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Journal of American Arbitration (JAA) - Vol. 5, No. 1

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Journal of American Arbitration (JAA)

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ARTICLES

Class Arbitration: The Illinois Appellate
Court’s Finding that a Prohibition on Class
Arbitration Was Unconscionable in Kinkel v.
Cingular Wireless, L.L.C.
By Lauren McHale

I. OVERVIEW
The dispute arose over the cancellation fee stipulated in Cingular
Wireless’ Service Agreement (Agreement).1 When signing up for
cellular telephone service with Cingular Wireless (Cingular), customers
agree to a specific “service term,” the time period the customer must
remain a member.2 If customers want to cancel their service before the
end of the service term, a $150 early termination fee is imposed.3 An
arbitration clause is also included in the Agreement.4 The arbitration
clause, contained in the middle of a long paragraph at the end of the
page, states:
INDEPENDENT ARBITRATION[.] Please read this paragraph
carefully. It affects rights that you may otherwise have. (a)
CINGULAR and you shall use our best efforts to settle any
dispute or claim arising from or relating to this Agreement. *** If
CINGULAR and you do not reach agreement within 30 days,
instead of suing in court, CINGULAR and you agree to arbitrate
any and all disputes and claims (including but not limited to
claims based on or arising from an alleged tort) arising out of or