The US Supreme Court holds that consumer arbitration clause containing a class action waiver is enforceable (AT&T Mobility / Concepcion)

On April 27, 2011, the US Supreme Court issued the long-awaited opinion in AT&T Mobility, LLC v. Concepcion. (No. 09-893, 563 US ____, slip op. (April 27, 2011)) Justice Scalia’s majority opinion, joined by Chief Justice Roberts and Justices Kennedy, Thomas, and Alito, held that because California’s Discover Bank rule, which precludes class action waivers in most consumer arbitration agreements in that state, “stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress,” it is preempted by the Federal Arbitration Act (“FAA”). (AT&T Mobility, 563 US ____, slip op. at 18 (Scalia, J.)) The Court’s decision in AT&T repeatedly relied on its decision issued exactly one year ago to the day in Stolt-Nielsen v. AnimalFeeds (Stolt-Nielsen S.A.

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  • White & Case (Miami)
  • White & Case (Los Angeles)
  • White & Case (Washington)

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David Draigh, Bryan Merryman, Eric Grannon, The US Supreme Court holds that consumer arbitration clause containing a class action waiver is enforceable (AT&T Mobility / Concepcion), 27 April 2011, e-Competitions Bulletin April 2011, Art. N° 37098

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