Facts

A putative class action was initiated against Blue Bottle Coffee, Inc. on behalf of holders of gift cards issued by the company.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that they attempted to redeem their gift cards which contained less than $10 for cash back, but defendant's employees refused to honor this request in violation of Civil Code Section 1749.5(b)(2), which was amended in 2008 to require that any gift certificate with cash value of less than ten dollars is redeemable in cash for its cash value.

DEFENDANT'S CONTENTIONS: Defendant denied the contentions.

Result

The court granted plaintiff's motion for preliminary approval of the class action settlement. The settlement provided nonmonetary relief ensuring that defendant would comply with the Gift Card Law. Defendant also agreed to review its policies regarding the redemption of its gift cards. Moreover, 2,519 gift cards worth $10 were to be issued to match the $25,190.00 worth of outstanding gift cards in circulation with balances of less than $10.00, with a limit of one per household. Defendant lastly agreed to pay the class representative an incentive award of $1,500 and pay attorney's fees in the amount of $63,500.00