Ehret v. Uber Technologies, Inc.

148 F. Supp. 3d 884, 2015 U.S. Dist. LEXIS 161803, 2015 WL 7759464
CourtDistrict Court, N.D. California
DecidedDecember 2, 2015
DocketCase No. 14-cv-00113-EMC
StatusPublished
Cited by12 cases

This text of 148 F. Supp. 3d 884 (Ehret v. Uber Technologies, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ehret v. Uber Technologies, Inc., 148 F. Supp. 3d 884, 2015 U.S. Dist. LEXIS 161803, 2015 WL 7759464 (N.D. Cal. 2015).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR CLASS CERTIFICATION

Docket No. 99

EDWARD M. CHEN, United States. District Judge

I. INTRODUCTION

Plaintiff Caren Ehret filed the instant putative class action against Defendant Uber Technologies, Inc., alleging that Defendant violated the California Unfair Competition Law (UCL) and Consumers Legal Remedies Act (CLRA). Docket No. 40 (First Amended Complaint) (FAC). Plaintiff contends that Uber made misrepresentations when it informed consumers that it would automatically charge a 20% “gratuity” when taxi rides were arranged through its app when in fact, Uber kept a substantial portion of the purported “gratuity” for itself. Id. at ¶¶ 11, 13.

Plaintiffs motion for class certification came on for hearing before the Court on October 8, 2015. In her motion, Plaintiff proposed to certify the following class: “Ml individuals who arranged and paid for taxi rides through Uber’s service from April 18, 2012 to March 25, 2013.” Docket No. 101 at 3 (Mot.). For the reasons explained before, the Court will certify the following class: “Ml individuals who received Uber’s e-mail with the representation' that the 20% charge would be gratuity only, who then arranged and paid for taxi rides through Uber’s service from April 20, 2012 to March 25, 2013.”1

[888]*888II. BACKGROUND

Uber provides a software application (Uber app) that permits riders to “summon, arrange and pay for taxi cab rides and other transportation services electronically via their mobile phone.” FAC at ¶ 10. During the proposed class period of April Í8, 2012 to March 25, 2013, one of the options available in five cities was “uber-TAXI,” which allowed users to request a ride in a traditional taxi cab. Docket No. 106 (Mohrer Dec.) at ¶ 5; Docket No. 107 (Holt Dec.) at ¶ 5; Docket No. 108 (Penn Dec.) at ¶ 6; Docket No. 109 (Abyzov Dec.) at ¶ 5. The uberTAXI option required taxi cab drivers to use their meters as normal, who would then enter the' metered fare into the Uber app at the end of the trip. Mohrer Dec. at ¶ 7; Holt Dec. at ¶ 7; Penn Dec. at ¶ 8; Abyzov Dec. at ¶ 7; Pao Dec. at ¶ 7. Uber would then automatically add 20% of the metered fare to determine the total amount charged to' the rider through the Uber app.2 In some cities, a separate booking fee was also charged. Holt Dec. at ¶7; Abyzov Dec. at ¶ 8; Pao Dec. at ¶7. Beginning on March 25, 2013, Uber no longer automatically added 20% of the metered fare, but either enabled users to adjust the gratuity or required riders to pay the driver directly. Mohrer Dec. at ¶ 7; Holt Dec. at ¶ 11; Penn Dec. at ¶ 16; Aby-zov Dec. at ¶ 11; Pao Dec. at ¶ 11.

At issue are Uber’s representations as to the 20% automatic charge. FAC at ¶ 11. Plaintiff contends that on Uber’s website and in various blog posts and e-mails, Uber advertised the 20% automatic charge solely as a “gratuity” for the drivers. See Mot., Exh. A (screenshot of Uber’s Chicago webpage from December 11, 2012, stating that for taxis, “No need to pay your driver — the metered fare + 20% gratuity will be charged to your credit card on file”), B (Uber blog post from November 28, 2012, stating “Use Uber to request and pay for a taxi, at standard taxi rates. A 20% gratuity is automatically added for the driver.”). However, Uber in fact took a fee of approximately 10% of the metered fare, including a 2% credit card processing fee. Mohrer Dec. at ¶ 8; Holt Dee. at ¶ 8; Penn Dec. at ¶ 10; Abyzov Dec. at ¶ 8; Pao Dec. at ¶ 8. Thus, the driver ultimately received about half of thé 20% gratuity charged to riders, with the rest going to Uber.

On September 9, 2012, Plaintiff used the uberTAXI option to arrange for a taxi ride in Chicago. FAC at ¶ 15. Plaintiff contends that when she “signed up for [the' taxi driver] to come pick [her] up'that day, it said 20 percent gratuity to the driver,” with “it” being the app or “whatever [she] was looking at via the app on [her] phone.” Mot., Exh. I (Mot. Ehret Dep.) 'at 21-22:1. During the ride, Plaintiff asked the driver about the 20% gratuity, to which the driver responded that he actually received only half of the gratuity. Mot. Ehret Dep. at 21:14-21. After her trip, Plaintiff received a receipt that broke down the $15.90 charge as a $13.25 meter fare, and a $2.65 “Gratuity & Service Charge.” Docket No. 105 (Roberts Dec.), Exh. D.

On January 8, 2014, Plaintiff filed the instant putative class action against Uber. Docket No. 1. In her amended complaint, Plaintiff alleges that the representation of a 20% gratuity “is false, misleading, and likely to deceive members of the public,” [889]*889as “the term ‘gratuity’ suggests a sum paid to the driver/owner in recognition of transportation service that is distinct and different from the actual fare.” FAC at ¶ 14. Following this Court’s ruling .on Uber’s motion to dismiss, the remaining causes of action are for violations of the UCL fpr unfair, unlawful, and fraudulent business practices, and violations of the CLRA. Docket No. 64 at 22.

III. DISCUSSION

To obtain class action certification, a proposed class must satisfy the prerequisites of Rule 23(a), which are: . .

(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 representative parties-are typical of the, claims or defenses of the class; and
(4) the representative parties will fairly and adequately protect the interests of the class.

Fed. R. Civ. P. 23(a)(l)-(4). The purpose of these Rule 23(a) requirements is largely to “ensure[] that the named plaintiffs are appropriate representatives of the class whose claims they wish to litigate,”' and to “effectively limit the class claims to those fairly encompassed by the named plaintiffs claims.” Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 131 S.Ct. 2541, 2550, 180 L.Ed.2d 374 (2011) (citation omitted). In addition, “the proposed class must qualify as one of the types of class actions identified in Rule 23(b).” Pulaski & Middleman, LLC v. Google, Inc., 802 F.3d 979, 985 (9th Cir.2015). Here, Plaintiffs seek certification under Rule 23(b)(3), which, in addition to the requisites of Rule 23(a), requires that the Court find “that the questions of law or fact common to class members predominate over any questions affecting only individual members, and that a class action is superior to other available-methods for fairly and efficiently adjudicating the controversy.” Fed. R. Civ. P. 23(b)(3).

The class action .is “an exception to the usual rule that litigation is conducted by and on behalf of the individual named parties only.” Dukes, 131 S.Ct. at 2550 (citation .omitted). Thus, the burden is on the “party.- seeking class certification [to] affirmatively demonstrate his compliance with the Rule — that is, he must be prepared to prove that there are in fact sufficiently numerous parties, common questions of law or fact, etc.” Id. at 2551.

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Bluebook (online)
148 F. Supp. 3d 884, 2015 U.S. Dist. LEXIS 161803, 2015 WL 7759464, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ehret-v-uber-technologies-inc-cand-2015.