In Re Cellphone Termination Fee Cases

This is a consolidated appeal in one of several coordinated class actions that challenge wireless telephone carriers’ imposition of early termination fees (ETF’s) on customers seeking to cancel cellular telephone contracts. The defendant/respondent in this proceeding is Célico Partnership doing business as Verizon Wireless (Verizon). The case against Verizon (White v. Cellco Partnership (2008, No. RG04137699) (White)) proceeded to jury trial on June 16, 2008, in the Alameda County Superior Court on the claims of California class members. On July 8, 2008, after plaintiffs/respondents had rested their case and the defense presentation had commenced, the parties advised the court that they had signed a memorandum of understanding outlining the terms of settlement. The settlement also encompassed claims of nationwide certified class claimants (excluding California class members) in a proceeding then pending before the American Arbitration Association (AAA), as well as two actions filed in federal district courts.

The terms of the settlement required Verizon to provide a common fund of $21 million, from which all legal fees and costs, including notice and administrative…