A clause in Verizon cellphone service contracts that makes arbitration of disputes mandatory but prohibits arbitration as a class is enforceable under federal law, despite New Jersey Supreme Court precedent to the contrary.
The 3rd U.S. Circuit Court of Appeals last week affirmed dismissal of a putative class action, Litman v. Cellco Partnership , based on a finding by the U.S. Supreme Court last April that the Federal Arbitration Act pre-empts contrary state law.
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