua sponte reconsidered ruling light mobility llc concepcion held faa state law barring enforcement waiver finding mobility inapplicable addressed appeals reversed third time denied rehearing en banc five judges dissenting american express merchants litigation granted certiorari consider question hether federal arbitration act permits courts invalidate arbitration agreements ground permit class arbitration claim pet cert ii congress enacted faa response widespread judicial hostility arbitration see mobility supra slip relevant act provides written provision maritime transaction contract evidencing transaction involving commerce settle arbitration controversy thereafter arising contract transaction shall valid irrevocable enforceable save upon grounds exist law equity revocation contract text reflects overarching principle arbitration matter contract see west jackson slip consistent text courts must rigorously enforce arbitration agreements according terms dean witter reynolds byrd including terms specify parties choose arbitrate disputes supra rules arbitration conducted volt information sciences board trustees leland stanford junior holds true claims allege violation federal statute unless faa mandate contrary congressional command compucredit greenwood slip quoting express mcmahon iii contrary congressional command requires us reject waiver class arbitration respondents argue requiring litigate claims individually contracted contravene policies antitrust laws antitrust laws guarantee affordable procedural path vindication every claim congress taken measures facilitate litigation antitrust claims example enacted remedy see treble damages enacting measures congress told us willing go certain respects beyond normal limits law advancing goals deterring remedying unlawful trade practice say congress must intended whatever departures normal limits advance antitrust goals simply irrational legislation pursues purposes costs rodriguez per curiam antitrust laws evinc intention preclude waiver procedure mitsubishi motors soler sherman clayton acts make mention class actions fact enacted decades advent federal rule civil procedure designed allow exception usual rule litigation conducted behalf individual named parties califano yamasaki parties agreed arbitrate pursuant usual rule remarkable erase expectation congressional approval rule establish entitlement class proceedings vindication statutory rights begin likely entitlement invalidating private arbitration agreements denying class adjudication abridg ment modif ication substantive right forbidden rules see evidence entitlement event rule imposes stringent requirements certification practice exclude claims specifically rejected assertion one requirements requirement must dispensed prohibitively high cost compliance frustrate plaintiff attempt vindicate policies underlying antitrust laws eisen carlisle jacquelin one might respond perhaps federal law secures nonwaivable opportunity vindicate federal policies satisfying procedural strictures rule invoking informal class mechanism arbitration already rejected proposition mobility slip iv finding contrary congressional command end case respondents invoke exception faa say serves harmonize competing federal policies allowing courts invalidate agreements prevent effective vindication federal statutory right enforcing waiver class arbitration bars effective vindication respondents contend economic incentive pursue antitrust claims individually arbitration effective vindication exception respondents allude originated dictum mitsubishi motors expressed willingness invalidate public policy grounds arbitration agreements operat prospective waiver party right pursue statutory remedies emphasis added dismissing concerns arbitral forum inadequate said long prospective litigant effectively may vindicate statutory cause action arbitral forum statute continue serve remedial deterrent function subsequent cases similarly asserted existence effective vindication exception see penn plaza llc pyett gilmer lane similarly declined apply invalidate arbitration agreement described exception finds origin desire prevent prospective waiver party right pursue statutory remedies mitsubishi motors supra emphasis added certainly cover provision arbitration agreement forbidding assertion certain statutory rights perhaps cover filing administrative fees attached arbitration high make access forum impracticable see green tree financial randolph may well existence large arbitration costs preclude litigant effectively vindicating federal statutory rights fact worth expense involved proving statutory remedy constitute elimination right pursue remedy see jacobs dissenting denial rehearing en banc waiver merely limits arbitration two contracting parties eliminates parties right pursue statutory remedy federal law adoption class action legal relief see fed rule civ proc supp wright miller kane federal practice procedure ed put differently individual suit considered adequate assure effective vindication federal right adoption procedures suddenly become ineffective vindication upon pair cases brings home point gilmer supra qualms enforcing class waiver arbitration agreement even though federal statute issue age discrimination employment act expressly permitted collective actions said statutory permission mean individual attempts conciliation intended barred vimar seguros reaseguros sky reefer held requiring arbitration foreign country compatible federal carriage goods sea act legislation prohibited agreement liability carrier damaged goods quoting app ed close codification effective vindication exception rejected argument inconvenience costs proceeding abroad lessen ed defendants liability stating unwieldy unsupported terms policy statute require courts proceed case case tally costs burdens particular plaintiffs light means size claims relative burden carrier tally ing costs burdens precisely dissent impose upon federal courts truth tell decision mobility resolves case invalidated law conditioning enforcement arbitration availability class procedure law interfere fundamental attributes arbitration slip switch bilateral class arbitration said sacrifices principal advantage arbitration informality makes process slower costly likely generate procedural morass final judgment slip specifically rejected argument class arbitration necessary prosecute claims might otherwise slip legal system slip regime established appeals decision require plaintiff held contractually agreed bilateral arbitration federal determine parties litigate legal requirements success merits evidence necessary meet requirements cost developing evidence damages recovered event success preliminary litigating hurdle undoubtedly destroy prospect speedy resolution arbitration general bilateral arbitration particular meant secure faa sanction judicially created superstructure judgment appeals reversed ordered justice sotomayor took part consideration decision case thomas concurring american express company et petitioners italian colors restaurant et al writ certiorari appeals second circuit june justice thomas concurring join opinion full write separately note result also required plain meaning federal arbitration act mobility llc concepcion explained faa requires agreement arbitrate enforced unless party successfully challenges formation arbitration agreement proving fraud duress concurring opinion slip case italian colors makes two arguments support conclusion arbitration agreement enforced first contends enforcing arbitration agreement contravene policies antitrust laws ante second contends may invalidate agreements prevent vindication federal statutory right ante neither argument concern whether contract properly made concepcion supra thomas concurring slip italian colors furnished grounds revocation contract arbitration agreement must enforced italian colors voluntarily entered contract containing bilateral arbitration provision escape obligations merely claim wishes bring might economically infeasible kagan dissenting american express company et petitioners italian colors restaurant et al writ certiorari appeals second circuit june justice kagan justice ginsburg justice breyer join dissenting nutshell version case unfortunately obscured decision owner small restaurant italian colors thinks american express amex used monopoly power force merchants accept form contract violating antitrust laws restaurateur wants challenge allegedly unlawful provision imposing tying arrangement contract arbitration clause prevents term imposes variety procedural bars make pursuit antitrust claim fool errand arbitration clause enforceable amex insulated antitrust liability even fact violated law monopolist gets use monopoly power insist contract effectively depriving victims legal recourse nutshell version today opinion admirably flaunted rather camouflaged darn bad answer betrayal precedents federal statutes like antitrust laws decisions developed mechanism called rule prevent arbitration clauses choking plaintiff ability enforce congressionally created rights doctrine bars applying clause operates confer immunity potentially meritorious federal claims rule reconciles federal arbitration act faa rest federal law indeed promotes fundamental purposes faa applied rule ensure amex arbitration clause foreclose italian colors vindicating right redress antitrust harm majority barely tries explain reaches contrary result notes decided exact case neglecting principle established fits case hand glove concocts special exemption waivers ignoring case concerns much throughout majority disregards decisions central tenet arbitration clause may thwart federal law exactly today prevents effective vindication federal statutory rights respectfully dissent start uncontroversial proposition refuse enforce exculpatory clause insulating company antitrust liability say merchants may bring sherman act claims even clause contained arbitration agreement see ante congress created sherman act private cause action solely compensate individuals promote public interest vigilant enforcement antitrust laws lawlor national screen service accordingly courts enforce prospective waiver right gain redress antitrust injury whether arbitration agreement contract see mitsubishi motors soler rule applies important federal statutory rights see penn plaza llc pyett age discrimination employment act brooklyn savings bank fair labor standards act necessity nowhere evident antitrust context without rule company use monopoly power protect monopoly power coercing agreement contractual terms eliminating antitrust liability rule limited baldly exculpatory however monopolist devise numerous ways around consider several alternatives party drafting arbitration agreement adopt avoid antitrust liability identical effect front end agreement might set outlandish filing fees establish absurd statute limitations thus preventing claimant gaining access arbitral forum back end agreement might remove arbitrator authority grant meaningful relief judgment gets claimant nothing worthwhile middle agreement might block claimant presenting kind proof necessary establish defendant liability say prohibiting economic testimony good luck proving antitrust claim without else agreement might appoint arbitrator obviously biased person say ceo amex possibilities endless less direct express exculpatory clause less fatal rule prospective waivers federal rights work applies contract clause explicitly barring claim others operate sure enough cases establish proposition arbitration clause enforced prevents effective vindication federal statutory rights however achieves result rule originated mitsubishi held claims brought sherman act federal laws generally subject arbitration agreeing arbitrate claim explained party forgo substantive rights afforded statute submits resolution arbitral rather judicial forum ibid crucial decision limiting principle designed safeguard federal rights arbitration clause enforced long prospective litigant effectively may vindicate statutory cause action arbitral forum arbitration provision operated prospective waiver party right pursue statutory remedies emphasized condemn similarly stated clause set aside proceedings contractual forum gravely difficult claimant practical purposes deprived day internal quotation marks omitted decades since mitsubishi repeated admonition time instructing courts enforce arbitration agreement effectively even explicitly forecloses plaintiff remedying violation federal statutory right see gilmer lane vimar seguros reaseguros sky reefer penn plaza decision green tree financial randolph confirmed principle applies agreement thwarts federal law making arbitration prohibitively expensive plaintiff seeking relief truth lending act argued arbitration agreement unenforceable create risk bear prohibitive arbitration costs form high filing administrative fees internal quotation marks omitted rejected contention doubted fees prevent effective vindication statutory rights contrary invoked rule mitsubishi making clear applied case us see indeed added burden proof held party asserting federal right seeks invalidate arbitration agreement ground arbitration prohibitively expensive party bears burden showing likelihood incurring costs randolph found failed meet burden evidence offered speculative even dismissed randolph suit reminded courts protect arbitration agreements make federal claims costly bring applied precedents direct rule furthers purposes laws like sherman act faa statute reflects federal policy favoring actual arbitration arbitration streamlined method resolving disputes foolproof way killing valid claims rodriguez de quijas express put otherwise faa prefers litigation arbitration de facto immunity rule furthers statute goals ensuring arbitration remains real faux method dispute resolution rule companies good reason adopt arbitral procedures facilitate efficient accurate handling complaints without companies every incentive draft agreements extract backdoor waivers statutory rights making arbitration unavailable pointless one road arbitration better enforcement federal statutes less arbitration poorer enforcement federal statutes prefer still aptly think congress answer becomes obvious given limits placed rule ensure diminish arbitration benefits rule comes play agreement operate prospective waiver forecloses diminishes plaintiff opportunity gain relief statutory violation mitsubishi example randolph assessed whether fees arbitration prohibitive high excessive extravagant moreover plaintiff must make showing concrete proof peculative risks unfounded assumptions unsupported statements suffice inquiry confined evidentiary requirements high courts trouble assessing matters rule makes relevant almost three decades courts followed edict arbitration clauses must usually prevail declining enforce rare cases see brief amicus curiae rule thus operated year year without undermining much less destroy ing prospect speedy dispute resolution arbitration secures ante kind case rule meant address italian colors noted alleges amex used market power impose tying arrangement violation sherman act antitrust laws parties agree provide restaurant cause action give chance recover treble damages mean italian colors take home problem looms case comes us evidence shows italian colors prevail arbitration without economic analysis defining relevant markets establishing amex monopoly power showing anticompetitive effects measuring damages expert report cost several hundred thousand one million expense involved proving claim arbitration ten times italian colors hope gain even scenario counts prohibitive cost randolph terminology anything rational actor bring claim worth tens thousands dollars meant incurring costs hundreds thousands arbitration agreement manage mismatch many ways amex disdains makes clear contract expressly prohibits class arbitration part agreement also disallows kind joinder consolidation claims parties confidentiality provision prevents italian colors informally arranging merchants produce common expert report still agreement precludes shifting costs amex even italian colors prevails beyond amex refused enter stipulations obviate mitigate need economic analysis short agreement applied case cuts class arbitration avenue sharing shifting shrinking necessary costs amex put italian colors choice spend way way way money claim worth relinquish sherman act rights contra majority got case right italian colors proved plaintiff randolph agreement taken whole renders arbitration claim prohibitively expensive restaurant thus established contract operate prospective waiver prevents effective vindicat ion sherman act rights mitsubishi follow precedents decline compel arbitration ii majority quite sure rule apply precious little say starts disparaging rule originated dictum ante rest swipe good reason explained see supra rule began core part mitsubishi held federal statutory claims subject arbitration long claimant effectively may vindicate rights arbitral forum emphasis added rule thus served essential condition decision randolph provided standard applying rule claimant alleges prohibitive costs see supra applied standard parties us whatever else majority might think rule dictum next paragraph decision third part iv key contains almost whole majority effort explain rule stop amex compelling arbitration majority first move describe mitsubishi randolph covering discrete situations rule majority asserts applies arbitration agreements eliminate right pursue statutory remedies forbidding assertion right addressed mitsubishi imposing filing administrative fees high make access forum impracticable addressed randolph ante emphasis deleted internal quotation marks omitted cases case majority says agreement provisions went possibility proving statutory ante distinction majority proffers excludes problems proof one mitsubishi randolph decisions reaffirming foreclose decisions establish quarters known principle arbitration agreement prevents effective vindication federal rights party may go principle nature operates diverse circumstances ones happened come see supra doubtless covers baldly exculpatory clause prohibitive fees majority acknowledges preclude arbitration agreement enforcement covers world provisions clever drafter might devise scuttle even meritorious federal claims provisions might deny entry forum first instance might deprive claimant remedy might prevent claimant offering necessary proof prevail economic testimony hypothetical actual circumstances case see supra variations matter whatever precise mechanism operate prospective waiver party federal right confers immunity wrongdoer mitsubishi counts majority escape principle established observing one point amex agreement merely made arbitration worth expense ante suggestion runs smack randolph likewise involved allegation arbitration specified contract prohibitively expensive decision made clear provision raising plaintiff costs foreclose consideration federal claims run afoul rule expense issue randolph came filing fee combined payment arbitrator nothing particular costs distinctive indeed rule confined weirdly idiosyncratic surprisingly randolph gave hint distinguishing among different ways arbitration agreement make claim costly bring rationale applies whenever agreement makes vindication federal claims impossibly expensive whether imposing fees proscribing adopting device leaves three last sentences majority core paragraph majority conjures special reason exclude waiver rule compass ante rule majority notes became law decades sherman act majority conclusion federal law interim decades eliminate plaintiff rights act neither agreement notion first rests false premise case waiver see ante confining case issue indeed sensibly rule asks whether arbitration agreement whole precludes claimant enforcing federal statutory rights single provision properly viewed isolation agreement close one avenue pursue claim leaving others open case example agreement prohibited class arbitration without offending rule provided alternative mechanism share shift reduce necessary costs agreement problem bars class actions also mechanisms many existing long sherman act matters joinder consolidation claims informal coordination among individual claimants amelioration arbitral expenses see supra contrary majority assertion second circuit well understood point considered example whether italian colors shift expert expenses amex claim prevailed join merchants bringing similar claims produce common expert report see case become strangely narrow majority stares single provision rather considering way rule demands entire contract event age relevant procedural mechanisms whether class actions matter rule asks world today world might looked congress passed given statute whether particular procedural device preceded particular statute question remains agreement foreclose party right effectively vindicating substantive rights statute provides case exhibits whole raft changes since congress passed sherman act affecting parties dispute new procedural rules like rule also new evidentiary requirements like demand expert report new contract provisions affecting arbitration like agreement confidentiality clause stayed congress intent antitrust plaintiffs able enforce rights free prior waiver see supra mitsubishi rule carries purpose ensuring arbitration agreement operating waiver unenforceable requires courts determine rather ye olde glory days whether agreement provisions foreclose even meritorious antitrust claims still majority takes one last stab truth tell claims mobility llc concepcion resolves case ante decision majority recounts held faa preempted state law conditioning enforcement arbitration availability class procedure ibid see slip according majority decision controls specifically rejected argument class arbitration necessary ante begin well maybe left italian colors claiming class action necessary means vindicating meritorious claim shown options abound see supra idea mobility controls depends entirely majority view case class action bust majority drop pretense make claim mobility relevance case class actions mobility rule mobility nowhere cited precedents two reasons begin state law question made waivers unenforceable even party feasibly vindicate claim individual arbitration state rule designed preserve deterrent effects class actions merely protect particular plaintiff right assert claim slip indeed emphasized complaint case unlikely go unresolved agreement contained host features ensuring aggrieved customers filed claims essentially guaranteed made whole slip internal quotation marks brackets omitted professed mobility implicate thing party ability vindicate meritorious claim case involves enough mobility involved state law therefore possibly implicate rule state rule allegedly conflicts faa apply standard preemption principles asking whether state law frustrates faa purposes objectives state rule found mobility supremacy clause requires invalidation earthly interest quite contrary vindicating law rule comes play faa alleged conflict another federal law like sherman act context one law automatically bow rule serves way reconcile tension mobility occasion address issue case relevant decisions instead mitsubishi randolph today mistakes case hammer everything looks like nail bent diminishing usefulness rule everything looks like class action ready dismantled consider amex agreement bars class actions forms provide effective vindication ante short consider decide italian colors similarly situated litigants actual argument rule precludes agreement enforcement result amex contract succeed depriving italian colors effective opportunity challenge monopolistic conduct allegedly violation sherman act faa majority says requires fooled requires faa never meant produce outcome faa conceived arbitration method resolving disputes way using tailored streamlined procedures facilitate redress injuries rodriguez de quijas emphasis added hands today majority arbitration threatens become nearly opposite mechanism easily made block vindication meritorious federal claims insulate wrongdoers liability thus undermines faa less sherman act federal statutes providing rights action respectfully dissent footnotes charge card requires holder pay full outstanding balance end billing cycle credit card requires payment portion balance subject interest contrary dissent claim post opinion kagan mitsubishi motors hold federal statutory claims subject arbitration long claimant may effectively vindicate rights arbitral forum expressly stated stage proceedings occasion speculate whether arbitration agreement potential deprivation claimant right pursue federal remedies may render agreement unenforceable even appeals case recognized relevant language mitsubishi motors dicta american express merchants litigation dissent contends waiver may deny party right pursue statutory remedies way clause bars party presenting economic testimony see post false comparison several reasons begin given clause constitute impermissible waiver never considered point importantly clause assuming makes vindication claim impossible makes impossible class action even individual claim disagree dissent assertion rule asks world today world might looked congress passed given statute post time change meaning effectiveness making ineffective vindication today effective vindication past dissent also says agreement bars forms cost sharing existing sherman act provide effective vindication see post petitioners denied appeals decision review held held forms cost sharing economically feasible economically feasible means enforcing respondents statutory rights via class action waiver unenforceable emphasis added dissent assertion contrary cites opinion appeal earlier opinion vacated see american express merchants litigation vacated remanded conclusion reject dismissing mobility case involving exception dissent ignores case established faa command enforce arbitration agreements trumps interest ensuring prosecution claims latter interest said unrelated faa slip accordingly faa contrary dissent assertion see post favor absence litigation consequence waiver since enforcement arbitration agreements according terms slip quoting volt information sciences board trustees leland stanford junior footnotes evidence relating costs comes affidavit submitted economist experienced proving similar antitrust claims second circuit found amex ha brought serious challenge factual showing see amex conceded italian colors need expert economic report prevail arbitration see tr oral arg perhaps really true hallmark arbitration use procedures tailored type dispute amount controversy arbitrators might properly decline demand rigorous evidentiary showing small antitrust cases possibility disturb factual premise case comes us majority accepts italian colors tying claim ordinary kind antitrust claim worth tenth cost arbitration majority contends waiver part consider see ante explain assertion wrong see infra majority dead wrong says mitsubishi reserved judgment whether arbitration agreement potential deprivation claimant right pursue federal remedies may render agreement unenforceable ante mitsubishi occasion speculate whether particular agreement fact eliminated claimant federal rights stated expressly agreement amex invalidate ibid see supra gilmer vimar seguros majority relies see ante fail advance argument plaintiffs claim italian colors arbitration clause altogether precluded vindicating federal rights averred arbitration less convenient effective proceeding see gilmer lane vimar seguros reaseguros sky reefer explained kind showing meet rule high bar see supra defense focus majority quotes second circuit concluding economically feasible means italian colors enforce statutory rights via class action ante quoting internal quotation marks omitted emphasis added appeals reached conclusion finding agreement prohibited forms see opinion vacated grounds analysis continued inform indeed essential second circuit final decision case see second circuit therefore exactly majority refuses look agreement whole determine whether permits vindication federal rights