Dell embroiled in class action
Albuquerque lawyer Robert Fiser filed a lawsuit against Dell after purchasing a computer in 2003. He complained that the machine had less memory than was advertised by Dell and thus violated New Mexico law against unfair business practices.
The New Mexico Supreme Court is allowing a potential multi-state class action lawsuit against the Texas-based computer maker.
Dell countered this argument by saying that they wanted to go down the arbitration path which was required under the terms and conditions of computer purchases on their website.
Unfortunately, the New Mexico Supreme Court ruled against Dell, and stated that although their arbitration clause banned class action lawsuits, the court said it wasn’t valid in New Mexico.
“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 court ruled.
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