SUPREME COURT ALLOWS LAWSUIT AGAINST HP

[Anonymous]

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.

[Author]

October 10, 2007 at 12:05 PM