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AT&T Mobility LLC v. Concepcion: Time to Consider a Motion to Compel Arbitration?

December 7, 2011
B. Rush Smith III , Sean R. Higgins

 "Reprinted with permission of the American Bar Association"

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On April 27, 2011, the Supreme Court issued its (now widely-reviewed and critiqued) decision in LLC v. Concepcion holding that the Federal Arbitration Act (the FAA) preempted a California state-law rule that invalidated most class-action waivers in consumer contracts on grounds of unconscionability.

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AT&T Mobility, 563 U.S. __ (2011),Concepcion  affects cases not only in the Ninth Circuit and California where it was pending, but also in any jurisdiction that has singled out class-action waivers for special treatment. In addition to confirm the general enforceability of arbitration provisions containing class-action waivers, most reluctant jurisdiction to recognize the enforceability of arbitration provisions that are very likely to be found in the Concepcion compels even the  the consumer finance contract at issue in your client’s active case (or cases).