Cable Connection, Inc., TV Options, Inc., Swartzel Electric, and Orbital Satellite, Inc. were current and former DIRECTV dealers who sold and installed DIRECTV services and products. The dealers sued DIRECTV in Oklahoma, claiming that DIRECTV unilaterally reduced commissions and assessed “chargebacks” in breach of the parties’ agreements. The Oklahoma court directed the dealers to file a demand for arbitration in California state court.
The dealers filed a statement of claim and demand for class arbitration with the American Arbitration Association (AAA). In keeping with AAA rules, the arbitrators first addressed the issue whether the parties’ agreement to arbitrate permits or prohibits classwide arbitration. The arbitrators issued an award finding that the arbitration clause in the parties’ contracts did not prohibit class-wide arbitration.
