John Murphy v. Directv, Inc.

In AT & T Mobility v. Concepcion, — U.S.-, 131 S.Ct. 1740 , 179 L.Ed.2d 742 (2011), the Supreme Court held that Section 2 of the Federal Arbitration Act (“FAA”) preempts the State of California’s rule rendering unenforceable — as unconscionable — arbitration provisions in consumer contracts that waive collective or class action proceedings, see Discover Bank v. Superior Court, 36 Cal.4th 148 , 30 Cal.Rptr.3d 76 , 113 P.3d 1100 (2005) (the “Discover Bank rule”), reasoning that “[requiring the availability of classwide arbitration interferes with fundamental attributes of arbitration and thus creates a scheme inconsistent with the FAA.” Concepcion, 131 S.Ct. at 1748. This putative consumer class action, filed before Concepcion was decided, but pending in the district court when Concepcion issued, charges satellite television provider DirecTV and electronic retailer Best Buy with violations of California’s Unfair Competition Law (“UCL”) and Consumer Legal Remedies Act (“CLRA”). We must decide whether Concepcion applies to the unique arbitration clause in the customer service agreement between DirecTV and individuals who believed they purchased DirecTV equipment from Best Buy…