Clothesrigger, Inc. v. GTE Corp.

Plaintiff Clothesrigger, Inc. appeals an order denying its motion to modify the class definition to certify a nationwide plaintiff class and deeming moot its motion to amend its complaint. We find the superior court did not proceed as required by law in denying Clothesrigger’s motion to modify the class. We reverse and remand to the superior court with directions to decide Clothesrigger’s motions according to applicable law and proper criteria.

I

In January 1984 Clothesrigger filed a class action complaint for compensatory damages, punitive damages and injunction against defendants GTE Corporation, GTE Sprint Communications Corporation, Southern Pacific Company and Southern Pacific Communications Co. Clothesrigger’s complaint alleges causes of action for fraud, negligent misrepresentation and unfair business practices, asserting defendants charge subscribers to their Sprint long distance telephone system for certain unanswered long distance calls without disclosure. The complaint also alleges Clothesrigger seeks to represent a class numbering in the thousands “... composed of all residents of California who subscribed to the long distance telephone service provided by…

I respectfully dissent. In reaching its conclusion of reversal, the majority, in my opinion, applies an inappropriate standard of review, particularly in connection with its view of the record. Moreover, I believe the trial court was correct in its reading and application of the Phillips and Riley cases ( Phillips Petroleum Co. v. Shutts (1985) 472 U.S. 797 [ 86 L.Ed.2d 628 , 105 S.Ct. 2965 ]; Riley v. Fitzgerald (1986) 178 Cal.App.3d 871 [ 223 Cal.Rptr. 889 ].) In fact, the Phillips case itself serves to demonstrate there is a conflict between California and certain other states on the specific matter of the rates of interest allowed by their laws (see Cal. Const., art. XV, § 1; Code Civ. Proc., § 685.010 ; cf. Phillips, supra, 472 U.S. at pp. 803, 816-818 [86 L.Ed.2d at pp. 636, 644-646]).) Otherwise, Phillips is factually and legally indistinguishable from this case in terms of its choice of law analysis and ruling so as to warrant the conclusion that "application of [California] law to every claim in this case is sufficiently arbitrary and unfair as to exceed constitutional limits." ( Phillips, supra, 472 U.S. at p. 822 [ 86 L.Ed.2d at p. 648 ], fn. omitted.) I also believe…

[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 607 [EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 608 [EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 609 OPINION Plaintiff Clothesrigger, Inc. appeals an order denying its motion to modify the class definition to certify a nationwide plaintiff class and deeming moot its motion to amend its complaint. We find the superior court did not proceed as required by law in denying Clothesrigger's motion to modify the class. We reverse and remand to the superior court with directions to decide Clothesrigger's motions according to applicable law and proper criteria. *Page 610 I In January 1984 Clothesrigger filed a class action complaint for compensatory damages, punitive damages and injunction against defendants GTE Corporation, GTE Sprint Communications Corporation, Southern Pacific Company and Southern Pacific Communications Co. Clothesrigger's complaint alleges causes…