In a class action claiming that a telephone company’s offer of a “free” phone to anyone who signed up for its service was fraudulent to the extent the phone company charged the new subscriber sales tax on the retail value of each “free” phone, denial of defendant’s motion to compel arbitration is affirmed where an arbitration clause’s “premium” payment in the event of an arbitral award in favor of a customer did not prevent the clause from being unenforceable under California law.
Read Laster v. AT&T Mobility LLC, No. 08-56394
Appellate Information
Argued and Submitted September 17, 2009
Filed October 27, 2009
Judges
Opinion by Judge Bea
Counsel
For Appellants:
Donald M. Falk, Mayer Brown LLP, Palo Alto, CA
For Appellees:
Kirk B. Hulett, Hulett Harper Stewart LLP, San Diego, CA
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