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Consumer Class Actions a Thing of the Past?

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In a 5-4 decision in AT&T Mobility v Concepcion, that SCOTUsblog calls "super-significant" the United States Supreme Court ruled that the Federal Arbitration Act "FAA" preempts a California common-law rule that permits consumers to avoid contracts in which they have waived their class action rights.  Justice Scalia, writing for the majority, stated, "The overarching purpose of the FAA is to ensure the enforcement of arbitration agreements according to their terms so as to facilitate streamlined proceedings.  Requiring the availability of classwide arbitration interferes with fundamental attributes of arbitration and creates a scheme inconsistent with the FAA." The dissent, led by Justice Stephen G. Breyer, opined that class action proceedings are necessary to prosecute small-dollar claims that might otherwise slip through the legal system.  For more information on the case, please see the following article: http://www.abajournal.com/news/article/the_end_of_consumer_class_actions_supreme_court_upholds_att_arbitration_con


 

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