By Jess Bravin
WASHINGTON--The Supreme Court on Monday took up a class-action
lawsuit against DirecTV Inc. brought in California over early
termination fees charged to customers.
The justices, in a brief order, said they would decide whether
the company's customer agreements require the dispute to proceed in
private arbitration, rather than as a group lawsuit in the
courts.
Plaintiffs' attorneys and consumer organizations contend
arbitration, which occurs behind closed doors by private
arbitrators, is stacked in favor of companies. Businesses say the
process is a way to control litigation costs and more efficiently
resolve customer disputes.
The Supreme Court has in a string of cases held Congress, with
the Federal Arbitration Act, sought to encourage arbitration.
A California state appeals court held a clause in DirecTV's
contract made its arbitration clause unenforceable. But the Ninth
U.S. Circuit Court of Appeals in San Francisco ruled federal
arbitration law allows the company to move the dispute into
arbitration.
The case will be heard in the fall of 2015.
Write to Jess Bravin at jess.bravin@wsj.com
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