Romanucci & Blandin disturbed by U.S. Supreme Court decision on class actions

We at Romanucci & Blandin are extremely disappointed in and disturbed by a U.S. Supreme Court decision on April 28 that upheld consumer contracts banning class-action arbitration. It is pro-business and severely limits class-action litigation.

In its ruling, the court said that a California law that invalidated contracts banning class-action arbitration with businesses was preempted by the Federal Arbitration Act. What led up to the case being heard by the high court was a dispute between AT&T Mobility and a California couple who opposed being charged a $30 sales tax for a so-called “free” cell phone.

The contract with AT&T Mobility called for arbitration of disputes and prohibited class-action arbitration. In their lawsuit, the couple sought class-action arbitration on the grounds that California case law holds that arbitration agreements banning class actions may be unconscionable and therefore unenforceable.

Many agree that the decision is likely to have a huge impact.

It’s just another example, we believe, of justice weighted against consumers and “pro” those who have financial power. There is simply no level playing field, and it’s very unfortunate.

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