Chief justice’s 13-page opinion prompts 31 pages of dissent from the court’s liberals.
By Robert Barnes Robert Barnes Reporter covering the U.S. Supreme Court Email Bio Follow April 24 at 4:16 PM A split Supreme Court delivered a win to business owners Tuesday, saying that workers cannot band together in arbitration proceedings unless their employment contracts specifically allow it.
Many companies prefer to settle differences through arbitration rather than court proceedings, because it is faster and less likely to result in large financial awards for aggrieved employees. The case involved a California company, Lamps Plus. In 2016, a hacker tricked an employee into disclosing the tax information of about 1,300 employees. Soon after, Lamps Plus employee Frank Varela found that a fraudulent federal income tax return had been filed in his name.
But Roberts said that was wrong, and Tuesday’s decision follows a 2010 ruling that class arbitration is not allowed if a contract is silent on the subject. Even if it was ambiguous, Kagan wrote, California law requires that ambiguities be resolved against the party that writes the contract.
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