Central District Denies Motion to Compel Class Arbitration, But Grants Stay Pending Outcome of Supreme Court’s Decision in AT&T Mobility v. Concepcion

American Express
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The United States District Court for the Central District of California denied a class action defendant’s motion to compel arbitration, but granted its motion to stay.  Lopez v. American Express Bank, FSB, No. CV 09-07335 SJO (MANx), 2010 WL 3637755 (C.D. Cal. Sept. 17, 2010).

Plaintiffs sued Defendants American Express Bank, FSB, and American Express Centurion Bank’s (collectively, “Defendants”) alleging causes of action relating to the terms and conditions of credit cards. Id. *1.  Defendants moved to compel arbitration.  Id. The Court denied, finding that the class action waiver contained in the Agreement between the parties was unconscionable under California law, and therefore, the Plaintiffs could not be compelled to arbitrate. Id. Defendants brought the present motion to reconsider.

The Court determined that the Supreme Court’s grant of certiorari in AT & T Mobility LLC v. Concepcion, — U.S. —-, 130 S. Ct. 3322, — L. Ed. 2d —-, 2010 WL 303962 (May 24, 2010) constitutes a material difference in fact and law, potential change in controlling law, and justifiable reason to reconsider its prior. Id. *3.

The specific question that the Supreme Court will resolve is: Read the rest of this entry »

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