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AT&T The Courts United States

AT&T Loses Key Ruling In Class Action Over Unlimited-Data Throttling (arstechnica.com) 14

An anonymous reader quotes a report from Ars Technica: AT&T's mandatory-arbitration clause is unenforceable in a class-action case over AT&T's throttling of unlimited data, a panel of U.S. appeals court judges ruled this week. The nearly five-year-old case has gone through twists and turns, with AT&T's forced-arbitration clause initially being upheld in March 2016. If that decision had stood, the customers would have been forced to have any complaints heard individually in arbitration. But an April 2017 decision by the California Supreme Court in a different case effectively changed the state's arbitration law, causing a U.S. District Court judge to revive the class action in March 2018.

AT&T appealed that ruling to the U.S. Court of Appeals for the Ninth Circuit, but a three-judge panel at that court rejected AT&T's appeal in a ruling issued Tuesday. Judges said they must follow the California Supreme Court decision -- known as the McGill rule -- which held that an agreement, like AT&T's, that waives public injunctive relief in any forum is contrary to California public policy and unenforceable." AT&T claimed that the Federal Arbitration Act preempts the California law, but the appeals court had already ruled in Blair [another case involving the McGill rule] that this federal law doesn't preempt the McGill rule. The judges were also not persuaded by AT&T's argument that the court "abused its discretion in reconsidering its initial order compelling arbitration."

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AT&T Loses Key Ruling In Class Action Over Unlimited-Data Throttling

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  • by bobstreo ( 1320787 ) on Friday February 21, 2020 @06:34PM (#59752550)

    If hundreds of thousands of "customers" submitted complaints at the same time.

    I would expect there are some time limitations on how long you have to wait to arbitrate. And hopefully penalties.

    In the meantime, break out the popcorn.

    • They don't care. Dragging the process out just means they pay later, in future dollars, instead of present dollars. Given that we have inflation, this is cheaper for them.

      The longer the better, they say. Bring it on!

      • Heh. Reminds me of job searching. I asked for $X amount and I was offered less, under the promise of a performance raise that "could" surpass my requested salary.

        I said no thanks. "Money now" is always better than "money later". And nothing is worse than "potential money later".

    • If hundreds of thousands of "customers" submitted complaints at the same time.

      But they won't, which is the point.

      Individually, it is just not worth it for an individual to arbitrate when the most they have to gain is a few dollars.

      So AT&T is using the shield of arbitration to steal just a little bit from each customer.

      One solution for this is to allow class action lawsuits regardless of arbitration clauses.

      Another solution is for the government to directly sue AT&T for consumer fraud.

      In my opinion, the first solution is better, since it allows consumers to take action directl

      • I'd still like to see companies who have arbitration clauses get sued more.

        I recently bought a shower head. Installed it, everything went fine; so far, it's a nice shower head.

        I opened up the little instruction book a couple days later to see how long the warranty was and, right there... "By purchasing or installing this product you ... agree to ... mandatory arbitration."

        That just infuriated me. Not just the arbitration clause, but the fact that they included it in a way as to make it entirely unenforcea

  • where the current, pro-corporate court will more than likely rule in favor of AT&T like they did the last time one of these made it up to them in the wake of the Federal Arbitration Act? Unless that law gets repealed, which the current Congress just plain isn't going to do. It would take a sea change in American politics to get that done.
  • The US Federal Arbitration Act allows corporate contracts to override state laws for fault-finding and compensation. Thus:

    ... whether a particular statute precludes waiver of the right to a judicial forum applies only to federal, not state, statutes.

    Meaning:

    ... the only way a particular statutory claim can be held inarbitrable is if Congress intended to keep that federal claim out of arbitration proceedings.

    It gets murky in California which attempts to override federal law:

    The Broughton–Cruz rule “prohibits outright, the arbitration of a particular type of claim” - claims for public injunctive relief.

    The rule has been tested with the obvious conclusion:

    "state public policy cannot trump [regulations by federal departments]".

    In the Mcgill versus Citibank ruling, SCOTUS decided that corporations do not have the same power as federal regulations:

    "an agreement ... that waives public injunctive relief in any forum is contrary to California public policy and unenforceable."

    Meaning, while the Broughton–Cruz rule is the legal precedent, it's really about AT&T being dicks by insisting that it never has t

  • Well, anytime you can slap them upside the head, it's usually gonna be a win. And not for AT&T.

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