Jennifer Laster v. At&t Mobility LLC

I. Factual and Procedural History

In February 2002, Vincent and Liza Concepcion signed a Wireless Service Agreement (WSA) with AT&T Mobility1 (AT&T) for cellular phone service and the purchase of new cell phones. The Concepcions received the cell phones with- out charge for the devices themselves because they agreed to a two-year contract term. However, AT&T charged them $30.22 total in sales tax for the two phones2, calculated as 1 The original contract was with Cingular Wireless. In November of 2005, AT&T acquired Cingular Wireless and renamed the company AT&T Mobility (AT&T) on January 8, 2007. 2 The Concepcions allege they were actually charged $149.99 for a Motorola phone, and $0.00 for a Nokia phone. If so, at a sales tax rate of 7.75%, the amount of sales tax charged on the “free” Nokia phone is but $18.60. For purposes of the present appeal, the disparity in their pleadings is inconsequential. If anything, it makes the predictable recovery in an individual claim smaller and more likely to have the practical effect of making the arbitration clause unconscionable. 14392 LASTER v. AT&T MOBILITY LLC 7.75% of both phones’ full retail value. The Concepcions…