Supreme Court of the United States

At&t Mobility LLC v. Vincent Concepcion

April 27, 2011179 L. Ed. 2d 742

Summary

The Court held that the Federal Arbitration Act preempts California's Discover Bank rule, which classifies most class-action waivers in consumer contracts as unconscionable. The opinion reasons that requiring classwide arbitration interferes with the fundamental attributes of arbitration and obstructs the FAA’s primary objective of enforcing agreements according to their terms. Justice Breyer, dissenting, would have held that the rule is consistent with the FAA's saving clause and does not discriminate against arbitration.