Calif. Unconscionability Analysis In Conflict With FAA

Law360, New York (November 20, 2013, 7:21 PM EST) -- The California Supreme Court has a long history of inventing new rules to invalidate consumer and employment arbitration agreements. Most notably, in 2005, that court announced a new unconscionability rule — the discover bank doctrine — that effectively blocked enforcement of every consumer arbitration agreement that did not permit class procedures. But the U.S. Supreme Court’s landmark decision in AT&T Mobility LLC v. Concepcion held that the Federal Arbitration Act (“FAA”) preempted the discover bank rule.

Will the California Supreme Court faithfully apply Concepcion and the...
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