Eighth Circuit Holds That a Silent Arbitration Clause Precludes Class-Wide Arbitration

The Eighth Circuit just waded into the issue of whether a mandatory arbitration provision allows for a class-wide arbitration. In Catamaran Corp. v. Towncrest Pharm., 946 F.3d 1020 (8th Cir. 2020), the Eighth Circuit held that a mandatory arbitration provision in a contract between a PBM and a pharmacy did not allow for a class-wide arbitration. The arbitration clause in question did not mention class actions which the Court held created an inference that the contract did not allow for it. This holding suggests that (absent other contractual terms) an arbitration clause must specifically allow for class-wide arbitration for it to be permissible.