News Brief

Katz-Joffe-Kaplan Judgment Settles Legality and Use of Surcharges by California Restaurants

January 30, 2019

Bruno Katz (Partner-San Diego), Steve Joffe (Partner-Los Angeles) and Alex Kaplan (Associate-Los Angeles) have obtained ten (10) judgments in favor of San Diego restaurants and against plaintiffs who filed class action lawsuits challenging the legality of restaurant surcharges. These judgments followed a litigated motion for summary judgment and a no merit finding as to Consumer Legal Remedies Act claim recently entered in a test case against the plaintiffs that settled the legality and use of surcharges by California restaurants so long as they are properly disclosed, which helps discourage or eliminate a potential source of class action litigation for plaintiffs' firms under consumer laws. The court also specifically found that a menu is not advertising under the California consumer laws and is not grounds for a false advertising and unfair business practice claims as to menu prices.

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