The availability of class arbitration for silent agreements: contract interpretation theory or arbitrability doctrine?

• Author: DU Huanfang, XU Chuanlei
• Pages: 76-89

FRONTIERS OF LAW IN CHINA

VOL. 12 MARCH 2017 NO. 1

DOI 10.3868/s050-006-017-0005-0

ARTICLE

THE AVAILABILITY OF CLASS ARBITRATION FOR SILENT AGREEMENTS:

CONTRACT INTERPRETATION THEO RY OR ARBITRABILITY DOCTRINE?

DU Huanfang∗, XU Chuanlei∗∗

Abstract Along with the increasing use of multi-party arbitration, mounting issues

relating to it have recently become heated topics. One of the various facets concerning

the availability of class arbitration has gathered overwhelming discussion in the US.

According to the decisions of the United States Supreme Court, whether class action is

applicable is probably decided by the arbitrator’s interpretation of the parties’ intent

when an adequately drafted arbitration clause is silent on this issue, regardless of the

correctness of his/her construing of the contracts. The contract interpretation theory is a

conclusion of existing jurisprudence while the question of arbitrability doctrine may be a

hint or inkling from a recent court decision. Comparing these two sides, it is better to

regard the availability of class arbitration for silent agreements as a matter of contract

interpretation. Although it is preferable to regard the availability issue of class action as

a contract interpretation question, some restrictions on the arbitrators’ broad contract

interpretation needs to be imposed so that the parties’ real intent can be properly

enforced.

Keywords class arbitration, silent agreements, contract interpretation theory, arbitrability

doctrine

INTRODUCTION ...................................................................................................................... 77

I. THE AVAILABILITY OF CLASS ARBITRATION AS A MATTER OF CONTRACT

INTERPRETATION........................................................................................................ 78

A. Clarifying the Issue of Contract Interpretation in Arbitration — Who, When,

and How............................................................................................................... 79

B. Recent U.S. Supreme Court Jurisprudence concerning Contract

Interpretation ....................................................................................................... 79

1. The Green Tree Case.........................................................................................79

∗ (杜焕芳) Ph.D. in International Law, School of Law, Wuhan University, Wuhan, China; Professor, School

of Law, Renmin University of China, Beijing 100872, China. Contact: duhuanfang@ruc.edu.cn

∗∗ (徐传蕾) LL.M. Student in International Law, School of Law, Renmin University of China, Beijing

100872, China. Contact: chuanleixu@163.com

This research is supported by the Fundamental Research Funds for the Central Universities and the

Research Funds of Renmin University of China (No. 12XNJ004). Many thanks to Assistant Professor

ZHANG Wenliang for his helpful reviews.