Schnall v. At & T Wireless Services, Inc.

225 P.3d 929 (2010)

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Nature of the Case

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Facts

Ps, all customers of D and all domiciled in different states filed a nationwide class action alleging D misled consumers when it billed them for a charge that was not included in advertised monthly rates and was not described clearly in billing statements. The FCC requires telecommunications companies to contribute to the Universal Service Fund (USF), which subsidizes phone and Internet service to low-income and rural areas. The FCC expressly permits companies to recover those contributions from customers. D charged a Universal Connectivity Charge (UCC), listed in customer agreements as either 'Other Charges & Credits' or 'Taxes, Surcharges & Regulatory Fees.' Schnall (P) claims this categorization of the UCC violates the Washington Consumer Protection Act (CPA), in that D, failed to disclose the charge at the time he signed his agreement for wireless service. P was actually a New Jersey resident. Jeananne Aguirre; and Nathan Riensche, were Washington residents. Kelly Lemons and John Girard were California residents. Sean O'Day was a Florida resident. P claims AT & T violated the terms of its user contracts by increasing the UCC charge without notice. P sought certification of a nationwide class of all AT & T customers 'who have been improperly billed and paid a universal connectivity charge that they did not owe.' The court determined that 'individual questions predominated over common questions' and denied class certification on all of the claims. P appealed. The Court of Appeals reversed and D appealed.