Jermyn v. Best Buy Stores, L.P.

256 F.R.D. 418, 2009 U.S. Dist. LEXIS 28945, 2009 WL 773328
CourtDistrict Court, S.D. New York
DecidedMarch 19, 2009
DocketNo. 08 Civ. 214(CM)
StatusPublished
Cited by24 cases

This text of 256 F.R.D. 418 (Jermyn v. Best Buy Stores, L.P.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jermyn v. Best Buy Stores, L.P., 256 F.R.D. 418, 2009 U.S. Dist. LEXIS 28945, 2009 WL 773328 (S.D.N.Y. 2009).

Opinion

DECISION AND ORDER GRANTING PLAINTIFF’S MOTION FOR CLASS CERTIFICATION

McMAHON, District Judge.

Introduction

Plaintiff Thomas Jermyn (“Jermyn”) brings this lawsuit in his own right, and on behalf of thousands of similarly situated New York consumers, against defendant Best Buy Stores, L.P. (“Best Buy” or “company”). The plaintiff alleges five causes of action: (1) common law false advertising; (2) false and deceptive practice under Minnesota’s Consumer Fraud Act; (3) false and deceptive acts and practices under New York General Business Law § 349; (4) false and deceptive acts and practices under New York General Business Law § 350; and (5) unjust enrichment. He also alleges a sixth “cause of action” for injunctive relief, which is not a claim but a remedy.1

Plaintiff alleges that Best Buy uses false and deceptive trade practices in adverting and applying the company’s well-known “price match guarantee” policy. Best Buy tells the consuming public that it will match a competitor’s lower price on any item purchased in the store. Plaintiff alleges that Best Buy uses its “price match guarantee” policy as a ploy, to lure unsuspecting consumers into its stores and to induce them to purchase its merchandise, while allegedly having an undisclosed “Anti-Price Matching Policy,” pursuant to which employees aggressively deny customers’ legitimate price match requests. Plaintiff, who claims he was victimized by Best Buy’s undisclosed “Anti-Price Matching Policy,” sues on his own behalf and on behalf of a class consisting of:

All New York citizens and residents who, from January 10, 2002 until the present, made a purchase at Best Buy and within 30 days (14 days for computers, monitors, notebook computers, printers, camcorders, digital cameras and radar detectors) of the purchase found a lower price from an entity qualifying under Best Buy’s price match guarantee on an available product of the same brand and model, provided verification of the lower price to Best Buy and were denied the benefit of Best Buy’s price match guarantee.
Excluded from the Class are the defendant; any parent, subsidiary or affiliate of the defendant; any entity in which the defendant has or had a controlling interest, or which the defendant otherwise controls or controlled; and any officer, director, employee, legal representative, predecessor, successor or assignee of the Defendant.2

(PL Mem. at 4.)

Plaintiff asserts that his Complaint raises numerous questions of law or fact that can easily be resolved on a class-wide basis, and that these issues predominate over any individualized ones. The Complaint also seeks injunctive relief to protect the class as a whole.

Plaintiff moves to certify the proposed class. The motion is granted, with the caveat that some class members (a subclass) will not be able to assert claims under New York General Business Law.

[424]*424Procedural Background

On January 10, 2008, the plaintiff filed his initial complaint in this Court. On March 3, 2008, a Court Ordered Stipulation was entered allowing plaintiff to amend the complaint. On March 27, 2008, the plaintiff filed the First Amended Complaint (“Complaint”).

On April 18, 2008, Best Buy filed its Answer; on June 4, 2008, it filed an Amended Answer. The parties then engaged in class certification discovery. Initial disclosures were exchanged pursuant to Federal Rule of Civil Procedure 26(a)(1), documents were requested and produced and interrogatories were propounded and answered. Best Buy’s counsel deposed Jermyn on May 2, 2008, and the plaintiffs counsel deposed three Best Buy corporate representatives, produced pursuant to Federal Rule of Civil Procedure 30(b)(6), on May 22 and 23, 2008. Based upon the Rule 30(b)(6) depositions, the plaintiff identified and specifically requested the production of responsive documents that Best Buy had not previously produced.

Factual Background

A. Best Buy

Best Buy is the largest specialty retailer of consumer electronics in the United States and Canada. (Braunstein Decl. Ex. 1 ¶2 (hereinafter, “Compl.”).) As part of its effort to advertise, promote, and sell its goods and services — which helped it exceed $30 billion in revenue in 2006 — Best Buy publishes, advertises and promotes a “price match guarantee.” (Id.; Braunstein Decl. Ex. 3 at 46:10-19 (hereinafter, “Cox-Feeney Test.”).) Best Buy “guarantees” that it will match any local competitor’s lower price; if a customer has already purchased the product at Best Buy, defendant will refund the price difference, plus an additional 10% of that difference. (Braunstein Decl. Ex. 25; Ex. 26.)

Best Buy advertises its price match guarantee in its Sunday circular advertising. (Cox-Feeney Test, at 48:3-22.) It is prominently displayed in Best Buy’s stores on giant nine panel signs; included on an in-store tear pad; used on its website and mentioned in television commercials. (Id.) Best Buy’s salespeople are told to remind customers about the price match guarantee as a “closing tool” if a prospective buyer is reluctant to make a purchase. (Id. at 47:8-15.)

The price match guarantee was consistent with Best Buy’s original pricing strategy— “Beat everybody, everyday, everywhere on everything.” (Braunstein Decl. Ex. 4 at BBJM004598.) However, Best Buy learned that competing on price was not always profitable. (Id.; Braunstein Decl. Ex. 5; Cox-Feeney Test, at 86:18-25.) By April 2003, the company’s stated mission was to “[flind-ways to get ‘bargain hunting’ customers to shop on our terms or disinvite themselves.” (Braunstein Decl. Ex. 6 at BBJM015206.)

The plaintiff alleges that, in the past, Best Buy’s primary focus was on the “Front Door: how we invite customers to shop with us.” (Id. at BBJM015207.) However, once Best Buy learned that competing on price was not “sustainable” (as plaintiff puts it), it decided that it needed to “defend our ‘back door’ from profits being stolen from us.” (Id.) As a result, plaintiff asserts that Best Buy chose a middle ground: accept the “front door” benefits of using the price match guarantee to get customers to purchase at Best Buy, while defending the “back door” by “aggressively discouraging and denying customers’ legitimate price match requests.” (Ortiz Decl. ¶ 6.) Plaintiff contends that the tool used by Best Buy to achieve this goals was the undisclosed “Anti-Price Matching Policy.” Two ex-Best Buy employees, Juan Ortiz and Boris Manzheley, have testified about the existence of Best Buy’s Anti-Price Matching Policy. Ortiz, a supervisor at three Best Buy locations in Connecticut from September 2002 until March 2005, (Ortiz Decl. ¶¶ 2-3), averred that:

• Best Buy had an undisclosed Anti-Price Matching Policy;
• The Anti-Price Matching Policy was disseminated from corporate headquarters;
• Best Buy taught its employees how to deny price match requests at Best Buy facilities in New York;
• Best Buy provided financial bonuses based, in part, on denying proper price match requests; and

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Valdez v. Michpat & Fam, LLC
E.D. New York, 2022
In re Amla Litig.
282 F. Supp. 3d 751 (S.D. Illinois, 2017)
Kurtz v. Kimberly-Clark Corp.
321 F.R.D. 482 (E.D. New York, 2017)
Wynn v. New York City Housing Authority
314 F.R.D. 122 (S.D. New York, 2016)
Vincent v. Money Store
304 F.R.D. 438 (S.D. New York, 2015)
Kaye v. Amicus Mediation & Arbitration Group, Inc.
300 F.R.D. 67 (D. Connecticut, 2014)
Rodriguez v. It's Just Lunch, International
300 F.R.D. 125 (S.D. New York, 2014)
Vaccariello v. XM Satellite Radio, Inc.
295 F.R.D. 62 (S.D. New York, 2013)
Tait v. BSH Home Appliances Corp.
289 F.R.D. 466 (C.D. California, 2012)
Lia v. Saporito
909 F. Supp. 2d 149 (E.D. New York, 2012)
Lujan v. Cabana Management, Inc.
284 F.R.D. 50 (E.D. New York, 2012)
Stinson v. City of New York
282 F.R.D. 360 (S.D. New York, 2012)
Maziarz v. Housing Authority
281 F.R.D. 71 (D. Connecticut, 2012)
Jermyn v. Best Buy Stores, L.P.
276 F.R.D. 167 (S.D. New York, 2011)
Oscar v. BMW of North America, LLC
274 F.R.D. 498 (S.D. New York, 2011)
MacNamara v. City of New York
275 F.R.D. 125 (S.D. New York, 2011)
Menkes v. Stolt-Nielsen S.A.
270 F.R.D. 80 (D. Connecticut, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
256 F.R.D. 418, 2009 U.S. Dist. LEXIS 28945, 2009 WL 773328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jermyn-v-best-buy-stores-lp-nysd-2009.