Supreme Court Takes Up Class Action Arbitration Issue

Law360, New York (May 24, 2010, 1:54 PM EDT) -- The U.S. Supreme Court has agreed to hear a case examining whether the Federal Arbitration Act precludes judges from invalidating contract provisions that deny people the right to pursue classwide relief.

In an order issued Monday, the high court granted a cert petition filed by an AT&T Inc. subsidiary, which provided cost-free arbitration and supplemental provisions that nearly guaranteed the full recovery of claims to its wireless phone customers, but which contractually barred class actions against it.

The AT&T subsidiary, AT&T Mobility LLC, is trying to...
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