Tuesday, March 15, 2016

CLASS CONFLICT BETWEEN ORDINARY PEOPLE AND CORPORATE POWER

“ . . . the most consequential work of the [John] Roberts [Supreme] Court
in protecting corporate rights has been in cases that have gone mostly
unno
ticed including a pair (A.T.&T. v. Concepcion and American
Express v. Italian Colors) in which [Justice Antonin] Scalia wrote the majority
opinion. In these cases, both of which turned on an interpretatinon of a once
o
bscure 1925 law, the [Supreme] Court ruled that compaaies could require
c
ustomers to give up their right to sue in open court, with disputes to be
by a private arbitrator instead. These cases don't get people's attention the way
t
hings like abortion and same-sex marriage do,’ [NYU Professor Arthur] Miller said.
But, if the decisions stand, [Vanderbilt University Professor Brian] Fitzpatrick
argues, they have the potential to literally wipe out the class-action lawsuit.’
“That might not sound like a bad thing - we're always hearing that
Americans are too litigious - but, in an era when regulators are routinely falling
down on the job
, lawsuits play a crucial role in deterring corporate misbehavior.
Miller calls them a ‘private enforcement of public policies.’ And when it comes
to
big corporations[,] class-action suits are often the only kind that make any
economic se
nse. If every individual defrauded by a company loses fifty dollars,
the collective harm can be immense, but it's not worthwhile for any single victim
or lawyer to bother. Fitzpatrick says that obstacles to filing class-action lawsuits
m
ake it more likely that ‘companies will not be held accountable for hurting
people for cheating people, for defrauding people, for discrimination against people.’
In t
hat sense, the battle over access to the courtroom is, as Miller puts it, ‘a kind of class conflict
between ordinary individuals and corporate power.' And in that conflict there’s no question which side [Justice Antonin] Scalia was on.”


James Surowiecki, “Courting Business,’ New Yorker, March 17, 2016, page 21.