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Dispute Resolution Keyed to Menkel-Meadow, 3rd Ed.
DIRECTV, Inc. v. Imburgia
Citation:
136 S. Ct. 463 (2015)Facts
DIRECTV entered into service agreements with its customers, including respondents Imburgia and Greiner. Section 9 of the agreement contained an arbitration provision stating that “any Claim either of us asserts will be resolved only by binding arbitration” and included a waiver of class arbitration. The agreement further provided that if “the law of your state” made the class-arbitration waiver unenforceable, then the entire arbitration provision would be unenforceable. Section 10 stated that the arbitration provision “shall be governed by the Federal Arbitration Act.” In 2008, the respondents filed a class action lawsuit in California state court seeking damages for early termination fees they believed violated California law. At that time, California’s Discover Bank rule made class-arbitration waivers unenforceable as unconscionable. In 2011, the Supreme Court in AT&T Mobility v. Concepcion held that the FAA preempted California’s Discover Bank rule. DIRECTV then moved to compel arbitration, but the California courts refused, interpreting “the law of your state” to mean California law without considering federal preemption.
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