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Melvin B. Pearlston (SBN 54291)
Robert B. Hancock (SBN 179438)
PACIFIC JUSTICE CENTER
50 California Street, Suite 1500
San Francisco, California 94111
Tel: (415) 310-1940IFax: (415) 354-3508
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Attorneys for Plaintiff
KATHERINE D. CHAMBERLIN
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FIL~D, Sant~.Clara
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David H. Yamasaki
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Case: 1-10-CV-175623
SUPERIOR COURT OF THE STATE OF CALIFORNIA
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FOR THE COUNTY OF SANTA CLARA
UNLIMITED JURISDICTi>1
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KATHERINE D. CHAMBERLIN, on behalf of) CIVIL ACTION NO. herself, and a class of all others similarly ) situated, )
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CLASS ACTION
Plaintiff, ) CLASS ACTION COMPLAINT FOR:
) v.
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) (1) DECLARATORY RELIEF;
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BED BATH & BEYOND INC., a New York ) (2) VIOLATION OF THE CONSUMERS corporation; and DOES 1 through 500, inclusive, ) LEGAL REMEDIES ACT
. Defendants.
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CLASS ACTION COMPLAINT FOR (1) DECLARATORV REUEF; AND (2) VIOLATION OF THE CONSUMERS LEGAL
REMEDIES ACT .

1 Plaintiff KATHERINE D. CHAMBERLIN ("CHAMBERLIN,") on behalf of herself and a
2 class of all others similarly situated, complains and alleges as follows on information and belief,
3 except as to matters pertaining directly to Plaintiff:
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A. JURISDICTION AND VENUE
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1. This court has jurisdiction over this action pursuant to Cal. Const. Art. 6, Sec. 10.
8 This suit seeks,
permanent injunctive relief. Plaintiff has not individually suffered
9 damages of more than seventy-five thousand dollars ($75,000) as a result of the conduct
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11 complained of herein.
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Venue is proper in this court pursuant to California Code of Civil Procedure
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Sections 39'5 and 395.5, and California Civil Code Section 1780(d).
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B. PARTIES
3. .. Plaintiff CHAMBERLIN is an individual consumer residing
In the State of
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4.
Defendant BED BATH & BEYOND INC. ("BED BATH & BEYOND") is a New
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York corporation, with its principal place of business located at 650 Liberty Avenue, Union, New
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Jersey. This Defendant transacts business in the State of California, including within Santa Clara
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22 County.
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5. The true names and capacities, whether individual, corporate, associate or otherwise,
24 of Defendants DOES 1 through 500, are unknown to Plaintiff, who therefore sues these Defendants
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26 by.such fictitious names. Plaintiff is informed and believes, and thereon aUeges that each of the
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CLASS ACTION COMPLAINT FOR (I) DECLARATORY REUEF; AND (1) VIOLATION OF TIlE CONSUMERS LEGAL
REMEDIES ACT
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I Defendants designated as a DOE is a resident of, or business entity doing business in, the State of
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California and is responsible in some manner for the events and happenings referred to herein.
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C. SUBSTANTIVE ALLEGATIONS
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6. Defendant BED BATH & BEYOND, through its "Bed<Bath & Beyond" stores, is
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7 among the nation's largest retailers of domestics merchandise and home furnishings. This
8 Defendant operates more than I 00 retail locations throughout the State of California Defendant's
9 most recent annual fiscal revenues exceeded $7.8 billion.
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7.
Like many retailers, BED BA 11I & BEYOND offers gift cards for sale, redeemable
11 for merchandise at its retail locations. On information and belief, BED BATH & BEYOND sells
12 thousands of gift cards to California consumers annually.
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8.
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Plaintiff CHAMBERLIN obtained a Bed Bath & Beyond gift card purchased in the
State of California.
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The rear portion of the gift card states, "This Bed Bath & Beyond gift card is
17 redeemable for merchandise only and may not be redeemed for cash, except where required by
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10. Defendant maintains a website, which contains various terms and conditions relating
20 to its gift cards. These terms and conditions state, in pertinent part: "Gift Cards are redeemable for
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22 merchandise only and are not redeemable for cash, except where required by law. You can return
23 Gift Cards for a check refund if the remaining balance is $ 5.00 or less."
24 11. Effective January 1, 2008, California Civil Code Section 1749.5(b)(2) requires that
25 any gift card "with a cash value of less than ten dollars ($10) is redeemable in cash for its cash
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CLASS ACTION COMPLAINT FOR (1) DECLARATORY RELIEF; AND (2) VIOLATION OF THE CONSUMERS LEGAL
REMEDIESACT
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1 12. On or about May 13, 2010, CHAMBERLIN utilized her gift card to effect a
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3 transaction at a Bed Bath & Beyond location in the State of California. Following the transaction, the gift card retained a balance of $7.04.
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13. Following the foregoing transaction, CHAMBERLIN requested of the cashier that
5 the remaining balance of $7.04 be redeemed for cash. The cashier refused.
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14. Thereafter, CHAMBERLIN sent to Defendant a letter, first-class mailing, return
8 receipt, apprising it of i~. violations of California Civil Code Sections 1749.5(b)(2) and particular
9 portions of the Consumers Legal Remedies Act, and demanding it take appropriate action to correct
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11 the problem at all California locations. The letter was sent to the place where the initial transaction in question occurred, and to Defendant's corporate headquarters in Union, New Jersey. The letters
12 were received by Defendant at both locations no later than May 27, 2010.
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15. On or about May 30, 2010, Plaintiff received a written response from the Customer
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15 SerVice Manager at the store where the cash refusal took place, apologizing for the incident and
16 "personally" offering to "take care of the remaining balance on the gift card."
17 16. As of June 28, 2010, Defendant had failed to take appropriate action to correct the
18 subject violations. of law, or agreed to do so within a reasonable time.
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17. Plaintiff wishes to redeem her gift card for cash, in lieu of redeeming it for
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D.
CLASS ALLEGATIONS
24 18. Plaintiff brings her first cause of action pursuant to California Code of Civil
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Procedure Section 382, on behalf of herself and the most recent holders of any gift card issued by
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Defendant and purchased pursuant to a transaction occurring in the State of California on or after
CLASS AC1'ION COMPLAINT FOR (I) DECLARATORY RELIEF; AND (1) VJOLATION OF THE CONSUMERS LEGAL
REMEDIES AC1'
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1 January 1, 2008. Excluded from the class is Defendant, its agents, any entity in which Defendant
2 has or had a controlling interest., its predecessors in interest or assigns.
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19. The precise number of persons comprising the class is as yet unknown to Plaintiff.
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However, based on the magnitude of Defendant's presence in California, Plaintiffis informed and
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6 believes and thereon alleges the number of class members to be in the thousands. It is therefore
7 impracticable to bring all members of the class before the court.
8 20. The questions of law or fact common to the class are substantially similar and
9 predominate over the questions affecting the individual members.
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21. Plaintifr s claims are typical of the claims of the class.
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Plaintiff will fairly and adequately protect the interests of the class in that she has no
12 interests antagonistic to those of the class. Plaintiff has retained counsel experienced in conswner
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15 class gift certificate and gift card litigation.
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23. A class action is superior to other methods for the fair and efficient adjudication of
16 this controversy since the class is so numerous that joinder of all members in a single action would
17 be impracticable and the repetitive testimony of each class member at trial would be unnecessary
18 and an inefficient use of judicial resources. Plaintiff is aware of no difficulty which will be
19 encountered in the administration of this action as a class action.
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FIRST CAUSE OF ACTION
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23 (Declaratory Relief - Cal. Code Civ. P. Sec. 1060)
24 24. Plaintiff hereby restates and real leges paragraphs 1 through 23 as though fully set
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26 forth herein.
CLASS ACTION COMPLAINT FOR (1) DECLARATORY RELIEF; AND (1) VIOLAnON OF THE CONSUMERS LEGAL
REMEDIES ACT
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I 25. Defendant's representations that its gift cards are "redeemable for merchandise only
2 and may not be redeemed for cash, except where required by law" is a term of contract involving
3 substantive contractual rights. Accordingly, this dispute involves substantive contractual rights, not
4 the enforceability of remedies should a future dispute arise about substantive rights.
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26. An actual controversy has arisen regarding the propriety Defendant's refusals to
7 redeem gift cards for cash when the balance of same is below ten dollars, and the class members'
8 rights in connection with those gift cards. An adjudication is of the rights and obligations of the
9 parties is necessary to resolve this dispute.
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27. Plaintiff and the class are entitled, ancillary to their claim for declaratory relief, to an
11 order enjoining Defendant from (1) refusing to redeem any gift card with a balance of less than ten
12 dollars for cash; and (2) representing that the subject gift cards may be redeemed for cash or check
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15 only if the balance is less than five dollars ($5.00).
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28. Resolution of this claim for declaratory relief would have practical consequences for
16 the putative class, the public and Defendant: More particularly, Defendant would be required
17 modify its behavior to conform to the law on a class and public-wide basis, to
Defendant would
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19 be compelled to comply with the provisions of California Civil Code Section 1749.5(b)(2), and redeem gift cards with a balance of less than ten dollars for cash.
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SECOND CAUSE OF ACTION
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California Civil Code Sections 1770(a)(14»
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29. Plaintiff hereby restates and realleges paragraphs 1 through 28 as through fully set
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CLASS ACTION COMPLAINT FOR (1) DECLARATORY RELIEF; AND (2) VIOLATION OF THE CONSUMERS LEGAL
REMEDIES ACT
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1 30. Defendant's sale and distribution of the subject gift cards constitute "transaction(s)
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3 intended to result ... in the sale of ... goods" to consumers within the meaning of California Civil
Code Section 1770(a),
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31. Defendant's practice of refusing to redeem gift cards with a balance of less than ten
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7 dollars for cash violates the Consumers Legal Remedies Act, Civil Code Section 1770(a)(14), for the reason that the practice represents that the "transaction confers or involves rights . . . or
8 obligations which are prohibited by law."
9 32. Defendant's practice of refusing to redeem gift cards with a balance of less than ten
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11 dollarsfor cash violates the Consumers Legal Remedies Act, Civil Code Section 1770(a)(5), for the reason that the defendant wrongfully represents that "goods . . . have ... characteristics ... which
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33. On information and belief, Defendant continues to engage in the above-described
. . unlawful practices, and, unless enjoined by this Court, will continue to do so, to the detriment of
16 Plaintiff and the class.
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34. Plaintiff has suffered damages within the meaning of California Civil Code Section
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1780(a), because she has been denied a cash redemption when she was legally entitled to receive
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PRAYER FOR RELIEF
WHEREFORE, Plaintiff prays for judgment against Defendant as follows:
ON THE FIRST CAUSE OF ACTION:
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1. That the Court certify this cause of action as a class action pursuant to California
26 Code of Civil Procedure Section 382;
CLASS ACTION COMPLAINT FOR (I) DECLARATORY RELIEF; AND (2) VIOLATION OF THE CONSUMERS LEGAL
REMEDIES ACT
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That the Court declare the rights and obligations of the parties,
that Plaintiff
2 and the class have the right to redeem any Bed Bath & Beyond gift card for cash when its balance
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3. That Defendant be enjoined and restrained from refusing cash redemptions on gift
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6 cards with a balance of less than ten dollars.
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8 ON THE SECOND CAUSE OF ACTION:
9 That Defendant be enjoined and restrained from refusing cash redemptions on gift cards
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11 with a balance of less than ten dollars.
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ON ALL CAUSES OF ACTION:
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For costs of suit;
For prejudgment interest;
For attorneys' fees pursuant to applicable statute, rule, theory or doctrine, including,
17 without limitation, California Code of Civil Procedure Section 1021.5 and/or California Civil Code
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Section 1780( d)~ and
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For such other and further relief as the Court deems just and proper.
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22 Dated: June 28, 2010 PACIFIC JUSTICE CENTER
By:
Robert B. Hancock
Attorneys for Plaintiff
CLASS AcrJON COMPLAINT FOR (I) DECLARATORY RELIEF; AND (1) VIOLATION OF THE CONSUMERS LEGAL
REMEDIES ACT
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1 DEMAND FOR JURY TRIAL
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Plaintiff hereby demands a jury trial for all issues so triable.
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Dated: June 28, 201 0
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PACIFIC JUSTICE CENTER
By:
CLASS ACTION COMPLAINT FOR (1) DECLARATORY RELIEF; AND (1) VIOLATION OF THE CONSUMERS LEGAL
REMEDIES ACT
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DECLARATION - CIVIL CODE SECfION 1780(d)
Katherine D. Otamberlin declares:
I. I am plaintiff to the within ~ction. If called upon as a witness, I would and could competently testify to the matters stated herein.
2. Defendant Bed Bath & Beyond Inc. operates a number retail locations in the
County of Santa Clara, California, and is doing business there.
3. Accordingly, Santa Clara County is an appropriate venue for this action.
Executed under penalty of perjury under the laws of the State of California this
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-,CX~--f..J.day of June 2010.
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