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Contracts Keyed to Ayres
In re Cellphone Termination Fee Cases
Citation:193 Cal.App.4th 298.
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Multiple lawsuits had been filed against the defendant alleging that the ETF’s had violated California’s consumer protection laws and constituted unauthorized penalties under 1671. Plaintiff contended that the ETF’s were used to stop the erosion of its customer base by penalizing early termination of its contracts and as a revenue opportunity. After defendant’s merger with another company, the defendant increased the early termination fee. The trial court found that the company’s use of ETF’s was unlawful, however after calculating the damages and applying setoff in favor of the defendant, the court found that neither party was entitled to any monetary recovery. After allowing the plaintiff’s motion for a new trial, the trial court found that the jury had not followed instructions to calculate the defendant’s actual economic damages.
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