The Corporate Court's decision in AT&T Mobility v. Concepcion set a dangerous precedent, and is forcing everyday Americans out of the courthouse. AFJ takes a look at some of the cases impacted by the decision.
Case: Wolf v. Nissan Motor Acceptance Corp.
Matthew Wolf is a captain in the Army Reserve JAG Corp who was deployed oversees in late 2007. A year earlier, Captain Wolf leased a new car through Nissan on a 39 month lease, and paid about $600 in advance costs. The Servicemembers Civil Relief Act provides that when called to active duty, reservists and National Guard members are entitled to terminate automotive leases and recover a portion of upfront costs paid. Nissan, however, refused to refund any portion of Wolf’s payments. Wolf filed a class action on behalf of himself and all other servicemembers whose rights Nissan would not honor. However, Nissan’s lease agreement contained an arbitration clause with a class action waiver. The district court held that, in light of Concepción, the FAA and its “policies favoring and promoting arbitration” required solitary arbitration, even if it hindered the policy goals behind the SCRA.
Click here for more on the aftermath of the Court's AT&T decision.