Canon U.S.A., Inc. v. Superior Court

Petitioners, Canon U.S.A., Inc. (Canon USA), Astro Business Solutions, Inc., Ambassador Business Solutions, Inc., and MCS Business Solutions, Inc., seek a writ of mandate directing the superior court to set aside an order denying their motion to strike from the first amended complaint of real parties in interest all references to a purported nationwide class of purchasers and lessees of certain models of Canon-brand color laser copiers. Osborne v. Subaru of America, Inc. (1988) 198 Cal.App.3d 646 [ 243 Cal.Rptr. 815 ] (Osborne) holds that California courts should not, absent a “special obligation” to do so, undertake the massive burden of adjudicating nationwide class action lawsuits when to do so would require the trial court to adjudicate issues by application of numerous different rules of law from the various states.

The question here is whether, at the pleading stage, a court is permitted to strike nationwide class references based on the Osborne factors, or whether it is required to defer decision on the propriety of the class until an evidentiary hearing can be held on the appropriateness of class litigation. We conclude that a court should, at the pleading stage,…