In the wake of the Supreme Court’s decision in AT&T Mobility v. Concepcion, which allows companies to compel the individual arbitration of mass consumer claims, defense lawyers have been rushing to seize on the ruling to force class actions plaintiffs into arbitration.
Now, district court judges are beginning to grant some of those motions, although in at least one case with reservations. On Monday San Francisco Judge Wiliam Alsup compelled arbitration in a proposed consumer class action against T-Mobile and HTC Corp. over allegedly defective smartphones. Although Alsup followed the Concepcion decision, he signaled that he doesn’t necessarily agree with it. He noted that “perhaps regrettably” the court rejected the plaintiff’s argument that class actions provide the only practical recourse for individuals with relatively small claims.
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