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Denial of Leave To Amend Complaint – Insufficient Complaint

By: Derek Hawkins//March 15, 2017//

Denial of Leave To Amend Complaint – Insufficient Complaint

By: Derek Hawkins//March 15, 2017//

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7th Circuit court of Appeals

Case Name: Cafferty, Clobes, Meriwether & Sprengel, LLP v. XO Communications Services, LLC

Case No.: 160-3472

Officials: BAUER, POSNER, and SYKES, Circuit Judges.

Focus: Denial of Leave To Amend Complaint – Insufficient Complaint

The plaintiff, a law firm, seeks both individual and class relief against XO Communications, a large provider of telecommunications services to business customers, such as the plaintiff, and wholesalers. The plaintiff’s contract with XO provided that the contract would be automatically renewed at the end of the customer’s current service term “for a similar term and at the same rates” set forth in the contract. A customer who didn’t want to renew was required to so notify XO at least 30 days prior to the expiration date in the contract; if it failed to do so, the contract would renew automatically. The contract also provided that XO would notify the customer of the automatic-renewal feature of the contract (which it did from time to time), thus reminding the customer that if it decided not to renew the contract it would have to so notify XO at least 30 days before expiration. The contract further stated that if the customer terminated the contract after the deadline it would have to pay XO a termination fee based on the revenue that XO would have received from the customer over the remaining months of the contract had it not been terminated prematurely and thus in violation of the contract. XO’s monthly invoices contain a prominent reminder of the automatic renewal feature of the contract.

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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