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Legal News

: Legal Pad | LA

Judge rules cellphone carriers' early termination fees likely violate state law

By Jason Siegel

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Charging customers fees for breaking their cell-phone service contracts early likely violates state law, Alameda County Superior Court Judge Bonnie Sabraw ruled.

Sabraw found that Sprint Nextel Corp. must pay

$ 73.1 million

-

$18.3 million to customers who sued over the fees and credit $54.8 million to people charged who didn't pay the fees, the Associated Press reported.

Sabraw is also considering lawsuits against other telecommunications companies over such fees, the AP reported.

"This ruling sounds the death knell for the industry's petition seeking a preemption ruling from the FCC - a ruling the industry has never been able to win in court," Scott Bursor, an attorney representing the plaintiffs, told Dow Jones (here).

Full post as published by Legal Pad | LA on July 30, 2008 (boomark / email).

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