Cruz v. Cingular Wireless, LLC
2011 U.S. App. LEXIS 16811
| 11th Cir. | 2011Background
- Plaintiffs Cruz, Flaherty, and Smith are AT&T Mobility customers who signed a Wireless Service Agreement with an arbitration clause and a class action waiver.
- The RAP FDUTPA claim alleges ATTM charged $2.99 monthly for an optionally acquired Roadside Assistance Plan the plaintiffs did not order or enroll in.
- The district court dismissed the FDUTPA claims and compelled individual arbitration under the agreement, finding no Florida public policy bar to the waiver given the pro-consumer features.
- Plaintiffs appealed after the Supreme Court decided AT&T Mobility LLC v. Concepcion, holding that class-action waivers may be enforceable under the FAA against state-law obstacles.
- The Eleventh Circuit affirmed, holding Concepcion preempts Florida public policy to the extent it would invalidate the arbitration agreement’s class action waiver; the district court’s dismissal and arbitration order were affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Florida public policy invalidates the class action waiver | Cruz argues the waiver immunizes ATTM from FDUTPA liability | ATTM asserts Florida policy does not categorically bar waivers and the agreement preserves remedies | Waiver preempted by FAA; Florida policy would obstruct FAA so not controlling on the issue |
| Whether Concepcion controls and preempts Florida law | Concepcion does not allow class waivers if they are exculpatory under FDUTPA | Concepcion forecloses Florida-style public policy blocking the waiver as preempted by FAA | Concepcion controls; FAA preempts Florida public policy to enforce bilateral arbitration |
| Whether the blow-up clause affects enforceability | Even with blow-up, class procedures could be available if waiver unenforceable | Blow-up clause preserves individual arbitration and prevents class-wide proceedings | Concepcion applies; blow-up clause does not negate FAA enforcement in this context |
| Whether Florida law could provide an alternative basis for invalidating the waiver | Florida cases show public policy disfavors waivers that cripple remedies | State-law defenses cannot obstruct FAA’s objectives; Concepcion forecloses this line of reasoning | Any Florida-law basis that would require class procedures is preempted by the FAA |
Key Cases Cited
- AT&T Mobility LLC v. Concepcion, 563 U.S. _, 131 S. Ct. 1740 (2011) (FAA preempts state Discover Bank rule; class waivers may be enforceable)
- Stolt-Nielsen S.A. v. AnimalFeeds Int'l Corp., 560 U.S. 588 (2010) (class action arbitration requires contractual basis; changes are fundamental)
- Dean Witter Reynolds, Inc. v. Byrd, 470 U.S. 213 (1985) (federal policy favoring arbitration; enforce arbitration agreement according to terms)
- Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614 (1985) (arbitration may extend to statutory claims; FAA scope broad)