U.S. Supreme Court Vacates Class Arbitration Decision | Fensterstock v. Education Finance Partners

Yesterday, the U.S. Supreme Court granted certiorari to Affiliated Computer Services, Inc. v. Fensterstock, No. 09-1562-cv.

In Fensterstock v. Education Finance Partners, Inc., No. 08-CV-3622, 2009 U.S. Dist. LEXIS 30457 (S.D.N.Y. 2009) the U.S. District Court for the Southern District of New York had held that an arbitration agreement containing a class action waiver within a student loan promissory note is unconscionable and unenforceable as a matter of California law. (read more here)

The U.S. Court of Appeals for the Second Circuit affirmed the lower court judgment in Fensterstock v. Education Finance Partners, Inc., 611 F.3d 124 (2d Cir. 2010). (read more here)

Now, the U.S. Supreme Court vacated the judgment and remanded the case to the Second Circuit for further consideration in light of AT&T Mobility LLC v. Concepcion, 563 U.S. ___ (2011). (read about AT&T Mobility LLC here, here, and here)

Stay tuned …

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