• Supreme Court Rules That Arbitration Clauses Can Bar Class Actions
  • May 11, 2011 | Author: Wystan M. Ackerman
  • Law Firm: Robinson & Cole LLP - Hartford Office
  • On April 27, 2011, the United States Supreme Court issued a significant decision in AT&T Mobility LLC v. Concepcion, No. 09-893, slip op. (U.S. Apr. 27, 2011), holding that the Federal Arbitration Act (FAA) preempts state law where state law bars the use of an arbitration clause prohibiting a consumer from bringing a class action arbitration. This case appears to open the door for businesses to avoid class action lawsuits by using a contract that requires disputes to be resolved by arbitration and that prohibits classwide arbitration proceedings. This opinion appears to invalidate any state law rule under which an arbitration agreement is unenforceable simply because it does not provide for class treatment. Any such arbitration clause, however, still must comply with other applicable legal requirements.