This morning the United States Supreme Court handed down its long-awaited decision in AT&T Mobility LLC v. Concepcion, No. 09-893, slip op. (April 27, 2011). The Court held that the Federal Arbitration Act preempts California’s Discover Bank rule, which deems unconscionable class waivers in adhesive contracts under certain circumstances, because it “‘stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress. . . .’” Slip op. at 18 (quoting Hines v. Davidowitz, 312 U.S. 52, 67 (1941)). (The majority, concurring and dissenting opinions are here.)
Associate Justice Antonin Scalia wrote the majority opinion, joined by Chief Justice John G. Roberts and Associate Justices Anthony M. Kennedy, Clarence Thomas and Samuel A. Alito, Jr. Justice Thomas wrote a concurring opinion and Associate Justice Stephen G. Breyer dissented, joined by Associate Justices Ruth Bader Ginsburg, Sonia Sotomayor and Elena Kagan.
Stay tuned for more….
Tags: AT&T Mobility LLC v. Concepcion, Class Arbitration, Class Waivers, Conflict Preemption, Discover Bank Rule, Discover Bank v. Superior Court, Federal Preemption, Public Policy, Unconscionability, United States Supreme Court