DE judge lets suit against Sprint/Nextel go forward

[Fire14]

Court Won't Dismiss Ubiquitel Suit Against Nextel

A Delaware judge Wednesday turned aside a bid to block a lawsuit by Sprint affiliate Ubiquitel Inc. against Nextel Communications Inc.

The decision clears the way to more legal action over the merger that created Sprint Nextel Corp., a combination that former affiliates say interfered with their contracts.

Nextel Communications and Sprint Corp. are defending a pair of lawsuits in Delaware's Chancery Court, one brought by Ubiquitel, the other by a privately held Sprint affiliate, Horizon Personal Communications Inc.

In an effort to block the actions, Nextel argued UbiquiTel's complaint failed to meet legal standards for an action for tortious interference with contract.

Ubiquitel had argued that the combination of Sprint and Nextel over-ran its exclusive rights to develop the wireless market in its territory in a way that breached its contract.

Vice Chancellor Donald F. Parsons Jr. of Delaware's Court of Chancery said that was good enough to let the suit move forward.

Parsons also said Ubiquitel had sufficiently stated a case that Nextel intended to compete unfairly against the Sprint affiliate, an essential element of part of the lawsuit that alleges civil conspiracy against the Sprint affiliate.

Bala Cynwyd, Pa., UbiquiTel signed up to develop Sprint's wireless network in parts of California, Idaho, Indiana, Kentucky, Nevada, Ohio, Tennessee, Utah and Washington.

It is one of several Sprint affiliates that complained the wireless telecommunications merger deprived them of exclusive rights in their territories.

Sprint Nextel ended some legal actions by acquiring affiliates.

Alamosa Holdings Inc. (APCS) had filed a suit similar to Ubiquitel's, but dropped the action when Sprint Nextel agreed to buy it for about $3.4 billion in cash.