Facts

Plaintiff Darren P. Smith purchased a Panera Bread Co. gift card from a third party online vendor. Plaintiff asserted that on July 11, 2012, he was refused cash redemption at the franchisee-owned Panera Bread bakery-cafe in Point Loma.

PLAINTIFF'S CONTENTIONS:
Plaintiff claimed that Panera café employees refusal to give cash refunds of balances of less than $10.00 remaining on a Panera gift card is a violation of California Civil Code section 1749.5(b)(2), the Unfair Competition Law, Consumer Legal Remedies Act, and False Advertising Law, and unjustly enriches Panera. Consumers who are refused cash back purchase goods to use up the remaining value of the Panera gift card, or simply do not ever use the remaining balance, enriching Panera. Plaintiff contended that class certification was necessary to compensate consumers for Panera's ineffective policy for providing cash back for gift cards with remaining balances of less than $10.00.

DEFENDANTS' CONTENTIONS:
Defendants contended that plaintiff's claims are frivolous. The remaining balance on plaintiff's gift card had dropped to $.21 after he made a gift card purchase. Defendants filed a motion for summary adjudication, motions for a finding that plaintiff's CLRA claim has no merit and for dismissal, and motions for a finding that plaintiff's claims are not proper claims for class action.

According to the defense, the language on the back of the gift card states, "This Panera Card may not be redeemed or exchanged for cash (except as required by law) or used to purchase another Panera Card. No cash will be given as change from Panera Card purchases except as required by law."

Defendants' also sought summary adjudication of plaintiff's second cause of action for violations of the FAL, third cause of action for violations of the UCL and fourth cause of action for unjust enrichment and plaintiff's claim for punitive damages.

Result

Defendants' motions were granted with regard to the violations of False Advertising Law and unjust enrichment and the request for punitive damages. The motion was denied with regard to violations of the Unfair Competition Law. Panera and Manna's no merits motions were granted as to the CLRA cause of action. Defendants' motions for a finding that plaintiff's claims are not proper claims for class action were granted.

Other Information

FILING DATE: Oct. 24, 2012.