The Texas based computer maker Dell Inc is likely to face a multistate class action lawsuit in the New Mexico Supreme Court. In an unanimous decision on Friday, the New Mexico Supreme Court allows the multistate class action in a dispute over on line computer purchases. Dell’s arbitration clause banned class action lawsuits and the court said that wasn’t valid in New Mexico.
The charge was brought against the company by a lawyer of Albuquerque. The lawyer Robert Fiser filed the lawsuit after buying a Dell computer online from the company in 2003. He contended the computer had less memory than had been promised by the manufacturer and the misrepresentation violated New Mexico law against unfair business practices.
It can be remembered that Dell wanted to force arbitration of a New Mexico man’s claims, contending that was required under terms and conditions of computer purchases on the company’s Web site. The company also maintained that Texas law should apply in the case.
The Court ruled that,
“Contractual prohibition of class relief, as applied to claims that would be economically inefficient to bring on an individual basis, is contrary to the fundamental public policy of New Mexico to provide a forum for the resolution of all consumer claims and is therefore unenforceable in this state.”
The lawsuit was filed in the district court in Albuquerque for further proceedings. The decision reversed a ruling last year by the state Court of Appeals.
Source: chron.com
Filed under Class Action | Tags: arbitration clause, Dell Inc, multistate class action lawsuit, New Mexico Supreme Court, Texas law, unfair business practices | Comment Below
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