American Express Co. v. Italian Colors Restaurant

American Express Co. v. Italian Colors Restaurant was a U.S. Supreme Court case in 2013 that dealt with whether a company could enforce arbitration agreements that prevent customers from joining class-action lawsuits. Italian Colors Restaurant wanted to sue American Express for anti-competitive practices but agreed to arbitrate disputes individually, not as a group. The Court ruled that, under federal law, arbitration agreements must be upheld even if individual claims are too small to justify the cost of litigating, thereby emphasizing the importance of honoring arbitration clauses and limiting class-action rights in such agreements.