Canadian court rejects Dell appeal in class action
A panel of the Court of Appeal of Ontario has dismissed two appeals brought by Dell Inc. seeking to enforce a consumer arbitration clause and prevent a class action lawsuit from proceeding.
Computer maker Dell is being sued by a class of 119,000 Canadians who bought Inspiron laptops between 2003 and 2005. The suit claims the computers were defective.
Dell sought to stop the lawsuit by pointing to an arbitration clause in the buyer's agreement. In a decision issued Thursday, the court held that it's unreasonable to expect that individual buyers would pursue the arbitration process in pursuit of small amounts of restitution.
A call to the Round Rock, Texas-based computer manufacturer for comment was not immediately returned Monday afternoon.
Dell shares rose 27 cents, or 2 percent, to $13.91.