Newspaper article St Louis Post-Dispatch (MO)

High Court Says DirectTV Can Cut off Class Action Lawsuit

Newspaper article St Louis Post-Dispatch (MO)

High Court Says DirectTV Can Cut off Class Action Lawsuit

Article excerpt

WASHINGTON * The Supreme Court ruled Monday that satellite provider DirecTV can avoid a class action lawsuit in California over early termination fees and force customers into private arbitration hearings instead.

In a 6-3 opinion, the justices said that DirecTV's contracts can specifically prohibit customers from banding together to sue the company, even though California state law would allow such class action lawsuits to go forward.

It's the latest in a series of rulings that favor the ability of businesses to limit their litigation costs by including mandatory arbitration in customer contracts. Consumer advocates say such agreements rob customers of any meaningful power to challenge corporate misconduct.

Writing for the court, Justice Stephen Breyer said California law is pre-empted by the Federal Arbitration Act, which lets companies require customer disputes to be settled one by one in arbitration. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.