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Frontier Tries to Force Arbitration in Class Action Case Over “No Contract” DSL

frontier wvA plea from unhappy Frontier Communications’ broadband customers in West Virginia to have their complaints about Frontier DSL heard by a judge will get a hearing before Lincoln County Circuit Judge Jay Hoke on Aug. 19.

The class action lawsuit claims Frontier deceptively advertises fast Internet service that in reality is often unreliable and delivers only 5-10 percent of the speeds advertised. Many West Virginians have no other broadband options.

In response, lawyers for Frontier Communications have fought to get the case dismissed. They want customers to take their complaints through Frontier’s binding arbitration dispute resolution process.

In 2011, Frontier changed its terms and conditions, adding a lengthy arbitration provision that forbids customers from bringing class action cases and generally limits the damages customers can receive. Frontier argues customers automatically agreed to the arbitration process by continuing to use Frontier’s broadband service after the changes were announced.

The attorneys bringing the case think Frontier’s insistence that customers are automatically bound by the company’s contractual terms and conditions is ironic.

“No contract. No signatures. No worries,” claims one Frontier ad. “There’s no contract. Yep, that’s right, no contract,” advertises another. Since 2013, Frontier has gone out of its way advertising broadband without the gotchas and hidden fees their competitors charge. “Frontier is now in the unenviable position of trying to enforce hidden terms in the very contracts they repeatedly represented did not exist,” argues the plaintiffs in a court document.

no contract

Some Frontier customers never realized they may have given up their right to bring a civil case against Frontier. The company first notified customers about this change in their terms and conditions in 2011 through a small message on Frontier invoices. Customers effectively agreed to those changes through their continued use of Frontier’s service, Frontier claimed. But the plaintiffs signed documents attesting they had never seen or heard of Frontier’s enforced arbitration policy. The lawyers bringing the case are not surprised. A copy of the changed terms and conditions obtained by Stop the Cap! shows the binding arbitration clause buried on page five of a leaflet rendered in very small print in very large paragraphs unlikely to be read or understood by many customers.

The current arbitration policy is reproduced below. Have you read it?:

As explained more fully below and in the terms and conditions document, Frontier’s terms and conditions set forth important details about your relationship with Frontier including the requirement to resolve any dispute with Frontier by binding arbitration, on an individual basis, rather than through a lawsuit, jury trial or class action.  If you do not agree to Frontier’s terms and conditions, you may not use the Frontier service and must terminate service immediately.

DISPUTE RESOLUTION WITH FRONTIER BY BINDING ARBITRATION

PLEASE READ THIS CAREFULLY. IT AFFECTS YOUR RIGHTS.

Frontier encourages you to contact our Customer Service department if you have concerns or complaints about your service or Frontier. Generally, customer complaints can be satisfactorily resolved in this way. In the unlikely event that you are not able to resolve your concerns through our Customer Service department, we each agree to resolve all disputes through binding arbitration or a small claims court rather than lawsuits in courts of general jurisdiction, jury trials, or class actions. Arbitration is more informal than a lawsuit. Arbitration uses a neutral arbitrator instead of a judge or jury, allows for more limited discovery than in court, and is subject to very limited review by courts. Arbitrators can award the same damages and individual relief affecting individual parties that a court can award, including an award of attorneys’ fees if the law allows. For any non-frivolous claim that does not exceed $75,000, Frontier will pay all costs of the arbitration. Moreover, in arbitration you are entitled to recover attorneys’ fees from Frontier for your own dispute to the same extent as you would be in court.

In addition, under certain circumstances (as explained below), Frontier will pay you more than the amount of the arbitrator’s award if the arbitrator awards you an amount that is greater than what Frontier has offered you to settle the dispute.

Arbitration Agreement:

(a) You and Frontier agree to arbitrate all disputes and claims between us. This agreement to arbitrate is intended to be broadly interpreted. It includes, but is not limited to, all claims arising out of or relating to any aspect of our relationship, whether based in contract, tort, statute, fraud, misrepresentation or any other legal theory, that arose either before or during this or any prior Agreement, or that may arise after termination of this Agreement. It also includes claims that are currently the subject of purported class action litigation in which you are not a member of a certified class. References to “Frontier,” “you,” and “us” include our respective subsidiaries, affiliates, agents, employees, predecessors in interest, successors, and assigns, as well as all authorized or unauthorized users or beneficiaries of Frontier Broadband under this or prior Agreements between us.

Notwithstanding the foregoing agreement, Frontier agrees that it will not use arbitration to initiate debt collection against you except in response to claims you have made in arbitration. In addition, by agreeing to resolve disputes through arbitration, you and Frontier agree to each unconditionally waive the right to a trial by jury or to participate in a class action, representative proceeding, or private attorney general action. Instead of arbitration, either party may bring an individual action in a small claims court for disputes or claims that are within the scope of the small claims court’s authority. In addition, you may bring any issues to the attention of federal, state, or local agencies, including, for example, the Federal Communications Commission. Such agencies can, if the law allows, seek relief against us on your behalf.

This agreement evidences a transaction in interstate commerce, and thus the Federal Arbitration Act governs the interpretation and enforcement of this provision, even after the agreement is terminated.

(b) A party who intends to seek arbitration must first send to the other, by certified mail, a written Notice of Dispute (“Notice”). The Notice to Frontier should be addressed to: Frontier Communications, Legal Department – Arbitration, 3 High Ridge Park, Stamford, CT 06905 (“Notice Address”). The Notice must (1) describe the nature and basis of the claim or dispute; and (2) set for the specific relief sought (“Demand”). If Frontier and you do not reach an agreement to resolve the claim within 30 days after the Notice is received, you or Frontier may commence an arbitration proceeding. During the arbitration, the amount of any settlement offer made by Frontier or you shall not be disclosed to the arbitrator until after the arbitrator determines the amount, if any, to which you or Frontier is entitled.

(c) The arbitration will be governed by the Consumer Arbitration Rules (“AAA Rules”) of the American Arbitration Association (“AAA”), as modified by these Terms of Service, and will be administered by the AAA. Procedure, rule and fee information is available from the AAA online at http://www.adr.org, by calling the AAA at 1-800-778-7879, or by calling Frontier at 1-877-462-7320, option 3. The arbitrator is bound by the terms of this Agreement. All issues are for the arbitrator to decide, except that issues relating to the scope and enforceability of the arbitration provision, including the scope, interpretation, and enforceability of section (f) below, are for the court to decide. If your claim is for $25,000 or less, you may choose whether the arbitration will be conducted solely on the basis of documents submitted to the arbitrator, through a telephonic hearing, or by an in person hearing as established by the AAA Rules. If your claim exceeds $25,000, the right to a hearing will be determined by the AAA Rules. Unless Frontier and you agree otherwise, any in person hearings will take place at a location that the AAA selects in the state of your primary residence unless you and Frontier agree otherwise. Regardless of the manner in which the arbitration is conducted, the arbitrator shall issue a reasoned written decision sufficient to explain the essential findings and conclusions on which the award is based.

Frontier agrees to pay your AAA filing, administration, and arbitrator fees (“AAA fees”) for claims for damages of up to $75,000 and for claims for non-monetary relief up to the value of $75,000, as measured from either your or Frontier’s perspective (but excluding attorneys’ fees and expenses). After Frontier receives notice that you have commenced arbitration, it will promptly reimburse you for your payment of the filing fee, unless your claim is for greater than $75,000. (The filing fee currently is $200 but is subject to change by the AAA. If you are unable to pay this fee, Frontier will pay it directly upon receiving a written request.) In addition, Frontier will not pay your share of the AAA fees if the arbitrator finds that either your claim or the relief sought is frivolous or brought for an improper purpose, as measured by the standards of Federal Rule of Civil Procedure 11(b). In such case, the payment of AAA fees will be governed by the AAA Rules, and you agree to reimburse Frontier for all monies previously disbursed by it that are otherwise your obligation to pay under the AAA Rules. If you initiate an arbitration in which you seek relief valued at more than $75,000 (excluding attorneys’ fees and expenses), as measured from either your or Frontier’s perspective, the payment of AAA fees will be governed by the AAA Rules.

(d) If Frontier offers to settle your dispute prior to appointment of the arbitrator and you do not accept the offer, and the arbitrator awards you an amount of money that is more than Frontier’s last written settlement offer, then Frontier will pay you the amount of the award or $5,000 (“the alternative payment”), whichever is greater.
If Frontier does not offer to settle your dispute prior to appointment of the arbitrator, and the arbitrator awards you any relief on the merits, then Frontier agrees to pay you the amount of the award or the alternative payment, whichever is greater. The arbitrator may make rulings and resolve disputes as to the payment and reimbursement of fees, expenses, and the alternative payment at any time during the proceeding and upon request from either party made within fourteen (14) days of the arbitrator’s ruling on the merits.

(e)  Although Frontier may have a right to an award of attorneys’ fees and expenses if it prevails, Frontier agrees that it will not seek such an award.

(f) You and Frontier agree to seek, and further agree that the arbitrator may award, only such relief—whether in the form of damages, an injunction, or other non-monetary relief—as is necessary to resolve any individual injury that either you or Frontier have suffered or may suffer. In particular, if either you or Frontier seek any non-monetary relief, including injunctive or declaratory relief, the arbitrator may award relief on an individual basis only, and may not award relief that affects individuals or entities other than you or Frontier. You and Frontier agree that we each may bring claims against the other only in an individual capacity and not as a plaintiff or class member in any purported class, representative, or private attorney general proceeding. Furthermore, unless both you and Frontier agree otherwise in writing, the arbitrator may not consolidate more than one person’s claims, and may not otherwise preside over any form of a class, representative, or private attorney general proceeding. If a court decides that applicable law precludes enforcement of any of this paragraph (f)’s limitations as to a particular claim for relief, then that claim (and only that claim) must be severed from the arbitration and may be brought in court. Further, an arbitrator’s award and any judgment confirming it shall apply only to that specific case and cannot be used in any other case except to enforce the award itself.

(g) Notwithstanding any provision in these Terms to the contrary, you and Frontier agree that if Frontier makes any change to this arbitration provision during the period of time that you are receiving Frontier services, you may reject that change by providing Frontier with written notice within 30 days of the change to the Notice Address provided above and require Frontier to adhere to the language in this provision. By rejecting any future change, you are agreeing that you will arbitrate any dispute between us in accordance with the language of this provision.

arbitration pros consCorporations began to favor private arbitration over the civil courts several years ago, arguing arbitration would save money and lead to faster resolutions of customer complaints. Many customers and trial lawyers disagree, arguing arbitration favors the corporations that pay for arbitration programs, shields bad acts from public disclosure with confidentiality agreements, limits damage awards and prevents class action cases seeking relatively small amounts of damages for a large number of customers who would otherwise never bring a case to court. Early attempts by some companies to offer voluntary arbitration programs as an alternative to civil actions offered more limited benefits and many companies have since moved to mandatory, binding arbitration instead. Disputes subject to mandatory arbitration usually must be resolved through arbitration. The parties give up their right to sue in court, participate in a class action lawsuit, or appeal the arbitration decision.

The law firms handling the case against Frontier — Bailey Glasser in Charleston and Klein, Sheridan & Glazer in Huntington, are arguing Frontier customers cannot be bound by mandatory arbitration policies without evidence Frontier informed them of the program and can show evidence of their consent. In a lengthy argument to the judge, the attorneys argue Frontier can show neither. They point to Frontier’s website, which “buries” the terms and conditions as a tiny link at the bottom of their main web page. Customers must click that link, then find the link for the arbitration provision, then read and understand it. Notice about the arbitration policy originally came in occasional billing notices. Since the lawsuit was filed, Frontier has given more prominent mention of its terms and conditions, including its arbitration policy, on monthly billing statements.

Frontier’s defense is that the plaintiffs are misrepresenting the meaning of “no contract.” The company argues customers commonly understand that term to mean they will not be asked to sign a term contract for one, two, or three years, facing an early termination penalty if they seek to end the contract early. The fact Frontier advertises “no contract” does not mean there are no terms and conditions, the company’s attorneys argued.

A potentially weaker defense is Frontier’s claim that customers can be bound by a contract once they continue to use the service after a change in terms is published. Frontier admitted it could not prove the customers read and understood the change of terms notification or the new terms and conditions. It also never asked customers to directly consent, either in writing or by checking a box on a website, to the new terms and conditions. The plaintiffs also question the legality of Frontier reserving the right to unilaterally change any terms and conditions after a brief notification period and win consent of those changes if subscribers do not cancel service or, in some cases, opt out.

The attorneys call that “take it or leave it” Internet access from Frontier, often the only provider in large parts of rural West Virginia.

Find the terms and conditions link on the bottom of Frontier.com.

Find the terms and conditions link on the bottom of Frontier.com.

Frontier Faces Lawsuit in West Virginia Alleging False Advertising, Undisclosed DSL Speed Throttling

The slow lane

The slow lane

Frontier Communications customers in West Virginia are part of a filed class-action lawsuit alleging the phone company has violated the state’s Consumer Credit and Protection Act for failing to deliver the high-speed Internet service it promises.

The lawsuit, filed in Lincoln County Circuit Court, claims Frontier is advertising fast Internet speeds up to 12Mbps, but often delivers far less than that, especially in rural areas where the company is accused of throttling broadband speeds to less than 1Mbps. The suit also alleges Frontier’s broadband service is highly unreliable.

“The Internet service provided by Frontier does not come anywhere close to the speeds advertised,” wrote Benjamin Sheridan, the Hurricane lawyer filing the lawsuit on behalf of three Frontier customers. The attorney is seeking to have the case designated a class action lawsuit that would cover Frontier customers across the state.

“Although we cannot guarantee Internet speeds due to numerous factors, such as traffic on the Internet and the capabilities of a customer’s computer, Frontier tested each plaintiff’s line and found that in all cases the service met or exceeded the ‘up to’ broadband speeds to which they subscribed,” Frontier spokesperson Dan Page told the Charleston Gazette. “Nonetheless, the plaintiffs filed their case in Lincoln County, where none of them lives. If necessary, we are prepared to defend ourselves in court and bring the facts to light.”

Frontier’s general manager in West Virginia, Dana Waldo, may have helped the plaintiffs when he seemed to admit Frontier was purposely throttling the Internet speeds of its customers, a move Sheridan claims saves Frontier “a fortune” in connectivity costs with wholesale broadband providers like Sprint and AT&T.

Sheridan

Sheridan

“If as you suggest, we ‘opened up the throttle’ for every served customer, it could create congestion problems resulting in degradation of speed for all customers,” according to Waldo as part of an email exchange with one of the class members cited in the lawsuit.

The lawsuit also cites a state report issued over the summer that found just 12 percent of Frontier customers receive Internet speeds that actually qualify as “broadband” under federal and state standards. Frontier’s speed ranking is the slowest of any provider in the state. That is especially significant because Frontier is the largest ISP in West Virginia, and is often the only choice rural residents have for broadband service.

Frontier dismissed the state’s report claiming it was based on voluntary speed tests performed by disgruntled customers.

“As we’ve said before, the speed tests are the result of self-selected, self-reported samples,” Page said. “People who take speed tests tend to be those with speed problems or low speeds.”

“Even if that were true, it doesn’t account for Frontier’s poor performance,” said Frontier customer William Henley. “If every person that ran a speed test in West Virginia was annoyed with their provider, Frontier still came in last place.”

Frontier’s competitors scored better:

  • lincoln countyComcast: 88% of customers met or exceeded state and federal standards;
  • Suddenlink Communications: 80%
  • Time Warner Cable: 77%
  • Shentel: 71%
  • Armstrong Cable: 67%
  • LUMOS Networks: 44%

“…Frontier’s practice of overcharging and failing to provide the high-speed, broadband-level of service it advertises has created high profits for Frontier but left Internet users in the digital Dark Age,” Sheridan wrote. “As a result, students are prevented from being able to do their homework, and rural consumers are unable to utilize the Internet in a way that gives them equal footing with those in an urban environment.”

Sheridan also accused Frontier of delivering its fastest speeds only in areas where it faces competition. Where there is none, Frontier can afford to go slow.

But slow speed is not the only issue. One plaintiff — April Morgan in Marion County — says she has to reset her modem up to 10 times a day to stay connected to the Internet. Her modem has been replaced several times by Frontier, but that has done little to solve her problem.

Frontier customers who check the company’s terms of service agreement may question whether Sheridan can get very far suing the company. A clause in the contract states customers must settle disputes only through binding arbitration or small claims court. Individual lawsuits, jury trials, and class-action cases are prohibited.

Sheridan points out customers have to go online to read the agreement – it is not provided to customers signing up for Internet service. A contract that forces customers to agree to its terms without getting informed consent may turn out not very binding under West Virginia law.

Lincoln County Judge Jay Hoke, assigned to hear the case, will likely face that matter in pre-trial motions.

West Virginia residents interested in the class action case can register here for updates.

Sprint’s ‘Clear’ Raises Prices for Its Throttled and Litigated WiMAX Network

Some ex-Clearwire customers were not happy when their speeds were reduced to 250kbps on the company's overcrowded network.

Some Clearwire customers remain unhappy when speeds are throttled to “manage” the network.

Clear (formerly known as Clearwire) has announced a general rate increase of about 10 percent for customers using its legacy 4G WiMAX broadband service.

As a result, most customers will pay about $5 more per month for fixed wireless or “on the go” broadband service.

“We instituted this to remain competitive and manage our costs,” a Sprint representative told Broadcasting & Cable. “Like our competitors, we must respond to customer trends, and provide a good user experience, and as a result we will make adjustments to fees and services from time to time. Our offer is still comparable to other offerings in the marketplace.”

Some customers would argue with Sprint’s definition of a “good user experience,” as complaints continue about heavy-handed throttling of Clear’s service that makes high bandwidth applications painful or impossible to use in the evening.

Stop the Cap! reader Akos contacted us this week to complain Clear still advertises and contracts for “unlimited data and top speeds,” while not exactly being upfront about targeting certain traffic for a prime time speed throttle that effectively keeps customers from streaming video.

“They openly admit their service is being throttled by software at each tower site that activates when it detects streaming video services like Netflix, reducing speed from 1.3Mbps to as little as 20kbps, rendering it unusable,” said Akos.

The speed throttle is usually active from 8pm-1:30am daily, when traffic is anticipated to be highest. Clear speaks about its network management speed throttle in the fine print: its Acceptable Use Policy.

Akos complains Clear’s speed throttle makes it easy to blame the streaming service, not Clear itself, because customers running speed tests will not see throttled speeds.

“It fools people to think the problem is on their end or with the streaming service, so customers don’t complain to Clear,” says Akos.

As a result, people using streaming video services get about 30 seconds of uninterrupted video before the throttle kicks in bringing extensive buffering delays.

Clearwire’s Speed Throttle Subject of Lawsuits

Clear's own 2010 marketing promises unlimited usage with no speed reductions, like those "other" providers.

Clear’s own 2010 marketing promises unlimited usage with no speed reductions, like those “other” providers.

Clearwire’s speed throttle has been a part of life with the wireless service since 2010. Clearwire had significant legal exposure over its choice of network management because the company routinely advertised “unlimited service” with no speed throttles or overlimit fees. At least three lawsuits were filed against the company for its undisclosed throttling practices, eventually condensed into a single class action case that was finally settled last month.

Under the terms of the settlement, Clear admits no wrongdoing, but will clearly disclose it uses “network management” practices — a term that generally means usage caps and/or speed throttles — and will give customers information about the speeds they can expect when the throttle is active. As of today, Clear has not done that. Clear also volunteered to suspend term contracts and waive early termination fees for customers complaining about speed issues.

At least seven law firms handling the case will split a total award fee of $1,887,792.91 and expenses of $62,207.09. Individual representative plaintiffs each receive up to $2,000. Everyone else identified as part of the class action case that returned a claim form prior to Jan. 3, will receive an average of less than $30:

  • a 50% refund of any early termination fee charged after a customer canceled service because of speed throttling;
  • a rebate of $14 for customers signing up for Clearwire before Sept. 1, 2010 and experiencing speed throttling or a rebate of at least $7 for Clearwire customers signing up on or after Sept. 1, 2010;
  • plus varying amounts for each month of service prior to Feb. 27, 2012 during which Clearwire’s records show it throttled a customer’s Internet speed. Customers throttled at 0.25Mbps will receive $5.00 for each month throttled, 0.60 Mbps: $3.00, and 1.0 Mbps: $2.00.

Court documents reveal of the 2,733,406 customers identified in Clearwire’s records as being speed throttled, only 83,840 submitted timely claims as part of the class action case. This represents a claims rate of about 3.1%. Of those, 76,199 were for speed throttling, 2,331 were requests for reimbursement of early termination fees.

The Future of Clear’s WiMAX and Sprint’s 4G

LTE: AT&T's wireless rural broadband solution?

Sprint purchased the assets of Clearwire Corporation in July, rebranded the network “Clear,” and as of the end of August, stopped selling WiMAX devices to customers. Although Clear will still activate existing equipment, potential new customers are being marketed broadband plans on the Sprint network instead.

Former Clear dealers have received word Sprint plans to eventually decommission its acquired WiMAX network as early as 2014, most likely by gradually converting portions of the 2.5GHz spectrum Clear’s WiMAX service now uses in favor of Sprint’s 4G LTE service in urban and high congestion areas. Clearwire itself was in the process of adopting a variant of 4G LTE technology that would gradually replace the outdated WiMAX standard when Sprint acquired the company.

Although Sprint runs its own 3G network, it partnered with Clearwire to provide 4G WiMAX for Sprint customers. In 2011, Sprint announced it would stop selling devices with built-in support for WiMAX and announced it would launch its own 4G LTE network. Sprint will adopt the same version of LTE other North American carriers are using: FD-LTE, or Frequency Division LTE, which requires one transmit channel and one receive channel. But it will also support and continue Clearwire’s upgrade to TD-LTE, or Time Division LTE, a slightly different standard that supports receiving and transmitting signals on a single frequency at slightly different time intervals, providing enhanced spectrum efficiency. At least 5,500 towers should be active with TD-LTE service by the end of this year. End users will care only to the extent their devices support one or both standards.

Sprint’s 4G LTE rollout will depend primarily on higher frequency spectrum that is disadvantageous indoors and over extended distances. Sprint’s competitors AT&T and Verizon Wireless primarily depend on lower 700MHz frequencies that penetrate buildings better and can serve a larger coverage area. But a combination of Sprint and Clearwire’s spectrum assets give Sprint the most wireless spectrum of any U.S. carrier, which means potentially faster speeds and more capacity.

  • 1900MHz: Sprint’s primary 4G FD-LTE service is now available in 151 cities on more than 20,000 cell towers;
  • 2500MHz: Now used by Clear’s legacy WiMAX network, will see a transition towards Sprint’s TD-LTE service which will be targeted to urban and high congestion areas from “small cell” sites;
  • 800MHz: The former home of now-shuttered Nextel, Sprint will eventually launch FD-LTE service on this band which will offer better indoor and marginal area reception.

Customers can expect devices that support both FD-LTE and TD-LTE in 2014.

AT&T, Apple Settle Unlimited Data Class Action Lawsuit; Original iPad Owners Get Payout

Phillip Dampier October 1, 2013 AT&T, Consumer News, Data Caps, Wireless Broadband Comments Off on AT&T, Apple Settle Unlimited Data Class Action Lawsuit; Original iPad Owners Get Payout
The "breakthrough" unlimited data deal with AT&T didn't last long.

The “breakthrough” unlimited data deal with AT&T didn’t last long.

When Apple first introduced its AT&T 3G-equipped original iPad, both companies marketed it with an unlimited 3G wireless Internet plan that soon became unavailable for new buyers and left grandfathered customers enduring a speed throttle when AT&T decided you used their network too much.

Burned customers banded together and sued both Apple and AT&T for bait and switch unlimited broadband. The two companies have now decided to settle, and as well as a whopper payout for the attorneys who filed the class action case, original iPad owners are going to share the proceeds:

  • Customers purchasing a 3G-ready iPad before June 7, 2010 will receive a $40 check from Apple, even if you still have a grandfathered unlimited data account.
  • Customers purchasing a 3G-ready iPad before June 7, 2010 who never activated an AT&T unlimited tablet mobile data plan will get a $20 discount off AT&T’s current $50 a month data add-on for up to one year.

Customers complained the steep price premium they paid for a 3G-equipped iPad wasn’t worth Apple’s asking price once AT&T removed the unlimited data option that Steve Jobs called part of a breakthrough deal.

Customers will not receive any awards until after February of next year, when the settlement is expected to be approved.

Supreme Court Justice Samuel Alito’s Big Telecom Stock Holdings Affect Court Rulings

Alito

Alito

Justice Samuel Alito was forced to recuse himself from nearly six dozen cases brought to the Supreme Court in the last 10 months because the Alito family owns stock in many of the corporations involved in litigation.

When Alito’s wife Martha Ann’s father died last year, the Alito family inherited a wealth of stock worth up to $1.25 million in some of America’s largest companies, including AT&T and Verizon Communications.

The Associated Press reports Alito’s tardy financial disclosure for 2012 revealed the justice’s reasons for recusal: his sudden ownership of shares in large telecom, pharmaceutical, oil and gas, and tobacco companies.

Federal law requires justices to step away from cases where there is a financial conflict of interest. Alito’s inherited stock represents just such a conflict.

In one case, however, Alito found himself holding Comcast Corp. stock after hearing arguments in a massive class action antitrust case representing two million customers the plaintiffs argued were being overcharged by an illegitimate cable monopoly.

Alito’s Comcast stock was purchased and sold last December. The Court’s 5-4 decision, written by Justice Antonin Scalia, was announced March 27. Alito’s deciding vote fundamentally raised the bar on future lawsuits, making it much more difficult for class action cases to be brought before the courts.

The Comcast suit, in the courts since 2003, argued that cable subscribers in Pennsylvania, New Jersey and Delaware were overcharged at least $875 million because of Comcast’s efforts to monopolize cable service in the Philadelphia area. Comcast amassed its dominant position by buying or swapping cable systems in the region to create a single large cable provider serving the majority of southern New Jersey, Delaware, and southeastern Pennsylvania. By 2002, the lawsuit claimed, Comcast had achieved a 77.8 percent market share.

Big, Bigger, Biggest, Still Bigger

Comcast argued the lawsuit was too complicated and its proposed method of calculating damages was faulty. The Court’s conservative justices agreed with Comcast, finding the lawsuit fell “far short of establishing that damages are capable of measurement.”

  • Voting for Comcast’s position: Chief Justice John Roberts and Justices Antonin Scalia, Anthony Kennedy, Clarence Thomas and Samuel Alito.
  • Voting against Comcast: Justices Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor and Elena Kagan.

A study recently published in the Minnesota Law Review found the current Supreme Court is by far the most corporate-friendly of any court in at least 65 years, noting “the Roberts court is indeed highly pro-business — the conservatives extremely so and the liberals only moderately liberal.”

The top two most likely to vote in favor of big business among all justices seated since 1946 are Chief Justice Roberts and Justice Samuel A. Alito, Jr.

“There was a time when being ‘business-friendly’ meant giving corporations a leg-up and a level playing field because doing so creates jobs and bolsters the economy,” wrote Supreme Court reporter Jonathan Valania. “Today, ‘business-friendly’ means letting corporations socialize their costs while privatizing their profits. It means letting corporation literally write the laws that govern them. It means rolling back regulations and de-fanging oversight [….] What we are really talking about is corporatism.”

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