Three-judge panel of Cal. Court of Appeals ruled that nothing in ...

Three-judge panel of Cal. Court of Appeals ruled that nothing in federal law or FCC policy preempted state courts from awarding damages in false advertising lawsuit against 2 Southern Cal. cellular providers. Appeals Court dismissed claims by cellular carrier industry that federal law barring state rate regulation of wireless services also denied state courts jurisdiction over anything that might directly affect wireless rates, such as civil damage awards. Ruling grew out of 1998 lawsuit in Cal. Superior Court, L.A., (Marcia Spielhotz et al. v. Los Angeles Cellular/AT&T Wireless) in which plaintiffs accused cellular carriers of false advertising and breach of contract because they claimed to have seamless coverage across Southern Cal. but failed to disclose dead zones within their coverage area where phones wouldn’t work. Lower court dismissed case on ground it lacked jurisdiction to award damages. Appeals Court Judges Walter Croskey, Joan Klein and Pattie Kitching in Case B-131655 directed lower court to vacate its order disclaiming jurisdiction and to schedule case for hearing. Appeals Court addressed only where case should be heard, not merits. Current FCC policy says there’s no blanket preemption in federal law to preclude state court damage awards against cellular companies in lawsuits over consumer protection, misrepresentation and contracts, but facts of each individual case would determine whether state damage awards were permitted.