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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
Wow. Where to begin. Had directv since 2005. Every month was a differebt billing amount. Fulfilled my contract and asked why i was still getting billed, said i was still renting their equipment. Explanation-although i have the inside coverage on all equipment when the tech changed out defective equipment started the process over. Returned equipment but still received bill for several months. Decided to do a bundle package with at&t. Same crazy billing, then they took $331 from my account for early termination fees without authorization since i would not pay until i got a logical response to my inquiries stating that everthing they did was authorized. By who…i thought you inform the consumer prior to just debiting the account each month. I say there are getting what they deserve and i wouldn’t mind getting my monies back too.
Wow, it’s about time these crooks where taken to court, they ripped me off so many times that I wrote Wa state Gvmnt , after which Dtv sent me an e-mail saying I was to get $ 100.00 back in my acct. and nothing. Which they still owe me $ 220.00. I still have that e-mail.
petitions.moveon.org/sign/direct-tv
Fight John R.
Call your state authorities EVERYONE! Fight and protect your credit!
I just switched from Directv to Dish. I had them for years and every month my bill would be different. I called several times only not to get the answer I was looking for and nothing was ever resolved. I think they charge what the want to charge. They have lost a loyal customer.
Yep… I know. Nothing with them is clear and concise. You can never trust them to draft moneys from an account because they are not responsible and month to month without change by consumer, or rate increase, tax increase, or other…. you just never know what to expect. This is why I never would let them draft from my account. Nationwide… yes, because they have been reliable. I know what to expect and when to expect. Everyone is on a budget. Lets not not mess with people.
After 7 years, I’m still getting a bill for bogus charges. I paid them everything I owed when I ended my service and then a year later they started sending me bill stating I still owed them- a whole year later! I went over there and they said it was mistake on their part and then again a few months later the bills started coming in again. I called, wrote letters and now I just gave up and ignore anything that comes from them.
petitions.moveon.org/sign/direct-tv
Put corporation thieves behind bars!
Also visit…. action.changewalmart.ort/page/speakout/rob-walton-owes
What if I have paid the bill for early termination aiready?
I FEEL THAT DIRECT TV RAISED THERE FEES WITHOUT ANY NOTICE. OVER BILLED CUSTOMERS SEVERAL DIFERENT FEES.MY FEES WERE 289.00 ONE MONTH.JUST WRONG ON THERE BEHALF
FCC and our government has to act on these issues and their lack of corporation guidelines. This is good because they are going to be held accountable! Everyone has to utilize their 1st Amendment Right . Speak. Protect yourself and your credit!
Hello. I saw this class action about DirecTV charging early termination fees without just cause. We had DirecTV and we had them suspend our account while we were in the process of moving. When we finally moved into our new place we asked them to come out and set everything up. The original representative had said it would not cost us but once it was time to turn it back on they wanted to charge us a fee for installation as well as a fee to turn it back on. We could not afford these fees so we were forced to terminate the contract. They then charged us a fee of over $400 for terminating early! They tried to take it out of our bank account without our authorization but we didn’t have that much in there so it was declined. We obviously couldn’t afford to pay it so now it is sitting in collections and damaging our credit!
They charged me early termination fees when i cancelled due to my husband’s death.I could no longer afford the service.After i sent back all the equipment,i was contacted by some collection company stating i owed over five hundred dollars from early termination and not returning equipment.After being on the phone all day,i finally got iy through that i had returned the equipment.Now i’m being harassed about the other fees.I definitely want in on this.
If you had proof of your husbands death and bill was in his name?…. Check this out and FIGHT!
That is so f***ed -up! I feel your headache, pain, aggravation and abuse. Fight Samantha… fight!!!:)
Thank god i read this email. As of last year they are trying to bill me for over $700 after i returned my equipment and then charged a different credit card without permission. Sent me a bill that balance was 0, then months later a bill for everything over $700. I hope its not too late to get in on this. They are a bad company who dont deserve anything. Thanks for listening
petitions.moveon.org/sign/direct-tv
spread the word everyone on twitter, facebook, EVERYONE! They messed with the wrong dame person with myself. I am highly offended, upset and totally have been violated. I speak !
I switched to another company, they charged me an early termination fee, blah blah, fee, fee, blah and then two weeks later automatically withdrew over $500 from my bank account, stating that by paying with my debit card on their website, I gave them permission to do so. They are CROOKS
Agreed. Please sign my petition… petitions.moveon.org/sign/direct-tv
And I encourage everyone to stand your ground and do not back down from these knock-offs!!!!!
:) The NC. Government is looking at them!
I have proof of fraudulant business practices of overcharging, EFT charges, etc. from Direct TV. I have a petition online with Moveon.org. I want to see them sued for customer abuse, greed, and taking advantage of people. I have a stack of paperworks, including Channel 9 TV involvement with getting an overcharged issue resolved for me. Please contact me. I am very upset with them and want to see justice served for a very abusive company. BBB in NC. lists just in the last 4-5 mo. over 3,000 complaints! I do agree with this action toward them.
Wholeheartedly concur on fraudulent business practices of DirecTV. They have hit me at least 3 times, including charging my credit card on multiple occasions which I personally had never approved for them to keep on file nor approved them charging to.
Incredible! The same thing happened with me TW with them attempting to steal money off of my credit card without my knowledge or approval! Prior I had grew up with this company and had them for years, but they broke my trust and faith as a trusted, reliable, responsible company when they did this to me. I have excellent credit and always pay my bills on time. I am very big on principles of : Don’t mess with kids, food, my money, or other peoples things. Respect. Love. Justice. Equality for all. Companies must realize that they cannot violate consumer protection rights. I stand up for what I believe in and want them hit hard! I am not not not happy with this company and their consumer treatment ! :(
I been ripped off by DIRECTV. On there fees and false contracts to I love have mine money back to on there lies on there free 3 months movie programming to. They say it free for hooking up service with them when you cancel it a month before 3 months they charge you 2 month ahead then it just cost me 340 dollars for programming that suppose be free so ya I love have mine money back on all there false contracts .
Also in this class action suit I hope they add in to it that they have to give it in writing where they supposedly tell you they going to charge you 2 month in advance for there supposedly free movie channels . Because they lie and don’t tell you until they charge you 240 bucks And that after they got 104 so that should be added hopefully in this suit .that Part there scam on people . When you hook there service up. And I bet anyone every hook new service up with them got ripped off like that also .
They are a totally unreliable, irresponsible, and neglectful “flop” company. They do not care about their customers! Customer service is totally off track because every time you call you are told something entirely different from an agent. The Office of The President- DTV dispute means HIDES and doesn’t address anything. I was told in March my balance was zero 2 different agents. N.C Consumer Protection Division and BBB is helping me out. However, “The Office of The President”- (not worth a dame thing office) responded one thing as a resolution ( done deal squashed)… but last week when I get home from work, get mail from them trying to suck 153.00 from me?!? … what kind of mess is that? and who the hell do they think they are messing with? I have 37 accounts all in good standing on my credit file, zero negatives … these jerk offs are telling me that they will contact credit bureau if I do not pay. UNFAIR to me and my responsible credit file, adult mgt., and credibility. :(
I have credit monitoring and contacted the big 3 already about DTV and what harm action they told me they would do to me and voiced this entire situation as a precautionary, mature, responsible action. If anyone else is out their with any other helpful information as to how we can get this company to be held accountable…. list it here! I am ready to bring their asses down!
Please contact me I also have the same stack of paperwork showing deceptive practice by Direct Tv. They turned off over 40+ channel because I refuse to pay the high cost they wanted
Everyone that has been abused financially by this company can sign my petition….
petitions.moveon.org/sign/direct-tv
Jan. 2014 is when they violated my rights for the 2nd and last final time. I cannot conduct business with them any longer.
petitions.moveon.org/sign/direct-tv
I would like to get involved as well