Dina M. Cox obtained summary judgment and order denying class certification on behalf of the nation’s largest telecommunications billing clearinghouse in alleged cramming (i.e. unauthorized telephone billing) putative class action. On appeal, with oral argument to the Seventh Circuit, the court affirmed the district court’s rulings that plaintiff’s authorization of disputed charges on its phone bill precluded its claims of unjust enrichment and statutory deception, and that individual issues surrounding each customer’s transaction precluded class certification. Additionally, the Seventh Circuit agreed with the defense that an alleged violation of Indiana’s anti-cramming regulation could not serve as the factual predicate for its claims because Indiana’s anti-cramming regulation does not apply to billing clearinghouses like Enhanced Services, which are not telephone companies or billing agents. This Opinion will likely have significant industry impact because it is one of the first published appellate opinions addressing class action cramming allegations and because it establishes favorable law on the application of state anti-cramming regulations.
Click here to read the full opinion