Shroyer v. New Cingular Wireless Services, Inc.
United States Court of Appeals for the Ninth Circuit
498 F.3d 976 (9th Cir. 2007)
Kenneth Shroyer (plaintiff), a customer whose service quality declined after AT&T Wireless merged with Cingular (defendant), was told service would only improve if he signed a contract extension, which he did, incorporating Cingular's terms including a mandatory arbitration clause barring class arbitration and containing a non-severability provision voiding the entire arbitration clause if the class waiver was found unenforceable. Shroyer sued Cingular in a putative class action alleging it misrepresented that service could only improve through extension contracts, Cingular removed to federal court and moved to compel arbitration under the Federal Arbitration Act, the district court granted the motion, and Shroyer appealed, arguing the arbitration clause was unconscionable.
Whether a class arbitration waiver that is procedurally and substantively unconscionable is enforceable.