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Dispute Resolution Keyed to Goldberg, 7th Ed.
AT&T Mobility, LLC v. Concepcion
Citation:
563 U.S. 333, 131 S. Ct. 1740, 179 L. Ed. 2D 742 (2011)Facts
In 2002, Vincent and Liza Concepcion entered into a cell phone service agreement with AT&T that included an arbitration clause requiring all disputes to be brought in an individual capacity, not as a class action. The agreement contained consumer-friendly provisions, including AT&T’s obligation to pay all arbitration costs for non-frivolous claims, a convenient arbitration process, and a premium payment of $7,500 plus double attorney’s fees if a customer received an arbitration award greater than AT&T’s last settlement offer. In 2006, the Concepcions filed a complaint against AT&T for charging $30.22 in sales tax on phones advertised as “free.” Their complaint was consolidated with a class action alleging false advertising and fraud. AT&T moved to compel individual arbitration under the terms of its agreement. The Concepcions opposed, arguing that the class action waiver was unconscionable under California’s Discover Bank rule.
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