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A panel of judges on the California Court of Appeals refused to send a class action lawsuit accusing DirecTV of failing to disclose early termination fees into arbitration, finding that the class action waiver in the company’s arbitration agreement with customers was not enforceable under California law.
The DirecTV class action lawsuit, filed by plaintiffs Amy Imburgia and Kathy Greiner, alleges that DirecTV improperly assessed early termination fees (ETFs) because they did not disclose that customers were subject to a fee if they decided to cancel their service before the end of the contract.
DirecTV sought to compel arbitration based on the U.S. Supreme Court’s decision in AT&T Mobility v. Concepcion, which allowed companies to add an arbitration clause to customer agreements that prohibit them from filing a class action lawsuit to resolve a grievance. The company also relied on a recent ruling in its favor by the Ninth Circuit (Murphy v. DirecTV Inc.), which found a similar arbitration agreement was enforceable under Concepcion because the Supreme Court’s ruling preempted any state law.
The California Court of Appeals disagreed, sometimes pointedly. The judges focused on the section of the agreement that noted that “if the law of your state would find this agreement to dispense with class arbitration procedures unenforceable, then this entire [arbitration section] is unenforceable.” The state’s Consumer Legal Remedies Act bans the classwide arbitration DirecTV had sought.
Further, the panel argued that there is “no authority for the [Ninth Circuit] court’s position” that “contract interpretation is irrelevant because the parties are powerless to opt out of the FAA by contract.” Rather, if “parties have agreed to abide by state rules of arbitration, enforcing those rules according to the terms of the agreement is fully consistent with the goals of the FAA.”
Returning to the clause in question, the court agreed that the DirecTV class action lawsuit attorneys for the plaintiffs were right in arguing that two common law provisions should govern: one, that “a court should construe ambiguous language against the interests of the party that drafted it” and two, that a “specific provision controls over a general one[.]” The latter issue dictated the judges’ decision to ignore a U.S. District Court judge who thought that the waiver would render the general provision of classwide arbitration meaningless.
The DirecTV early termination fee class action lawsuits that the court referred to in its decision are In re: DIRECTV Early Cancellation Fee Marketing and Sales Practice Litigation in U.S. District Court for the Central District of California and Murphy v. DIRECTV Inc. in the U.S. Court of Appeals for the Ninth Circuit.
The plaintiffs are represented by class action lawsuit attorneys Paul D. Stevens, Mayo L. Makarczyk and Shireen Mohsenzadegan of Milstein Adelman LLP.
The DirecTV ETF Class Action Lawsuit is Amy Imburgia, et al. v. DirectTV Inc., Case No. B239361, California Court of Appeal, Second Appellate District.
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89 thoughts onDirecTV Must Face Class Action Lawsuit over Early Termination Fees
Just happened to me add me what do I need to do!?
I had Direct TV in Flagstaff, when I was going to move, I gave them about a month lead time and asked them to send me the package to return the equipment. The person I spoke with on the phone asked my name and spelling literally about 10 times. He said he would put the box in the mail that day. I told them the address I was moving to. I waited about two weeks, called them and was told they already sent the box. I waited a couple more weeks and called again. During this time, they debited my credit card without my permission for approximately 250 dollars. I called a couple more times, and finally asked what address they sent the box to. They gave me the old address. I told them that is why I called and gave them the NEW address. They told me they could not give my money back. The debit took my account to almost zero after paying to move a whole house furnishings. They did not care at all. I wrote a letter to the Corporate Office, telling them my experience.
Please add me to join this lawsuit, this happened to me not long ago.
How do I join this class action suit. You get nowhere talking to directv and now I’m in collections, you can’t get anything done other than paying them off. I’m tired of going in circles with them. Something needs to be done to stop them screwing people out of their money.
I agree! I was not made aware of the TWO year commitment! It’s BS! We should not have to pay early termination fees, directv sucks. They took away 5 local channels & I canceled so now I owe them $240?! BS. Please put me on a class action if one comes up!
how do u join in on this class action
Im having trouble getting a $120 refund from direct tv
I knew of the early cancellation fee however they did not keep there part of the contract so I cancelled and I’m still waiting for the box to return the box nothing yet I try to go to the local AT&T store with the box and remotes and was told they did not take returns even though I got an Email to go there to return it so went home call them to get the box and they told would deduct the money from my debit card on file in 44 days and was quoted 363… for the early disconnect Well screw you Direct and shame on you I have closed my card on file and I m also going to close my bank account too they will get their money but on my conditions NOT theirs
Well,I don’t know if this does any good.But I had a bad time with these people.After having another provider for years.I decided to take AT&T/U-verse up on there offer for 30 days I Saw online.First off I talked to customer service and she assured me that this was a 30 day promotional offer. .I asked customer service if they had a wire..She said No.Just a dish.The next day I could not find this promotional offer bundle advertising on the AT&T page for nothing..It was AT&T and U-verse.
OK they came to my home.It was not U-verse it was Direct TV. The Technician said that Direct TV and U-verse were the same.They Wired my whole home up.Took a whole day.Then finally left.I discovered I could not get my LOCAL sports team.They told me on the phone that would be an additional cost.So I decided to cancel the service.I called and called I could not communicate with AT&T and Direct TV who AT&T told me they were separate.This went on into my second week.I could not get anyone.The At&t kept passing me to one person after another.I sat in my living room on hold so many times my phone’s battery went dead.So not right of these people.They would NOT hear of cancellation.I got some people that were so irate I became so depressed I felt like I was being persecuted.This was not right.I told them all about the 30 days.Some of the people at customer service said yes and some said no.I kept asking them to send me a return kit.Because no one would hear of disconnection.So I disconnected everything myself.Except for all the wires on the outside of my home and fireplace.Really bad what they did to my home. Well then I got a bill for the 20 dollars a day of 2 years.Plus a disconnection fee.This came to $560 dollars.This is not right .This was false advertising.And very hurtful..It does not seem ethical.
They withdrew over $700 out of my bank account& I had stopped automatic payments I was paying monthly online,so I dont understand how they can deduct $ out of my account without automatic pay? Sinc they withdrew the$$$ my electric is due for disconnection! Is it too late to sign up for claim? i also reported them to the BBB!
Direct TV did this to me 7 months after I removed permission for debits to account. Not only that, they took $560 off of a government issued Child Support card. Federal law states this is illegal also. Filed complaints with everyone, however, since they are big government lobbyists nothing was done! Still furious about it because it cause major issues for me.
Yo tengo el mismo problema desde que me ofrecieron el cable me dijo una persona que mi pago iva a ser de 33 dolares mensuales por 2anos y ahora resulta que me acavan de poner el cable hace 15 dias y ya debo 145 y los tengo que pagar ya cancele el servico y me quieren cobrar 20dolares por mes de cancelacion tengo grabado al senor que menhizo el contrato ayudenme no quiero afectar mi credito