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<br />litigation costs. Simply put, the Arbitration Provisions which have been adopted do not <br />fail under the Minnesota standard of unconscionability. <br /> <br />The Arbitration Provisions adopted by modification of the CSAs are mutual and <br />mutually beneficial to AT&T and its customers.'6 Both AT&T Broadband and its <br />customers benefit from the speedy, informal and affordable resolution of their disputes. <br />Under the CSA, the costs of the arbitration is governed by the Consumer Arbitration <br />Rules of the American Arbitration Association (AAA). The AAA Rules provide that for <br />claims of less than $10,000, a customer's contribution is limited to $125, while AT&T <br />Broadband must, upon notice of a claim, submit $625 to the AAA. Further, under the <br />Arbitration Provisions, AT&T Broadband agrees that a customer's cost for bringing a <br />claim worth less than $1,000 will be just $15, which is less than the filing fee in <br />conciliation courts.17 As a prevailing party, the customer may recover,even those limited <br />arbitration costs that they are required to pay to initiate their claim. <br /> <br />Along with their agreement to arbitrate claims, AT&T Broadband's customers <br />knowingly waived their right to a jury trial of those claims. Courts have consistently <br />recognized that ''the 'loss of the right to a jury trial is a necessary and fairly obvious <br />consequence of the agreement to arbitrate.'"'8 As the Minnesota Court of Appeals has <br />found, arbitration is not a violation of one's right to a jury trial.'S In addition, AT&T <br />Broadband gave consumers specific notice that the new arbitration provisions would <br />require resolution of disputes through binding arbitration instead of "in a court by a judge <br />or jury or through a class action." (Original in all caps). The LFAs' assertion is evidently <br />based on two court decisions that arose in the criminal law context, which is decidedly <br />different from and not applicable to this circumstance:o That AT&Ts customers have <br />not knowingly and voluntary waived their right to a jury trial is unfounded and contrary to <br />the clear, established interpretations under Minnesota and federal law under the <br />arbitration acts. <br /> <br />The fact that AT&T Broadband customers have agreed to waive their right to <br />bring their claims as a class action does not render the arbitration clause <br />unconscionable under Minnesota law. The waiver of consolidated claims is an <br />expectable consequence of agreeing to arbitrate, and has been upheld by the courts:' <br /> <br />16 Further as the subject of mutuality, we refer to our letter to Thomas D. Creighton dated <br />March 20, 2002 (attached). <br />17 See Green Tree Financial Corp. v. Randolph, 121 S. Ct. 513 (2000) (holding that an <br />agreement to arbitrate in a consumer context is enforceable even if it says nothing about the <br />costs of arbitration); Ottman, 575 NW.2d at 597 (holding that $2900 in arbitration fees did not <br />p'lace disproportionate burden on plaintiff such that agreement to arbitrate was unconscionable). <br />B Bank One, 125 F. Supp. 2d at 833 (valid arbitration clause implicitly waives jury trial right) <br />(quoting Parsley v. Terminix Int" Co., 1998 WI. 152763 (S.D. Ohio Sept. 15, 1998)). <br />" Ottman v. Fadden, 575 N.W.2d at 597 (finding jury trial waived by arbitration agreement). <br />20 Marsh, 103 F. Supp. 2d at 921 (distinguishing waiver of rights in criminal context). <br />21 See Johnson v. West Suburban Bank, 225 F.3d 366 (3d Cir. 2000) (holding that plaintiff <br />waived right to participate in class action by entering into arbitration agreement); Bischoff v. <br />DirecTV, Inc., 180 F. Supp. 2d 1097, 1108 (C.D.Cal. 2002) (rejecting plaintiff'S argument that <br />arbitration provisions are unconscionable if they prohibit class actions); Goetsch v. Shell Oil Co., <br />197 F.R.D. 574, 578 (W.D.N.C. 2000) (finding that arbitration clause prohibiting class actions. <br />"valid and enforceable"); Marsh v. First USA Bank, NA, 103 F. Supp. 2d 909,923 (N.D. Tex.. <br />2000) (holding that "[p]laintiffs are not entitled as a matter of right to proceed as a class"); <br />Zawikowski v. Beneficial Nat'! Bank, No. 98 C 21 78, 1999 WI. 35304, at *2 (N.D. Ill. Jan. 11, <br />1999) ("[n]othing prevents the Plaintiffs from contracting away their right to a class action"). <br /> <br />5 <br />P.40 <br />