## Facts

- Raymond Chandler bought a Chrysler vehicle from Southwest Jeep-Eagle, Inc. and financed the purchase through a retail installment contract.
- Chandler also purchased a service contract/extended warranty, believing it would allow service at any Chrysler dealership.
- Chandler was told the service-contract price was a fixed, nonnegotiable amount and would be paid to the warranty provider.
- Southwest allegedly remitted only part of the service-contract charge to the third-party provider and kept the remainder.
- When Chandler later sought repairs at another Chrysler dealership, he was told there was no record of a warranty having been filed.
- The retail installment contract stated that a specified amount was paid to a third party for the service contract, despite the alleged discrepancy between the stated amount and the amount actually remitted.
- Chandler asserted individual claims (including merchantability and warranty-related claims) and sought class treatment only for claims tied to the standardized contract disclosures.

## Issues

1. Whether the proposed classes satisfied Rule 23(a)’s numerosity, commonality, typicality, and adequacy requirements for claims based on form retail installment contracts.
2. Whether the Truth in Lending Act claim was certifiable under Rule 23(b)(3) given predominance and superiority considerations.
3. Whether the Illinois Consumer Fraud Act claim could proceed on a class basis to the extent it rested on uniform written contract misrepresentations, as opposed to theories requiring individualized proof (e.g., transaction-specific fraud).

## Decision

- The court granted Chandler’s motion for class certification as to Counts I (TILA) and II (Illinois Consumer Fraud Act) to the extent those claims were premised on uniform written disclosures in Southwest’s standardized retail installment contracts.
- The court found numerosity satisfied based on estimates of roughly 50 TILA class members and roughly 150 Consumer Fraud Act class members, making joinder impracticable.
- The court found commonality and typicality satisfied because the alleged misrepresentation concerned a standardized disclosure in form contracts stating an amount paid to a third party for the service contract when the amount allegedly differed from what was actually remitted.
- The court found Chandler and his counsel adequate to represent the class as defined.
- The court indicated greater skepticism toward broader fraud theories that would require more detailed allegations and could raise individualized issues, limiting class treatment to contract-based, uniform representations addressed by the motion.

## Legal Principles

- Class certification is appropriate when a defendant’s standardized form contract contains the same allegedly unlawful disclosure for all class members, creating common questions capable of classwide resolution.
- Rule 23(a) commonality and typicality are more readily met where liability turns on the content of a uniform written representation rather than individualized oral statements or transaction-specific conduct.
- TILA disclosure-based claims commonly fit Rule 23(b)(3) when common issues regarding the accuracy and legality of uniform disclosures predominate over individual issues.
- Consumer fraud claims may be certified when they rest on uniform written misrepresentations, but fraud theories requiring individualized reliance, causation, or proof of transaction-specific conduct can limit or defeat class treatment absent tighter pleadings and proof.

## Conclusion

The court certified classes for TILA and Illinois Consumer Fraud Act claims tied to uniform misstatements in standardized retail installment contracts about third-party service-contract payments, while signaling that more individualized fraud-based theories would require greater specificity and could be unsuitable for classwide adjudication.


Chandler v. Sw. Jeep-Eagle, Inc., 162 F.R.D. 302 (N.D. Ill. 1995)