Apple computer rebate

A local attorney and a law firm were disqualified from a potential consumer class action case against Apple Computer Inc. because the named plaintiff was represented by his own law firm and another lawyer "closely associated" with him.

Lawrence Cagney, an attorney at Westrup Klick & Associates in Long Beach, had filed a lawsuit in January 2004 on behalf of himself and a potential class of consumers who purchased Apple printers with a $99 rebate in 2003. In the suit, he argues that he and other consumers should not have paid the $8 sales tax on the rebate.

He sought a refund under the state's unfair business practices statute, plus attorneys' fees.

Apple sought to disqualify Cagney's law firm and another attorney representing him, Allan Sigel, on grounds that they stood to benefit more from legal fees than they would from any potential recovery and so would have a conflict.

Apple cited 10 class action cases from 2003 to 2004 in which a Westrup Klick attorney or a relative of one of the attorneys was one of the named plaintiffs.

"We thought that not only these lawyers but other lawyers are abusing the class process by not having a true client," said Apple's attorney, Rich Ruben, a partner at Pillsbury Winthrop LLP. "They go next door to their lawyer or their law firm or their wife, and that's the plaintiff. The court agreed with us."

On Feb. 17, a 2nd Appellate panel concluded in a published opinion that an "insurmountable conflict of interest exists" in the case. Sigel said his client would petition the California Supreme Court.

"Mr. Cagney has announced he will find other counsel, and this case will continue," he said.

Staff reporter Amanda Bronstad can be reached at (323) 549-5225, ext. 225, or at abronstad@labusinessjournal.com.