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Consumer Law Keyed to Whaley, 9th Ed.
AT&T Mobility, LLC v. Concepcion
Citation:
563 U.S. 333, 131 S. Ct. 1740, 179 L. Ed. 2D 742 (2011)Facts
In February 2002, Vincent and Liza Concepcion entered into a cellular telephone service agreement with AT&T Mobility LLC that included a provision requiring arbitration of all disputes in individual capacity, explicitly prohibiting class or representative proceedings. The contract provided favorable terms including AT&T paying all arbitration costs for non-frivolous claims, a minimum $7,500 recovery if the customer obtained an award greater than AT&T’s last settlement offer, and twice the customer’s attorney’s fees. The Concepcions purchased AT&T service advertised as including free phones but were charged $30.22 in sales tax based on the phones’ retail value. They filed a complaint that was consolidated with a putative class action alleging false advertising and fraud. AT&T moved to compel arbitration, but the District Court denied the motion based on California’s Discover Bank rule, which holds class action waivers unconscionable in certain consumer contracts of adhesion.
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