Chu v. L'Oreal USA S/D, Inc.

Background

Kyo Hak Chu filed a class action against L'Oreal USA S/D, Inc., L'Oreal USA, Inc., doing business as Atelier Cologne, and unnamed defendants. The complaint alleged that L'Oreal had not put proper tools in place to allow legally blind users of screen readers to access the Atelier Cologne website. It alleged that Chu and putative class members were denied full and equal access to the website and to products and services offered through the website in connection with L'Oreal’s physical locations. The claims were brought under the Americans with Disabilities Act and California’s Unruh Civil Rights Act. The defendants denied the allegations.

The complaint was filed on January 20, 2021. The opinion states that the parties later engaged in settlement discussions that resulted in a resolution of the case. The parties described the resolution as an individual settlement but did not state its terms.

Parties’ Request

The parties jointly requested dismissal under Federal Rule of Civil Procedure 41(a)(1)(A)(ii). They asked the court to dismiss Chu’s individual claims with prejudice, dismiss the pending putative class claims without prejudice, and approve the dismissal without requiring notice to absent class members.

Because the class had not been certified, the parties addressed the three factors described in Diaz v. Trust Territory of the Pacific Islands for evaluating possible prejudice to absent putative class members: reliance on the lawsuit, a rapidly approaching statute of limitations, and any concession of class interests for the benefit of the named plaintiff or counsel.

The parties argued that there was no evidence that absent class members had relied on the lawsuit, that they were unaware of media coverage or communications from other class members, and that the applicable limitations periods were tolled while the class action was pending. They also argued that dismissing the class claims without prejudice would not compromise absent class members’ rights. The parties further contended that notice would be unnecessarily burdensome and costly.

Ruling

Judge Edward M. Chen granted the parties’ stipulated request for dismissal. The order dismissed Chu’s individual claims with prejudice and dismissed the putative class claims without prejudice. The order did not state any additional disposition of the underlying Americans with Disabilities Act or Unruh Civil Rights Act allegations.