Litigation & Dispute Resolution

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Impact of Recent Supreme Court Arbitration Decisions on Enforceability of Health Care Arbitration Provisions in California

March 09, 2012

The Supreme Court’s landmark decision in AT&T Mobility v. Concepcion has ushered in complete federal preemption over the enforceability of arbitration agreements even in the face of state public policy arguments to the contrary. In Concepcion, the high Court struck down a California Supreme Court decision (based on a California statute that codified the unconscionability defense) that prohibited class action waivers from being included in an arbitration clause in a consumer contract. Although the contract in question clearly involved interstate commerce and was governed by the Federal Arbitration Act, the Supreme Court's decision portended a broader implication—that 9 U.S.C.§ 2 (FAA) embodies a strong liberal federal policy favoring arbitration notwithstanding any state substantive or procedural policies to the contrary.

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Neil Bardack

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Lori Ferguson

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