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T-Mobile USA, Inc., et al. v. Laster, et al.

Close Date: 05/27/2008
Topic(s): Arbitration
Consumer Justice
Status: closed
Date Of Involvement: 02/07/2008
Docket: 07-976

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Description:

The Federal Arbitration Act (FAA) provides that arbitration agreements are enforceable "save upon such grounds as exist at law or in equity for the revocation of any contract." 9 U.S.C. § 2. Class-action bans -- contract provisions that prohibit classwide proceedings, whether in litigation or arbitration -- have been held to be unconscionable in some circumstances under the generally applicable contract law of some states.

Is such state law preempted by the FAA when the class-action ban to which it is applied is embedded in an arbitration agreement?

Public Citizen was co-counsel for the respondents at the cert stage, and the Supreme Court denied cert.