I apolgize in advance for bringing legal stuff into this forum, but I thought the notice below would be of interest to some/many of you. This relates to the clause in the Verizon Wireless User Agreement (to which we all agree when we buy a phone from VZW or sign up for service) that requires you to arbitrate any disputes you have with Verizon and prohibits the formation of a class (that is many users with the same problem) for the arbitration. This clause was challenged in this case, but was upheld as legal by a federal court.
"VERIZON CONTRACT'S CLASS ARBITRATION WAIVER HELD LEGAL
A clause in Verizon cell-phone service contracts that makes arbitration of disputes mandatory but prohibits arbitration as a class is enforceable under federal law. The Third U.S. Circuit Court of Appeals on Wednesday affirmed dismissal of a putative class action, Litman v. Cellco Partnership, 08-4103, based on a U.S. Supreme Court ruling last April, in AT&T Mobility v. Concepcion, 131 S. Ct. 1740, that the Federal Arbitration Act preempts contrary state law. The court dispatched arguments that the arbitration agreement was unconscionable under Muhammad v. County Bank of Rehoboth Beach, Del., 912 A.2d 88 (N.J. 2006), where the state Court said class waivers discourage pursuing small damages amounts and thus "functionally exculpate wrongful conduct.""
(excerpted from ALM's "Daily Briefing" email)
Yeah, I read about this yesterday. Thanks for the post.
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