Opinion ID: 78558
Heading Depth: 2
Heading Rank: 3

Heading: July 2, 2005 Service Agreement And Samsung PM-A740 Phone

Text: On July 2, 2005, Plaintiff signed a two-year PCS Advantage Agreement with Sprint. At the time he entered into the Advantage Agreement, Plaintiff also acquired a new Samsung PM-A740 mobile phone at a Sprint Store in Coral Gables, Florida and activated a second phone line with a second phone number (XXX-XXX-XXXX). Sprint subsidizes the purchase price of the majority of wireless telephones it sells to its subscribers. However, the record does not reflect how much of the purchase price of Plaintiff's new Samsung PM-A740 mobile phone was subsidized by Sprint, although Plaintiff admits he received a discount on the purchase price of the phone. Similarly, there is no evidence in the record indicating what, if anything, Plaintiff paid for any of the phones in this case. The telephone box for the new Samsung PM-A740 wireless phone Plaintiff acquired on July 2, 2005 contained a copy of the user guide for that phone, which contained a copy of Sprint's Terms and Conditions effective June 30, 2004. [4] The box's exterior also stated it contained a copy of Sprint's Terms and Conditions. Sprint's Terms and Conditions effective June 30, 2004 provide that the customer accepts the Terms and Conditions by using or paying for Sprint's Services: This agreement (Agreement) covers the terms on which we agree to provide and you agree to accept any service or product we make available to you, including your wireless services, wireless devices, etc. (collectively Services). You accept this Agreement when you do any of the following: (a) provide your written or electronic signature; (b) accept through an oral or electronic statement; (c) attempt to or in any way use any of the Services; (d) pay for any Services; or (e) open any materials or package that says you are accepting when you open it. The Terms and Conditions effective June 30, 2004 also provide a mechanism, similar to the May 2001 Terms and Conditions, for Sprint to amend the Agreement and for Plaintiff to accept or refuse Sprint's changes. The 2004 Terms and Conditions provide: We may change the Agreement at any time with notice. Any changes to the Agreement are effective when we publish them. If you use our Services or make any payment to us on or after the effective date of the changes, you accept the changes. The 2004 Terms and Conditions also provide that Plaintiff could terminate the agreement, without incurring an early termination fee, within 30 days after changes to the Agreement go into effect if those changes were made to a material term and had a material adverse effect on Plaintiff. Similar to the 2001 Terms and Conditions, the 2004 Terms and Conditions also contained a limitation on Sprint's liability for incidental, consequential, punitive, or special damages: NO CONSEQUENTIAL OR OTHER DAMAGES. UNDER NO CIRCUMSTANCES ARE WE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES OF ANY NATURE WHATSOEVER ARISING OUT OF OR IN CONNECTION WITH PROVIDING OR FAILING TO PROVIDE SERVICES, PHONES OR OTHER EQUIPMENT USED IN CONNECTION WITH THE SERVICES, INCLUDING, WITHOUT LIMITATION, LOST PROFITS, LOSS OF BUSINESS, OR COST OF REPLACEMENT PRODUCTS AND SERVICES. THIS SECTION SURVIVES TERMINATION OF THIS AGREEMENT. The June 30, 2004 Terms and Conditions contained an arbitration clause, similar to the one in Sprint's May 2001 Terms and Conditions, requiring arbitration of all disputes except for those within the jurisdiction of a small claims court. The June 2004 Terms and Conditions included a new class action waiver, printed in capital letters: MANDATORY ARBITRATION OF DISPUTES: INSTEAD OF SUING IN COURT, YOU AND SPRINT AGREE TO ARBITRATE ANY AND ALL CLAIMS, CONTROVERSIES OR DISPUTES AGAINST EACH OTHER ARISING OUT OF OR RELATING TO THIS AGREEMENT . . . . THE FEDERAL ARBITRATION ACT APPLIES TO THIS AGREEMENT AND ITS PROVISIONS, NOT STATE LAW, GOVERN ALL QUESTIONS OF WHETHER A CLAIM IS SUBJECT TO ARBITRATION. THIS PROVISION DOES NOT PREVENT EITHER YOU OR SPRINT FROM BRINGING APPROPRIATE CLAIMS IN SMALL CLAIMS COURT, BEFORE THE FEDERAL COMMUNICATIONS COMMISSION OR A STATE PUBLIC UTILITIES COMMISSION. YOU AND SPRINT FURTHER AGREE THAT NEITHER SPRINT NOR YOU WILL JOIN ANY CLAIM WITH THE CLAIM OF ANY OTHER PERSON OR ENTITY IN A LAWSUIT, ARBITRATION OR OTHER PROCEEDING; THAT NO CLAIM EITHER SPRINT OR YOU HAS AGAINST THE OTHER SHALL BE RESOLVED ON A CLASS-WIDE BASIS; AND THAT NEITHER SPRINT NOR YOU WILL ASSERT A CLAIM IN A REPRESENTATIVE CAPACITY ON BEHALF OF ANYONE ELSE. IF FOR ANY REASON THIS ARBITRATION PROVISION DOES NOT APPLY TO A CLAIM, WE AGREE TO WAIVE TRIAL BY JURY. . . . . We agree to pay our respective arbitration costs, . . . but the arbitrator can apportion these costs as appropriate. . . . . If any party files a judicial or administrative action asserting a claim that is subject to arbitration and another party successfully stays such action or compels arbitration, the party filing that action must pay the other party's costs and expenses incurred in seeking such stay or compelling arbitration, including attorneys' fees. If any portion of this Mandatory Arbitration of Disputes section is determined to be invalid or unenforceable, the remainder of the Section remains in full force and effect. Plaintiff began using this second phone number on July 2, 2005. At the time Plaintiff executed the 2005 agreement, at least two of Sprint's competitorsVirgin Mobile and TracFoneoffered mobile phone service in his area without class action waivers. When he acquired his second mobile phone line on July 2, 2005, Plaintiff signed a two-year Advantage Agreement. The Advantage Agreement explicitly notified Plaintiff that an arbitration clause was in Sprint's Terms and Conditions. By signing the Advantage Agreement, Plaintiff attested he had read and agreed to all terms of Sprint's most recent Terms and Conditions (which contained the class action waiver). The Advantage Agreement as executed by Plaintiff provides: PCS Advantage Agreement 2-Year PCS Advantage Agreement MDN: (786) 859-9624 Name: JAMES PENDERGAST Date: 7/2/2005 You are entering into a binding legal Agreement with Sprint on behalf of yourself or your company (if you are a Business Customer). Your Agreement includes: (i) the requirements and terms of the PCS Services Plan(s) you choose as set forth in the Service Plan Guide and other printed materials made available to you at our store; (ii) if your PCS service plan is not specifically set forth in any printed materials, the requirements and terms set forth in the current Service Plan Guide, excluding the monthly charge and number of minutes included in your PCS Service Plane.g., Anytime, Night & Weekend, PCS to PCS, etc.; (iii) the most recent Terms and Conditions of Service for PCS (Ts&Cs); and (iv) the items below. A copy of the Ts&Cs is provided in your phone box or available upon request, at www.sprintpcs.com or through Sprint's Customer Service Solutions department at X-XXX-XXX-XPCS (4727). MANDATORY ARBITRATION. As set forth more completely in the Ts&Cs, you agree to a mandatory arbitration provision providing that (except for matters properly brought to small claims courts) any legal or equitable claim, controversy or dispute of any kind between you and Sprint and/or any of its employees, agents, affiliates or other representatives, must be resolved by final and binding arbitration. . . . . Return Policy. Requires return of your complete, undamaged PCS Phone with the original retailer's proof of purchase, within 14 days of purchase and activation (30 days for California residents). We will provide a refund either by check or a charge-card credit. We will refund any activation fee paid and will not charge you an Early Termination Fee. You will remain responsible for all charges based on usage prior to deactivation of the phone (e.g. service charges, taxes, surcharges, etc.). . . . . By signing below, you (i) represent that all information you have provided to Sprint is correct; (ii) agree that you have read and agreed to all terms of this Agreement, including the requirements of your PCS Service Plan and the most recent Ts&Cs; and (iii) if purchasing on behalf of a business, represent that you are authorized to sign on such company's behalf. THIS CONTRACT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE Customer Signature On July 13, 2005, Plaintiff changed the phone number on his second phone line to XXX-XXX-XXXX. Plaintiff continued to use this second phone line (with the new number) by placing calls on it throughout July 2005. So from July 1-13, 2005, Plaintiff's second phone number was XXX-XXX-XXXX, and from July 13, 2005 forward it was XXX-XXX-XXXX. Plaintiff's first invoice, dated August 1, 2005, following the acquisition of his second phone line reflects Plaintiff still carried only one account with Sprint (No. XXXXXXXXXX-X) on which three different phone numbers were billed during July 2005. Plaintiff's August 1, 2005 invoice also stated that Plaintiff could view the most current version of Sprint's Terms and Conditions online or by contacting Sprint. [5] In other words, Plaintiff added the second phone line (with number XXX-XXX-XXXX and then changed it to XXX-XXX-XXXX) to his pre-existing account for his first phone line (XXX-XXX-XXXX). Plaintiff's August 1, 2005 invoice reflected that he continued to carry one account, stating: Because you added a new phone to your account, you will see charges for more than one month of service.