Archive for June, 2009

Oregon consumer class action law enters modern era

Apologies, but I’m having a law geek moment in this post. I’ve been wondering whether it was really going to happen, but I received unofficial confirmation that the Governor signed HB 2585 yesterday.

It’s one of those technical bills on its face. But it makes major pro-consumer changes to class action procedure rules in Oregon. The bill simply eliminates Oregon Rule of Civil Procedure 32K.

That rule created a major barrier to consumer class actions. Under Oregon’s Unlawful Trade Practices Act, a defrauded consumer can sue for the greater of actual damages or $200. Before passage of HB 2585, consumers in class actions could only recover their actual damages. That was the killer provision in ORCP 32K that HB 2585 eliminated.

ORCP 32K effectively stopped most consumer class actions in small-damage claims. Now consumers will be allowed to recover their statutory damages of $200 simply by showing that they suffered a loss of money as a result of a reckless violation of the Unlawful Trade Practices Act. The change applies to all cases in which a judgment has not been entered.

The change means that consumers will have a powerful tool to fight the nickle and diming method of illegal charges that bleed us dry and enrich bad actors.

Big yay from these quarters.

Crunchberry class action lawyers slapped down

As a lawyer handling consumer class actions, I know that I have to be willing to blow the whistle when someone files a lousy case. Here–in all it’s glory–is the worst I’ve seen in a long time. Follow this link to read the judicial opinion in the dread  crunchberry class action case.

In a case that can only be described accurately by the sound of a palm slapping a forehead, some “consumer” lawyers decided to sue Quaker Oats for its marketing of Captain Crunch with Crunchberries. Apparently, these legal professionals with very tiny brains decided that the product advertising is misleading because–yes, I’m not making this up–there is NO fruit in Cap’n Crunch with Crunchberries.

“In actuality, the Product contains no berries of any kind,” said the understated trial judge. I’ll have to figure out a way to cite this opinion in one of my next briefs. The quote is simply too precious to waste.

Thank God the judge stopped their stupidity. Could you imagine their next case claiming deceit because of the lack of rocks in Fruity Pebbles?

The sad thing is that people who file crunchberry class action cases do a grave disservice to those of us who represent consumers on real cases. Because it’s easy to use the outrageous few cases to trash claims that have merit. I hope that these guys get slapped very hard so that they learn to stop filing meritless cases.

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