In re Illinois Bell Link-Up II & Late Charge Litigation
994 N.E.2d 553
Ill. App. Ct.2013Background
- Class action against Illinois Bell (AT&T) over late charges on bills without a dated postmark.
- 1994 settlement required a dated mark on envelopes; class enjoined from future lack-of-date claims.
- In 2002 AT&T changed dating method to printing numbers on the bill, visible in envelope window.
- Class asserted this breach violated the settlement and sought disgorgement and damages.
- Circuit court: no breach; appellate reversal held breach occurred; remanded for damages consideration.
- On remand, court held no damages proven proximately caused by breach; disgorgement not warranted; proceedings terminated.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether disgorgement is proper relief | Krislov seeks full disgorgement of all late fees. | Disgorgement not warranted; settlement did not authorize it; damages required. | Disgorgement not warranted; no proven damages or illegal conduct established. |
| Whether damages must be proven causally connected to the breach | Damages need not be shown; disgorgement suffices. | Plaintiffs must show damages proximately caused by breach. | Damages must be proven proximately caused; lack of nexus defeats relief. |
| Whether there was a breach of the 1994 settlement agreement | Changed dating procedure on bill envelopes breached the agreement. | The agreement contemplated a dated mark, not specific placement; no breach proven. | Court found breach of the settlement agreement. |
Key Cases Cited
- Avery v. State Farm Mutual Automobile Insurance Co., 216 Ill. 2d 100 (Ill. 2005) (damages must be proven and comparable to contract remedy standards)
- Gill v. Foster, 157 Ill. 2d 304 (Ill. 1993) (damages proof required for civil actions)
- Doornbos Heating & Air Conditioning, Inc. v. Schlenker, 403 Ill. App. 3d 468 (Ill. App. 2010) (proof of damages must be reasonable and not speculative)
- La Salle National Trust, N.A. v. Board of Directors of the 1100 Lake Shore Drive Condominium, 287 Ill. App. 3d 449 (Ill. App. 1997) (damages require a reasonable basis for computation)
- Walker v. Ridgeview Construction Co., 316 Ill. App. 3d 592 (Ill. App. 2000) (damages must be proven; windfall avoided)
- Midland Hotel Corp. v. Reuben H. Donnelley Corp., 118 Ill. 2d 306 (Ill. 1987) (damages for contract breaches assessed to place party as if performed)