Gilmore v. Southwestern Bell Mobile Systems, L.L.C.

210 F.R.D. 212, 2001 U.S. Dist. LEXIS 19850, 2001 WL 1539157
CourtDistrict Court, N.D. Illinois
DecidedNovember 29, 2001
DocketNo. 01 C 2900
StatusPublished
Cited by15 cases

This text of 210 F.R.D. 212 (Gilmore v. Southwestern Bell Mobile Systems, L.L.C.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gilmore v. Southwestern Bell Mobile Systems, L.L.C., 210 F.R.D. 212, 2001 U.S. Dist. LEXIS 19850, 2001 WL 1539157 (N.D. Ill. 2001).

Opinion

MEMORANDUM OPINION AND ORDER

HART, District Judge.

I. BACKGROUND

In this case, named plaintiff Bruce Gilmore alleges, on behalf of himself and a putative class, that defendant Southwestern Bell Mobile Systems, L.L.C.1 has violated the Federal Communications Act (“FCA”) (specifically 47 U.S.C. §§ 201 and 202) by charging an allegedly improper “Corporate Account Administration Fee” for cellular telephone service that it provides. It is also claimed that this conduct violates the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”), 815 ILCS 505/2, and constitutes common law fraud under Illinois law. The original complaint in this case was filed in the state courts of Illinois and was denominated as containing only state law claims. Defendant removed the ease to federal court and this court previously ruled that most of the claims contained in the original complaint were completely preempted by the FCA and therefore actually federal claims. See Gilmore v. Southwestern Bell Mobile Systems, Inc., 156 F.Supp.2d 916, 920-25 (N.D.Ill.2001) (“Gilmore I”). It was also held that [216]*216certain state law claims2 were not preempted and therefore could be before the court on supplemental jurisdiction. See id. at 924^-25. The prior ruling resolved the jurisdictional issues, but declined to address questions of whether cognizable claims were stated because questions of class certification should generally be resolved prior to resolving the merits of the claims. See id. at 925-26. Plaintiff was given the opportunity to amend his complaint to expressly state federal and state law claims and defendant has again moved to dismiss all claims. The question of class certification has also been briefed.

Plaintiff alleges the following facts in his amended complaint. Plaintiff has a cellular telephone service contract with defendant that consists of his initial service contract and his subsequent monthly bills. On each monthly bill, the amounts and rates charged for calls are listed in the “Monthly Service Charges” section of the bill. Fees, taxes, and other charges are separately listed on the bill, including an item labeled “Corporate Account Administration Fee” (hereinafter the “Fee”), which first appeared in 1995. “Neither Plaintiffs initial contract nor his monthly bills provide any authorization for imposing the Corporate Account Administration Fee or any explanation of what services, if any, are covered by such Fee.” Am. Compl. IT 10. It is further alleged that no goods or services are provided for the Fee and, instead, “Defendant added the Fee in 1995 for the deliberate and sole purpose of raising additional revenue without appearing to raise its rates.” Id. U11.

In Count I, plaintiff alleges the FCA is violated because charging an additional and unauthorized fee for which no additional goods or services are provided is an “unjust or unreasonable” charge or practice made unlawful by 47 U.S.C. § 201(b). It is also claimed that plaintiff was deceived into paying an additional fee which he did not owe. See Am. Compl. Till 14 (incorporating 111T10-12), 17.3 Further, it is claimed that 47 U.S.C. § 202(a), which prohibits “unjust or unreasonable discrimination in charges,” is violated in that the Fee is only imposed for telephones that have an apparent business purpose.

In Count II, plaintiff alleges the ICFA is violated because the monthly bills falsely represent that the Fee is due. By making this representation, customers are deceived into paying a fee for which no goods or services are provided. It is further alleged that paying rates that are competitive with other service providers was material to plaintiffs decision to continue to use defendant’s service.

In the Count III common law fraud claim, it is alleged:

27. By charging the Fee in its monthly bills to Plaintiff and the Class, Defendant has misrepresented and omitted material facts. Specifically, Defendant, by labeling the charge a “Corporate Account Administration Fee” has represented that it is providing additional administrative goods or services to its customers, when in fact no such services are being provided. Furthermore, Defendant’s monthly bills omit the material fact that what they label a “Corporate Account Administration Fee” is really a disguised rate increase.
28. The Defendant, by certain of its officers, knew that no additional administrative goods or services were being provided to customers, and instead imposed the Fee for the sole purpose of deceiving its customers and obtaining more money for its cellular phone services without appearing to raise its rates.
29. Plaintiff paid his bills, including the Fee, in reliance on Defendant’s representation, implicit in the label “Corporate Account Administration Fee,” that he was receiving additional administrative goods and services rather than being subjected to an unauthorized rate increase.

Am. Compl. UU 27-29.

II. CLASS CERTIFICATION

The burden is on named plaintiff to demonstrate that all the requirements for class [217]*217certification are satisfied. Retired Chicago Police Association v. City of Chicago, 7 F.3d 584, 596 (7th Cir.1993), cert. denied, 519 U.S. 932, 117 S.Ct. 305, 136 L.Ed.2d 222 (1996); Rahim v. Sheahan, 2001 WL 1263493, *9 (N.D.Ill. Oct. 19, 2001); Anderson v. Cornejo, 199 F.R.D. 228, 238 (N.D.Ill.2000). Federal Rule of Civil Procedure 23(a) requires that the following four prerequisites be satisfied: “(1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.” Failure to meet any one of these requirements precludes certification of a class. Retired Chicago Police, 7 F.3d at 596. If the Rule 23(a) elements are satisfied, plaintiff must also satisfy one of the subsections of Rule 23(b).

In ruling on class certification, the court has an independent duty to scrutinize the appropriateness of class certification; the court is not limited to arguments made by a party opposing certification. In re General Motors Corp. Engine Interchange Litigation, 594 F.2d 1106, 1134 (7th Cir.), cert. denied, 444 U.S. 870, 100 S.Ct. 146, 62 L.Ed.2d 95 (1979); Anderson, 199 F.R.D. at 238. See also Szabo v. Bridgeport Machines, Inc., 249 F.3d 672, 677 (7th Cir.), cert. denied, — U.S. —, 122 S.Ct. 348, 151 L.Ed.2d 263 (2001).

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Bluebook (online)
210 F.R.D. 212, 2001 U.S. Dist. LEXIS 19850, 2001 WL 1539157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilmore-v-southwestern-bell-mobile-systems-llc-ilnd-2001.