Skip to Content

Get Your FREE Consultation

Blog

Supreme Court Will Hear Case on Class Action Bans

The United States Supreme Court recently agreed to hear a case in which the issue to be decided is whether companies may permissibly ban class actions in their “take-it-or-leave-it” contracts. The case is AT&T Mobility v. Concepcion, and it will be heard at the Supreme Court later this year. The question to be decided is whether the Federal Arbitration Act (“FAA”) preempts rulings that particular class action bans are unconscionable under generally applicable state contract law.

The underlying case was brought by a group of California consumers against AT&T for imposing fraudulent charges for cell phone service. The customers’ agreements with AT&T contained an arbitration provision which barred consumers from joining claims together or bringing a class action against AT&T. California state law precludes such a contractual waiver of the right to bring a class action claim. Accordingly, the Ninth Circuit Court of Appeals affirmed an order striking down the no-class action arbitration provision as unconscionable under California law. AT&T petitioned to the U.S. Supreme Court and the nation’s high court recently agreed to hear the case. The issue to be decided is whether the FAA preempts states from conditioning the enforcement of an arbitration agreement on the availability of particular procedures, such as class-wide arbitration, when those procedures are purportedly not necessary to ensure that the parties to the arbitration agreement are able to vindicate their claims.

Consumer activists fear that a ruling in AT&T’s favor will effectively be the death knell of consumer class actions. Companies would include class action bans in all customer agreements, thus requiring consumers to arbitrate disputes with the companies on an individual basis. Consumers would thus lose a powerful weapon for challenging unfair, deceptive, and overreaching business practices. There is, however, Supreme Court authority touting the benefits of class litigation with small-dollar claims, such as the ones asserted against AT&T. Consumers would be well-served if the Supreme Court embraces that precedent and holds that the FAA does not preempt state-law defenses to enforceability of arbitration clauses.

TALK TO US NOW
FOR FREE
No Win, No Fee

Review Us

Martin & Jones, PLLC logo

“We would like to express our gratitude to you (Hunt Willis) for accepting our case. First of all, when I called this law firm, a very sweet and kind lady answered the telephone and gave me assurance by asking and going over the accident with me, while my husband was in the hospital. I felt assured I was doing the right thing for us. She was so helpful in so many ways. What a professional lady. Secondly, we are much pleased that you have settled this case with the insurance company to receive the proper amount to assist us in so many ways. My husband and I are very happy with you and the firm in handling our case. You made us have confidence in your professional and integrity along with your assistant Ms. Routh, when you both came to see us in our home, in which we saw your compassion and thoughtfulness at that time. We will never forget what you have done for us, and we thank the lord for directing me to contact this firm. I’m glad I did.” 

Contact Our North Carolina Personal Injury Law Firm

for a Consultation for Your Accident or Medical Malpractice Claim

Call us at 800-662-1234
TALK TO US NOW
FOR FREE
No Win, No Fee

The law firm you choose makes a difference. If you are the victim of an accident or an illness that someone else caused, the North Carolina personal injury law firm of Martin & Jones has the depth of experience, skills and sensitivity to make your road to recovery as smooth as possible. Whether you have experience with the legal system or have never hired a medical malpractice or personal injury lawyer before, our attorneys and staff will do our best to answer your questions, provide clear advice and prepare you and your family for what to expect. If you would like more information or to meet with one of our attorneys, please fill out the form below or call us at 800.662.1234.