Supreme Court rejects class-action suit against DirecTV

The Supreme Court said on Monday that a class-action suit against satellite TV provider DirecTV over early-termination fees cannot go forward, because such complaints must be settled by private arbitration hearings.

The court ruled 6 to 3 that its previous decisions on the subject mean that California consumers may not rely on a state law that would have allowed consumers the right to band together to sue.

The action continues the court’s string of rulings that cut back on class-action suits and strengthens the power of companies to insist that consumer complaints must be settled by arbitration, which is generally seen as more advantageous for businesses.

Those rulings brought a sharp dissent from Justice Ruth Bader Ginsburg.

“These decisions have predictably resulted in the deprivation of consumers’ rights to seek redress for losses, and turning the coin, they have insulated powerful economic interests from liability for violations of consumer protection laws,” wrote Ginsburg, who was joined by Justice Sonia Sotomayor.

Justice Stephen Breyer was tasked by Chief Justice John Roberts Jr. with writing Monday’s decision, even though he dissented in the court’s 2011 decision in AT&T v. Concepcion that proved fatal to the California consumers. It said that the Federal Arbitration Act (FAA) preempts state rules that keep class-arbitration bans from being enforced.

“The fact that Concepcion was a closely divided case, resulting in a decision from which four justices dissented,” has no bearing on the obligation of lower courts to follow its holding, Breyer wrote. And that decision made California’s protection of class-arbitration invalid, Breyer wrote.

The case began in 2008 when Amy Imburgia and Kathy Greiner filed class-action lawsuits claiming that DirecTV wrongly charged outsize cancellation fees – some as high as $480.

The fine print in the customer agreement said that contract disputes would be settled through individual arbitration rather than class actions unless “the law of your state” prevents such arrangements. At the time, California’s law did just that.

But the court’s ruling in 2011 changed the legal background, Breyer said. Despite a California court’s decision that the lawsuit could go forward, Breyer said the Supreme Court’s Concepcion decision in effect made the California law invalid.

Business groups and conservative legal organizations said the decision was another lesson for state courts.

“The Supreme Court has once again reiterated its refusal to tolerate state-court hostility to arbitration,” said Cory Andrews of the Washington Legal Foundation. “As a result of today’s decision, arbitration will continue to thrive as an attractive and effective alternative to costly and time-consuming litigation.”

Consumer groups said the rulings provide more protection for businesses at the expense of consumers.

“This is another troubling day for American consumers who are ripped off by corporate greed and malfeasance, whether it’s a satellite TV system that doesn’t work, unlawful credit card fees, or a defective vehicle,” said Harvey Rosenfield, founder of Consumer Watchdog and one of the lawyers who represented consumers in the litigation. “The Supreme Court has taken away Americans’ only right to obtain justice: their day in court. The more the U.S. Supreme Court allows big corporations to evade accountability, the less confidence Americans have in the judicial branch and the rule of law.”

Ginsburg was only slightly less accusatory in her dissent.

“It has become routine, in a large part due to this court’s decisions, for powerful economic enterprises to write into their form contracts with consumers and employees no class-action arbitration clauses,” she wrote. The new decision “again expanded the scope of the FAA, further degrading the rights of consumers and further insulating already powerful economic entities from liability for unlawful acts.”

Justice Clarence Thomas dissented for different reasons. He said he does not think that the Federal Arbitration Act applied to proceedings in state courts.

Breyer was joined in the majority decision by Roberts and Justices Antonin Scalia, Anthony Kennedy, Samuel Alito Jr. and Elena Kagan. Kagan, too, had dissented in the Concepcion case.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Olivia Vanni / The Herald 
The Mukilteo Lighthouse. Built in 1906, it’s one of the most iconic landmarks in Snohomish County.
The Mukilteo Lighthouse. Built in 1906, it’s one of the most iconic landmarks in Snohomish County. (Olivia Vanni / The Herald)
Mukilteo mayor vetoes council-approved sales tax

The tax would have helped pay for transportation infrastructure, but was also set to give Mukilteo the highest sales tax rate in the state.

Marysville Mayor Jon Nehring gives the state of the city address at the Marysville Civic Center on Wednesday, Jan. 31, 2024, in Marysville, Washington. (Ryan Berry / The Herald)
Marysville council approves interim middle housing law

The council passed the regulations to prevent a state model code from taking effect by default. It expects to approve final rules by October.

x
State audit takes issue with Edmonds COVID grant monitoring

The audit report covered 2023 and is the third since 2020 that found similar issues with COVID-19 recovery grant documentation.

Bothell
Bothell man pleads guilty to sexual abuse of Marysville middle schoolers

The man allegedly sexually assaulted three students in exchange for vapes and edibles in 2022. His sentencing is set for Aug. 29.

Larsen talks proposed Medicaid cuts during Compass Health stop in Everett

Compass Health plans to open its new behavioral health center in August. Nearly all of the nonprofit’s patients rely on Medicaid.

Everett
Judge sentences man, 73, for intending to have sex with ‘teen’ in Everett

The Arizona man sent explicit images to an agent posing as a 13-year-old. Investigators found images of child sexual abuse on his phone.

State’s draft of climate action plan open for public comment

Residents can submit public comments or climate-related stories online through Aug. 22.

Community members gather for the dedication of the Oso Landslide Memorial following the ten-year remembrance of the slide on Friday, March 22, 2024, at the Oso Landslide Memorial in Oso, Washington. (Ryan Berry / The Herald)
The Daily Herald garners 6 awards from regional journalism competition

The awards recognize the best in journalism from media outlets across Alaska, Idaho, Montana, Oregon and Washington.

The Edmonds School Board discusses budget cuts during a school board meeting on Tuesday, April 15, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds school board approves 2025-26 budget

After facing an estimated $8.5 million shortfall earlier in the year, the board passed a balanced budget Tuesday.

A wall diagram shows the “journey of the ballot” at the new Elections Center on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
County Auditor: No need for feds to meddle with state or local elections

Garth Fell’s comments were in response to a report of Justice Department mulling criminal charges against election officials.

Edmonds Police Chief Loi Dawkins speaks after the city council approved her appointment on Tuesday, July 8, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds City Council confirms new police chief

Assistant Chief Loi Dawkins will begin in the role Aug. 1. She has more than 23 years of law enforcement experience, including three years in Edmonds.

The Edmonds City Council discuss the levy during a city council meeting on Tuesday, July 8, 2025 in Edmonds, Washington. (Olivia Vanni / The Herald)
Edmonds votes to place levy lid lift on the ballot

By a vote of 5-2, the council decided to put the $14.5 million property tax levy lid lift to voters in November.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.