11th Circ. Throws Out DirecTV Arbitration Clause

Law360, New York (June 7, 2010, 1:11 PM EDT) -- A federal appeals court has allowed a proposed consumer class action against DirecTV Inc. to move forward, upholding a lower court ruling that threw out a binding arbitration clause in the satellite television provider's contracts.

The clause, which bars class actions and forces consumers to binding arbitration, is unconscionable because it discourages consumers from pursuing DirecTV for small amounts of damages, the U.S. Court of Appeals for the Eleventh Circuit ruled Thursday.

Georgia resident Andrea Jones filed the proposed class action in January 2009, claiming DirecTV...
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