As previously reported, in AT&T Mobility LLC v. Concepcion the U.S. Supreme Court on April 27, 2011, held that the Federal Arbitration Act (FAA) preempts California law classifying most class action waivers in arbitration agreements as unconscionable.
An 11th Circuit Court of Appeals decision that significantly narrowed the scope of the Class Action Fairness Act (CAFA) and created substantial confusion among class action practitioners has been vacated by that Court, which admitted that its earlier statutory interpretation was "incorrect.
Companies using arbitration in their consumer and employee contracts are urged to review those documents carefully in light of the U.S. Supreme Court decision on Monday in Rent-a-Center , West v. Jackson , No. 09-497 (June 21, 2010).
The U.S. Supreme Court has agreed to review a case that will decide whether the Federal Arbitration Act (FAA) preempts state court decisions holding that a class action waiver in a consumer arbitration agreement is unconscionable or otherwise violates state law.