Unanimous Supreme Court Ruling In Class Action

For immediate release

For more information: Brad Lakin 618/254-1127

On Thursday October 5, 2006 the Illinois Supreme Court ruled in favor of thousands of cell phone consumers. The case, Kinkel v. Cingular, is a class action case originally filed in Madison County.

The lawsuit challenges Cingular's $150 early cancellation fee charged to consumers when they change carriers or cancel their contract. Donna Kinkel, on behalf of other consumers, claimed the fee was an improper penalty. The $150 early cancellation fee is buried in the service agreement fine print and the lawsuit claimed consumers were unaware of the fee.

The issue decided by the Supreme Court involves an arbitration provision in the service agreement that prevented arbitration on a class wide basis. A Madison County trial court denied Cingular's motion to compel the case to arbitration. Cingular appealed and the Fifth District Appellate Court compelled arbitration but held that the provision prohibiting a class action in arbitration was unconscionable. Cingular again appealed.

In a 5-0 decision, with two justices not taking part, the Supreme Court affirmed the decision of the Appellate Court. Brad Lakin, Managing Partner, said "This is a great victory for consumer rights. When we filed the case in court Cingular wanted arbitration and then when the Appellate Court gave them what they wanted they still weren't happy."

"We think it's clear that Cingular and other cell phone carriers put fine print language in their service agreement that attempts to take away consumers rights given by the legislature. The legislature has the class action mechanism for a reason - to allow consumers to band together in cases affecting many but where the money, like the $150 here, is a small amount. Fortunately, the Illinois Supreme Court did not allow Cingular to circumvent the legislature, Lakin said.

LakinChapman is also pursuing similar cases against other cell phone carriers.