Green Tree Financial Corp. v. Bazzle
Representing a class of plaintiffs, the Bazzles filed a claim against Green Tree Financial Corporation (Green Tree) for violations of the South Carolina Consumer Protection Code and were awarded damages by an arbitrator. Green Tree appealed on the grounds that class-wide arbitration of the Bazzles’ claims was not authorized by the arbitration agreement. The Supreme Court of South Carolina affirmed the award of the arbitrator. Taking note of a split of authority in other jurisdictions, the court followed the approach of the California state courts and held that class-wide arbitration may be ordered when the arbitration agreement is silent on the topic, if it would serve efficiency and equity, and would not result in prejudice.
Question Presented:
Whether the Federal Arbitration Act prohibits class-action procedures from being superimposed onto an arbitration agreement that does not provide for class action arbitration.
