Section 17203

Citation: Section 17203
Parent Document: Kraus v. Trinity Management Services, Inc., 999 P.2d 718 (2000)
Jurisdiction: California (state)
Effective Date: 2000-06-05
Original Source: https://www.courtlistener.com/opinion/1159700/kraus-v-trinity-management-serv... ↗

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Powers, supra, 2 Cal.App.4th 330, and Parkmerced, supra, 198 Cal.App.3d 683, stand alone in approving fluid recovery in a UCL action that has not been certified as a class action. In Powers, a district attorney brought a UCL action seeking injunctive relief, restitution, and a civil penalty on the ground that the defendant violated a city ordinance by selling seven condominiums designated as moderate income housing at prices exceeding those allowed by the city’s subdivision code. The complaint sought restitution, an order that the defendant disgorge its profits, and judgment requiring the defendant to replace the lost moderate income housing stock. The trial court granted the injunction, but believed it lacked power to order the other remedies. The Court of Appeal reversed, holding that the statutory remedies for unfair business practices contemplated the other forms of relief. It held that section 17203, like section 17535, authorizes orders for both restitution and disgorgement of profits, relying on Fletcher for its conclusion that these remedies were available to the court. (Powers, supra, at p. 340.) The court read Fletcher as authorizing orders for disgorgement of profits, not recognizing that Fletcher addressed the propriety of a class action or that Fletcher involved only restitution, not disgorgement of profits. The court held that ordering a fluid recovery remedy was an appropriate means of preventing the defendant from retaining the illegal profits. {Powers, supra, at p. 343.)

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