Kelley v. Microsoft Corp.

251 F.R.D. 544, 2008 U.S. Dist. LEXIS 62354, 2008 WL 509332
CourtDistrict Court, W.D. Washington
DecidedFebruary 22, 2008
DocketNo. C07-475MJP
StatusPublished
Cited by21 cases

This text of 251 F.R.D. 544 (Kelley v. Microsoft Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelley v. Microsoft Corp., 251 F.R.D. 544, 2008 U.S. Dist. LEXIS 62354, 2008 WL 509332 (W.D. Wash. 2008).

Opinion

ORDER GRANTING PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION AND GRANTING PLAINTIFFS’ MOTION FOR APPLICATION OF WASHINGTON LAW

MARSHA J. PECHMAN, District Judge.

This matter comes before the Court on Plaintiffs’ motions for application of Wash[548]*548ington law and for class certification. (Dkt. Nos. 60 & 65.) Defendant filed responses to both motions (Dkt. Nos. 100 & 87) and Plaintiffs have filed replies (Dkt. Nos. 115 & 112). On February 8, 2008, the Court heard oral argument on the motions. (Dkt. No. 127.) Having considered the parties’ briefs and all documents submitted in support thereof, and having heard oral argument on the issues, the Court GRANTS Plaintiffs’ motion for application of Washington law and GRANTS Plaintiffs’ motion for class certification.

Background

This action challenges two aspects of Microsoft’s marketing of its new Windows Vista operating system — the “Windows Vista Capable” program and the “Express Upgrade” program. In early 2006, nearly a year before Microsoft released its new Vista operating system, Microsoft authorized original equipment manufacturers (“OEMs”) (i.e., Dell, Sony, etc.) to place a sticker on personal computers (“PCs”) indicating that the PCs had been certified by Microsoft as “Windows Vista Capable.” (Dkt. No. 29, Second Amended Compl. [hereinafter “Compl.”] ¶ 1.2.) (At the time, those PCs were running Microsoft’s Windows XP operating system.) In fact, Plaintiffs allege, a large number of the PCs certified as “Windows Vista Capable” can only operate “Vista Home Basic,” which does not include any of the enhanced features unique to Vista and which make Vista attractive to customers. In addition, in October 2006, Microsoft offered PC customers an “Express Upgrade Guarantee Program,” which purportedly allowed consumers purchasing ‘Windows Vista Capable” PCs to receive upgrades to Vista for little or no cost. (Compl.¶ 4.5.) In fact, Plaintiffs allege, the upgrade for many of these customers is only to Vista Home Basic.

Microsoft eventually released four versions of Vista — Basic, Premium, Business, and Ultimate. (Compl.¶ 4.4.) Plaintiffs allege that it is the Premium version that is the “real” Vista. (Id.) Defendant contends that Vista Home Basie, although lacking some of the capabilities of the premium versions of Vista, still provides material improvements over Microsoft’s earlier operating system, Windows XP. (Gatchalian Decl. ¶¶ 6-7.) Certain PCs contained a “Premium Ready” sticker that distinguished PCs that could run the premium versions of Vista from the “Windows Vista Capable” PCs.

Plaintiffs allege that Microsoft engaged in deceptive practices to boost holiday sales of personal computers after delaying the release of Vista from March 2006 to early 2007. (Compl.¶ 4.2-4.3.) Because Microsoft and manufacturers were concerned that consumers looking to buy a new computer would delay their purchases until the release of Vista (and therefore after the holiday season), Microsoft endeavored to assure consumers that their new computers would run the soon-to-be released Vista operating system. Plaintiffs offer evidence suggesting that Microsoft included PCs that could only run Vista Home Basic within the Windows Vista Capable” marketing program because Microsoft was concerned that few PCs on the market at the time could run the more premium versions of Vista. (See Thomas Decl., Ex. A. at 22117, 21978-79, 16845, 23209-10, 19346-62, 25711.) Microsoft did this even though, internally, Microsoft employees expressed concern that consumers would be confused about whether their PCs could run the “real” Vista operating system. (Id. at 29335, 40428, 19351.) OEMs and retailers complained to Microsoft that Microsoft had made a mistake when it lowered the “Vista Capable” marketing requirements to include Vista Home Basic. (Id. at 40427, 40446-47, 18624.) Plaintiffs allege that Microsoft’s assurances that PCs marked “Windows Vista Capable” could run Vista were false and deceptive.

Microsoft, on the other hand, presents evidence showing that Microsoft created, and OEMs and retailers used, marketing materials, sales aids, and training materials that described what features the different Windows Vista editions would provide and explained that not every Windows Vista Capable” computer would be able to provide every advanced feature available in every edition of Windows Vista, including the new “Aero” interface. For example, a May 18, 2006 Microsoft Press Release explained the differences between “Windows Vista Capable” and “Premium Ready” designations and recom[549]*549mended that customers who want the “best experiences with Windows Vista” purchase Premium Ready PCs. (Burk Decl., Ex. A.) Microsoft’s “Get Ready” website explained that a new PC that carries the ‘Windows Vista Capable” logo can run the “core experiences” of Windows Vista but may not be able to support the premium editions of Windows Vista, including the Aero interface. (Thierren Decl., Ex. A.) Individual OEMs, like Dell, provided information to consumers about the capabilities of various Dell PCs and the differences among Vista editions. (Riquelmy Decl) And Microsoft prepared informational materials to educate retailers and consumers, including e-mails and point of purchase displays like brochures, fact cards, and monitor blades, that distinguished between ‘Windows Vista Capable” and “Premium Ready.” (Tindall Deck, Exs. A-G.) Microsoft also points to press coverage detailing the differences between ‘Windows Vista Capable” and “Premium Ready.” (Rummage Deck, Ex. A.)

Named plaintiffs Kelley and Hansen both purchased PCs in late 2006 to which a “Windows Vista Capable” sticker was affixed. The PCs they purchased were not labeled “Premium Ready.” (Compl.¶¶ 2.1-2.2.) In deposition, Ms. Kelley admitted that she was not aware at the time she purchased her PC that it was labeled “Windows Vista Capable.” (Rummage Deck, Ex. D, Kelley Dep. at 42.) She did not rely on the “Windows Vista Capable” designation when she made her purchasing decision. (Id.) In contrast, Mr. Hansen stated in his deposition that he ordered his particular computer because “it would handle Vista,” and that he was relieved when it arrived and had a ‘Windows Vista Capable” sticker affixed to it. (Id., Ex. E, Hansen Dep. at 43.) Mr. Hansen testified that he remembers seeing the Windows Vista marketing materials, but only knew to look for the sticker that said “Vista.” (Id. at 42, 85.) Neither of the Plaintiffs participated in the “Express Upgrade” program.

Plaintiffs’ original complaint stated four causes of action. Plaintiffs voluntarily dismissed their breach of contract claim and the Court dismissed Plaintiffs’ Magnuson-Moss Warranty Act claim (Dkt. No. 39). Plaintiffs have two remaining causes of action: (1) violation of the Washington Consumer Protection Act or other state consumer protection acts, and (2) unjust enrichment. Plaintiffs now move to certify a class comprised of the following members:

All persons and entities residing in the United States who purchased a personal computer certified by Microsoft as ‘Windows Vista Capable” and not also bearing the “Premium Ready” designation, and/or all persons and entities residing in the United States who purchased a PC with an “Express Upgrade” to Vista Home Basic.

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Bluebook (online)
251 F.R.D. 544, 2008 U.S. Dist. LEXIS 62354, 2008 WL 509332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelley-v-microsoft-corp-wawd-2008.