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Civil Procedure Keyed to Babcock
AT&T Mobility v. Concepcion
Citation:
563 U.S. 333 (2011)
ProfessorTodd Berman
CaseCast™ – "What you need to know"
Facts
Plaintiffs Concepcions purchased phones and cell service from Defendant AT&T after they saw an advertisement that Defendant was offering phones for free. The Concepcions were charged sales tax on the phones even though they were supposed to get them for free. There was an arbitration clause in the service agreement signed by the Concepcions that mandated disputes be resolved in arbitration and prohibited arbitration in the form of class actions. The contract also allowed Defendant AT&T to make one-sided changes to the contract, which it did. The Concepcions brought suit against AT&T for false advertising and fraud. AT&T filed a motion to compel arbitration. The district court denied AT&T’s motion based on the Discover Bank v. Superior Court, holding that the arbitration clause was unconscionable because AT&T did not show that arbitration made up for the deterrent effects of class actions. The Ninth Circuit Court of Appeals affirmed and the Supreme Court granted certiorari.
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