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Illinois high court strikes down class arbitration ban.

Publication: Trial
Publication Date: 01-JAN-07 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
In a 5-0 decision, the Illinois Supreme Court recently held that a class action ban in an arbitration clause is unconscionable and therefore unenforceable. (Kinkel v. Cingular Wireless, 2006 WL 2828664 (Ill. Oct. 5, 2006).)

Courts around the country have been deciding similar cases. Plaintiffs say that class actions, both in court and in arbitration, are essential because they allow consumers to pursue small-value claims that would be too costly to pursue individually.

The plaintiff, Donna Kinkel, alleged that the $150 fee that Cingular Wireless charged her for terminating her cellular service contract early constitutes an illegal penalty. Cingular moved to compel arbitration under its contract's mandatory arbitration provision, which says that "no...

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