Perspective
May 5, 2011
Why California’s Ban on Class Arbitration Waivers Cannot Stand
What the U.S. Supreme Court justices have to say about class arbitration. By Rex S. Heinke and L. Rachel Helyar of Akin Gump Strauss Hauer & Feld LLP
Last Thursday, in AT&T Mobility LLC v. Concepcion, the U.S. Supreme Court ruled 5-4 that the Federal Arbitration Act (FAA) pre-empts state laws like California's that ban arbitration provisions requiring parties to arbitrate their claims on an individual basis (i.e., agreements that include "class arbitration waivers"). The new case reverses settled California law and expectations, and has the potenti...
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