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Court Watch

By Cynthia M. Klaus and Meredith A. Bauer

U.S. Supreme Court Enforces Class Arbitration Waiver

The U.S. Supreme Court recently released its opinion in AT&T Mobility LLC v. Concepcion, No. 09-893 (U.S. Apr. 27, 2011), addressing the question as to whether class arbitration waivers in standard form contracts are enforceable in actions brought by consumers. The Supreme Court reversed the District Court in California and the Ninth Circuit by holding that class arbitration waivers are enforceable and cannot be found unconscionable under state law. This decision presents considerable advantages to franchisors and business owners that choose to designate arbitration as their dispute-resolution mechanism, due to their ability to require and enforce bilateral arbitration.

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