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Cellphone Termination Fee Cases

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Cellphone Termination Fee Cases
Court California Court of Appeal for the First District
Citation 193 Cal.App.4th 298
Date decided March 3, 2011

Facts

Sprint Corporation charged early termination fees (ETFs) for its cell phone clients.

Sprint offered cell phone contracts lasting 1 or 2 years. ETFs could be $200.

Procedural History

Sprint customers filed a class-action lawsuit.

The jury found that Sprint had collected over $73 million dollars in ETFs from the class members. These early terminations had in turn cost Sprint $225 million in damages.

The trial judge found the ETFs Liquidated Damages (a penalty).

Case Text Links