This fiasco got its start last year, when Schwab inserted in its standard customer arbitration agreement a provision that any investor who opens an account with Schwab is giving up his right to bring a class action against Schwab.
In Oxford, the judges must decide whether an arbitrator was out of line by allowing a class action to proceed on behalf of some 20, 000 doctors even though there was no provision for class actions in the arbitration agreement between doctors and Oxford.
Kaplinsky urges his clients to include other features including an opt-out provision that allows consumers to simply avoid the arbitration clause altogether.