Hotel Restaurant Customers Granted Class Cert. In Surcharge Lawsuit

A judge recently granted Class certification in a lawsuit alleging that Noble House Hotels and Resorts Ltd. implemented an illegal surcharge at three hotel restaurants in San Diego.

U.S. District Judge Michael M. Anello certified two Classes led by plaintiff Kathleen Holt.

The first Class includes all people who were charged a 3.5 percent surcharge since Feb. 1, 2017 at Acqua California Bistro.

The second Class is composed of all California residents who were charged the surcharge at Acqua California Bistro, Olive Bar or Fresco’s during an eight month period in 2017.

“For purposes of commonality, the real test is whether a class action can generate common answers apt to drive the resolution of the litigation,” Judge Anello said in his motion. “In other words, commonality exists where the determination of a common contention’s truth or falsity will resolve an issue that is central to the validity of each claim in one stroke.”

Judge Anello found that Holt sufficiently argued her claims for Class certification and that the proposed Classes satisfy the requirements for certification. Additionally, Judge Anello noted that Noble House failed to argue against Class certification on the grounds that “there is nothing per se illegal about the usage of a surcharge.”

Plaintiff counsel expressed their satisfaction with Judge Anello’s decision, as this gets them one step closer to potentially recovering compensation.

“We are very pleased with Judge Anello’s ruling,” said class counsel in a statement to Law360. “We have overcome one of the major hurdles in our journey to undo a practice by a large number of California restaurants at the expense of California consumers.”

Holt filed her amended class action in April 2018, alleging that Noble House charges an illegal 3.5 percent surcharge on bills at their hotel restaurants.

According to Holt, a $1.38 surcharge was added to her bill after eating at Acqua California Bistro in 2017. The surcharge reportedly appeared on the bill as if it was another menu item.

The hotel restaurant surcharge suit claims that this policy is deceptive and violates California’s False Advertising Law, Unfair Competition Law, and Consumers Legal Remedy Act.

“Defendant represents certain prices for food and drinks to the general public in its restaurants and on its advertised menus, but then, after the food and/or drink is consumed, defendant adds what it calls a ‘surcharge,’ a nonearned percentage added to the consumers’ final bills, which is actually a false, deceptive and misleading charge, to the balance of the final bill total which consumers thereafter pay, either knowingly or unknowingly,” Holt argued.

In her surcharge class action, Holt seeks restitution, injunctive relief, actual damages, statutory damages, punitive damages, court costs, and attorneys’ fees.

Holt is represented by Abbas Kazerounian, Jason A. Ibey and Clark R. Conforti of Kazerouni Law Group APC; and Robert L. Hyde and Yana A. Hart of Hyde & Swigart APC.

The Noble House Hotel Restaurant Surcharge Class Action Lawsuit is Holt v. Noble House Hotels & Resort Ltd., et al., Case No. 3:17­-cv­-02246, in the U.S. District Court for the Southern District of California.