CALIFORNIA CLASS ACTION LAW

Second District Holds That Omission of Source of Base Price From Which Discount Taken Is Harmless

A Restoration Hardware store in Naperville, Il...
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The Second District Court of Appeal, in an unpublished opinion, affirmed a trial court’s grant of summary judgment in favor a Restoration Hardware, Inc. (RHI) for alleged misrepresentations of the price of RHI’s merchandise at its discount outlet stores.  Heller v. Restoration Hardware, Inc.,  B215218, 2010 WL 3387506 (Cal. Ct. App. 2d Dist. Aug. 30, 2010).   Plaintiff alleged that RHI outlet stores engaged in a practice of misrepresenting the actual discounts given on furniture.  Id. *1.  Plaintiff contended she purchased at an outlet store an advertised “Del Mar” outdoor chair, which had an original retail price of $750 from which a percentage discount was taken, when in fact the price in RHI’s catalog and on the internet at its website was $685.  Id. Plaintiff’s complaint stated five causes of action: violations of the UCL, the FAL, the CLRA, negligent misrepresentation, and fraud and deceit.

The court affirmed, holding: Read the rest of this entry »

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Ninth Circuit Holds Fraud and Consumer Protection Claims Preempted by Medicare Modernization Act

Medicare: Forward NOT Backward
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The Ninth Circuit Court of Appeals in Uhm v. Humana, Inc., No. 06-35672,  — F.3d —-, 2010 WL 3385546 (9th Cir. Aug. 30, 2010) held that the trial court lacked jurisdiction to consider plaintiffs’ breach of contract and unjust enrichment claims because they were not properly exhausted through the administrative remedial scheme established under the Medicare Prescription Drug Improvement and Modernization Act of 2003.  The court further held that plaintiff’s fraud and consumer protection act claims were not subject to the Act’s exhaustion provisions, but that they are expressly preempted.

Circuit Judge Betty Fletcher wrote a pointed concurrence chastising plaintiff’s counsel for filing the class action “all for the recovery of two months’ prescriptions” where a “bit of common sense and attention to the available administrative remedies should have been applied”:

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