Civil Procedure Keyed to Yeazell
AT&T Mobility LLC v. Concepcion
ProfessorTodd Berman
CaseCast™ – "What you need to know"
Facts
Vincent and Liza Concepcion (P) contracted with AT&T Mobility LCC (AT&T) (D). When they found that they had to pay tax on phones advertised by the company as being free, they filed a case which became a class action. The contract included a provision that all claims were to be settled through arbitration, and also prohibited class arbitration. AT&T(D) moved court for an order compelling arbitration as per the contract. The Concepcions (P) opposed the action by AT&T on the grounds that the executed contract was unacceptable in law and illegal in California law because it did not allow class arbitration. The motion was denied by the district court because of the class action waiver, though it approved of the arbitration agreement in general. The court felt that bilateral arbitration would not present the same level of deterrence as class actions, and so the anti-class action provision was unconscionable. AT&T (D) appealed, arguing the preeminence of the Federal Arbitration Act of 1925 (FAA) over California law. The lower court decision was affirmed by the Ninth Circuit Court of Appeals, finding precedent in the Discover Bank v. Superior Court, 36 Cal. 4th 148 (2005). It also stated that the Discover Bank rule was not preempted by the FAA since it expressed the condition of unconscionability applicable to all contracts in California. AT&T (D) appealed to the U.S.Supreme Court.
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