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Verizon Faces Massive Class Action Certified In Arbitration Case

By M. Stan Herring

We are not fans of arbitration but courts have at least recently made it more tolerable by allowing class actions to proceed within arbitration. This news article is very intriguing, as it shows an arbitrator has certified a class action within arbitration.
Here is an excerpt:

?This ruling is a tremendous victory for Verizon Wireless subscribers,? said Scott Bursor, counsel for the plaintiffs. ?After four years of extremely hard-fought litigation in several courts and in arbitration, this ruling ensures that Verizon customers who have been charged illegal early termination fees will have an opportunity to prove their claims on a class-wide basis and to seek a refund of nearly a billion dollars worth of illegal charges."

Bursor said Farber?s 35-page ruling to certify the class action has historical significance. ?It is the largest class ever certified in arbitration, with approximately 70 million members of the subscriber class,? he said. ?It is also the largest class ever certified on a contested motion in any type of forum, litigation or arbitration."

One somewhat amusing thing we have noticed with arbitration awards and rulings - when they go against companies who demanded arbitration, suddenly the companies cry out for the protection of a federal court judge. We suppose arbitration is only acceptable to companies when the arbitrators rule in favor of the companies. Interesting things are happening in the world of arbitration.....

Full post as published by Alabama Consumer Blog on February 12, 2008 (boomark / email).