Florida Court Clears Way for Class Action Against Comcast
13.08.2005
A Florida court has upheld cable TV subscribers` rights by barring cable giant Comcast from unilaterally changing subscriber agreements by requiring customers to submit to binding arbitration.
The Florida FirstDistrict Court of Appeal upheld a trial court decision, clearing the way for certification of a class action suit filed against AT&T Broadband, purchased by Comcast in 2001.
The classaction suit was filed on behalf of then-AT&T cable TVcustomers throughout Florida and Georgia for breach of contract, unjustenrichment and fraud related to customer service and billing problems.
Prior to the filing of this class action suit, AT&T had adopted thepractice of sending out a fine print notice as an insert in customer billsthat attempted to essentially eliminate subscriber`s rights against the cablecompany.
In addition to eliminating the right to bring a claim in court, theprovision shortened the statue of limitations, prohibited class actions,imposed a confidentiality agreement, and prohibited punitive damages. This wasa take-it-or-leave-it policy that gave consumers no option except to cancelservice.
After the class action suit was filed, AT&T petitioned the Fourth CircuitCourt of Duval County, asking Judge L. Haldane Taylor to stop the suit basedon the position that all customers were subject to binding arbitration andtherefore had no right to participate in a class action suit.
On September 30,2004, Judge Taylor wrote in his ruling that this policy by AT&T was"procedurally and substantively unconscionable ... it was presented on a take-it-or-leave-it basis and provisions unilaterally benefited AT&T."
"The arrogance of these companies reminds me of big tobacco," said attorneyNorwood "Woody" Wilner, whose landmark tobacco case Carter v. Brown & Williamsonresulted in the loss of $14 billion to tobacco stocks in one single day.
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