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Nan Aron

Nan Aron

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AT&T Mobility v. Concepcion: The Corporate Court Does it Again

Posted: 04/29/11 11:46 AM ET

The Corporate Court is at it again. This time the case is AT&T Mobility v. Concepcion, and this week's 5-4 decision in favor of the cell-phone giant is yet another far-reaching betrayal of some of the most fundamental principles of American justice.

In this case, big business, with AT&T as its stalking horse, asked the Supreme Court to protect it from all those cheeky consumers and impudent employees who might have the temerity to complain that they're being ripped off or discriminated against. The ultra-conservative majority on the Court found a way to keep all those annoying individuals from banding together in group arbitration or in the courts, where they would have the benefit of lawyers and all those pesky constitutional rights and rules of civil procedure.

The result of the decision by Justices Scalia, Roberts, Thomas, Alito, and Kennedy is to make sure that when people like you enter the legal arena against a corporation, you go all by yourself into a system that's rigged against you.

Even if your name isn't Concepcion or you don't have an AT&T cell phone, this case is about you. Almost all of us operate in a world filled with employment agreements or corporate contracts for things like cell phones, credit cards, or online accounts. But if at some point you discover you've been cheated or your civil rights have been violated, you'll find that that you've signed away your ability to enter a courthouse to fight back. In this country, you can't buy a cell phone or take a job without agreeing to disempower yourself.

The culprit is right there in the fine-print or in the lengthy agreement you scroll through without reading before you click on the button that says, "I agree." The contract mandates that if the company does you wrong, you're absolutely forbidden to get together with others similarly harmed and sue in court or demand group arbitration. If you still want to complain, you have to submit to binding arbitration for your case alone. And who sets up the arbitration system? Why, the corporation, of course!

California had a rule that agreements that compel consumers or employees to give up their rights to form class actions are "unconscionable," and therefore invalid, when they protect companies that try to cheat lots of people out of small sums. The Supreme Court this week said that the Federal Arbitration Act was in conflict with California's rule, even though all of the Court's past rulings and the long-standing interpretation of the statute said otherwise. (So much for conservatives' belief in states' rights. When the conflict is between profits and principles, this Court has a clear favorite.)

Thanks to the Court, corporations are now free to write contracts that legally bar you from challenging them in class-action lawsuits or even group arbitration, no matter what they do to harm you. There is no mystery why the Chamber of Commerce and several large corporations filed briefs in this case.

The upshot is that corporations will now be able to decide on their own which civil rights and consumer protections they want to obey, knowing that there will be no effective means available to their victims to find redress. Even worse, not only has the radical conservative majority damaged the ability of consumers or employees to find justice, it has effectively removed any incentive for corporations to behave within the law in the first place. Why act lawfully if your victims are helpless, especially in cases like this when the harm to each individual is small but the potential for profit is huge?

This case, after all, was about a $30.22 charge for a "free" cell phone. That amount is so small that almost no one would go through the hassle and expense of fighting it out with the company one-on-one, especially in a system that's rigged by the corporation. AT&T counted on that. You can make a lot of money taking $30 at a time from hundreds of thousands of people. But if those people are able to unite with others who were similarly ripped off, suddenly the cost/benefit equation changes. With enough money at stake to make a class-action suit feasible, not only can lots of consumers get justice who otherwise might not bother, but the prospect of a big payout provides an incentive for the company to act responsibly.

But as of yesterday, that possibility is gone.

This Corporate Court, at the behest of big-business interests, is systematically draining away the rights of everyday Americans. This misguided decision must not be allowed to stand. Congress should act swiftly to end forced arbitration in civil rights, consumer, and employment disputes and restore the ability of every citizen to use the courts to find justice.


An Alliance for Justice report summarizing the facts and issues of the case, "AT&T Mobility v. Concepcion: Will the Supreme Court Give AT&T a License to Steal?" can be downloaded here.

 
 
 

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HUFFPOST SUPER USER
fgbouman
Curmudgeon & Designer
06:32 PM on 05/05/2011
It is time to stop calling this radical Supreme Court "conservative". These folks clearly stand for the destruction of the United States that was envisioned by the fathers of the nation. Oddly, conservatives in the lowest 98 per cent of wealth holders haven't figured this out. If they do, this country is in for a revolution.
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HUFFPOST SUPER USER
thecreeksedge
10:42 AM on 05/04/2011
Obama was wrong in calling a meeting to secure redress from BP. It would have been much better for every individual person harmed by the spill to engage the services of an attorney and bring suit on their own. That way, their particular situations could have been much better addressed and BP could have been shielded appropriately from the heavy hand of government. After all, they didn't INTEND to blow up their oil drilling platform, it just happened.
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HUFFPOST SUPER USER
thecreeksedge
10:40 AM on 05/04/2011
Since corporations are A PERSON it is only fair that they can be sued by only A PERSON, whether it be a consumer or employee. We have to protect our businesses from being ganged up on. After all, there has been such a ridiculous imbalance of power in recent years, in which corporations have been so wronged by groups of consumers and employees who have banded together. One on one is certainly more fair.
07:07 PM on 05/09/2011
An individual can be sued by a corporation, which is a group of people. A group of people harmed by a corporation should be able to sue a corporation. By definition, a corporation is not a person. Imbalance of power in favor of individuals? Links?
09:28 PM on 05/03/2011
Since Obama is investigating oil companies for price fixing and if that is found to the the case, the people will have no recourse. Good luck with this "conservative" court.

I do not believe it is conservative, I believe it is highly prejudicial and bears the close investigation and the scrutiny of the press.

The Roberts Court is like the Kiss of Death to progress, Justice and a level playing field.

This court has no consideration for the rights of the people, for the protection of the people, in fact the only people this court has any consideration for are "corporations."

They should be impeached as soon as possible. Their recent rulings are inconsistent with common sense, the welfare of the people, the common good and legal precedent.
06:25 PM on 05/03/2011
This is what happens when Republicans get to nominate too many Justices. Both of them were obviously lying during their confirmations. What would have been wrong with the "nuclear option"?
08:38 AM on 05/03/2011
To the writer of this article: we don't need frivolous cases like this in courts. I agree with the Supreme Court's decision on not allowing people to take cases to court for arbitration or suit. The courts are backlogged as is with such cases. The less of these, the better.
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robadeaux
Your labels have expired....
03:50 PM on 05/03/2011
No matter the harm? You are not so smart. One could only hope you will be the victim...
07:24 PM on 05/03/2011
You are kidding right?

So if AT&t or others wish to sue you it is OK? The At&T deal is a fun house economy not a free capitalist system. It cannot be a one way mirror set of contracts and laws. Any individual should be able to do whatever they want including banding together and suing.

Corporations do that, so why not us. It is frivolous if we do it but not if corporate giants do this.

If I present a contract at a car dealership today which is not theirs it is considered insane. But we have the right to negotiate and litigate the same. Through usage the rights we have are being obliterated. Why not just make us kneel before any corporate power, anything else is frivolous right? Give me a break!

Frivolous is as frivolous does. I say much of corporate contracts are worse than frivolous and amount to empty non-existent choices..hey do not use a phone, do not have a bank account, do not have a car or insurance, do not use software. You are free to go live in the dark in the woods.

The Court is a joke not to take that into account. It acts as if we live in a pristine world where we can do without modern services. Try it and see what happens to you. Sign away your rights or else is a pretty sick way to operate. Hey let's have indentured servants back!
02:16 AM on 05/03/2011
What did anybody expect from our present day Supreme Court?

Those justices are mostly right wingnut conservatives who worship the oligarchs and corporations.

Just think about what we know of Clarence Thomas.
The guy ADMITS he doesn't even talk about or discuss anything with the other justices before he votes.
******To ME, it looks like he just votes the way he is told.
Oh, and don't forget what his wife has been doing....there is no way he could be even a little unbiased.
05:08 PM on 05/02/2011
If the Democrats win Congress in the next elections, we must put incredible amounts of pressure on them to impeach the treasonous right wing Supreme Court justices who are dismantling democracy and empowering the wealthy.
11:06 PM on 05/07/2011
That'll never happen, but Congress COULD [and should] make appropriate changes to the Federal Arbitration Act by explicitly saying that state laws regarding unconscionable contract clauses and class actions shall be respected and observed.
05:08 PM on 05/02/2011
The right wing Supreme Court justices are extremely dangerous people.  They are there for a specific purpose: dismantling democracy and empowering corporations.  They must be impeached, arrested and put on trial for this and many of their previous offenses, including the democracy-ki||ing Citizen's United decision.
This user has chosen to opt out of the Badges program
02:32 PM on 05/02/2011
Only one question. Since all of us are required to pay sales tax on the fair market value of any item that we purchase REGARDLESS of origin, and the $30.22 was according to the AFJ brief "sales tax", did AT&T pay that sales tax to the state? Kinda like you sell your car to your cousin and when you transfer the title you tell them he paid a lot less for it than he did, because one of you owes the salse tax. Only, AT&T can't hand you a $200+ phone and tell the governmnet it cost $20, like you can do with your cousin. Same as if you win something on a game show, you still have to pay the taxes on it. Does that means Game Shows should also be sued?

Never let the facts geet in the way of a good story.....
11:12 PM on 05/07/2011
The underlying merits of this particular case are not the issue. Indeed, I don't think AT&T was wrong here in regard to the sales tax issue, since the phone was indeed "free" as far as AT&T was concerned.

The issue here is whether in ANY case involving small dollar amounts, consumers should be allowed to aggregate their claims and sue as a class. Not to be allowed to do so effectively slams shut the courthouse doors.
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HUFFPOST SUPER USER
snorrk
A Citizen against Citizen's United
02:04 PM on 05/02/2011
I've been around a long time. Long enough to watch the pendulum swing in both directions though I admit it doesn't swing so far or so dramatically to the left as it does the right. I can observe that that pendulum has now swung further to the right than I have ever seen it swing. I can only pray that it will swing to the left soon to undo the damage and start making actual progress to the left that will benefit not only the average citizen and the consumer but also business. I include business in this wish because it has been proven time and again that unbridled and unregulated capitalism leads to business "eating their own" and forestalling future growth and profits for immediate returns through ethical and nore moral dealings.
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beadingchef
creativity is the spark of intention
01:28 PM on 05/02/2011
he result of the decision by Justices Scalia, Roberts, Thomas, Alito, and Kennedy is to make sure that when people like you enter the legal arena against a corporation, you go all by yourself into a system that's rigged against you.
I find this do morally and ethically wrong that corporations have more rights then citizens. How could we have gotten to this point? Oh yea I remember, Bush.
01:11 PM on 05/02/2011
This is disgusting. You know how we got here? Years of conservatives trying to stack the court, ostensibly in an effort to overturn Roe v Wade. Well, that hasn't happened. But we have learned that corporations are people and have individual rights, and now this.
11:14 PM on 05/07/2011
I don't have a problem with corporations having rights -- I only wish CONSUMERS did, too!
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HUFFPOST SUPER USER
laurieanichols
je pense donc, je suis
10:59 AM on 05/02/2011
What are we the small consumer to do? What recourse do we have? How many fronts do we small people have to fight? I mean come on, it's annoying.
07:28 AM on 05/02/2011
We all live in a world of laws and principals crafted through years of trial and error. To point out that the lack in ability to band together and litigate in the name of proven social benefits is beyond reason. That there is no constitutional law that prohibits the forming of class action is obvious. What this decision indicates is the belief of the majority in this court that profits outweigh responsibilities..