SUPREME COURT ALLOWS LAWSUIT AGAINST HP

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SUPREME COURT ALLOWS LAWSUIT AGAINST HP

 user 2007-10-10 at 12:05:00 pm Views: 45
  • #18957

    Supreme Court Allows Lawsuit Against H-P
    WASHINGTON
    OCT 07 – 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.