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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 and all of these companies are charging to much for service anyway
To many hidden fees I had their service for 8months my bills were diffrent each month and they was never the cheap price they quoted me on the phone hundreds of dollars ipaid because my kids wanted to watch tv then I couldnt pay any more and I got a final bill for about 900$ early termination fees and finl bill this a rip off and I returned their equipment
8monthsbills were
I am so mad at Direct TV it makes my blood pressure go up. I used there service for 3 1/2 years in Northern Nevada. When I decided to have a renter rent a room in my home he wanted cable. So I got another cable box for his room. I had paid my commitment with Direct TV the first year I used the service. I was paying for four cable boxes faithfully every month. Then the economy hit hard in construction and I lost my job. I had to move out and Direct TV wanted me to pay early termination fees when I had NO HOME, and NO INCOME. I was livid with them after I was such a great customer. They had no concern for me as a consumer and certainly no empathy for my situation. Like so many Americans I was now homeless and without income. Very frightening for a single older woman with a disability. DIRECT TV WILL NEVER GET ANY OF MY BUSINESS AGAIN. I HAVE TOLD ALL MY FAMILY AND FRIENDS AND EVERYONE OF THEM DROPPED DIRECT TV AND REFUSED TO SUPPORT THEM ONE DAY MORE. I support the law suit against the dirty sons of ——-!
Yep… they do do this when you add to your existing service they want to add on another contract term….? Which you would think they would be so appreciative having a customer ADD their DTV used, never to be paid off equipment in the first place to an existing account. You support them, they take advantage of you.
Go free TV and Roku …. much less of a headache! You won’t have to deal with such stress this knock off business puts you through. I am much happier now, and also have eliminated a bill… which is always great!:)
In other words, DTV resorts to entrapment of consumers.
which in turn, violates our 1st Amendment Right
I never had Direct TV and went to sign up with them and was denied and then threatened with being charged for an account that was opened by a relative in NY who used my name as a reference. The account wasn’t in my name nor did I live in the state verifiable that the account was turned on at. After verifying that l was no where near the account holders state at the time of service Direct TV stated that they would open an account with me. I never heard of being used as a reference then being held liable for unpaid charges on behalf of my relative. I told the Supervisor that vowed to get me for the unpaid charges after 3m of faxing paper work “KISS MY A&%$% AND I WILL GLADLY PAY TIME WARNER CABLE DOUBLE FOR THE SAME SERVICE”!!!!!! Vanessa Rauner
AT&T needs to disaffiliate themselves from DTV. AT&T needs to listen. I am speaking out for their position as a company as a precautionary measure. DTV has no place with your name backing them.
“payola” here is illegal according to FCC.
UPDATE: AT&T is trying to buy out Direct TV. Competitor is Comcast. While I think AT&T could better provide proper service with this merge, I have been questioning a few issues/things with this.
AT&T has also recently changed some of their policies. Who knows…. I may be living like a caveman!
Did anyone have this problem with directv last year I sign up for nba league pass, this year I have autopay they renew by nba pass without my permission and charge my account for two month before I found out can they legal do that
YES they are doing this! Sports Package members pay over 100.00 a month DTV isn’t sending out renewal notice to consumer prescriptions, but they are directly just taking their monies without notice! Elderly and others need to be advised beforehand, not just on signup (not sure if they are for i am not apart of this group)… too much time lapse and possible consumer forgetfulness, illness, change in address/circumstances., life, … in the worse case “death”. There are 2 people in my close circle that has had this issue. 1 is such a sports fan he doesn’t care, the other is elderly and doesn’t like to go through the agent to agent put on hold different people tell you this and that and he’s the type to go directly to the people he owes to pay his bill with receipt. … in other words he is a face to face conducting businessman. :)
Sue the hell out of them.. they got me 2
Thank You for speaking Sheilah. :)
petitions.moveon.org/sign/direct-tv
Protect yourself.
I am thankful for top class also as I think they are doing a wonderful job.
We need to figure out how they are getting consumer financial information (credit information) from our people. Personally, I know for a fact 3 of them I did not provide, and then steal from the very same consumers that support their business (American people) This was wrong and is going to be dealt with. Question…. Why is there a difference in a Mom & Pop Family Investment Corporation over a larger (chain) corporation? Money. That is of another type of being I will never understand. I care about others. I love Earth. I am not superior than my neighbor, for what I have I would like to be surrounded by equally and others to enjoy prosperity, peace of mind, serenity, fulfillment, and enjoyment (not greed, white collar theft= poor man robbing, just classified differently … $, Ugly. Injustice. Unfair. Spirit will suffer. I just like peace and happiness with comfort in my soul and spirit.
DTV has chosen the role of abuse of business practices, financial harm unjustifiably put upon people (causing distress to all people) negligent behavior in not handling business affair transaction appropriately and correctly. Tons of Customer Service complaints of improper training and customer to agent inadequacies. They are not singled out , however they have wronged me and I speak to defend myself and the thousands of others who have also been affected. However, right is right and wrong is wrong. Greed is present here to with Atty. vs. business on bargaining. Pay me x amount of dollars… and we’ll handle deal in this manner… we the people are suffering and this is not not not what is to happen.
Corporation greed is robbing our economy, trying to keep up with the Fortune 500’s that are working slavery depriving our justice and equality by reeking havoc on our social networking (welfare protection system) that is suppose to be humanistic and take care of the less fortunate/ poor and working Walmart, McDonalds, and other GREED companies that profit do not support people. People=People no matter what color, creed, nationality, we are all equal. I never understood a superiority issue and never would want to. We are all cut from the same cloth.
Their isn’t a failure in our social balancing protection democracy system, its corporations (fortune 500) that rob USA by off shore accounts to avoid US taxes, and poverished wages when they profit billions! Yet Walmart workers have to rely on our Welfare System? (that is not not not a clear, fair picture) Our food restaurants also, no one in that capacity should be EXEMPT. Fair is fair, right is right, wrong is wrong. Injustices, dictatorship, or depriving what our fore-fathers have built is so disrespectful in itself. Democracy is what we help other countries try to have, however… Koch, T, R are not adhering to our voices as a people, nation of majority.
Dispute them with your credit card company. They also had 5 accounts that I do not know how they had access to all my information when I paid monthly via online banking transfer. My credit card company reversed charges. I still want to know how the hell did they get my secure, protected credit cards information into their system.
i ordered direct tv and did not keep it after two months. they were suppose to have a channel i wanted and had advertised this channel on their flyer. after i got their service, they did not have this channel in my area.they tried to get a waiver twice from new york at no avail. i told them that you didn’t have the channel i wanted you said you had so i no longer want your service because tihs is false advertising. i sent them their boxes back and they sent me a bill for almost 500 dollars for early termination fee.
I do not know your situation or credit, but I refuse to pay them a penny. They f***ed up, not me. If I do ever f**k up, and I do of course because I am human made in the image of God, however I admit my errors and I am always polite and respectful to others. This is how I was raised, and I am an earthly sign….so I enjoy the outdoors, animals, people, etc.
Direct TV should be shut down completely for violations. My heart goes out to everyone. I am with you and together we stand, shall accomplish, and justice is to be served! I have on my mental fight mode now until the end. We are all in this together and need to FIGHT together standing tall, proud and straight-forward.
petitions.moveon.org/sign/direct-tv
They RIPPED ME OFF ALSO…….I was charged over 900.00….. I would like to be apart of this class.
I had DirecTV and They charged me $700 early termination fee. I had bad comment from them and I would like to know how to sign up . DIRECT TV raised my prices every month and had them for almost a year and the bill got so high I could not afford them.
I was charged over $600.
I was sending $50. each month, as they asked me to do. but their bills stated $150. I didn’t know why there was such a difference. I am a 77 yr old senior with an income of $800. Rent is $600. Direct TV took UNFAIR ADVANTAGE OF A SENIOR. I need the return of my $600.
These people are THIEVES and should be ashamed of themselves.
Ms.Florence they are not conducting legitimate corporation business practices. Wait. The storm is coming, guaranteed! I am sorry for you as a customer . Investigating now… DTV business. You definately do not need this worry and I appreciate your response. Please do not stress over this. I wish you peace and wellness. My heart touches yours. Pain is felt. I promise to do my best to protect people like us who have been financially robbed by this source. Thank You.