Matthew Belardes v. Capay Incorporated
Dec 04, 2015OUTCOME: Settlement for the Class
Organic produce delivery service Farm Fresh to You has agreed to pay more than $3.9 million to resolve allegations that it made unrequested deliveries and then billed its customers anyway, according to ... an order granting final approval to the deal filed in California court on Friday. The bulk of Farm Fresh's payment will come in the form of reversed charges totaling about $3.3 million, with an additional $365,000 covering two free deliveries worth up to $70 for more than 49,000 class members. Lead plaintiff Matthew Belardes will receive a $5,000 incentive award. "We are proud to have resolved this case in a manner that so well served the interests of the class, and in a way that will ensure the problems do not reoccur," Jack Fitzgerald, Belardes' attorney, told Law360 on Friday. Belardes sued Farm Fresh in superior court in San Diego in December 2014, claiming that the company billed him and others who either didn’t intend to sign up for its monthly delivery service, were told that they would receive a free delivery, or canceled the service but still received produce. According to his complaint, Belardes learned about Farm Fresh while speaking with a representative at the company’s booth at a street fair. After learning that the company's environmentally friendly policies prevented it from using brochures or pamphlets, Belardes agreed to receive information through his email address, which he provided along with his name, home address and other personal contact information, according to the complaint. Belardes said the form he completed didn't request any payment information, and the Farm Fresh representative he spoke with assured him that he was not enrolling in the company's delivery service. Nevertheless, three weeks later, he received a box of vegetables that he didn't order or want, after which he offered to pay the initial invoice in order to discontinue future deliveries without receiving a response, according to Belardes. He then received another delivery and a bill for $60, which a debt collector threatened to report to credit reporting agencies if he didn’t pay up, Belardes claimed. Belardes alleged that Farm Fresh continued to refuse to cancel his account, and said that the company has developed a reputation for its widespread and intentional deception, citing harsh Yelp reviews and blog posts. As part of the settlement, Farm Fresh will alter its policies, agreeing to send reminders of deliveries at least three days in advance and adding a prominent link to its webpage that will allow customers to easily cancel or suspend their delivery account or membership. Farm Fresh continues to deny Belardes' allegations, according to court filings. Representatives for Farm Fresh weren’t immediately available for comment on Friday. Belardes is represented by Jack Fitzgerald of the Law Office of Jack Fitzgerald PC and Steve Lucero of Lucero Law Firm. Farm Fresh is represented by Chuck Post of Weintraub Tobin Chediak Coleman Grodin LC. The case is Matthew Belardes v. Capay Inc., case no. 201400041774 in the Superior Court of the State of California for the County of San Diego.
