2002-05-22 CC Packet - Laserfiche WebLink

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> The United States Supreme Court has rejected the argument that the unavailabiliJr of the class-action device in arbitration proceedings precludes agreements to arbitrate. In Minnesota, as under the federal rules, the class action is a procedural device, rather than a substantive part of any cause of action.23 Thus, just as parties may waive their right to a judicial forum, they may waive their right to the procedures attendant to that forum.24 . The. Arbitration Provisions regarding limitation of remedies also are mutual and reasonable under the circumstances. Those provisions allow AT&T Broadband to limit the costs of litigation and pass those savings on to consumers in the form of lower prices for services.25 AT&T Broadband's method of providing notice to consumers that the Arbitration Provisions was proper. We do not agree that A T& T Broadband's customers received inadequate notice of amendments to the Arbitration Provisions. AT&T Broadband purposefully notified . customers of the change in the terms of the CSAs through orominent notices communicated to customers in their billing statements. Customers not only received a copy of the new terms as an insert to their bill, thev also received a blue notice document. seoaratelv included in the invoice envelooe. and which announced the chanaed terms. This blue notice document was headlined "Important Legal Notice" and urged consumers to read the details. The text of the blue document read as follows: IMPORTANT LEGAL NOTICE INCLUDED IN THIS MONTH'S BILLING STATEMENT IS A REVISED VERSION OF AT&T BROADBAND'S NOTICE TO CONSUMERS REGARDING POLICIES, COMPLAINT PROCEDURES AND DISPUTE RESOLUTION (THE "NOTICE"). . . THE NOTICE CONTAINS IMPORTANT INFORMATION CONCERNING YOUR USE OF AT&T BROADBAND'S SERVICES. AMONG OTHER CHANGES, WE HAVE IMPLEMENTED A NEW COMPLAINT RESOLUTION PROCEDURE INCLUDING PROVISIONS FOR FINAL AND BINDING ARBITRATION OF DISPUTES. THESE PROVISIONS AFFECT LEGAL RIGHTS THAT YOU MAY HAVE HAD PREVIOUSLY. IT IS IMPORTANT THAT YOU READ THE NOTICE CAREFULLY. THE POLICIES AND PRACTICES CONTAINED IN THE NOTICE WILL BECOME EFFECTIVE THIRTY (30) DAYS AFTER THE DATE OF THE ENCLOSED STATEMENT. YOUR CONTINUED USE OF AT&T BROADBAND SERVICES AFTER THIRTY (30) DAYS OPERATES AS YOUR CONSENT TO THESE POLICIES AND PRACTICES. 22 See Gilmer, 500 U.S. at 32. 23 Compare Minn. R. Civ. P. 23 with Fed. R. Civ. P.23. 24 See Johnson, 225 F.3d at 369 (characterizing class action as procedural device rather than substantive right). 25 See Christopher R. Drahozal, 2001 U. III. L. Rev. 695, 761-62 (2001) (explaining reasonable motivations for contractual waiver of punitive damages). 6 P.41