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HSN Collection Robocall Class Action Stays Out of Arbitration

Nov. 8, 2019, 7:12 PM

HSN Inc. can’t use an arbitration clause in a credit card agreement with card-issuer Comenity Capital Bank to keep a robocall class action out of court because it isn’t a party to the agreement, the Western District of Wisconsin ruled.

Maurice Jewell sued cable retailer HSN for violations of the Telephone Consumer Protection Act. The calls were to collect on an HSN-branded, Comenity-issued credit card Jewell used to make purchases from HSN.

HSN moved to compel arbitration under the provision in Comenity’s card agreement. Comenity isn’t named in the suit.

The card agreement says “any party” may seek arbitration of “any claim.”

HSN isn’t a party to the agreement. The court rejected its argument it can invoke the clause as a third-party beneficiary to the agreement.

Judge James D. Peterson of the U.S. District Court for the Western District of Wisconsin wrote the Nov. 7 opinion.

Greenwald Davidson Radbil PLLC and Lein Law Offices represented the consumers. Seyfarth Shaw LLP represented HSN.

The case is Jewell v. HSN, Inc., 2019 BL 429735, W.D. Wis., No. 19-cv-247, 11/7/19.

To contact the reporter on this story: Perry Cooper in Washington at pcooper@bloomberglaw.com

To contact the editors responsible for this story: Jo-el J. Meyer at jmeyer@bloomberglaw.com; Nicholas Datlowe at ndatlowe@bloomberglaw.com