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Linder v. Thrifty Oil Co.6/26/2000
ld result from certification, both the trial court and the Court of Appeal focused narrowly on each putative class member's potential recovery under the surcharge claim. Setting aside the fact that class members who were repeat customers might be entitled to recover far more than the minimal 80-cent damage figure noted by the trial court, it is firmly established that the benefits of certification are not measured by reference to individual recoveries alone. Not only do class actions offer consumers a means of recovery for modest individual damages, but such actions often produce "several salutary by-products, including a therapeutic effect upon those sellers who indulge in fraudulent practices, aid to legitimate business enterprises by curtailing illegitimate competition, and avoidance to the judicial process of the burden of multiple litigation involving identical claims." (Vasquez, supra, 4 Cal.3d at p. 808.)
In Blue Chip Stamps, supra, 18 Cal.3d 381, we held that a trial court abused its discretion in ordering certification of a class comprised of persons who sought recovery of excess tax reimbursements that they paid to the defendant trading stamp company while redeeming stamps for merchandise. In finding that no substantial benefit would result from certification, we found several circumstances relevant. First, the potential recovery of each class member was minimal (some as little as 18 cents), thus making it doubtful that members would come forward ultimately to prove their individual claims. (See id. at pp. 384-386.) Second, the defendant had ended its allegedly wrongful practice long before the action was filed, which rendered the request for injunctive relief "a rather empty prayer." (Id. at p. 386.) Third, the defendant had not retained the disputed reimbursement payments but instead paid them over to the public treasury. (Id. at p. 387.) Fourth, the plaintiffs' proposed form of fluid recovery, i.e., repayment of excess tax collections by reducing future charges, would not have compensated class members in a rational fashion and was problematic given the great decline of the stamp business; hence, leaving the overpayments in the public treasury seemed a fair solution. (Id. at pp. 386-387.)
Although the majority in Blue Chip Stamps placed utmost significance on the small amount of potential individual recovery (18 Cal.3d at pp. 385-386), Justice Tobriner's separate opinion effectively clarified that trial courts remain under the obligation to consider "the role of the class action in deterring and redressing wrongdoing." (18 Cal.3d 381, 387 (conc. opn. of Tobriner, J.).) Invoking settled principles, Justice Tobriner emphasized: "A company which wrongfully exacts a dollar from each of millions of customers will reap a handsome profit; the class action is often the only effective way to halt and redress such exploitation. (See Vasquez v. Superior Court (1971) 4 Cal.3d 800, 808; Daar v. Yellow Cab Co. (1967) 67 Cal.2d 695, 715.) The problems which arise in the management of a class action involving numerous small claims do not justify a judicial policy that would permit the defendant to retain the benefits of its wrongful conduct and to continue that conduct with impunity. (See Daar v. Yellow Cab Co., supra, 67 Cal.2d at p. 715; Cartt v. Superior Court (1975) 50 Cal.App.3d 960, 971.)" (Ibid.) Thus, the facts before the court in Blue Chip Stamps did not support certification because group action would neither serve to deter wrongdoing nor result in any added compensation for class members. (Id. at p. 389 (conc. opn. of Tobriner, J.); see also Caro v. Procter & Gamble Co., supra, 18 Cal.App.4th at p. 660.)
The views expressed by Justice Tobriner were entirely consistent with t
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