Arbitration Denied in Digital Voice Service Antitrust Suit

In Fromer v. Comcast Corp. et al., District of Connecticut Judge Stefan Underhill denied Comcast Corp.’s request to send a customer’s putative class action antitrust suit to arbitration, holding that under the Second Circuit’s ruling in American Express III, the waiver is void because plaintiff can show that the class action waiver in the arbitration pact would make it too costly for him to pursue his Sherman Act claims individually.  In his suit, plaintiff claims that Comcast violated the Sherman Act and Connecticut’s Unfair Trace Practices law by tying the sale of its digital voice service to the rental of an embedded media terminal adapter (eMTA).  In rejecting Comcast’s request to compel arbitration, the court held that the economic proof in his case would require professional services ranging in cost from $500,000 to $750,000, and if a $3 monthly eMTA charge was charged to plaintiff some 55 times, puts his damages at $495 if trebled under the Sherman Act.  This means that plaintiff can expect to recover approximately $1 for every $202 spent in litigation.  And according to American Express, no plaintiff could expect to recover more than $1 for every $26 spent.

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