Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

Plaintiffs sued defendant, Clearwire US LLC, alleging that defendant's early termination fee ("ETF")constituted an unlawful penalty and that the provisions in defendant's service agreement permitted defendant to charge customers an ETF if service was terminated before the end of the fixed contract term. At issue was whether the fees that an internet and telephone service provider charged to customers who cancel service before the expiration of a fixed-term contract were alternative performance provisions or liquidated damages. The court held that the answer to this issue was unclear and therefore certified this question to the Washington Supreme Court.