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Dispute Resolution Keyed to Carbonneau, 8th Ed.
Oxford Health Plans LLC v. Sutter
Citation:
569 U.S. 564 (2013)Facts
Dr. John Sutter, a pediatrician, entered into a contract with Oxford Health Plans to provide medical services to Oxford’s members at prescribed rates. The contract contained an arbitration clause stating: “No civil action concerning any dispute arising under this Agreement shall be instituted before any court, and all such disputes shall be submitted to final and binding arbitration in New Jersey, pursuant to the rules of the American Arbitration Association with one arbitrator.” Several years later, Sutter filed a class action lawsuit against Oxford in New Jersey Superior Court, alleging that Oxford had failed to make full and prompt payments to him and other physicians in violation of their agreements and state laws. Oxford moved to compel arbitration based on their contract. The parties agreed that the arbitrator should decide whether the contract authorized class arbitration, and the arbitrator determined it did, reasoning that the clause sent to arbitration “everything that is prohibited from the court process,” including class actions.
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