Lebrilla

Remigio and Lina Lebrilla, and Karen and Paul Balfour (collectively the Lebrillas) sought statewide class certification in their suit against Farmers Group, Inc., doing business as Farmers Underwriters Association, and Farmers Insurance Exchange (collectively Farmers), regarding Farmers’ car repair practices. The trial court denied the Lebrillas’ motion seeking class certification, ruling the lawsuit did not involve predominant common questions of law or fact. On appeal, the Lebrillas argue the court’s ruling was based on a premature assessment of the lawsuit’s underlying merits. We conclude the matter must be reversed because the court applied the wrong legal criteria.

I

Farmers provides automobile insurance to California consumers. Under the terms of its standardized insurance policy, Farmers limits their liability as follows: “Our limits of liability for loss shall not exceed: (1) The amount which it would cost to repair or replace damaged or stolen property with other of like kind and quality; or with new property less an adjustment for physical deterioration and/or depreciation.”

According to the Lebrillas, Farmers has a “company wide policy to use parts not…