T-Mobile Class Action Waiver Unenforceable: 9th Circ.

Law360, New York (March 27, 2009, 12:00 AM EDT) -- A federal appeals court has reversed a lower court's dismissal of a consumer class action against T-Mobile USA, saying T-Mobile's service agreement, which includes a class action waiver and mandatory dispute arbitration, is unenforceable.

Judge Stephen Reinhardt of the United States Court of Appeals for the Ninth Circuit wrote in the opinion, filed Friday, that class action waivers in consumer contracts are “unreasonably favorable to a company like T-Mobile” because they are “entirely unilateral in effect” and often prevent individuals from pursuing their claims.

The United...
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