Suit against AOL, call center reinstated

A Washington state appeals court ruled recently that a lawsuit filed against America Online and a Spokane Valley call center can move forward, opening the possibility of a possible nationwide class action.

In 2003 two Spokane County residents, Suzy Dix and Jeffry R. Smith, filed a civil suit alleging that AOL and call center ICT Group together engaged in deceptive business practices.

Their court documents alleged AOL’s online software deceptively created spin-off or secondary personal accounts that led to unnecessary and unwanted extra subscription costs.

The suit also claimed that ICT Group workers who provided customer service for AOL did not give accurate information on how to halt the double billing and allowed it to continue.

Attorneys for AOL and ICT Group both denied that any wrongdoing had occurred. AOL attorneys also argued, in late 2003, that the suit could only be filed in Virginia, where its headquarters are.

Spokane County Superior Court Judge Salvatore Cozza ruled early last year that the lawsuit couldn’t be filed in Spokane County.

Attorneys for Dix and Smith then filed an appeal. Last week’s ruling by Division Three of the state appeals court reversed Cozza’s decision.

Attorneys for Dix and Smith asserted that hundreds of thousands of other AOL customers nationwide faced similar charges through AOL’s actions. They hope to establish a class action to recover those costs for any victim, said Spokane attorney William Schroeder.

In reversing the earlier ruling, the appeals court judges noted that the state of Virginia doesn’t allow class action suits. They also said when AOL required customers to agree to “terms of service” that stipulated any lawsuit had to be filed in Virginia, the effect was to “undermine the very purpose of (Washington’s) consumer protection act.”

“This means we go back to where we were,” said Schroeder. “We move forward and try to get the action certified as a class.”

Nicholas Graham, an AOL spokesman, said the company does not comment on pending lawsuits. “We are vigorously contesting this action,” Graham said.