An interesting decision came out of the United States District Court for the Northern District of California that involved a liquidated damage clause. The plaintiff purchased an annual subscription to a suite of software services called the “Adobe Creative Cloud” (referred to hereafter as the Creative Cloud) for $49.00 per month from the defendant, a multi-national software maker.
In a consumer class action against a defendant wireless telephone carrier, The Superior Court of Alameda County of California found early termination fees (ETFs) charged by the carrier to customers terminating service prior to expiration of defined contract periods to be unlawful penalties and granted restitution/damages to the plaintiff class action. The carrier appealed.
