Verizon, TracFone Move to Dismiss Lifeline Distributor’s Breach of Contract Case

TracFone and Verizon motions (docket 1:24-cv-20600) in U.S. District Court for Southern Florida in Miami. The complaint alleges that Team Marketing entered into an agreement with TracFone in May 2022 under which Team Marketing would establish retail locations in designated territories to sign up customers for TracFone telecommunications services, supported by Lifeline for eligible customers. It alleges that TracFone and Verizon breached the agreement by terminating it in such a way that didn’t comply with its termination provisions. “But even a cursory review” of the agreement reveals that Verizon isn’t a party to it, said Verizon’s motion to dismiss. Team Marketing’s sole claim against Verizon for breach of contract “fails to state a claim upon which relief can be granted,” it said. Verizon isn’t a party to the contract that the plaintiff “conclusorily alleges” Verizon breached, and that “lack of privity” dooms the complaint, it said. TracFone also is seeking dismissal for failure to state a claim upon which relief can be granted, said its motion. The plaintiff asserts one claim against TracFone, that it breached its contract by terminating their agreement without providing the plaintiff with adequate notice and an opportunity to cure, it said. But even taking the plaintiff’s factual allegations as true, TracFone “fully complied with the contractual provision permitting TracFone to terminate immediately, without prior notice or an opportunity to cure,” for the plaintiff’s “failure to adhere to federal law in connection with its performance under the agreement,” it said. Even if notice and a cure opportunity had been required under a separate provision of the agreement, the complaint makes clear that TracFone also satisfied those requirements, it said. The complaint “therefore should be dismissed,” it said.