Chalk v. T-MOBILE USA, INC.

REINHARDT, Circuit Judge:

In this case, we consider whether the district court properly dismissed a consumer class action pursuant to an arbitration agreement between T-Mobile and its customers. We hold that the agreement’s class action waiver is substantively unconscionable and therefore unenforceable under Oregon law. We also note that under the agreement the waiver is not severable. We reverse the district court’s order dismissing the case pending arbitration.

I. Procedural and Factual Background

Plaintiffs-Appellants Paul Stewart and Ellen Chalk bought a GC79 GPRS/Wireless LAN PC card…