Antitrust Law Daily Wrap Up, STATE UNFAIR TRADE PRACTICES—NDCal: Class Certification Denial in Action Against Sears for Misrepresenting Tire Warranty Will Not Be Reconsidered, (May 20, 2013)

By Jody Coultas, J.D.

The federal district court in Oakland will not reconsider its denial of certification of a class of California consumers who purchased tires from Sears Roebuck and Company, alleging that Sears’ failed to disclose the terms and conditions of its tire warranties in violation of the California Unfair Competition Law (UCL) and Consumers Legal Remedies Act (CLRA) (Faulk v. Sears Roebuck and Co., May 17, 2013, Rogers, Y.).

The purported class representative alleged that Sears refused to honor the warranty unless purchasers could show that they had rotated their tires at specific intervals and had a wheel alignment at least once per year. These conditions were not included in the warranties, and Sears argued that it did not have a policy of rejecting warranty coverage based on these conditions. The court held that the purchaser could not show that a systematic breach of contract is susceptible to common proof or that a systematic breach can be resolved on a class-wide basis.

Because the purchaser failed to present a basis for the court to permit a motion to reconsider, the court denied the motion. The purchaser alleged that footnote 11 in the previous order failed to address the measure of damages available under the UCL. The purchaser requested an order awarding restitution and disgorgement of all charges paid by class members and/or ill-gotten gains realized by Sears as a direct result of Sears’ business practices. However, the purchaser’s motion for class certification did not identify the damages suffered by purchasers of tires and tire warranties from Sears. Not presenting facts or arguments was not a basis for reconsideration. Also, the court specifically addressed the remedies sought under the UCL.

The case is No. 11-CV-02159 YGR.

Attorneys: Robert Gordon Padrick for Kevin Faulk. Bruce Alan Khula (Squire Sanders LLP) for Sears Roebuck and Co.

Companies: Sears Roebuck and Co.

Cases: StateUnfairTradePractices CaliforniaNews