Skip to content

American Insurance NW Inc. Blog

All You Ever Wanted to Know About Insurance

Supreme Court Blocks Class-Action Lawsuits

A divided Supreme Court, ruled on a 5-4 split decision along ideological lines, that corporations can enforce arbitration clauses to block dissatisfied customers from bring class-action lawsuits. Consumer rights advocates said this ruling would spell the end for small claims involving products or services. Other business lawyers said class-action claims rarely work to the benefit of consumers anyway.

The ruling was a result of a California lawsuit that involved cellphones, but it's impact is nationwide.  In the case before the court, a Southern California couple complained about a $30 charge involving their purchase of cellphone service from AT&T Mobility. The California courts said they were entitled to join with others in bringing a class-action claim against the cellphone company.

But the Supreme Court reversed that decision Wednesday in AT&T Mobility vs. Concepcion. Justice Antonin Scalia said companies may require buyers to sign arbitration agreements, and those agreements may preclude class-action claims. Chief Justice John G. Roberts Jr. and Justices Anthony Kennedy, Clarence Thomas and Samuel A. Alito Jr. formed the majority.

Read more direct from the sources:

ProgramBusiness.com - Apr 28, 2011 
Supreme Court Rules that Firms Can Block Customer Class-Action Suits 

Los Angeles Times - Apr 28, 2011 
Companies can block customers' class-action lawsuits, Supreme Court rules 

 

 


Discussion

There are no comments yet.


Leave a Comment

Required fields are marked with

Comment

Your name, comment, and URL will appear on this page after it has been reviewed and approved. Your email address will not be published.