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South Carolina Court of Appeals Reverses Trial Court Ruling Permitting Class Action Arbitration Against Automobile Dealer

August 26, 2020

Automobile dealers and other businesses often employ arbitration agreements in contracts with their customers. One recurring question about these arbitration agreements is whether they permit class action arbitration or instead only allow for individual arbitration – especially where a particular arbitration agreement is silent regarding class arbitration. The difference can be significant. In a class arbitration, hundreds or thousands of claims can be adjudicated in a single proceeding, and, if an award results against the dealership or business, the size of the award naturally increases dramatically.