Supreme Court Breathes New Life Into Consumer Arbitrations

Arbitrations 1, Class Actions 0: Supreme Court Breathes New Life Into Consumer Arbitrations


The Supreme Court may have dealt a death blow to the arbitration of consumer class actions in the 5-4 decision in AT&T Mobility LLC v. Concepcion, 563 U.S. _____ (April 27, 2011). The Court held that the Federal Arbitration Act pre-empted the California rule that arbitration clauses banning class actions were unconscionable. By reversing the Ninth Circuit, the Supreme Court has reopened a seemingly locked door and businesses may wish to consider resurrecting their arbitration clauses and modeling them on the AT&T opinion.