A panel of judges in the U.S. Court of Appeals for the Ninth Circuit ruled that AT&T’s mandatory arbitration clause is unenforceable.

AT&T appealed that ruling to the US Court of Appeals for the Ninth Circuit, but a three-judge panel at that court rejected AT&T’s appeal in a ruling issued Tuesday. Judges said they must follow the California Supreme Court decision—known as the McGill rule—”which held that an agreement, like AT&T’s, that waives public injunctive relief in any forum is contrary to California public policy and unenforceable.”

The ruling can be found here [PDF].

Check It Out: AT&T’s Mandatory Arbitration Clause Deemed Illegal

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