Calif. court rules arbitration can't stop class-actions.(News)

RCR Wireless News, July, 2005

Byline: JEFFREY SILVA

The California Supreme Court last week ruled arbitration agreements between companies and customers do not necessarily preclude people from filing class-action suits, a decision with unclear implications for the state's mobile-phone carriers with mandatory arbitration clauses in service contracts.

While the California case involved Discover Bank and credit-card holders, the decision of the state high court appears to have broader application, possibly for wireless carriers in California in the middle of a major battle over whether scores of new-albeit stayed-wireless consumer protection rules should remain on the books.

Indeed, California consumerism has become a colossal-and expensive-headache for mobile...

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