The Supreme Court’s recent decision in AT&T Mobility LLC v. Concepcion is “nothing other than a conservative majority favoring the interests of businesses over consumers, employees and others suffering injuries,” writes UC Irvine School of Law dean Erwin Chemerinsky in an op-ed in the Los Angeles Times.
Chemerinsky explains that the court’s decision to deny individuals with claims of about $30 each their right to file a class action because the Federal Arbitration Act trumps California law does not comport with the Act itself, which provides that arbitration agreements are not to be enforced when the state court deems them unenforceable, as California law did here.
“The Supreme Court ignored this and explicitly said that it was important to protect defendants, such as corporations, from the in terrorem ("in fear") effects of class action that pressure them into settlements,” Chemerinsky writes. “The court's conservative majority could not have been clearer that it was favoring businesses over consumers.”
[The National Senior Citizens Law Center’s Rochelle Bobroff fleshes out this point in a guest post for ACSblog.]
Chemerinsky notes Justice Stephen G. Breyer’s dissent, which points out that “only a lunatic or fanatic sues for $30,” and that the class action mechanism is intended for precisely these situations.