Pricing Case Against Home Depot Dismissed

In Andrea Spiegler et al. v. Home Depot USA Inc. et al., the Ninth Circuit Court of Appeals affirmed the dismissal of a putative class action accusing Home Depot USA Inc. of breaching a contract and violating competition laws by overcharging customers for cabinet resurfacing work.  The court found that contracts between Home Depot and its customers were fixed-price, and therefore did not imply a quantity term, so the lead plaintiffs failed to state a claim upon which relief can be granted.  According to the order, Home Depot based its pricing on an initial calculation made by a sales representative, but then based the sales representative’s commission on a lower, allegedly more accurate calculation made by a Home Depot measurement technician who visited the customer’s home.  In dismissing the suit, the court held that 1) this difference in calculations did not give rise to any claims; and 2) there is no allegation that defendants deviated from any pre-existing price schedule in calculating these prices, instead, the difference in pricing appeared to be due to variations in the estimated time and materials needed to complete the job.   

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