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In accordance with its prior decision in Shroyer v. New Cingular Wireless Servs., Inc., the Ninth Circuit Court of Appeals has denied a wireless company's motion to compel arbitration and dismiss a class action claim, holding the agreement and waiver within unconscionable.
In Janda v. T-Mobile USA, Inc., No. 06-15712, 2008 WL 510401 (9th Cir. Feb. 25, 2008), a district court denied T-Mobile's motion to compel arbitration and dismiss a class action suit brought by Janda.
The Court affirmed the motion's denial, holding that T-Mobile's arbitration agreement was "not substantively distinguishable" from a Cingular agreement held unconscionable in Shroyer v. New Cingular Wireless Servs., Inc., 498 F.3d 976 (9th Cir. 2007). The Court again rejected the "marketplace alternative" and the "Federal Arbitration Act preemption" arguments against unconscionability posed by T-Mobile.
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