Hearings were scheduled to begin Friday in a lawsuit against Ameritech Mobile Communications Inc. that alleges the carrier schemed to defraud its dealers and put them out of business.
The lawsuit, filed by Chicago-area dealers DCI Integrated Computer Systems and Infinity Wireless Communications Inc., claims Ameritech terminated DCI’s contract and attempted to terminate Infinity Wireless’ contract without basis. Infinity Wireless continues to operate as an Ameritech dealer under a court order, said a source close to the case.
Ameritech said it does not comment on pending litigation.
The lawsuit is one of many being fought in courts around the nation in the often acrimonious relationship between wireless carriers and dealers. Carriers traditionally have sought relationships with dealers to help expand business, but many of those relationships have soured as carriers develop other distribution channels and rely less on dealers.
Ameritech “encouraged dealers to open dealerships, expand their business utilizing their own efforts and equity and then the dealers were forced out of business, forced to close locations, or, once the area was developed, to share their customers with [Ameritech’s] corporate stores,” the lawsuit charges.
The lawsuit also alleges that between 1991 and 1992 Ameritech formulated a marketing concept called the D-2000 Integration Plan, which called for customers with maximum revenue potential to be moved from dealers to Ameritech Direct distribution channels; for the carrier to open Ameritech Direct locations in areas to compete with dealer locations; and to decrease acquisition costs by decreasing dealer compensation and increasing efficiency.
Infinity entered cellular, paging and equipment agreements with Ameritech in 1993. According to the lawsuit, Ameritech said it would not open or permit to open any Ameritech dealership within three miles of the plaintiff’s store.
Infinity said it spent more than $200,000 to open its dealership store front in 1994. In 1995, Ameritech authorized another dealership to open within three miles of the store, said the lawsuit. Following a dispute in late 1995 over a shortfall in commissions, rebates, equipment upgrades and residuals, Ameritech sent a termination notice to Infinity effective May 31, 1996.
The lawsuit among other things seeks damages and equitable recoupment and a preliminary and permanent injunction enjoining Ameritech from terminating its business relationship with Infinity. The plaintiffs also are seeking to bring the lawsuit as a class-action suit representing Ameritech dealers throughout the United States from 1986 to the present.
Paperwork obtained by RCR indicates that Ameritech was held in contempt of court in November for violating a Feb. 27, 1997, court order to preserve documents related to the case.
