Lehrman v. South Chicago Cable, Inc.

569 N.E.2d 99, 210 Ill. App. 3d 346, 155 Ill. Dec. 99, 1991 Ill. App. LEXIS 252
CourtAppellate Court of Illinois
DecidedFebruary 22, 1991
DocketNo. 1-89-2065
StatusPublished
Cited by3 cases

This text of 569 N.E.2d 99 (Lehrman v. South Chicago Cable, Inc.) 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
Lehrman v. South Chicago Cable, Inc., 569 N.E.2d 99, 210 Ill. App. 3d 346, 155 Ill. Dec. 99, 1991 Ill. App. LEXIS 252 (Ill. Ct. App. 1991).

Opinion

PRESIDING JUSTICE LORENZ

delivered the opinion of the court:

Plaintiff appeals from the entry of summary judgment under section 2 — 1005 of the Code of Civil Procedure (Ill. Rev. Stat. 1989, ch. 110, par. 2 — 1005) in defendants’ favor on plaintiff’s complaint alleging statutory fraud and breach of contract. We consider whether a genuine issue of material fact existed on those counts when defendants stated that additional outlets for cable television were free but they subsequently charged for converters. We affirm.

Plaintiff filed a six-count class-action complaint alleging he was a subscriber to cable television provided by defendants. He received a letter dated May 24, 1988, from defendants which stated in relevant part:

“Also effective July 1, we will no longer charge for additional outlets. That’s right! For a one-time installation charge, you can now have up to two additional outlets in your home for FREEH” (Emphasis in original.)

In response to the letter, plaintiff had two additional outlets installed in his home and paid an installation charge of $25. In January of 1989, defendants assessed an additional monthly charge of $4 for each of his two additional outlets. Plaintiff alleged that the letter misrepresented or omitted a material fact because defendants knew they would subsequently charge for additional outlets but did not inform subscribers.

Plaintiff sought money damages and injunctive relief under the Consumer Fraud and Deceptive Business Practices Act (Ill. Rev. Stat. 1989, ch. 1211/2, par. 261 et seq.) (Consumer Fraud Act), the Uniform Deceptive Trade Practices Act (Ill. Rev. Stat. 1989, ch. 1211/2, par. 311 et seq.) (Deceptive Trade Act), and the Chicago Cable Communications Ordinance (Chicago Municipal Code §113.1 — 1 et seq. (1984), now §4 — 48—010 et seq. (1990)) (Cable Ordinance). Plaintiff also sought recovery for common law fraud, breach of contract, and promissory estoppel.

Defendants answered the complaint and admitted that plaintiff was charged $8 per month but stated the charge was for converters on additional outlets rather than for additional outlets.

Defendants moved for summary judgment relying on the affidavit of Robin A. Lawson, their director of governmental relations. Attached to her affidavit was defendants’ service agreement which provided that subscribers may be required to pay equipment lease fees and allowed the subscriber to cancel the agreement on reasonable notice to defendants.

Lawson stated in her affidavit that prior to July of 1988, defendants charged subscribers $6.95 per month for cable service to additional outlets. If a subscriber wanted an additional outlet on a television that was not “cable ready,” a converter was required and provided without charge. In her deposition, she added that converters were also required to receive a “scrambled” signal. After July of 1988, defendants did not charge for service to additional outlets or for converters on those outlets. By letter dated November 28, 1988, defendants notified all subscribers that a monthly equipment fee of $4 would be charged for each converter on additional outlets effective January 1, 1989. The letter was attached as an exhibit to Lawson’s affidavit. Lawson also stated that subscribers were not required to rent converters from defendants but could obtain them from other sources. After the converter charge went into effect, defendants continued to provide service to additional outlets without charge.

Lawson stated plaintiff was a cable subscriber since 1987. From July of 1988 through December of 1988, he received cable service on two additional outlets with converters without charge. When the converter charge was imposed in January of 1989, plaintiff paid the charge and continued to receive service to the additional outlets although he could have cancelled the service to additional outlets.

In response to defendants’ motion for summary judgment, plaintiff filed a cross-motion for summary judgment relying on excerpts from certain depositions and other exhibits.

One of the depositions plaintiff relied on was of Michael Anthony Green, defendants’ general manager. He testified that in April of 1988, Lawrence Carlton, chairman of defendants’ board of directors, told him' to eliminate the monthly charge for additional outlets. Green had understood that additional outlets referred to service and equipment and that defendants would continue to provide converters on additional outlets without charge. In response to Carlton’s directive, defendants sent the May 24, 1988, letter offering free additional outlets.

Subsequently, in September of 1988, Carlton told Green that he noticed they were not charging for converters on additional outlets. Carlton stated that there was a misunderstanding in their previous conversation and that defendants should charge for converters on additional outlets. As a result, defendants sent the November 28, 1988, letter notifying subscribers that a converter charge on additional outlets would take effect January 1,1989.

Green also testified that in his opinion the letter, dated May 24, 1988, stating that additional outlets were free was confusing. However, he later testified that he held that opinion in light of the present lawsuit and at the time he sent the letter he thought it was clear.

Plaintiff testified in his deposition that when he received defendants’ letter stating that additional outlets would be free, he had two additional outlets installed. The person who installed the additional outlets told plaintiff he needed converters on those outlets to receive a certain channel he ordered. He did not see defendants’ subsequent letter dated November 28, 1988, notifying subscribers that a $4 converter charge would be effective January 1, 1989. When he saw the charge on his bill, he had a telephone conversation with Betty from defendants’ office and asked what would happen if he did not pay the $8 converter charge. He was told defendants would “zap” him, which meant they would discontinue his cable service. Plaintiff did not cancel the service to his additional outlets and continued to pay the $8 monthly charge for two converters.

Plaintiff explained he was misled or deceived by defendants’ letter because he knew that the previous $6.95 charge for an additional outlet included a converter. Because defendants never charged for converters before, he felt deceived. Defendants told plaintiff converters were an option and, as he testified, “you didn’t have to have the converters.” But because plaintiff needed the converters to receive a channel he wanted, they were not an option to him.

Also in support of his cross-motion for summary judgment, plaintiff relied on a bill from defendants, for service beginning in January of 1989, which identified the $8 monthly charge as “add’l outlet.” Additionally, plaintiff attached documentation of numerous subscriber complaints concerning the converter charge made to defendants, the Illinois Attorney General’s office, and the Chicago Cable Commission.

In a memorandum filed after their reply brief, plaintiff relied on a notice of violation from the Chicago Cable Commission indicating there was “reason to believe” defendants violated the Consumer Fraud Act, the Deceptive Trade Act, and the Cable Ordinance. The notice stated defendants had 30 days to respond to the charge.

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Bluebook (online)
569 N.E.2d 99, 210 Ill. App. 3d 346, 155 Ill. Dec. 99, 1991 Ill. App. LEXIS 252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lehrman-v-south-chicago-cable-inc-illappct-1991.