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Sprint Denies Claims by Religious Group Seeking 'Kosher Phone'

Sprint Solutions Inc. is denying allegations that it breached an agreement with a religious organization to develop a "kosher phone."

The ultra-orthodox sect of the Jewish community, known as the Haredim, claims it invested at least $150,000 with Sprint to develop the phone, which was intended to shield members of the group from aspects of the modern technological world that are inimical to their religious beliefs, such as access to the Internet and text-messaging on cell phones.

In a complaint filed Dec. 4 in the U.S. District Court for the Southern District of New York, the Haredim allege that Sprint misrepresented the capabilities of its kosher phone.

The Haredim believe in a lifestyle with rigid separation of the sexes and heightened standards of modesty in dress and speech. The Internet, they say, has lowered barriers of modesty, dignity and chastity among young and old.

Activists within the Haredim formed a council, the Vaad HaRabbonim Letikshoreth, which means the Council of Rabbis for Telephony, to address the problem.

The Vaad wanted to develop what it calls a "plain vanilla" cell phone that could not be used to access the Internet or for text messaging. The device they envisioned came to be known as the kosher phone.

Because the Vaad lacks an organizational or corporate structure, it pursued its efforts to develop a kosher phone service under the auspices of the Yeshiva Yagdil Torah, a rabbinical academy in Brooklyn, N.Y.

The Vaad initiated negotiations with Sprint early last year and, after weeks of discussion, the council entered into a contract with the company.

According to the complaint, Sprint said customers' service representatives would not permit any changes to the phone's features or billing accounts without the consent of a Vaad "point of contact."

However, despite all the technical measures Sprint guaranteed would prevent activation of Internet capability and text messaging, several cell phone users immediately received the options by calling Sprint customer service and requesting them, the plaintiff says.

Beyond the technical difficulties, Sprint and the Vaad continued to battle over billing issues, with the council claiming that the bills for the kosher phone service were frequently incorrect.

Moreover, despite the Vaad's clear statements to Sprint that the council was not responsible for default payments by individual users, the company demanded payments from the Vaad, the plaintiff says.

The problems escalated when Sprint allegedly demanded the Vaad pay more than $95,000 for individual users' delinquent bills. The company threatened to discontinue the service if the bills were not paid in 10 days, according to the complaint.

Although the Vaad says it was trying to resolve the problem with Sprint, the company disconnected all the kosher phones still in service Nov. 30.

The Vaad's complaint asserts causes of action for breach of contract, anticipatory breach and negligent misrepresentation.

In its response to the lawsuit Sprint says the allegations are conclusions of law and not deserving of a response.

The company says several of the allegations describing the Vaad's beliefs and culture are philosophical and argumentative.

Other than admitting some of the procedural allegations, such as the fact that some meetings took place and that the Vaad submitted certain documents, Sprint denies the substantive aspects of each of the Vaad's claims.

In its defense Sprint says the Vaad breached the contract before any termination of service and is not entitled to seek damages on the contract.

Sprint's answer includes a counterclaim alleging that the company has sustained damages in excess of $100,000 for unpaid charges.