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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
I was with an agreement with AT&T, trying to low my bill they switch my cable service to Direct TV that is part of AT&T, I have asked about termination fees and they said I have 15 days. I called the 12 day to direct TV to cancel the agreement for bad service and I asked about the termination fee and they said I was under the time. I got bills from Direct tv for termination fee more of $600, I called to ATT and Directv many times and no body is interested to resolve my situation, Finally I have received a collection letter. It is frustrating that lie and steal from the front without doing anything and spoil your credit? what we can do in this country where a bad credit report is your economic support? Why largest companies may report to the credit bureau whatever they want without to prove that there is a contract?
I just disconnected from direct tv. I have been with them over 3 years, out of contract. I called in Jan 22 16 because my bill was 120 when it was supposed to be 85. Had it lowered to 74. Called in Jan 27 to check on it and it was 104, talked with an account manager to have it lowered to 78 and was degraded because I wanted the additional 4 dollars down. Called February 4 th and today again February 11. Bill was not 74 or 78 but 104 and I said disconnect me, I don’t trust you with my credit card number. I changed my number and canceled all recurring charges. They are unethical snakes.
Quiero ser parte de esta demanda si alguien me puede dar información de como ser parte porfavor dejeme saver porque no quiero quedarme de brazos cruzados con estos ladrones que solo le interesa estafar a las personas sin que nadie pueda levantarse para defenderse. Esto no puede continuar asi alguien tiene wue enseñarles a respetar a las personas.
In 2013 I started an account with DirecTV at a reasonable price. After the first three months I called to cancel the trial period of HBO and Cinemax. They informed me I was calling too soon to cancel it and that I needed to call back when it was due to be canceled. I did call back and a few days later they changed my whole package. I called to have it fixed and for about a week it was good, until they shut off one of my boxes. I had to call and have it turned back on and they messed up my package again and sent me a bill for three times the amount of what my bill was suppose to be. I called once again to have it all fixed and then I received another bill for 7x my bill! I paid the almost $200 and was told my bill would not be due for over a month. I received a call not two weeks later for three times the amount of what a bill should be. This is when I requested to have the service disconnected and was told it would be $244 to cancel. I canceled and received a bill for over $500. I had to call again to see where all these were coming from and they told me I had to mail back the receivers, so I requested the mail back box be sent to me. I returned the two receivers and then I received a bill for $900!!! Now they are calling me and threatening me with a lawsuit and garnishment of my SSI disability income! How can they legally do this to people?
Direct TV will go in youregards account and take your money without your knowledge. They don’t then you a warning or anything. They talk rude to you over the phone.. I been with them for 15 years and left them because they keep going up on my bill. They took $200.00 out of my account. How could this be??? I sent their equipment back. I am still mad.
I AGREED TO A 2YR CONTRACT WITH DIRECTV FOR A PRICE I COULD AFFORD, ONLY TO GET A MUCH HIGHER BILL THAN I HAD AGREED UPON. HAVE CALLED SEVERAL TIMES TRYING TO RESOLVE THIS PROBLEM, EVEN ASKED THEM TO DROP THE 2YR CONTRACT SINCE THEY DID NOT STICK TO THE AGREEMENT; AS OF 10/3/15 THE CONTRACT DEPT. TOLD ME NO. NOW I AM SEEKING THE NEXT STEP TO TAKE, CLASS ACTION LAWSUIT OR WHATEVER I CAN DO TO STOP THIS CONTRACT AND ALSO STOP DRECTV FROM DOING THIS TO SOMEONE ELSE. WHAT ABOUT THE BAIT AND SWITCH LAW?
How do you get your name on this lawsuit , I moved and they tried to rip me off by charging me $200 to install service I already had then when I canceled they told me I would be charged $280 early termination fee because when my box broke last year they locked me into another 2 year contract , it’s just awful that a company has to lie steal and cheat its customers to make themselves money
My mom and dadhave been Direct TV customers for 3 years. My dad was diagnosed with stage 4 lung cancer and provided hospice care in the home. My mom wanted im to have aTV in the bedroom so she added service to that bedroom. He passed two weeks later. My mom lives in California and now will be moving to South Carolina. When she called to cancel they advised her of the cancellation fee of $400+. She was tld when she added the service in the bedroom, it added two more years on her contract. She was not advised of this at the time she made the request and did not give her consent. I am so pissed right now, we have been on hold for 49 minutes now to speak to a supervisor and I know they will be no help.
COUNTRIES!
They are a bunch of cock suckers that find any and every way to milk you for your very last penny! They use Filipinos from THIRD WORLD COUNTRY that cannot speak a lick of English or understand a word that your saying! EG: May I know your account number? How about- Can you please provide me with your account number? F*** DIRECT. I CANNOT WAIT UNTIL THIS COMPANY DISAPPEARS!!