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Sateriale v. R.J. Reynolds Tobacco Company

United States Court of Appeals for the Ninth Circuit
697 F.3d 777 (9th Cir. 2012)


Facts

R.J. Reynolds Tobacco Company (RJR) (defendant) started a “Camel Cash” customer loyalty program. As part of the program, RJR included certificates on packages of Camel cigarettes that customers could save up and redeem for merchandise. In October 2006, RJR informed program participants that it would be discontinuing the program and that participants had until March 2007 to cash in their certificates. However, beginning in October 2006, RJR stopped printing merchandise catalogs, and told participants that there was no merchandise left. Sateriale, et al. (plaintiffs) were program participants who tried but were unable to redeem certificates between October 2006 and March 2007. The plaintiffs filed a class action suit against RJR for breach of contract, among other things. The trial court dismissed the action for failure to state a claim. The plaintiffs appealed.

Rule of Law

Issue

Holding and Reasoning (Fisher, J.)

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