Sperling v. Stein Mart, Inc.

291 F. Supp. 3d 1076
CourtDistrict Court, C.D. California
DecidedFebruary 23, 2018
DocketCase No.: 5:15–cv–01411–AB (KKx)
StatusPublished
Cited by4 cases

This text of 291 F. Supp. 3d 1076 (Sperling v. Stein Mart, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sperling v. Stein Mart, Inc., 291 F. Supp. 3d 1076 (C.D. Cal. 2018).

Opinion

HONORABLE ANDRÉ BIROTTE JR., UNITED STATES DISTRICT COURT JUDGE

On January 8, 2018, Defendant Stein Mart, Inc. ("Stein Mart") filed a Motion for Summary Judgment against Plaintiffs Marilyn Sperling ("Sperling") and Jerred Schuh ("Schuh") (collectively, "Plaintiffs"). Dkt. No 100. Plaintiffs filed an opposition and Stein Mart filed a reply. Dkt. Nos. 108, 111. On December 15, 2017, Plaintiffs filed a Motion for Class Certification. Dkt. No. 97. Stein Mart filed an opposition and Plaintiffs filed a reply. Dkt. Nos. 106, 112. The Court heard oral arguments regarding the motions on February 16, 2018. For the following reasons, the Court GRANTS Stein Mart's Motion for Summary Judgment and DENIES Plaintiffs' Motion for Class Certification.

I. BACKGROUND

This case centers on Stein Mart's use of comparative reference prices on price tags. Stein Mart's price tags displayed higher "Compare At" prices next to lower "Our Price" prices for items they sold in their retail stores. Plaintiffs claim they purchased products from Stein Mart in reliance on the comparative reference prices, but that those prices were misleading.

A. Undisputed Facts

The following facts are undisputed.1

Stein Mart is a retailer of fashion and household products. SMF2 1. It strives to sell the same or similar merchandise as department stores, boutiques, and other full-price retailers, but at lower prices. SMF 6. Plaintiffs Sperling and Schuh are individuals who purchased items at Stein Mart stores. SMF 24, 35.

1. Stein Mart's "Compare At" Prices

Stein Mart's price tags list two prices-a "Compare At" price and "Our Price." SMF 15. An asterisk appears in front the "Compare At" price. SMF 16. The explanation of the asterisk on the price tag directs shoppers to Stein Mart's Fair Pricing Policy, which Stein Mart posts at every cash register and online. Id. The Fair Pricing Policy explains that

[w]e strive to offer our customers true everyday value. Our "Compare at" price *1080is based on input from our suppliers. We believe that it represents the original price of the same item or a comparable item at department stores, specialty stores or other full-price stores. Our "Compare at" price may not be the starting price posted by all full-price stores, and some stores may offer substantial discounts off the suggested retail price.

SMF 17.

As the Fair Pricing Policy indicates, Stein Mart bases the "Compare At" prices on manufacturers' suggested retail prices ("MSRPs") provided by its suppliers. SMF 11. The MSRPs reflect what suppliers expect retailers to charge for products. Id. Depending on the product, MSRPs can reflect anticipated prices up to a year in advance of actual retail sales. SMF 59.

2. Sperling's Purchases

Sperling purchased three items from Stein Mart. First, she bought a pair of Yellow Box sandals. SMF 28. Sperling did not provide evidence of the exact version of Yellow Box sandals she purchased, but she did testify that she paid $39.95 for them, and that price tag displayed a "Compare At" price of $59.95. Decl. Douglas Caiafa, ¶ 10, Ex. G, Dep. Marilyn Sperling, Tr. at 91:6-92:6 (Dkt. No. 108-9). Sperling also testified that she did not look for the sandals at any other store. Sperling Dep., Tr. at 92:7-93:13. While Stein Mart could not identify the exact sandals Sperling purchased, it based its "Compare At" prices for Yellow Box sandals on MSRPs provided by Stein Mart's supplier. SMF 28, 29. Plaintiffs did not provide any evidence of what other retailers charged for the sandals. SMF 30. However, Stein Mart asserted evidence that other retailers sold Yellow Box sandals for $59.95 or more. Decl. Gary Pierce, ¶ 4, Ex. A (Dkt. No. 100-7).

Second, Sperling purchased a Revelation suitcase. Decl. Marilyn Sperling, ¶ 8 (Dkt. No. 108-13). She declared that Stein Mart sold the suitcase with a "Compare At" price tag, and that she felt deceived by it. Sperling Decl., ¶¶ 8, 10. Sperling did not assert evidence of the particular model Revelation suitcase she bought at Stein Mart, the amount she paid for the suitcase, the "Compare At" price listed on the price tag, or the price at which other retailers sold the suitcase. SMF 30. Stein Mart, on the other hand, provided evidence that its "Compare At" prices for Revelation suitcases were based on the MSRPs provided by Stein Mart's supplier. SMF 29.

Third, Sperling bought a pair of Ava pants, which Stein Mart sold under the brand name Peck & Peck, a brand exclusive to Stein Mart. SMF 24, 26. Sperling paid $53.99 for the pants, and the price tag displayed a "Compare At" price of $78.00. Sperling Decl., ¶ 6. While Peck & Peck is an exclusive Stein Mart brand, the Ava pants Sperling purchased were sold by other retailers under those retailers' own brand names. SMF 26. Plaintiffs do not dispute that "[t]he Ava pant sold by Stein Mart under the Peck & Peck label is also sold by other retailers under those retailers' own private labels. The pants sold by those other retailers are identical in every substantive way." Id. The president of the company that manufactures the Ava pants declared that "[t]he overwhelming majority of retailers sell the pants for between $115 and $138." Decl. Sam Zucker, ¶ 6 (Dkt. No. 100-6).

3. Schuh's Purchases

Schuh purchased two items at Stein Mart. First, he purchased a Kenneth Cole suit, which included pants and a jacket. Decl. Jerred Schuh, ¶ 6 (Dkt. No. 108-14). The "Compare At" price for the suit was $320, but Schuh bought it for about $160. Id. The "Compare At" price for the Kenneth Cole suit was based on the MSRP

*1081provided by the suit's manufacturer. SMF 35.

Second, Schuh bought a shirt sold under the Alan Flusser brand name, another brand exclusive to Stein Mart. Schuh Decl., ¶ 7; SMF 38. The manufacturer from which Stein Mart acquired the Alan Flusser shirt made virtually identical shirts for other retailers, which were sold under different brand names. SMF 38. According to Schuh, however, he purchased the Alan Flusser shirt in part because he liked the brand name. Caiafa Decl., ¶ 18, Ex. O, Dep. Jerred Schuh, Tr. at 172:23-173:15 (Dkt. No. 108-17).

B. This Litigation

On July 15, 2015, Sperling filed a complaint with this Court against Stein Mart. Dkt. No. 1. After Sperling amended her complaint twice, Stein Mart moved to dismiss. Dkt. No. 28. The Court granted the motion to dismiss, but gave Sperling leave to amend. Dkt. No. 35, at p. 19. Sperling then filed a Third Amended Complaint, and Stein Mart moved to dismiss again. Dkt. Nos. 36, 37. This time, the Court denied Stein Mart's motion to dismiss. Dkt. No. 41.

On May 2, 2017, Plaintiffs filed a Fourth Amended Consolidated Class Action Complaint ("FACCAC") that added Schuh as a plaintiff. Dkt. No. 87. The FACCAC claims that Stein Mart violated California's Unfair Competition Law ("UCL"), Cal. Bus. & Prof. Code §§ 17200, et seq .

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