Court imposes limits on class actions

http://news.yahoo.com/s/ap/20110427/ap_on_re_us/us_supreme_court_class_actions

WASHINGTON – The Supreme Court on Wednesday limited the ability of people to combine forces and fight corporations together when they want to dispute contracts for cell phones, cable television and other services, a move consumer advocates called a crushing blow.

In a 5-4 ideological split, the high court's conservatives said businesses can block their customers from using class actions. The court said the federal arbitration law trumps state laws that invalidate contracts banning class actions.

The decision came in a dispute between AT&T Mobility and a California couple who objected to being charged around $30 in sales tax for what they were told was a free cell phone.