July 10, 2002

Plaintiffs

"Consumer Enforcement Watch Corporation"
Law Offices of Trevor & Associates
Beverly Hills, California

Defendants

Approximately 100 named auto repair shops in Orange County, almost all small, family-owned businesses.
Complaint lists 30,000 does (10,000 individuals, 10,000 businesses, 10,000 corporations), implying that more businesses will be added to the lawsuit.

Allegation

Unfair business practices violating Business and Professions Code Sec. 17200 (unfair competition law)
Complaint filed April 11, 2002, cited state law and regulations governing auto repair shops (ranging from the requirement of signed written estimates to record maintenance). As "factual basis" for the lawsuit the complaint stated that every repair shop sued has violated every law and regulation cited.

Demand

Plaintiffs want an injunction ordering the shops not to violate the unfair competition law, "restitution" of benefits received by the auto shops, "restitution of harm proximately caused" by the auto shops, costs incurred by the attorneys, attorney fees. In requesting attorney fees, the plaintiffs state that their lawsuit confers "significant benefits on the general public, or to a large class of persons."

Summary

Following the April 11 complaint filing, plaintiff attorneys evidently contacted some of the named defendants in writing and by phone to discuss settlement. The one shop not a small business was "BFS," which is Bridgestone-Firestone's retail operation. Its attorneys sought to have the case dismissed on demurrer.

On May 10 Judge William Monroe in Orange County Superior Court ruled that the plaintiff "seems to have complied with the legal requirements of pleading the elements [of a 17200 violation], however, given that numerous defendant are now identified, with absolutely no specification as to the violations of state laws and regulations as to each, it appears that more fact-pleading is required." Judge Monroe gave the plaintiffs 30 days to amend their complaint to add facts.

On June 6 the plaintiffs filed an amended complaint. The approximately 100 shops were again listed, this time added to the general accusations were "specific violations" which could have been copied verbatim from the Department of Consumer Affairs, Bureau of Automotive Repair web site. The "License Search" button leads to a search by shop name where disciplinary actions are listed.

Thus, for example, a shop disciplined by the Department of Consumer Affairs on July 23, 2001, for "failure to provide a customer with a written estimate for parts and labor for a specific job" finds itself sued over the same incident a year later by private attorneys who are seeking attorney fees claiming that their action "will result in the enforcement of important rights affecting the public interest" and that "the necessity and financial burden of private enforcement are such as to make an award of attorney fees appropriate."

In some cases the Bureau of Automotive Repair violation listed by the plaintiffs was a two-year-old citation for failure to have a valid shop registration.