Schauer v. Mandarin Gems of California, Inc.

Sarah Jane Schauer (plaintiff) and her fiance Darin Erstad shopped together for an engagement ring at Mandarin Gems of California, Inc. (Mandarin) (defendant), which told them the ring had a certain carat and clarity grade, and Erstad bought the ring specifically to give to Schauer. After their later divorce awarded Schauer the ring as her personal property, she had it independently appraised and learned it was of significantly lower quality and value than Mandarin had represented; she sued Mandarin for breach of contract, rescission, statutory consumer-protection violations, and fraud, but the trial court sustained Mandarin's demurrer on the ground that Schauer was neither the ring's purchaser nor a third-party beneficiary of Erstad's contract, dismissing her claims entirely.