Todt v. Ameritech Corp.

763 N.E.2d 389, 327 Ill. App. 3d 359, 261 Ill. Dec. 419
CourtAppellate Court of Illinois
DecidedJanuary 15, 2002
Docket5-00-0147
StatusPublished
Cited by11 cases

This text of 763 N.E.2d 389 (Todt v. Ameritech Corp.) 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
Todt v. Ameritech Corp., 763 N.E.2d 389, 327 Ill. App. 3d 359, 261 Ill. Dec. 419 (Ill. Ct. App. 2002).

Opinion

PRESIDING JUSTICE MAAG

delivered the opinion of the court:

The plaintiffs, Deborah Todt, Ella Monroe, Bonnie McMinn, and Daniel McKay, individually and on behalf of all others similarly situated, filed a class action suit and settlement on November 10, 1997, in order to settle a suit against the defendants, Ameritech Corp. (Ameritech) and Ameritech Services, Inc. (ASI), the Ohio Bell Telephone Company (Ohio Bell), Indiana Bell Telephone Company (Indiana Bell), Wisconsin Bell, Inc. (Wisconsin Bell), and Michigan Bell Telephone Company (Michigan Bell). When this class action suit (the Todt case) was filed, putative class action suits were already pending against Ameritech in Indiana, Michigan, and Ohio. See Monroe v. Indiana Bell Telephone Co., No. 2:95 — CV—376 JM (S.D. Ind. October 23, 1995); Seavers v. Ameritech Corp., No. 95 — CV—500 (Ohio Cir. Ct., Erie Co. November 14, 1995); Hankins v. Ameritech Corp., No. 96— 623978 — NP (Mich. Cir. Ct., Wayne Co. May 21, 1996). These cases concerned Ameritech’s marketing and billing practices with respect to inside wire maintenance service (IWMS) plans. Ameritech also provides telephone service in Illinois. On that same date, an “Agreement of Class Action Settlement” was achieved in Folkerts v. Ameritech Corp., No. 95 — L—912 (Ill. Cir. Ct., Madison Co. March 10, 1995) (Folkerts). Class counsel in the present case were also class counsel in the Folkerts case. The Folkerts case was composed of Illinois plaintiffs and alleged violations of Illinois law, and the Todt case claimed violations of the consumer-fraud statutes in Indiana, Michigan, Ohio, and Wisconsin.

On November 12, 1997, the circuit court issued an order granting preliminary approval of the Todt case. On April 6, 1998, and April 20, 1998, a fairness hearing was held. On October 30, 1998, the circuit court created two subclasses. One subclass was composed of the residents of Michigan, Ohio, and Wisconsin (Tri-state subclass). The other subclass was composed of only the residents of Indiana (Indiana subclass). That same day, the circuit court approved the settlement agreement as to the Tri-state subclass. After renotice, the circuit court held supplemental fairness hearings pertaining to the Indiana subclass. The circuit court entered its final judgment on June 28, 1999. Sheila Kennedy and Judy Brunetti (Kennedy intervenors) moved for a reconsideration. On February 8, 2000, the circuit court issued its final order approving the settlement agreement as to the Indiana subclass. The Kennedy intervenors filed this appeal on March 7, 2000, claiming that the circuit court erred when it approved the class action settlement as to the Indiana subclass.

The relevant facts are as follows. Ohio Bell, Indiana Bell, Wisconsin Bell, and Michigan Bell (collectively, the State Bell Companies) are wholly owned subsidiaries of Ameritech and are engaged in the telecommunications business in their respective states. ASI is a corporation that is owned and controlled by the State Bell Companies. Both Ameritech companies are Illinois corporations. The State Bell Companies offered for sale certain products and services, including IWMS. The dispute in the instant case centered around Ameritech’s, ASI’s, and the State Bell Companies’ marketing and billing practices with regard to the IWMS plan. The circuit court entered an order on November 12, 1997, certifying a class for settlement purposes only, authorizing notice to be mailed to individual class members and by publication of notice in the USA Today newspaper, and preliminarily enjoining all class members from prosecuting any actions asserting any of the settled claims. Various objectors claimed that the settlement agreement was negotiated without notice to the counsel involved in the same litigation pending in other states.

The circuit court then held fairness hearings on April 6, 1998, and April 20, 1998. Some intervenors (Michigan intervenors) were counsel for the plaintiffs in the case of Converse v. Ameritech Corp., 179 F.R.D. 533, 539 (WD. Mich. 1997). Counsel in the Converse case were never able to certify a class. The Michigan intervenors focused their efforts on obtaining an award of attorney fees. The Madison County circuit court determined that the Michigan intervenors had done nothing of benefit to the class. The Michigan intervenors filed an appeal but later withdrew it.

Some intervenors (Ohio intervenors) were cocounsel in Seavers v. Ameritech, No. 95 — CV—500 (Ohio Cir. Ct., Erie Co. November 14, 1995). The record shows that prior to the settlement in the Todt case, counsel in Seavers had not done any discovery for 272 years. As soon as the settlement in the Todt case was announced, the Ohio intervenors attempted to resurrect their lawsuit despite the Madison County circuit court’s injunction precluding them from doing so. Although the Ohio intervenors ceased efforts to pursue the Ohio litigation, they did not appeal the Madison County circuit court’s October 30, 1998, order.

A few weeks after the class notice was mailed in the Todt case, counsel for some intervenors (Wisconsin intervenors) filed a copycat lawsuit in Wisconsin circuit court. Mertz v. Ameritech Corp., No. 97— CV — 3335 (Wis. Cir. Ct., Dane Co. December 18, 1997). These parties and their counsel had never filed an IWMS action against the defendants. They proceeded with this action in violation of the Madison County circuit court’s injunction precluding parallel actions. Counsel took the position that they were not bound by the circuit court’s orders. Wisconsin counsel agreed that they were parties to the litigation as of April 6, 1998, and they agreed to stop the litigation in Wisconsin. Wisconsin counsel then participated in the fairness hearing on that date. After the circuit court approved the settlement, the same counsel disobeyed the circuit court’s order by continuing the litigation in Wisconsin. After Wisconsin counsel refused to comply with the circuit court’s order, class counsel and Ameritech’s counsel jointly initiated contempt proceedings. After a hearing, the circuit court found the seven individuals and their counsel in contempt. The circuit court allowed them to purge themselves of the contempt by complying with the injunction and dismissing the lawsuit by 5 p.m. on the Monday following the Friday afternoon hearing. On July 27, 1999, the Madison County circuit court entered an order purging Wisconsin counsel and the seven individual class members from contempt due to the fact that counsel filed a motion to voluntarily dismiss the Wisconsin case. The Wisconsin intervenors did not appeal the October 30, 1998, order.

Counsel for some intervenors (Indiana intervenors) had been cocounsel with class counsel in the Monroe case in Indiana. They had never attained class certification. The Indiana intervenors filed a motion for disqualification or recusal and a motion for leave to take the depositions of the Honorable Randall A. Bono and counsel. These motions were denied, as well as other motions. In fact, the circuit court stated that the settlement was achieved “in spite of’ Indiana counsel and the Indiana intervenors. The Indiana intervenors eventually withdrew.

The objectors claimed that there had been a simultaneous negotiation of the Folkerts and Todt settlements. However, Stephen Tillery, class counsel, testified that there was no evidence to support the allegation of the simultaneous negotiation of the Folkerts and Todt settlements. Seven witnesses testified regarding the value, fairness, and adequacy of the settlement.

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Cite This Page — Counsel Stack

Bluebook (online)
763 N.E.2d 389, 327 Ill. App. 3d 359, 261 Ill. Dec. 419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/todt-v-ameritech-corp-illappct-2002.