Opinion ID: 621899
Heading Depth: 1
Heading Rank: 4

Heading: Our Decision in Amex II.

Text: On remand from the Supreme Court, we found Stolt-Nielsen did not require us to depart from our original analysis. The key issue, we concluded, was whether the mandatory class action waiver in the Card Acceptance Agreement is enforceable even if the plaintiffs are able to demonstrate that the practical effect of enforcement of the waiver would be to preclude their bringing Sherman Act claims against Amex. In re American Express Merchants' Litigation, 634 F.3d 187, 196 (2d Cir.2011). We concluded enforcement of the class action waiver would indeed bar plaintiffs from pursuing their statutory claims because the record evidence before us establishe[d], as a matter of law, that the cost of plaintiffs' individually arbitrating their dispute with Amex would be prohibitive, effectively depriving plaintiffs of the statutory protections of the antitrust laws. Id. at 197-98. We relied on detailed testimony from Gary L. French, Ph.D., an economist associated with Nathan Associates Inc., a financial consulting firm retained by the plaintiffs. Dr. French submitted a detailed affidavit to the district court, in which he opined, inter alia, that [i]n my experience, even a relatively small economic antitrust study will cost at least several hundred thousand dollars, while a larger study can easily exceed $1 million after reviewing the complaint and doing some preliminary research in this case, it is my opinion that ... the cost for this case will fall in the middle of the range.... (Joint Appendix at p. 362-63, ¶ 4). Dr. French then opined that it was not economically rational to pursue an individual action against Amex in light of these substantial expert witness costs. (Joint Appendix at p. 365, ¶ 10-11). Amex II, 634 F.3d at 198. We found that Dr. French's affidavit demonstrates that the only economically feasible means for enforcing their statutory rights is via a class action, and remanded the case to the district court. Id.