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The Role of Fluid Recovery in Consumer Protection Litigation: Kraus v. Trinity Management Services |
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Stan Karas |
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| In mass litigation it is often impossible or impracticable to compensate all direct victims. In such cases courts often employ "fluid recovery" to put the damage funds to the next best use, such as awarding funds to consumer interest organizations or rolling back the price of the defendants' product. In Kraus v. Trinity Management Services, the California Supreme Court held that fluid recovery is not available in representative actions brought under the state's expansive Unfair Competition Law (UCL). This Casenote analyzes the decision in the context of California's consumer protection jurisprudence, and concludes that although the UCL must be reined in, the courts should be able to employ fluid recovery in consumer protection suits under the statute. Absent legislative intervention, Kraus will lead to improper channeling of UCL suits into class actions, impose an impractical notification burden on defendants, and restrict the courts' historically broad equitable powers under the statute. The Casenote concludes that permitting fluid recovery is in line with the legislative intent of the statute and the trend towards pragmatism in mass litigation. | |
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Copyright © 2002 by California
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