LOS ANGELES – OCTOBER 20, 2010 – Arent Fox LLP won a major victory for its client Honda of North Hollywood on October 18 when partners Aaron Jacoby and Richard Buckley obtained a defense judgment in a class action trial in Los Angeles Superior Court.

The action was brought pursuant to California’s Unfair Competition Law and the Consumer Legal Remedies Act and involved allegations by the lead plaintiff that the defendant failed to disclose destination and assembly charges (ranging between several hundred to several thousand dollars) on motorcycles sold to more than 4,000 class members. The Hon. Judge John P. Shook issued his ruling, granting the defendant’s motion, which was filed after the close of plaintiff’s case-in-chief. The plaintiff’s case was filed in 2006, two years after California voters amended the Unfair Competition Law to require standing and injury in fact for a plaintiff to proceed with an individual or class action. The nonsuit motion applied the new standards under the Unfair Competition Law to defeat plaintiff’s individual and class claims.

Daily Journal, Los Angeles’ leading legal news publication, reported the firm’s victory:

Arent Fox Delivers Big for Honda Dealer

By Jean-Luc Renault

A judge ruled on Monday that a local motorcycle dealership was not liable for $10 million in damages for allegedly hiding extra fees from its customers, dismissing the class action that defendants claimed would shutter their business. Los Angeles County Superior Court Judge John Shook granted a motion for judgment filed by the dealer, Honda of North Hollywood, during the trial.

Aaron Jacoby and Richard Buckley of Arent Fox in Los Angeles, represented the dealer. The attorneys said it was a bet-the-company case for the family- owned dealership because it could not absorb a verdict in favor of the plaintiffs.

The class action, filed in 2006, accused the dealership under California's Unfair Competition Law and the Consumer Legal Remedies Act of failing to disclose fees related to the shipping, assembling and insuring of motorcycles. The lawsuit was filed on behalf of 4,000 plaintiffs who purchased motorcycles from the dealership who saw unexpected charges, which ranged between a few hundred to several thousands of dollars.

The defendants' motion for judgment argued that the lead plaintiff did not show she had suffered any injury, which became a legal requirement under Proposition 64 in 2004.

"The amendment of the law worked and allowed us to prevail," Jacoby said. "They would have been shut down."

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About Arent Fox:
Arent Fox LLP (www.arentfox.com), with offices in Los Angeles, Washington, DC, and New York City, is a recognized leader in areas including intellectual property, real estate, telecommunications, health care, automotive, sports, white collar, international trade, bankruptcy, and complex litigation. With more than 350 lawyers nationwide, Arent Fox has extensive experience in corporate securities, financial restructuring, government relations, labor and employment, finance, tax, corporate compliance, and the global business market. The firm represents Fortune 500 companies, government agencies, trade associations, foreign governments and other entities.