At&t Mobility LLC v. Concepcion

Summary

The Court held that the Federal Arbitration Act preempts California’s Discover Bank rule, which classifies most class-arbitration waivers in consumer contracts as unconscionable. The majority found class arbitration interferes with the FAA’s objectives of streamlined procedures and enforcement according to contract terms. Justice Breyer dissented, arguing the rule applies generally to contracts and respects the FAA saving clause. Justice Thomas concurred, proposing § 2’s saving clause should be limited to contract formation defects.