WASHINGTON - In a decision that could further help companies limit damages in disputes with workers, the U.S. Supreme Court on Wednesday ruled against a California man who was the victim of an online scam and sought to bring claims against his employer on behalf of a group of workers instead of just himself.
Lamps Plus warehouse employee Frank Varela filed a class action lawsuit on behalf of current and former employees accusing it of negligence, breach of contract and invasion of privacy after a hacker obtained his and other workers’ personal information from the company.The Supreme Court agreed with the company, which had argued that the arbitration must be conducted on an individual basis only.
Writing for the majority, Chief Justice John Roberts said class-wide arbitration “undermines the most important benefits” of individual-only proceedings envisioned by that law including lower cost and quicker dispute resolution.
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