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Re: T&T: GlobalStar Satellite Phone Tip - Consumer Lawsuit

From: Kim Boyce & Eric Thoman (no email)
Date: Mon Oct 01 2007 - 14:52:05 EDT

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    Mike wrote:

    IMPORTANT: Your Globalstar phone may need additional time to register
    successfully if you have moved 500 miles since you last used it. We
    suggest leaving it outside powered up with the antenna rotated out for
    atleast 20 minutes before making calls.

    Reply:

    Hah! I got a kick out of this. You might need to leave it outside for a
    lot longer than that before it will work <g>. For three years we were
    Globalstar fans. We used our phone daily all over the PNW, including
    Alaska, for business and pleasure. The rates were good the data speed was
    good enough for email and we rarely dropped a call. That all changed in the
    Spring of 2006. As luck would have it we needed it more than ever.
    Globalstar had just announced a new Alaska gateway and customer service
    blamed that for the problems and repeatedly assured us that it would
    improve. And, be better than ever! It never did.

    By the end of the summer season we had a $600 bill that we thought was
    attributable mostly to dropped and incomplete calls. In addition to the
    cost and inconvenience we were certain that we had lost business. So, we
    refused to pay. Globalstar continued to tell us that the problem was
    temporary, or worse, that it was our equipment. For several months during
    our off season I observed how often the phone was online (it is right next
    to my computer). Very rarely did it have a bird in Seattle! As many of you
    know, next came the IPO and the subsequent disclosure to the SEC that the
    satellites were failing. That was followed by shareholder lawsuits. We
    continued to be billed so we filed suit in Small Claims Court before they
    sent us to collection.

    We sent letters offering a reasonable settlement and finally received a call
    from their General Counsel a couple of days prior to the trial. His only
    offer was to "walk away." So we went to trial. Globalstar sent Donnie
    Hatch, Distribution Manager Northwest & Alaska., who also would not
    compromise. He asked why we had not called him previously. We had never
    heard of him nor had any customer service person mentioned his name. What
    would he have done? He would not say exactly.

    The Judge had never heard of Globalstar so it took a little educating. But
    once he understood that the case was about a telecommunications company
    making big promises about reliability (see Globalstar marketing) and dropped
    calls we were sure he was going to rule in our favor. He would not listen
    for one minute about the limitations of liability clause in the "so called"
    contract. However, he did not rule in our favor on the Consumer Protections
    Act claim which would have tripled our damages. The bottom line is that we
    were relieved of our $600 obligation and we were awarded $500 for our
    inconvenience and additional funds for court costs. Washington is not a
    punitive damages state.

    Not a big deal but very satisfying. On the way out of the door I said to
    Mr. Hatch, "What do we do now?"... meaning when do I get my money. He said
    non-responsively: "I recommend that you get an Iridium phone." Kim and I
    just looked at each other and shrugged. So, that's what he thinks of his
    product.

    When I bump into a salesman at a show or in the marina I still occasionally
    ask what is going on lately with the service and the company. The buzz is
    that no one is selling Globalstar, Sea Tel recently dropped them, and many
    do not expect them to return. Time will tell.

    Thanks for listening....

    Eric Thoman
    Abyssinia
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