AT&T Mobility LLC v. Concepcion: Supreme Court Clears the Way for Class Action Waivers

more+
less-

On April 27, 2011, the Supreme Court issued its much-awaited opinion in Concepcion v. AT&T Mobility LLC, reaffirming the Court’s commitment to the “liberal federal policy favoring arbitration.” -- U.S. --, No. 09-893, Slip Op. at *4 (Apr. 27, 2011). Specifically, the Court held that the Federal Arbitration Act (FAA) preempts a California rule that class action waivers in consumer contracts are unconscionable.

In Concepcion, the plaintiffs filed a class-action complaint in federal court against their cell phone provider, AT&T, for allegedly charging sales tax on phones that were advertised as free. The parties’ contract provided for arbitration of all disputes between the parties, and required that claims be brought in the parties’ “individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding.” Relying on that provision, AT&T moved to compel arbitration, and also argued that the arbitration clause precluded the plaintiffs from proceeding as a class action. The district court denied AT&T’s motion.

Please see full Alert below for further information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Alternative Dispute Resolution (ADR) Updates, Civil Procedure Updates, General Business Updates, Conflict of Laws Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© King & Spalding | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »