California federal district court has denied Ticketmaster’s motion to compel arbitration of Sherman Act antitrust claims based in large part on the bellwether procedures for mass arbitration claims set forth in the company’s arbitration clause.
The arbitration clause named New Era ADR as the arbitration administrator. Under New Era’s rules, if a matter qualifies for mass arbitration treatment, three bellwether arbitrations are selected—one by each side and one selected by the neutral. If no settlement is reached, one of the bellwethers can potentially become “Precedent” for resolving common issues of law and fact in subsequent cases. The court determined that “the application of Precedent in mass arbitrations … raises a host of issues.”…
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