Callahan & Blaine

We won’t know what the Supreme Court has to say until some time next year, but most attorneys and consumer advocates are breathing a sigh of relief after recent arguments heard by the court. For now it doesn’t appear that the line of questioning by the justices will lead them to prohibit the state of California from allowing Class Action Lawsuits after consumers have signed agreements specifying arbitration.

At issue: a California couple signed up for free cell phones through AT&T, but were charged $30 in taxes. The couple maintains that the cell phones were not free, and initiated a class action lawsuit alleging fraud. However, it turns out that the fine print in their cell phone contract prohibits class action suits against the telecommunications giant. Instead, the contract specifies arbitration. Clauses prohibiting class action litigation are standard in many consumer agreements, though people generally do not read the fine print.

The California Supreme Court ruled that class-action waivers in a standard contract are unconscionable under state law. Under the California ruling, the couple’s original suit was legally allowed to proceed as a class action. The U.S. Supreme Court must now decide whether or not the suit should have been allowed to go forward as a class action, or whether it will be sent back to the state level. The U.S. Supreme Court appears reluctant to tell the state of California what it may or may not consider unconscionable, but we will have to wait to find out their decision.

For 25 years, Callahan & Blaine has been perfecting the ultimate litigation law firm. All Callahan & Blaine attorneys are highly sophisticated litigators and trial attorneys; we only utilize highly experienced attorneys, all of whom have at least seven years of experience and many have 15-25 years’ experience. For the attorneys of Callahan & Blaine, winning is our specialty.

If you are involved in a business legal matter or are contemplating a class action lawsuit, contact Callahan & Blaine to discuss your case today.