Chipotle’s Request to Remove Short-Changing Class Action Lawsuit Too Late, Customers Say

Chipotle customers recently blasted the restaurant for missing the deadline to remove their class action lawsuit to federal court by one day.

Plaintiffs argue that, since they served Chipotle with their change shortage class action lawsuit Aug. 25 through certified mail, Chipotle had until Sept. 24 to file a notice of removal. However, Chipotle allegedly missed this deadline by one day and filed their removal notice Sept. 25.

Removal of a case elevates the claims from state court to federal court. Often this is done due to the amount in controversy or other factors indicating the size of the claims.

However, Chipotle customers say the restaurant failed to follow the guidelines for removal, sparking a motion for remand from the plaintiffs.

Based on this, the Chipotle customers say their class action lawsuit belongs back in state court.

The 30-day window begins “after receipt by the defendant, through service or otherwise, of a copy of the original pleading setting forth the claim for relief upon which such action or proceeding is based,” the Chipotle customers’ brief said.

“Thus, at a minimum, Chipotle ‘received a copy of the initial pleading’ that it believes is removable by August 25 (more than 30 days before attempted removal).”

The Chipotle customers filed their class action lawsuit in August, alleging that the company failed to properly return change to consumers who paid for their meals in cash.

Plaintiff Bridget McMahon says she used a $20 bill to pay for her $15.51 Chipotle purchase but did not receive the $4.49 she was owed in change. Instead, she allegedly was given only $4. Similarly, plaintiff Meghan Fox allegedly paid for her $8.72 Chipotle meal with a $20 bill. Instead of being given $11.28 in change, Fox was reportedly given only $11.

According to the plaintiffs, this practice of shortchanging Chipotle customers is a company policy. Workers are allegedly directed not to return the full change amount due to consumers. Instead, they are reportedly told to round any change down to the dollar.

“This ‘company policy’ not only discriminates against consumers who do not have, or do not wish to use, credit cards, but also results in a tax-free cash windfall to Chipotle,” the Chipotle customers’ class action lawsuit contends.

McMahon and Fox say this policy violates Pennsylvania’s Unfair Trade Practices and Consumer Protection Law, along with several other state laws. The plaintiffs seek monetary compensation along with court costs and attorneys’ fees.

Although the complaint didn’t directly reference the issue, the policy may be linked to an ongoing change shortage.

According to the U.S. Federal Reserve, coins are in short supply due to the COVID-19 pandemic. The Federal Reserve notes there is an “adequate” number of coins in the economy, but the slowed pace of circulation has resulted in reduced coin inventories.

“As the economy recovers and businesses reopen, more coins will flow back into retail and banking channels and eventually into the Federal Reserve, which should allow for the rebuilding of coin inventories,” the Federal Reserve explains.

A change shortage is a serious issue but, in a statement to Law360, plaintiffs’ attorneys said this consequence of the pandemic “doesn’t give Chipotle the license to line its own pockets at the expense of consumers.”

Were you shortchanged at Chipotle? Share your experiences in the comment section below.

The Chipotle customers are represented by Frank G. Salpietro of Rothman Gordon PC.

The Chipotle Change Class Action Lawsuit is Fox, et al. v. Chipotle Mexican Grill Inc., Case No. 2:20-cv-01448, in the U.S. District Court for the Western District of Pennsylvania.

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