SCOTUS mulling the future of class-action suits

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Defense and plaintiffs attorneys alike have their eyes on the Supreme Court of the United States, which has before it a case that some say could spell the end to class-action lawsuits in the name of contractual arbitration.

The nation’s highest court is considering AT&T Mobility v. Concepcion, No. 09-893, a case that comes from California and the 9th Circuit Court of Appeals. The issue is whether the Federal Arbitration Act preempts states from allowing class arbitration or litigation as a part of an arbitration agreement. Dozens of amicus parties have filed briefs and the SCOTUS heard arguments today, meaning they’ll likely issue a decision at some point before the term ends in June 2011.

In this case, the consumers  - Liza and Vincent Concepcion - sued the phone giant after entering into a purchase agreement for cell phone service in California, claiming that AT&T fraudulently charged tax on a “free” phone despite advertising otherwise. The Concepcions sued on behalf of a class of consumers who’d also allegedly overpaid, but part of a customer service agreement they’d signed included an arbitration clause that requires the customer and company to arbitrate any disputes arising from the agreement.

When the Concepcions in 2006 filed the suit in the Southern District of California, AT&T argued the suit shouldn’t have been allowed because only arbitration could be used to resolve the dispute. The District Court held that the arbitration clause was unconscionable under that state’s law and wasn’t enforceable because it didn’t allow for class-action litigation, and the 9th Circuit affirmed on the grounds that the Federal Arbitration Act didn’t preempt California law on unconscionability.
Now, the justices are considering the issue and some national legal experts have opined that the justices may rule in AT&T’s favor. As a result, that could lead to significant changes throughout the country.

The National Workrights Institute argues that a court decision in AT&T’s favor could mean that employment cases wouldn’t be able to use class-action litigation and that wide-spread discriminatory practices would become more common because of the arbitration requirements. The Institute’s brief spells out how it fears attorneys wouldn’t be willing to take these and similar cases without the assurance of adequate attorneys’ fees that can come from class-action suits. Similar thoughts are echoed by other groups, such as the NAACP.

AT&T and some amicus parties, such as the Defense Research Institute, argue that the court striking down its arbitration clause would distort contract law and also signal a willingness to interfere with corporate operations. Millions of parties enter into arbitration agreements annually, and this case could determine what might happen with those agreements inside or out of court.


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  1. I think the cops are doing a great job locking up criminals. The Murder rates in the inner cities are skyrocketing and you think that too any people are being incarcerated. Maybe we need to lock up more of them. We have the ACLU, BLM, NAACP, Civil right Division of the DOJ, the innocent Project etc. We have court system with an appeal process that can go on for years, with attorneys supplied by the government. I'm confused as to how that translates into the idea that the defendants are not being represented properly. Maybe the attorneys need to do more Pro-Bono work

  2. We do not have 10% of our population (which would mean about 32 million) incarcerated. It's closer to 2%.

  3. If a class action suit or other manner of retribution is possible, count me in. I have email and voicemail from the man. He colluded with opposing counsel, I am certain. My case was damaged so severely it nearly lost me everything and I am still paying dearly.

  4. There's probably a lot of blame that can be cast around for Indiana Tech's abysmal bar passage rate this last February. The folks who decided that Indiana, a state with roughly 16,000 to 18,000 attorneys, needs a fifth law school need to question the motives that drove their support of this project. Others, who have been "strong supporters" of the law school, should likewise ask themselves why they believe this institution should be supported. Is it because it fills some real need in the state? Or is it, instead, nothing more than a resume builder for those who teach there part-time? And others who make excuses for the students' poor performance, especially those who offer nothing more than conspiracy theories to back up their claims--who are they helping? What evidence do they have to support their posturing? Ultimately, though, like most everything in life, whether one succeeds or fails is entirely within one's own hands. At least one student from Indiana Tech proved this when he/she took and passed the February bar. A second Indiana Tech student proved this when they took the bar in another state and passed. As for the remaining 9 who took the bar and didn't pass (apparently, one of the students successfully appealed his/her original score), it's now up to them (and nobody else) to ensure that they pass on their second attempt. These folks should feel no shame; many currently successful practicing attorneys failed the bar exam on their first try. These same attorneys picked themselves up, dusted themselves off, and got back to the rigorous study needed to ensure they would pass on their second go 'round. This is what the Indiana Tech students who didn't pass the first time need to do. Of course, none of this answers such questions as whether Indiana Tech should be accredited by the ABA, whether the school should keep its doors open, or, most importantly, whether it should have even opened its doors in the first place. Those who promoted the idea of a fifth law school in Indiana need to do a lot of soul-searching regarding their decisions. These same people should never be allowed, again, to have a say about the future of legal education in this state or anywhere else. Indiana already has four law schools. That's probably one more than it really needs. But it's more than enough.

  5. This man Steve Hubbard goes on any online post or forum he can find and tries to push his company. He said court reporters would be obsolete a few years ago, yet here we are. How does he have time to search out every single post about court reporters and even spy in private court reporting forums if his company is so successful???? Dude, get a life. And back to what this post was about, I agree that some national firms cause a huge problem.