Concepcion's Effect On Insurance Arbitration

Law360, New York (May 11, 2011, 2:36 PM EDT) -- In a game-changing decision, the U.S. Supreme Court recently struck a considerable blow to consumers seeking redress through class actions. On April 27, in a 5-4 opinion, the high court ruled in AT&T Mobility LLC v. Concepcion et ux., No. 09-893 that companies can require dissatisfied customers to individually arbitrate their complaints.

Although, on its face, the decision may seem somewhat benign, in practice, it could have far-reaching consequences in the commercial contract and especially in the insurance industry, among others, which actively utilize class actions...
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