|
WASHINGTON (AP) — The Supreme Court on Tuesday allowed a class
action lawsuit to proceed against Hewlett-Packard Co. that alleges
Compaq, now a part of HP, sold defective computers.
The Supreme Court's action lets stand a 2005 ruling by an Oklahoma state court.
The case involves a lawsuit by two Oklahoma residents, Stephen and
Beverly Grider, who allege that Compaq Computer Corp. sold them a
defective computer and didn't repair or replace it, as called for in
the company's warranty.
The Griders sued in June 2003 and their
lawyers asked the state court to certify a class of 1.7 million people
who had bought similar computers. Their request was granted in 2005.
Compaq was purchased by Hewlett-Packard in 2002.
Class
action suits allow numerous plaintiffs with similar claims to proceed
in a single trial. Businesses usually oppose such designations given
the greater damage awards that can result.
Compaq argued in court
papers filed with the Supreme Court that a virtually identical lawsuit
was brought in Texas in 2000. In that case, the Texas Supreme Court
refused to certify a class action, ruling that Texas law shouldn't
apply to out-of-state members of the class.
Nevertheless,
Oklahoma's highest court not only certified the class, but said that
Texas law should be applied in the case because, among other things,
Compaq was headquartered in Texas.
Compaq's lawyers said that
under the full faith and credit clause of the Constitution, which
requires states to honor each others' laws and court rulings, Oklahoma
shouldn't be able to apply Texas law when Texas' highest court has
reached the opposite conclusion.
Hewlett-Packard shares rose 29 cents to $52.32 in early trading Tuesday.
Trackback(0)
Comments 
Write comment
 |
TrackBack URI for this entry
Subscribe to this comment's feed