Facts of the Case
Respondent customers brought a putative class action suit against petitioner cellular telephone service provider in district court, alleging false advertising and fraud. The contract between the customers and the provider established dispute proceedings and provided for arbitration of unresolved disputes. The contract precluded class arbitration. The Ninth Circuit found that the arbitration provision was unconscionable under California’s Discover Bank rule, which provided that class-action waivers in consumer contracts of adhesion were unconscionable in cases where a party with superior bargaining power was alleged to have cheated large numbers of consumers out of individually small sums of money. The Court of Appeals affirmed. On certiorari, the judgment was reversed and remanded.
Is a North Carolina redistricting plan in a county lacking a numerical majority of minority citizens required by the Voting Rights of Act of 1965 and, therefore, exempt from complying with the conditions of the North Carolina Constitution.
“Yes. The Supreme Court reversed the lower court order in a decision by Justice Antonin Scalia. The 5-4 majority held that the Federal Arbitration Act preempts “state-law rules that stand as an obstacle to the accomplishment of the FAA’s objectives.” Justice Stephen Breyer filed a dissenting opinion, which was joined by Justices Ruth Bader Ginsburg, Sonia Sotomayor and Elena Kagan. “The Court is wrong to hold that the federal Act pre-empts the rule of state law,” wrote Breyer.”
Citation: 563 US 333 (2011)
Granted: May 24, 2010
Argued: Nov 9, 2010
Decided: Apr 27, 2011
Case Brief: 2011