Cox Nuclear Medicine, Inc. v. Gold Cup Coffee Services, Inc.

214 F.R.D. 696 (2003)

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Cox Nuclear Medicine, Inc. v. Gold Cup Coffee Services, Inc.

United States District Court for the Southern District of Alabama
214 F.R.D. 696 (2003)

Facts

Cox Nuclear Medicine, Inc. (Cox) (plaintiff), the class representative in a class action against Gold Cup Coffee Services, Inc. (Gold Cup) (defendant), sought a show-cause order from Gold Cup to explain why its pre-certification contact with potential class members should not be sanctioned. Gold Cup had sent letters with checks to its customers and putative class members who received boxes of coffee that were labeled as containing 42 packets but in fact only contained 35 packets. The letter claimed that the discrepancy was inadvertent and explained that if the checks were cashed or endorsed, this would release Gold Cup from further liability for the discrepancy. Cox alleged that the letter (1) misrepresented material facts; (2) constituted a fraudulent attempt to terminate the claims without full or adequate compensation; and (3) interfered with the putative class members’ ability to make an informed decision about whether to stay in the class action, if certified.

Rule of Law

Issue

Holding and Reasoning (Steele, J.)

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