Mulligan v. QVC

CourtAppellate Court of Illinois
DecidedMay 7, 2008
Docket1-07-0616 Rel
StatusPublished

This text of Mulligan v. QVC (Mulligan v. QVC) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mulligan v. QVC, (Ill. Ct. App. 2008).

Opinion

THIRD DIVISION May 7, 2008

No. 1-07-0616

ROSEMARY MULLIGAN, ) Appeal from Individually and on Behalf of ) the Circuit Court All Others Similarly Situated, ) of Cook County. ) Plaintiff-Appellant, ) ) No. 04 CH 03620 v. ) ) QVC, INC., a Corporation, ) Honorable ) Dorothy K. Kinnaird, Defendant-Appellee. ) Judge Presiding.

JUSTICE THEIS delivered the opinion of the court:

Plaintiff Rosemary Mulligan brought this putative consumer class action lawsuit against

defendant QVC, Inc., for violations of the Illinois Consumer Fraud and Deceptive Business

Practices Act (the Consumer Fraud Act) (815 ILCS 505/1 et seq. (West 2004)) and unjust

enrichment. Mulligan alleged that QVC’s listed “retail value” overstated the prevailing market

price for certain products it sold and falsely created the impression that consumers were

receiving a bargain by purchasing at lower QVC prices. The circuit court denied Mulligan’s

motions for class certification, finding that individual issues of law and fact predominated.

Thereafter, the circuit court granted QVC’s motion for summary judgment on Mulligan’s

individual claims and denied her cross-motion for summary judgment, ruling that Mulligan

failed to create a genuine issue of material fact to support the elements of her consumer fraud 1-07-0616

and unjust enrichment claims.

On appeal, Mulligan contends that the circuit court erred in granting summary judgment

because she has presented sufficient facts to support each element of her cause of action.

Additionally, she maintains that the circuit court abused its discretion in denying class

certification because the common issue of QVC’s deceptive comparative pricing practice

predominates over any individual issues.

BACKGROUND

QVC sells various consumer products through its nationwide television programming and

its Internet web site. In offering its products for sale, it generally uses a comparative pricing

system. For 70% of its products, QVC advertises a “retail value” for the product, then offers the

product to the consumer at a lower, discounted QVC price or at an even lower “special price.”

QVC’s viewer education spot on television provides a definition for “retail value” as follows:

“When you see ‘retail value’ for an item, that figure represents

either an actual comparison-shopped price or the price QVC

believes that the same or a comparable product would be offered

by department stores or other retailers using a customary markup

for that product category. The ‘retail value’ does not necessarily

represent the prevailing retail price in every community, or the

price at which the item was previously sold by QVC.”

Mulligan purchased over 200 products and several items of jewelry from QVC over the

years. Specifically relevant to this cause of action, on April 1, 2003, she purchased an “Ultrafine

2 1-07-0616

Cigar Band Ring” for $37.38. QVC listed a retail value for this product of $60. On May 17,

2003, she purchased a “Jade and Gemstone Bypass Ring” for $38.12. QVC listed a retail value

for this product of $55. On July 19, 2003, Mulligan purchased a “Geometric Flexible Link

Bracelet” for $28.98. QVC listed a retail value for this product of $55. On January 2, 2004, she

purchased a “Pave Enamel Flex Bracelet” for $26.75. QVC listed a retail value for this product

of $39.

Mulligan’s jewelry purchasing decisions were based upon many factors, including

whether the product was appealing, affordable, an impulse purchase, on sale, and whether she

was searching for a particular product. She also considered the host’s description of the product.

Mulligan watched QVC programming for various reasons, including better prices, the variety of

products, and “of course, it was convenient shopping. Everything is right there in front of you.”

There were particular features of the show that she liked. “When you watched it, they made you

feel like, you know, you were part of this family.”

Mulligan had seen QVC’s televison spot which explains the definition of “retail value.”

At the time she purchased products with a listed retail value, “[s]ometimes [she] thought [the

retail value] seemed high ***. It just seemed like that was awfully high--you know, [she’d] see

it and think it was high for some item, higher than what [she] would have thought it would have

been.” However, that knowledge did not prevent her from buying the product because she

thought that the price she actually paid was a fair price.

She would have purchased the products from QVC even if QVC listed no retail value, but

the retail value impacted her purchasing decisions because she believed she was getting a

3 1-07-0616

bargain at the QVC prices. If she could have bought the products in a store for the same amount

or less than what she paid for it at QVC, she would have gone to the store instead of paying the

extra shipping and handling fee to buy it from QVC.

Mulligan does not dispute that she continued to purchase products from QVC even after

filing this lawsuit, and acknowledges that a consumer could not legitimately claim to be actually

deceived by QVC’s listed retail values if the consumer continued to purchase the products after

suing QVC.

On February 27, 2004, Mulligan filed her class action lawsuit against QVC, seeking

damages under the Consumer Fraud Act (815 ILCS 505/1 et seq. (West 2004)) and under a

theory of unjust enrichment. Thereafter, she filed a motion for certification of a nationwide

class. On June 6, 2005, the trial court denied the motion, finding that individual issues of

proximate cause and actual damage predominated. This court denied Mulligan’s petition for

leave to appeal that ruling. Thereafter, Mulligan filed a second motion for class certification

limited to a class of Illinois consumers who purchased specific products sold by QVC. The trial

court also denied that motion, again finding that individual issues predominated.

Subsequently, QVC filed its motion for summary judgment on Mulligan’s individual

claims, arguing that Mulligan had adduced no evidence of prices at which other retailers had sold

any of the products she had bought from QVC and, therefore, could not prove a deceptive act or

practice or resulting damage. Additionally, QVC argued that, because Mulligan purchased

products from QVC for a variety of reasons, she could not establish that QVC’s alleged

deception proximately caused her actual damage.

4 1-07-0616

In response, Mulligan presented an expert jewelry appraiser. Heidi Harders testified in

her deposition that she determined comparable prices for the products Mulligan purchased from

QVC by using a cost and a market approach to valuation. Harders estimated the retail value of

the cigar band ring at $25 to $35. With respect to the sterling jade and gemstone ribbed bypass

ring, she estimated its retail value at between $30 and $40. With respect to the flexible link

bracelet, Harders estimated its retail value at between the $30 to $40 range. With respect to the

enamel bracelet, she estimated its retail value at between $20 to $30.

In doing her appraisal, Harders did not factor in any applicable sales tax, shipping and

handling, or other additional costs. She agreed that the margin of error on her appraisal could be

$5 higher than the appraised prices.

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