Reese v. Wal-Mart Stores, Inc.

87 Cal. Rptr. 2d 346, 73 Cal. App. 4th 1225, 99 Cal. Daily Op. Serv. 6197, 1999 Cal. App. LEXIS 720
CourtCalifornia Court of Appeal
DecidedAugust 3, 1999
DocketC029199
StatusPublished
Cited by40 cases

This text of 87 Cal. Rptr. 2d 346 (Reese v. Wal-Mart Stores, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reese v. Wal-Mart Stores, Inc., 87 Cal. Rptr. 2d 346, 73 Cal. App. 4th 1225, 99 Cal. Daily Op. Serv. 6197, 1999 Cal. App. LEXIS 720 (Cal. Ct. App. 1999).

Opinion

Opinion

KOLKEY, J.

Introduction

Plaintiff Gerald Reese appeals from an order denying his motion for class certification in his action against defendants Wal-Mart Stores, Inc., and *1229 George Bronk, an employee at the Wal-Mart store located on Watt Avenue in Sacramento. 1 Plaintiff argues that the trial court utilized improper legal criteria in denying his motion for class certification. We disagree and shall affirm.

In an appeal from a decision denying class certification, a reviewing court will “not disturb a trial court ruling on class certification which is supported by substantial evidence unless (1) improper criteria were used [citation]; or (2) erroneous legal assumptions were made [citation].” (Richmond v. Dart Industries, Inc. (1981) 29 Cal.3d 462, 470 [174 Cal.Rptr. 515, 629 P.2d 23] (Richmond).) In other words, we will not substitute our judgment for that of the trial court as long as the trial court applied correct legal principles and assumptions, and did not abuse its discretion in arriving at its decision. (Occidental Land, Inc. v. Superior Court (1976) 18 Cal.3d 355, 361 [134 Cal.Rptr. 388, 556 P.2d 750].)

In this case, the trial court did use the proper legal standard: whether substantial benefits would accrue to both the litigants and the courts from class treatment. (E.g., City of San Jose v. Superior Court (1974) 12 Cal.3d 447, 459 [115 Cal.Rptr. 797, 525 P.2d 701, 76 A.L.R.3d 1223].) Moreover, the trial court did not abuse its discretion in finding that plaintiff failed to demonstrate that substantial benefits would accrue from class treatment in this case. A review of California Supreme Court decisions suggests that there are at least three different benefits from class treatment: redress for numerous aggrieved parties who could not otherwise maintain individual actions; the avoidance of the possibility of multiple actions; and the disgorging of the wrongdoer’s unjust enrichment. (Richmond, supra, 29 Cal.3d at p. 469; Daar v. Yellow Cab Co. (1967) 67 Cal.2d 695, 714-715 [63 Cal.Rptr. 724, 433 P.2d 732] (Daar)) In this case, the trial court did not abuse its discretion in determining that substantial benefits would not accrue from class treatment where (1) individual claims were viable without class treatment; (2) multiple lawsuits were unlikely in light of the fact that the only aggrieved party who had brought suit (the plaintiff) had deliberately generated his own injury; (3) class treatment would consume more time and expense than an adjudication of the pending case or a limited number of individual suits; (4) some form of effective class-wide relief was available without class certification through the unfair competition claim alleged by plaintiff; and (5) the statutory penalties sought by plaintiff and others could disgorge any unjust enrichment without resort to class certification.

Plaintiff also appeals from an order denying his motion for reconsideration. The order denying reconsideration is not appealable, and thus, the *1230 appeal therefrom is dismissed. (Crotty v. Trader (1996) 50 Cal.App.4th 765, 768-769 [57 Cal.Rptr.2d 818]; Estate of Simoncini (1991) 229 Cal.App.3d 881, 891 [280 Cal.Rptr. 393]; In re Jeffrey P. (1990) 218 Cal.App.3d 1548, 1550, fn. 2 [267 Cal.Rptr. 764].)

I. Factual and Procedural Background

Plaintiff’s complaint is directed at a “Ladies Day” promotional discount at which defendant purportedly offered female customers a lower price for a “lube express” oil change at various automotive repair facilities. In Koire v. Metro Car Wash (1985) 40 Cal.3d 24, 34 [219 Cal.Rptr. 133, 707 P.2d 195], the California Supreme Court held that “Ladies Day” and “Ladies Night” discounts offered by various car wash facilities and nightclubs, respectively, violated the provisions of the Unruh Civil Rights Act. The court reasoned that “. . . the Legislature established that arbitrary sex discrimination by business is per se injurious” (id. at p. 33), and that “. . . differential pricing based on sex may be generally detrimental to both men and women, because it reinforces harmful stereotypes.” (Id. at p. 34.)

In his second amended complaint — the relevant pleading for purposes of this appeal — plaintiff alleges: “During 1994, 1995, and 1996, it was Wal-Mart’s practice on each day designated at one of its locations as ‘Ladies Day’ (generally, each Tuesday) to charge male customers at that location one price (generally approximately $18.79) for an oil change, while charging female customers some lower price (generally approximately $15.00) for the exact same labor, services, and parts. Wal-Mart’s corporate policy was to provide this weekly discount only to women. One of Wal-Mart’s purposes in creating ‘Ladies Day’ was every day of the week to give women the opportunity to return on ‘Ladies Day’ for a discount. Each time that Wal-Mart charged a male oil-change customer more than defendants’ ‘Ladies Day’ price, Wal-Mart committed gender-based price discrimination to the detriment of that male customer — regardless of the day of the week.” 2

Plaintiff alleges that on April 9, 1996, he took his automobile to defendant’s store located on Watt Avenue in Sacramento for an oil change. Plaintiff was charged $18.79 for the service.

Plaintiff thereafter brought suit in May 1996. His second amended complaint (filed in April 1997) is brought on behalf of himself, a nationwide *1231 class of males who paid for an oil change at Wal-Mart, and the general public. The first cause of action alleges defendant violated the Unruh Civil Rights Act (Civ. Code, §§51 and 51.5) by engaging in discriminatory business practices based on gender. 3 The second cause of action charges defendant with a violation of the Gender Tax Repeal Act (Civ. Code, § 51.6), premised on gender-based discriminatory pricing practices. 4 Plaintiff’s third cause of action charges defendant with unfair competition in violation of Business and Professions Code section 17200 by reason of the violations alleged in the first and second causes of action. 5

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Bluebook (online)
87 Cal. Rptr. 2d 346, 73 Cal. App. 4th 1225, 99 Cal. Daily Op. Serv. 6197, 1999 Cal. App. LEXIS 720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reese-v-wal-mart-stores-inc-calctapp-1999.