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A long-running court dispute over L.A. Cellular’s practice of selling mobile phones below cost may be headed back to trial. The California Supreme Court issued a ruling that would allow Cal-Tech Communications to pursue its case against L.A. Cellular--now AT&T; Wireless--under the state’s “unfair competition” law. The decision upholds an earlier ruling by the state Court of Appeal in Los Angeles. Cal-Tech, a now-defunct company that sold wireless phones, alleged that L.A. Cellular’s sale of phones below cost hurt competitors and violated the state’s Unfair Practices Act. Both courts found that L.A. Cellular’s phone sales were not intended to harm or destroy competitors but were meant to help the company compete against AirTouch Cellular. However, the courts also said that Cal-Tech could pursue the case claiming violation of unfair-competition laws, which would allow for restitution but not compensatory damages, an attorney in the case said.

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