American Express Wins This Big Ruling for Corporate America
The United States Supreme Court ruled in favor of American Express (NYSE:AXP) and against the merchants who object to having to accept American Express debit and credit cards in addition to its popular charge card.
The decision came out 5-3 in favor of American Express, who asserted that the merchants could not band together to file a class action lawsuit, and must therefore sue American Express one-by-one.
The five conservative Supreme Court Justices ruled in favor of American Express, with the three liberals ruling in favor of the merchants, according to The Huffington Post. Justice Sonia Sotomayor recused.
Justice Antonin Scalia wrote for the conservative-leaning majority, stating that merchants should be held to their agreements with American Express, which contained a waiver of class action, preventing multiple parties from joining together to press a common claim. Scalia commented that it didn’t matter if it’s “not worth the expense involved” for each merchant to proceed individually.