Hall v. Sprint Spectrum L.P.

876 N.E.2d 1036, 376 Ill. App. 3d 822, 315 Ill. Dec. 446, 2007 Ill. App. LEXIS 740
CourtAppellate Court of Illinois
DecidedJune 27, 2007
Docket5-05-0354
StatusPublished
Cited by24 cases

This text of 876 N.E.2d 1036 (Hall v. Sprint Spectrum L.P.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Sprint Spectrum L.P., 876 N.E.2d 1036, 376 Ill. App. 3d 822, 315 Ill. Dec. 446, 2007 Ill. App. LEXIS 740 (Ill. Ct. App. 2007).

Opinion

JUSTICE STEWART

delivered the opinion of the court:

The defendants, Sprint Spectrum L.P. and SprintCom, Inc., both doing business as Sprint PCS Group (collectively referred to as Sprint), appeal, pursuant to Illinois Supreme Court Rule 306(a)(8) (210 Ill. 2d R. 306(a)(8)), from an order of the circuit court of Madison County certifying a 48-state class in a putative class action lawsuit filed by the plaintiff, Jessica Hall. We affirm.

BACKGROUND

Sprint provides wireless communications services to millions of customers throughout the United States. Sprint is headquartered in Overland Park, Kansas, but operates and conducts its business throughout the United States, including within the State of Illinois.

In June 2003, Hall, a resident of Madison County, Illinois, entered into a cell phone service contract with Sprint at a Radio Shack store in Granite City, Illinois. In doing so, she agreed to be bound to a one-year contract and to pay a $150 early termination fee if she did not remain a customer for a full year. Hall’s account included two cell phone numbers.

In October 2003, Sprint discontinued Hall’s service for nonpayment. Hall then called Sprint to cancel her contract, but Sprint refused to cancel her service unless she paid the remaining balance on her account plus the early termination fee. In December 2003, at the Sprint PCS store in Fairview Heights, Illinois, Hall paid, under protest, the entire amount ($415.61) Sprint claimed she owed on one of her two cell phone numbers, including the early termination fee. She also wanted to cancel her second cell phone number but could not afford to pay the early termination fee. Sprint refused to cancel the account and stop the accrual of charges unless Hall paid the early termination fee for the second cell phone number. She never paid the early termination fee for the second cell phone number, and ultimately, Sprint wrote off the second account for nonpayment.

On February 2, 2004, Hall filed her original class action complaint alleging four causes of action: (1) breach of contract, (2) statutory fraud, (3) unjust enrichment, and (4) relief from unlawful penalties. Each cause of action rested on the theory that early termination fees are unlawful penalties. Hall sought damages for all early termination fees Sprint had collected from consumers in the United States. Hall brought her original class action complaint under Illinois’s Consumer Fraud and Deceptive Business Practices Act (Illinois Consumer Fraud Act) (815 ILCS 505/1 et seq. (West 2002)) for Illinois class members and, for non-Illinois class members, under the consumer protection statutes of their respective states.

With her class action complaint, Hall filed a motion for class certification, pursuant to section 2 — 801 of the Code of Civil Procedure (735 ILCS 5/2 — 801 (West 2002)). Following a hearing on February 18, 2005, the trial court entered a handwritten order, granting the motion and certifying a 48-state class action. In the order, the trial court directed the parties to submit a formal proposed order.

On March 23, 2005, Hall filed a first amended class action complaint, alleging five causes of action: (1) breach of contract (count I), (2) violation of the Kansas Consumer Protection Act (Kan. Stat. Ann. §50 — 623 et seq. (West 2005)) (count II), (3) statutory fraud under the Illinois Consumer Fraud Act and the consumer protection statutes of the other states where Sprint does business (count III), (4) unjust enrichment (count IV), and (5) relief from unlawful penalties (count V).

In her first amended complaint, Hall alleged that Sprint placed the following express choice-of-law provision in all of its contracts: “This Agreement is governed by and must be construed under federal law and the laws of the State of Kansas, without regard to choice[-]of[-] law principles.” 1 Accordingly, unlike the original complaint, which largely depended upon the Illinois Consumer Fraud Act, the first amended complaint alleged that Kansas common law should be applied nationally (counts I, I\( and V) and the Kansas Consumer Protection Act should be applied nationally (count II) or that the Illinois Consumer Fraud Act should be applied to Illinois residents and the consumer fraud acts of the other 47 states should be applied to residents of those states (count III).

Also on March 23, 2005, Sprint filed a motion to reconsider the triad court’s order granting Hall’s motion for class certification. Following a hearing on April 5, 2005, the trial court denied Sprint’s motion to reconsider.

On May 20, 2005, the trial court entered a formal, written order, certifying the following 48-state class: “All persons who were charged a Sprint Early Termination Fee because they canceled their cellular or wireless agreement before the end of its term.” The order contemplates the application of Kansas law based on the express choice-of-law provision contained in Sprint’s form contract.

On June 17, 2005, Sprint filed a petition for leave to appeal to this court, pursuant to Illinois Supreme Court Rule 306(a)(8) (210 Ill. 2d R. 306(a)(8)), which was denied on September 14, 2005. On October 19, 2005, Sprint filed a petition for leave to appeal to the Illinois Supreme Court. On January 25, 2006, the Illinois Supreme Court denied Sprint’s petition for leave to appeal but issued a supervisory order, ordering this court to grant Sprint’s petition for leave to appeal in light of Avery v. State Farm Mutual Automobile Insurance Co., 216 Ill. 2d 100, 835 N.E.2d 801 (2005). Hall v. Sprint Spectrum L.P., 217 Ill. 2d 600, 840 N.E.2d 1232 (2006). On February 22, 2006, this court granted Sprint’s petition for leave to appeal.

ANALYSIS

On appeal, Sprint first argues that if the trial court predicated the 48-state class certification upon the application of the Illinois Consumer Fraud Act, the order is erroneous because the Illinois Consumer Fraud Act may not be applied extraterritorially. Sprint also argues that if the trial court predicated the class certification upon the application of the differing statutory and common law standards of 48 states, the order is erroneous. We need not address either of these arguments because, despite Sprint’s arguments to the contrary, it is clear from the trial court’s order that the class certification was not predicated upon the application of the Illinois Consumer Fraud Act or the differing statutory and common law standards of 48 states. Instead, the class certification was predicated upon the application of Kansas law based on the choice-of-law provision contained in Sprint’s form contract.

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Cite This Page — Counsel Stack

Bluebook (online)
876 N.E.2d 1036, 376 Ill. App. 3d 822, 315 Ill. Dec. 446, 2007 Ill. App. LEXIS 740, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-sprint-spectrum-lp-illappct-2007.