Cole v. Asurion Corp.

267 F.R.D. 322, 2010 U.S. Dist. LEXIS 47322, 2010 WL 1640889
CourtDistrict Court, C.D. California
DecidedApril 19, 2010
DocketNo. CV 06-6649 PSG (JCX)
StatusPublished
Cited by1 cases

This text of 267 F.R.D. 322 (Cole v. Asurion Corp.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cole v. Asurion Corp., 267 F.R.D. 322, 2010 U.S. Dist. LEXIS 47322, 2010 WL 1640889 (C.D. Cal. 2010).

Opinion

[324]*324Proceedings: (In Chambers) Order GRANTING in Part and DENYING in Part Plaintiffs Motion for Class Certification

PHILIP S. GUTIERREZ, District Judge.

Before the Court is Plaintiff Wineesa Cole’s motion for class certification. The matter came on for hearing on April 15, 2010. Having considered the papers submitted in support of and in opposition to the motion, as well as oral argument, the Court GRANTS in part and DENIES in part Plaintiffs motion.

I. Background

In April 2004, Plaintiff Wineesa Cole (“Plaintiff’) purchased a cell phone from Defendant T-Mobile USA, Inc. (“T-Mobile”) at a store in Torrance, California.1 When she did so, she enrolled in an insurance program that insured her phone against loss, theft, or damage. This insurance program was marketed by T-Mobile on behalf of Defendants Asurion Corporation and Asurion Insurance Services, Inc. (collectively, “Asurion”). Before Plaintiff enrolled in the program, a sales representative showed her a brochure about the program and informed her of the program’s basic terms. These terms included a monthly premium of $3.99 and a deductible of $35.00.

At the time Plaintiff enrolled in the insurance program, it was underwritten by the Hartford. In July 2005, however, the program ceased to be underwritten by the Hartford and began to be underwritten by Liberty Mutual. The terms of the program also changed. In particular, the uniform monthly premium of $3.99 was replaced with a two-tier rate of $3.99 and $5.99, and the uniform $35.00 deductible was replaced with a three-tier deductible of $40.00, $70.00, and $110.00. The applicable premium rate and deductible were determined by the cost of the subscriber’s phone.

In about August or September 2005, Plaintiff lost her cell phone and contacted Asurion to submit a claim through the insurance program. An Asurion representative informed her that to receive a replacement phone she would have to pay a deductible of $110.00. When Plaintiff protested that her deductible was only $35.00, the representative explained that Plaintiff should have received a letter informing her that the terms of the program had changed and that, as a result, Plaintiffs deductible had increased from $35.00 to $110.00. Rather than pay the deductible for a replacement phone, Plaintiff cancelled her enrollment in the insurance program.

On October 18, 2006, Plaintiff filed this class action against T-Mobile and Asurion (collectively, “Defendants”). Plaintiffs Third Amended Complaint (“Complaint”) asserts claims for violations of 1) Cal. Bus. & Prof. Code § 17200 (misrepresentation of policy terms), 2) Cal. Bus. & Prof.Code § 17200 (undisclosed kickbacks), 3) Cal. Bus. & Prof. Code § 17200 (policy switching), and 4) Cal. Bus. & Prof.Code § 17500 (false advertising), as well as claims for 5) common law fraud, 6) negligent misrepresentation, 7) civil conspiracy, 8) breach of fiduciary duty, 9) breach of an express contract, and 10) unjust enrichment.2 Several of these claims are based on allegations that, when Defendants marketed [325]*325their insurance program to Plaintiff, Defendants misrepresented the program’s terms. These claims include Plaintiffs first cause of action under Cal. Bus. & Prof.Code § 17200, fourth cause of action under Cal. Bus. & Prof.Code § 17500, fifth cause of action for fraud, and sixth cause of action for negligent misrepresentation. The Court will refer to these claims as Plaintiffs “misrepresentation” claims.

More specifically, Plaintiffs misrepresentation claims allege, inter alia, that while Defendants represent to consumers “that they will receive a replacement phone of ‘like kind, quality, and value,’ ” Defendants fail to disclose adequately that most of the replacement phones are in fact “refurbished” phones, many of which were returned by previous customers as defective. See Third Amended Complaint (“TAC”) ¶ 21. These replacement phones, according to Plaintiff, are often of less value than the deductible amount. See id. at ¶29. Plaintiff alleges that she would not have enrolled in the insurance program if the true terms of the program had been disclosed to her. See id. at ¶ 21.

On December 29, 2009, Plaintiff filed this motion for class certification (“Motion”). Based on her misrepresentation claims, Plaintiff seeks to certify a “misrepresentation class” composed of

[a]ll persons who while residing in the State of California purchased cellular telephone insurance from Asurion through T-Mobile USA from August 1, 2003 to April 2, 2008.3

See Motion 8:18-20.4

II. Legal Standard

A court may certify a class only if a plaintiff meets .all the prerequisites of Federal Rule of Civil Procedure 23(a) and at least one of the requirements of Rule 23(b). See Fed. R.Civ.P. 23; Valentino v. Carter-Wallace, Inc., 97 F.3d 1227, 1234 (9th Cir.1996). The burden lies with the plaintiff to establish that the Rule 23(a) and Rule 23(b) requirements have been met. See Zinser v. Accufix Research Inst., Inc., 253 F.3d 1180, 1186 (9th Cir.2001).

Under Rule 23(a), a plaintiff must demonstrate that (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the class representatives are typical of the claims or defenses of the class, and (4) the class representatives will fairly and adequately protect the interests of all members of the class. See Fed.R.Civ.P. 23(a).

If all four prerequisites of Rule 23(a) are satisfied, a plaintiff must also establish that one or more of the grounds for maintaining the suit under Rule 23(b) are met. Those grounds are (1) that there is a risk of substantial prejudice from separate actions, (2) that declaratory or injunctive relief benefit-ting the class as a whole would be appropriate, or (3) that common questions of law or fact predominate and the class action is superior to other available methods of adjudication. See Fed.R.Civ.P. 23(b).

III. Discussion

A. Rule 23(a) Requirements

1. Numerosity

The first requirement for maintaining a class action under Rule 23(a) is that the class [326]*326is so numerous that joinder of all members would be “impracticable.” See Fed.R.Civ.P. 23(a)(1). Here, Plaintiff points to evidence indicating that the proposed class has thousands of members. See Motion 7:8-16. Courts have regularly certified classes with less than one hundred members. See Jordan v. County of Los Angeles,

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267 F.R.D. 322, 2010 U.S. Dist. LEXIS 47322, 2010 WL 1640889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cole-v-asurion-corp-cacd-2010.