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Dispute Resolution Keyed to Carbonneau, 8th 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 service agreement with AT&T Mobility for the sale and servicing of cellular telephones. The contract included an arbitration clause requiring that all disputes be resolved through individual arbitration rather than class proceedings. The agreement contained consumer-friendly provisions, including that AT&T would pay all arbitration costs for non-frivolous claims, arbitration would take place in the customer’s county, and if the customer received an arbitration award greater than AT&T’s last settlement offer, AT&T would pay a $7,500 minimum recovery plus double the customer’s attorney’s fees. The Concepcions purchased phones advertised as “free” but were charged $30.22 in sales tax based on the retail value of the phones. In 2006, they filed a complaint against AT&T in federal court, which was later consolidated with a putative class action alleging false advertising and fraud. When AT&T moved to compel arbitration, the Concepcions opposed, arguing that the class action waiver was unconscionable under California’s Discover Bank rule.
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