Class Action

Verdict in rare Unfair Practices Act case

By Kimberly A. Kralowec

Today's Recorder reports on a $15.6 million jury verdict in a case brought under the Unfair Practices Act (Bus. & Prof. Code §§17000-17101). Matthew Hirsch, "Newspaper Wins $15.6M in Suit Over Ads" (subscription), The Recorder (Mar. 6, 2008). According to the article, the lawsuit was predicated on the defendant newspaper's alleged violation of Business & Professions Code section 17043, which reads:

It is unlawful for any person engaged in business within this State to sell any article or product at less than the cost thereof to such vendor, or to give away any article or product, for the purpose of injuring competitors or destroying competition.

The Recorder also posted a copy of the jury verdict. It is unclear from the article whether a UCL claim was also pleaded, but my guess would be yes. That claim would be decided by the judge, not the jury. The jury's finding that the defendant violated the UPA probably compels the judge to also find a violation of the UCL's "unlawful" prong. It is doubtful, however, that any monetary relief that the UCL might afford would exceed the damages that the jury already awarded. If the judgment is appealed, the case is sure to be an interesting one to follow.

The San Francisco Chronicle also reports that "Bay Guardian wins suit with SF Weekly." In that article, a lawyer for SF Weekly is quoted as saying that an appeal is planned.

Full post as published by The UCL Practitioner on March 06, 2008 (boomark / email).