Sept. 26 (Bloomberg) -- Apple Inc. won't face a lawsuit claiming it didn't immediately tell customers about the limited life of batteries for its iPhone or their $86 replacement cost, including delivery.

U.S. District Judge Matthew F. Kennelly in Chicago granted Apple's request that he dismiss the lawsuit on the evidence and the law without a trial -- a so-called summary judgment.

``Apple disclosed on the outside of the iPhone package that the'' battery has ```limited recharge cycles and may eventually need to be replaced by Apple service provider,''' Kennelly wrote in his Sept. 23 opinion, quoting the packaging. ``Under the circumstances, no reasonable jury could find that deception occurred.''

Jose Trujillo sued Apple in Illinois state court in July 2007, accusing the company of consumer fraud and seeking class- action, or group, status. Cupertino, California-based Apple had the case moved to federal court.

Trujillo's lawyer, James R. Rowe of Chicago, didn't return a phone call seeking comment yesterday.

AT&T Inc., the largest U.S. telephone company and the exclusive iPhone service provider, remains a defendant in the case.

Arbitration Denied

On Sept. 22, Kennelly denied Dallas-based AT&T's motion to compel arbitration, as it said the service agreement demanded, and dismiss the suit. Kennelly said that at the time Trujillo bought an iPhone, he ``did not have access to a paper copy of any documents explaining or referencing'' the ``terms of service, including in particular the arbitration requirement.''

The judge scheduled a hearing for Sept. 29.

AT&T spokesman Walt Sharp and Apple spokeswoman Jennifer Bowcock didn't return calls seeking comment yesterday.

Apple rose $3.22, or 2.5 percent, to $131.93 in Nasdaq Stock Market trading yesterday. AT&T rose $1.09, or 3.8 percent, to $30.07 in New York Stock Exchange composite trading.

The case is Trujillo v Apple Computer Inc., 07-cv-4946, U.S. District Court, Northern District of Illinois (Chicago).

To contact the reporter on this story: Thom Weidlich in Los Angeles federal court at tweidlich@bloomberg.net.

Last Updated: September 26, 2008 00:01 EDT