AT&T Mobility v. Concepcion

Supreme Court of the United States

563 U.S. 333 (2011)

April 27, 2011

The Federal Arbitration Act, a federal law, preempts the California Discover Bank Rule, which is a conflicting state law.

Relevant Facts

Customers of AT&T brought a class action suit against the service provider in district court alleging false advertising and fraud. The contract contained an arbitration provision requiring disputes to go through arbitration pursuant to the Federal Arbitration Act. AT&T sought to compel arbitration. Under California's Discover Bank Rule, class-action waivers in consumer contracts of adhesion were unconscionable in cases where a party with superior bargaining power was alleged to have cheated large numbers of consumers out of individually small sums of money. Thus, the consumers sought to enforce California's Discover Bank Rule to strike the arbitration provision.

Issue

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Holding & Reasoning

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Concurrence

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Dissent

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Last updated:

November 30, 2020

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Procedural History

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Citations

563 U.S. 333 (2011)