Judge rebuffs class action cellphone lawsuit, for now

A class action lawsuit that was filed against five of Canada's largest cellphone companies has been rebuffed by a Saskatchewan court.

But Justice Frank Gerein left the door open should the Merchant Law Group of Regina decide to try again.

The class action lawsuit was filed by the Regina law firm against five of Canada's largest cellphone companies, Bell Mobility, Telus Mobility, Aliant Inc., Rogers Wireless Inc., Microcell Telecommunications Inc. and SaskTel.

In a written judgment released earlier this week, Judge Gerein turned down the original lawsuit on technical grounds.

But the judge suggested the cellphone companies benefited from "unjust enrichment" when they charged a so-called system-access fee, and he concluded that Merchant's lawyers have grounds to file another class action lawsuit.

The original lawsuit alleges that cellphone companies misrepresented and falsely advertised a system-access fee that they charge their customers every month.

This fee appears on customer bills as a charge of $6.95, and it totals an estimated $800 million or more every year.

Most companies claim the user fee covers maintenance, government licensing fees and regulatory costs.

SaskTel officials told the Regina Leader-Post they were happy with a ruling they see as a major victory for the cellphone companies.

"The bottom line is, after a lengthy hearing and lengthy deliberation, the judge has not certified the class action. As far as we're concerned, it's a major victory," said John Meldrum, vice-president of regulatory affairs for SaskTel, a Crown corporation.

And SaskTel also vowed to fight if Merchant's lawyers come back with a new suit. "If he's going to try to resurrect it, well, we'll fight that," Meldrum said.

But Merchant views Gerein's judgment as a minor setback, not a defeat.

"We are [going] to organize more appropriately," Merchant told the Leader-Post. "We will be able to work with the decision of Judge Gerein."