Gatton
Gatton v. T-Mobile USA, Inc.
Opinion
lead Opinion
Gemello, J.
In this consolidated appeal, T-Mobile USA, Inc., appeals from an order denying its motion to compel arbitration of actions challenging the early termination fee charged to cellular telephone service subscribers and challenging the practice of selling locked handsets that a subscriber cannot use when switching carriers. T-Mobile contends the court erred in concluding that the arbitration clause in its service agreement is unconscionable.
In the published portion of this opinion, we hold that the adhesive nature of the service agreement established a minimal degree of procedural *575 unconscionability notwithstanding the availability of market alternatives and that the high degree of substantive unconscionability arising from the class action waiver rendered the arbitration provision unenforceable.
In the unpublished portion of this opinion, we reject T-Mobile’s contention that the Federal Arbitration Act preempts any rule that class action waivers are unconscionable under California law.
We affirm the trial court order.
Factual and Procedural Background The Parties and the Service Agreements
T-Mobile USA, Inc. (T-Mobile), is a cellular telephone provider in…
035concurrenceinpart Opinion
Jones, J.
Under compulsion of Discover Bank v. Superior Court (2005) 36 Cal.4th 148 [ 30 Cal.Rptr.3d 76 , 113 P.3d 1100 ] {Discover Bank), I concur in my colleagues’ conclusion that the arbitration clauses before us are substantively unconscionable because of the prohibition in the mandatory arbitration provision against the pursuit of any remedy by a plaintiff as a representative of other potential claimants or class of claimants. But I cannot agree that the contracts are also procedurally unconscionable. In my view, plaintiffs do not show, on the record before us, *589 either surprise or oppression to support their procedural unconscionability claim. In the absence of both procedural and substantive elements of unconscionability, this court should decline to exercise its discretion to refuse to enforce the disputed clause. {Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, 114 [ 99 Cal.Rptr.2d 745 , 6 P.3d 669 ] {Armendariz).) The trial court erred when it denied the motion to compel arbitration, and its order so holding should be reversed.
BACKGROUND
It is undisputed that the challenged terms of the cellular telephone service agreement were drafted by…