Verizon Wireless Class Action Lawsuit Over Administrative Charges Revived On Appeal By Third Circuit Court of Appeals
The United States Court of Appeals for the Third Circuit has reversed the U.S District Court for the District of New Jersey’s dismissal of a class action lawsuit against Cellco Partnership d/b/a Verizon Wireless (styled Keith Litman and Robert Wachtel v. Cellco Partnership d/b/a Verizon Wireless, Case No. No. 07-cv-4886) alleging that Verizon Wireless unlawfully imposed administrative charges on class members’ cell phone accounts.
The Verizon Wireless administrative charge class action complaint reportedly asserted breach of contract, unjust enrichment, and violations of the New Jersey Consumer Fraud Act, N.J. Stat. Ann. § 56:8-1, et seq.
Verizon Wireless moved to compel arbitration pursuant to an arbitration clause in the Verizon Wireless customer agreements, which mandated individual arbitration of disputes, and prohibited class action arbitrations. The plaintiffs argued that the arbitration provision in their customer agreements was unenforceable because arbitration provisions in contracts of adhesion that prohibit use of a class action mechanism for low-value claims are unconscionable under state law.
The District Court agreed with Verizon and dismissed the case in favor of arbitration. The Third Circuit court of appeals vacated the District Court’s order compelling arbitration and remanded the class action lawsuit against Verizon to the district court.
For more information on the Verizon Wireless administrative charge class action lawsuit appeal, read Litman v. Verizon Wireless appellate decision, Appeal No. 08-4103.
If You Have Thoughts On The Verizon Wireless Administrative Fee Class Action Lawsuit Appeal Decision, Share Your Class Action Comments Below.
How does a co break out an administrative charge from their operating costs? Will customers get a refund if the administrative fee was lowered via better management? The gate would be open if cos were allowed to creatively list fees instead of a competitive phone rate. How about a front door maintenance fee because there are so many customers coming through?
All utilities cos are watering at their mouths at this one,
Wait until they are allowed to be money handelers like Visa/Paypal.
You tell them the rules and they try to find any loop holes.
Their objectives are not honorable and design unfair and hidden rules only related to making profit, not service, all while pretending they are truly serving the public. A strong checks and balances must be the norm dealing with public cos.
Verizon tacks on .83 cents administrative charge – which I think
is a total rip off. Their way of increasing your cost as most people
do not wonder “why” they are getting a basic charge of $15 for the
phone and with this charge and taxes my bill is $19.70 without
making any phone calls at all. This is why, when I need to replace
my phone, I will NOT use verizon.