Stroock Special Bulletin
“California Court of Appeal Applies Presumption of Reliance in Certifying Class Claims Under the Unfair Competition Law and the Consumers Legal Remedies Act”
The California Court of Appeal (Third District) has issued an important, and potentially troublesome, decision regarding the certification of class claims for deception under the Unfair Competition Law, Cal. Bus. & Prof. Code, §§ 17200, et seq. (the “UCL”), and the Consumers Legal Remedies Act, Cal. Civ. Code §§ 1750, et seq. the “CLRA”). In McAdams v. Monier, Inc., No. C051841, __ Cal. Rptr. 3d __, 2007 WL 1545072 (Cal. App. May 30, 2007), the Court of Appeal found that, when claims involve the alleged failure to disclose a material fact, an individualized inquiry into reliance need not be undertaken on a request for certification. Instead, a presumption of reliance may apply in analyzing whether certification is proper.