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Consumer Law
Breach of Contract
Gift Cards

Barbara Fafard, individually and on behalf of all others similarly situated v. Apple Inc., Best Buy Co. Inc., Incomm Holdings Inc.

Published: May 10, 2014 | Result Date: Apr. 17, 2014 | Filing Date: Jan. 1, 1900 |

Case number: 4:12-cv-05125-CW Settlement –  Injunctive Relief

Court

USDC Northern


Attorneys

Plaintiff

Jerome Marcus

Jonathan A. Auerbach

Stuart C. Talley
(Kershaw, Cook & Talley PC)

William A. Kershaw
(Kershaw, Cook & Talley PC)

Steven Tyson


Defendant

Felicia Y. Yu

Mathew M. Wrenshall

David M. Walsh
(Morrison & Foerster LLP)


Facts

Barbara Fafard filed a putative class action against Apple Inc., Best Buy Co. Inc., and Incomm Holdings Inc., in connection with iTunes Gift Cards purchased from Best Buy retail stores between September 2007 and December 2009.

Contentions

PLAINTIFF'S CONTENTIONS:
Fafard contended that certain iTunes gift cards purchased from Best Buy stores between those dates were deactivated before cardholders redeemed the face value of their cards. Fafard asserted claims for breach of contract; breach of the implied covenant of good faith and fair dealing; unjust enrichment; conversion; violation of the California Unfair Competition Law; and violation of the California Consumer Legal Remedies Act.

DEFENDANTS' CONTENTIONS:
Defendants denied any liability. They also asserted various affirmative defenses.

Result

The parties settled the dispute. As part of the settlement, all of the gift cards that were deactivated were reactivated. Holders of credited gift cards were given replacement iTunes gift cards, and holders of identified gift cards were credited with the full value of the identified gift cards. Those holding qualified and valid receipt showing proof of purchase, but cannot locate the original PIN of the deactivated iTunes gift card will be given replacement PIN, which was subject to verification and fraud review process.


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