Facts

William Bauer and Carlos Sanchez filed a class action against Atlantis Events Inc. and Richard Campbell, the chief executive officer, concerning Atlantis' cancellation policy.

PLAINTIFFS' CONTENTIONS:
Plaintiffs claimed that they booked a cruise through Atlantis that was set to leave on Sept. 5, 2013, and travel from Amsterdam to Barcelona. Plaintiffs claimed that they had to cancel their trip less than 90 days prior to the departure date. Plaintiffs claimed that they were charged a fee equal to 40 percent of their total package price, pursuant to the company's cancellation policy. Plaintiff argued that this was despite Atlantis re-selling the canceled spots at a higher price for the sold-out cruise and thereby financially benefited from the cancellation. Plaintiffs alleged that the charge was unconscionable, and amounted to liquidated damages, which was impermissible in California. Plaintiffs also alleged that Atlantis' practice constituted unfair and unlawful business acts.

Plaintiffs sued Atlantis and its CEO for violations of California Consumer Legal Remedies Act, violations of the statutory ban on punitive liquidated damages provisions in consumer contracts, and violations of California's Unfair Competition Law.

DEFENDANTS' CONTENTIONS:
Defendants moved to dismiss plaintiffs' claim for failing to plead a cognizable claim.

Result

The court granted defendants' motion, and dismissed plaintiffs' second amended complaint without leave to amend. The court awarded Atlantis $38,000 in attorney fees and costs.

Other Information

Plaintiffs have appealed both orders to the 9th Circuit Court of Appeals. FILING DATE: July 23, 2013.