Supreme Court of the United States

AT&T Mobility LLC v. Concepcion

April 27, 2011

Summary

The Supreme Court held that California's Discover Bank rule, which renders class-action waivers in consumer arbitration contracts unconscionable, is preempted by the Federal Arbitration Act. The Court reasoned that the rule stands as an obstacle to the FAA's objectives of facilitating streamlined arbitration proceedings and fundamentally alters the attributes of arbitration to the detriment of efficiency and informality.