Client Alert
| April 29, 2011
U.S. Supreme Court Permits Consumer Waivers of Class Action Arbitrations
A Supreme Court ruling on Wednesday has important implications for businesses using consumer contracts in California. The case, AT&T Mobility LLC v. Concepcion, No. 09-893; 2011 WL 1561956 (U.S. Apr. 27, 2011), overruled California case law that had prohibited certain class action waivers contained in consumer contract arbitration provisions. As a result of this decision, businesses may now use contract provisions with California consumers that prohibit consumers from pursuing class arbitration of contract disputes. Thus, companies that do business in California should be aware that inserting a class action waiver into an arbitration clause in consumer contracts is now a viable option.
This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent.
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