Denial Of Arbitration In Class Action Against DIRECTV.

Plaintiff brought a class action lawsuit against DIRECTV. The trial judge denied defendant’s petition to compel arbitration. The relevant arbitration provision is contained in section 9 of DIRECTV’s 2007 customer agreement. Section 9 provides that “any legal or equitable claim relating to this Agreement, any addendum, or your Service” will first be addressed through an informal process and, if the claim is not resolved informally, then “any Claim either of us asserts will be resolved only by binding arbitration” under JAMS rules. Under the heading “Special Rules,” section 9 of the agreement provides as follows: “Neither you nor we shall be entitled to join or consolidate claims in arbitration by or against other individuals or entities, or arbitrate any claim as a representative member of a class or in a private attorney general capacity. Accordingly, you and we agree that the JAMS Class Action Procedures do not apply to our arbitration. If, however, the law of your state would find this agreement to dispense with class arbitration procedures unenforceable, then this entire Section 9 is unenforceable.” Section 10 of the 2007 customer agreement contains provisions addressing several miscellaneous matters, including the following provision concerning “Applicable Law”: “The interpretation and enforcement of this Agreement shall be governed by the rules and regulations of the Federal Communications Commission, other applicable federal laws, and the laws of the state and local area where Service is provided to you. This Agreement is subject to modification if required by such laws. Notwithstanding the foregoing, Section 9 shall be governed by the Federal Arbitration Act.” In affirming, the appellate court stated:  “To summarize: Section 9 of the 2007 customer agreement provides that ‘if . . . the law of your state would find this agreement to dispense with class arbitration procedures unenforceable, then this entire Section 9 is unenforceable.’ The class action waiver is unenforceable under California law, so the entire arbitration agreement is unenforceable. The superior court therefore properly denied the motion to compel arbitration.” (Imburgia v. DIRECTV, Inc. (Cal. App. Second Dist., Div. 1; April 7, 2014)225 Cal.App.4th 338, [170 Cal.Rptr.3d 190].)