New Illinois Supreme Court class certification decision: Barbara's Sales, Inc. v. Intel Corporation
In Barbara's Sales, Inc. v. Intel Corporation, ___ N.E.2d ___ (Nov. 29, 2007), the Illinois Supreme Court applied Illinois choice-of-law principles and declined to apply California law (including the UCL and CLRA) in a putative nationwide class action against Intel:
[T]he parties concede that Illinois and California laws conflict and this conflict may have an outcome-determinative difference. In short, plaintiffs need not prove actual deception of the named plaintiffs under California law as found in California’s Unfair Competition Law, as they would under Illinois law as found in the Illinois Consumer Fraud Act. Compare 815 ILCS 505/10a (West 2002); Shannon v. Boise Cascade Corp., 208 Ill. 2d 517, 525 (2005) (“deceptive advertising cannot be the proximate cause of damages under the Act unless it actually deceives the plaintiff”); with Cal. Bus. & Prof. Code §17200 (Deering 2007); Massachusetts Mutual Life Insurance Co. v. Superior Court, 97 Cal. App. 4th 1282, 1288, 119 Cal. Rptr. 2d 190, 193 (2002) (individualized proof of deception and reliance is not required under the Unfair Competition Law). Stated differently, specific class members proceeding under California law need prove only an inference of “common reliance” on the part of the class as opposed to actual reliance on any particular deception. Massachusetts Mutual Life Insurance Co., 97 Cal. App. 4th at 1293, 119 Cal. Rptr. 2d at 198. Because California and Illinois law conflict, we next look to the conflicts law of our forum state, Illinois. Esser v. McIntyre, 169 Ill. 2d 292, 297 (1996); Nelson v. Hix, 122 Ill. 2d 343 (1988); Restatement (Second) of Conflict of Laws §122 (1971).
....
[A]s to the policies and interests of California, it is undoubtedly true that California has an interest in regulating Intel, as its principal place of business is located there. Further, it is also true that California has a consumer-friendly consumer protection law–as a suit may be brought alleging “common reliance” rather than “actual deception”–which may inure to the benefit of plaintiffs. However, neither California consumers, nor the interests of California in regulating Intel, will necessarily suffer if Illinois law is applied in the instant matter. California has no interest in extending its laws to noncitizens and to actions that occurred outside of California borders. Norwest Mortgage, Inc. v. Superior Court, 72 Cal. App. 4th 214, 222, 85 Cal. Rptr. 2d 18, 23 (1999). Moreover, the courts of California will likely have the opportunity to decide this issue under its own law. The record reveals another putative nationwide class action with allegations similar to those advanced in this case. This class action seeks a nationwide application of California’s consumer protection statutes and is currently pending in California state court. Skold v. Intel Corp., Case No. RG 04 145635 (Cal. Super. Ct. Alameda County).
Slip op. at 12, 14-15. The Illinois Supreme Court affirmed the trial court's decision to apply Illinois law and to limit the class to Illinois residents, but then determined that class certification was not appropriate. The opinion does not mention Proposition 64 or the two pending California Supreme Court cases, Tobacco and Pfizer, in which the "reliance" question is expected to be addressed.
[Via How Appealing.]