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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read We should have been safe with Sony, say gamers 8:27am EDT Royal wedding snapshots: Naked Kate, but no glitter balls 11:42am EDT UPDATE 1-Q+A-What's going on at Japan's damaged nuclear power plant? 8:30am EDT Lindsay Lohan makes clean breast of things for Leno | 5:58am EDT Indian guru Sai Baba buried in state funeral, thousands grieve 2:54am EDT Discussed 147 Texas governor calls for prayers for rain 138 Obama sees no magic bullet to push down gas prices 66 U.S. sends drones to Libya as battle rages for Misrata Watched Lohan on Leno, Cole on "X Factor" Tue, Apr 26 2011 Tornado caught on security camera video Tue, Apr 26 2011 Thousands at Sai Baba funeral 6:36am EDT Supreme Court rules for AT&T in arbitration case Tweet Share this By James Vicini WASHINGTON (Reuters) - The Supreme Court ruled on Wednesday for an AT&T Inc unit seeking to require arbitration for a dispute over cell-phone taxes rather than allowing customer claims to be brought together in a class-action... Email Print Related News Ukrainian ex-PM sues gas company, businessman in US court 1:11am EDT UPDATE 1-U.S. high court hears securities-fraud arguments Mon, Apr 25 2011 Supreme Court hears arguments on securities fraud Mon, Apr 25 2011 Investor sues Citi board over shoddy mortgage ops Wed, Apr 20 2011 McDonald's grimaces at Happy Meal lawsuit Tue, Apr 19 2011 Analysis & Opinion Benjamin Moore’s “odorless” paint stinks, lawsuit claims Tech wrap: Apple sues Samsung over “slavish” copies Related Topics Politics » Technology » Media » Stocks By James Vicini WASHINGTON | Wed Apr 27, 2011 10:36am EDT WASHINGTON (Reuters) - The Supreme Court ruled on Wednesday for an AT&T Inc unit seeking to require arbitration for a dispute over cell-phone taxes rather than allowing customer claims to be brought together in a class-action lawsuit. By a 5-4 vote, the justices overturned a ruling by a U.S. appeals court that declared unenforceable under California law a provision in AT&T Mobility's customer contracts that required all disputes to be settled by arbitration and that prevented the pooling of claims in a class-action lawsuit. The plaintiffs, Vincent and Liza Concepcion, filed their class-action lawsuit in 2006 and claimed they were improperly charged about $30 in sales taxes on cell phones that the AT&T wireless unit had advertised as free. AT&T, the No. 2 U.S. mobile service, was backed in the case by a number of other companies and by the Chamber of Commerce business group while consumer and civil rights groups supported the California couple. Companies generally prefer arbitration as a less expensive way of settling consumer disputes, as opposed to costly class-action lawsuits, which allow customers to band together and can result in large awards of money. Customer arbitration agreements are widely used by cell- phone carriers, cable providers, credit card companies, stock brokerage firms and other businesses. AT&T had defended its arbitration agreements as fair. It said they required it to pay at least $7,500 if the arbitrator awarded more than the company's final settlement offer and to pay all arbitration costs for nonfrivolous claims. AT&T had argued that a federal law that encourages the use of arbitration, the Federal Arbitration Act (FAA), trumped a California consumer protection law at issue in the case. In its ruling, the Supreme Court majority agreed. "The California law in question stands as an obstacle to the accomplishment of the purposes and the objectives of the FAA. It is accordingly preempted," Justice Antonin Scalia said for the majority in reading his opinion from the bench. The court's four liberal justices dissented. The Supreme Court case is AT&T Mobility v. Concepcion, No. 09-893. (Reporting by James Vicini, Editing by Gerald E. McCormick and Maureen Bavdek) Politics Technology Media Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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