Concepcion v united states free#
In 2006, Vincent and Liza Concepcion sued AT&T Mobility over contract, contending that the cell phone company had engaged in deceptive advertising by falsely claiming that their wireless plan included free cell phones. After the decision, several major businesses introduced or changed arbitration terms in their consumer contracts (some of which were based on the consumer-friendly terms found in the AT&T Mobility agreement), although the hypothesis of massive adoption of consumer arbitration clauses following the decision has been disputed. By April 2012, Concepcion was cited in at least 76 decisions sending putative class actions to individual arbitration. The decision was described by Jean Sternlight as a "tsunami that is wiping out existing and potential consumer and employment class actions" : 704 and by law professor Myriam Gilles as "the real game-changer for class action litigation". As a result, businesses that include arbitration agreements with class action waivers can require consumers to bring claims only in individual arbitrations, rather than in court as part of a class action.
On April 27, 2011, the Court ruled, by a 5–4 margin, that the Federal Arbitration Act of 1925 preempts state laws that prohibit contracts from disallowing class-wide arbitration, such as the law previously upheld by the California Supreme Court in the case of Discover Bank v. 333 (2011), is a legal dispute that was decided by the United States Supreme Court. Scalia, joined by Roberts, Kennedy, Thomas, Alitoīreyer, joined by Ginsburg, Sotomayor, KaganĪT&T Mobility LLC v. The Discover Bank test adopted by California to invalidate certain arbitration agreements with class action waivers is preempted by the Federal Arbitration Act.Ĭhief Justice John Roberts Associate Justices Antonin Scalia 2011) motion to compel arbitration granted, Laster v.
AT & T Mobility LLC, 663 F.3d 1034 (9th Cir. AT&T Mobility LLC, 584 F.3d 849 ( 9th Cir. Motion to compel arbitration denied sub nom., Laster v.
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