In Re Currency Conversion Fee Antitrust Litigation
265 F. Supp. 2d 385 | District Court, S.D. New York | 2003
What This Case Means for Subcontractors
This case involved credit card companies and banks allegedly fixing currency conversion fees charged to cardholders making foreign purchases. The court allowed the antitrust price-fixing claims to move forward but required some customers with arbitration agreements in their card contracts to pursue claims through arbitration instead of court. For subcontractors, this shows that arbitration clauses in contracts are enforceable and can prevent class action lawsuits.
Key Takeaways
- •Arbitration clauses in your contracts are legally binding and will likely force disputes into private arbitration rather than court, even for group claims
- •Price-fixing and anti-competitive behavior allegations can survive early dismissal if you have enough factual detail showing a conspiracy between competitors
- •When signing contracts with payment processors or vendors, review arbitration provisions carefully—they limit your legal options and prevent joining class actions
Motion to dismiss is denied in part and granted in part; motion to compel arbitration is granted.
Frequently Asked Question
Can I be forced into arbitration if my contract has an arbitration clause?
Yes. Courts will enforce arbitration clauses and compel you to arbitrate disputes rather than sue in court, even if you want to join a class action lawsuit. This means you give up the right to a jury trial and class action participation. Always review arbitration language before signing vendor or payment processing agreements.
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