AT&T Supreme Court Ruling Aids Chicago Businesses

A recent U.S. Supreme Court ruling in the case of communications giant AT&T in California found that companies are allowed to add clauses to contracts that require consumers to waive the right to take part in a class-action lawsuit.

Chicago Business Attorneys believe it would be prudent for Chicago businesses to include such a clause in contracts for consumers as protection against large and expensive multi-plaintiff lawsuits. A review of business contracts in light of this ruling would be advisable. Large-scale lawsuits can drain a company's funds and provide troublesome media coverage.

The case came down to a couple who sued the communications company because they were taxed some $30 for "free" phones as part of a two-year cell phone contract. They sued in California federal court, alleging false advertising and fraud.

It was lumped in with another case and became a class-action lawsuit, after which the court denied AT&T's motion to compel arbitration, which was part of the couple's contract. It found the clause unconscionable because it didn't allow class wide proceedings under prior California cases. An appellate court agreed. But recently, the country's high court disagreed and sent the case back with its opinion applied.

Businesses know that contracts and agreements are the essence of business law in Illinois. But whether this is done with a handshake, a one-page agreement or a 100-page document, it is critical that it is done right. It is the foundation of a business.

Because there are many types of documents that your business may need prepared, count on Chicago Business Lawyers. Some types of contracts that the firm can prepare and negotiate:

  • Shareholder agreements concerning the formation, organization and control of corporations and other business entities;
  • Mergers, acquisitions, alliances, joint ventures and exclusive licensing deals;
  • Distribution, sales, supply, services, consulting and loan arrangements;
  • Confidentiality, patent, trademark, trade secret, non-competition, software and outsourcing matters; and
  • Real estate sale and lease agreements.

It's unfortunate, but inevitable that just about every business will end up pursuing legal action or being on the wrong end of a lawsuit. With decades of experience in this area of law, Chicago Business Lawyers are committed to handling litigation for small and large businesses.

Jeremy A. Gibson & Associates represents clients in contract matters in Chicago and elsewhere in Illinois. Call 877-452-4529 for a free consultation.