Bishop v. 7-Eleven, Inc.

37 F. Supp. 3d 1058, 2014 WL 1620946, 2014 U.S. Dist. LEXIS 56010
CourtDistrict Court, N.D. California
DecidedApril 21, 2014
DocketCase No. 5:12-CV-02621-EJD
StatusPublished

This text of 37 F. Supp. 3d 1058 (Bishop v. 7-Eleven, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bishop v. 7-Eleven, Inc., 37 F. Supp. 3d 1058, 2014 WL 1620946, 2014 U.S. Dist. LEXIS 56010 (N.D. Cal. 2014).

Opinion

[Re: Docket No. 52]

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS

EDWARD J. DAVILA, United States District Judge

Presently before the Court is Defendant 7-Eleven’s (“Defendant” or “7-Eleven”) Motion to Dismiss Plaintiff Scott Bishop’s (“Plaintiff’ or “Bishop”) Second Amended Complaint (“SAC”). Plaintiff filed this putative class action against Defendant alleging that several of Defendant’s products have been improperly labeled so as to amount to misbranding and deception in violation of several California and federal, laws.

Per Civ. L.R. 7-l(b), the motion was taken under submission without oral argument. Having fully reviewed the parties’ papers, the Court grants Defendant’s Motion to Dismiss for the reasons explained below.

I. BACKGROUND

Plaintiff filed his original Complaint in this case on May 21, 2012. Dkt. No. 1. Plaintiffs First Amended Complaint (“FAC”) was filed on September 17, 2012. Dkt. No. 17. Defendant filed a Motion to Dismiss, which was granted per this Court’s order on August 5, 2013. Dkt. No. 46. The Court dismissed Plaintiffs claims based on violations of the Song-Beverly Consumer Warranty Act and the Magnu-son-Moss Warranty Act. Further, the Court concluded that Plaintiffs claims did not meet the Rule 9 pleading standard because Plaintiff did not provide a clear and particular account of the allegedly fraudulent, deceptive, misrepresentative, or otherwise unlawful statements.

Plaintiff filed the SAC on August 20, 2013 on behalf of himself and a putative class of all persons in the United States who hgve purchased the same product or other of Defendant’s similar food products that were allegedly mislabeled. Dkt. No. 47. Defendant filed its Motion to Dismiss on September 24, 2013. Dkt. No. 52.

Plaintiff is a- California consumer who, since May 21, 2008, purchased 7-Select Cheddar & Sour Cream Chips. Dkt. No. 47 ¶¶ 2-3. Plaintiff argues that the following representations on the packaging of this and other of Defendant’s food products were unlawful and/or misleading: (1) “Og trans fat” and (2) “no cholesterol.” Plaintiff argues that the following “substantially similar” products bear the identical unlawful and/or misleading statements and should be included in the “class products”: 7-Select Kettle Style Chips in barbeque, jalapeno, original, salt & vinegar, and sour cream & onion flavors; 7-Select barbeque potato chips; 7-Select big bite hot dog chips; 7-Select original potato chips; and 7-Select sour cream & onion chips. Id. at ¶ 4.

Plaintiff alleges the following causes of actions: violation of California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof.Code § 17200 et seq., (counts 1-3); violation of the False Advertising Law (“FAL”), Cal. Bus. & Prof.Code § 17500 et seq., (counts 4-5); and violation of the Consumers Legal Remedies Act (“CLRA”), Cal. Civ.Code § 1750 et seq., (count 6). Id. ¶¶ 109-66.

II. LEGAL STANDARD

A. Rule 8(a)

Federal Rule of Civil Procedure 8(a) requires a plaintiff to plead each claim with sufficient specificity to “give the defendant fair notice of what the ... claim is and the grounds upon which it rests.” Bell Atlantic Corp. v. Twombly, 550 U.S. [1062]*1062544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (internal quotations omitted). A complaint which falls short of the Rule 8(a) standard may be dismissed if it fails to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). “Dismissal under Rule 12(b)(6) is appropriate only where the complaint lacks a cognizable legal theory or sufficient facts to support a cognizable legal theory.” Mendiondo v. Centinela Hosp. Med. Ctr., 521 F.3d 1097, 1104 (9th Cir.2008). Moreover, the factual allegations “must be enough to raise a right to relief above the speculative level” such that the claim “is plausible on its face.” Twombly, 550 U.S. at 556-57, 127 S.Ct. 1955.

When deciding whether to grant a motion to dismiss, the court generally “may not consider any material beyond the pleadings.” Hal Roach Studios, Inc. v. Richard Feiner & Co., 896 F.2d 1542, 1555 n. 19 (9th Cir.1990). The court must accept as true all “well-pleaded factual allegations.”' Ashcroft v. Iqbal, 556 U.S. 662, 679, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). The court must also construe the alleged facts in the light most favorable to the plaintiff. Love v. United States, 915 F.2d 1242, 1245 (9th Cir.1988). However, the court may consider material submitted as part of the complaint or relied upon in the complaint, and may also consider material subject to judicial notice. See Lee v. City of Los Angeles, 250 F.3d 668, 688-69 (9th Cir.2001). But “courts are not bound to accept as true a legal conclusion couched as a factual allegation.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955.

B. Rule 9(b)

Fraud-based claims are subject to heightened pleading requirements under Federal Rule of Civil Procedure 9(b). In that regard, a plaintiff alleging fraud “must state with particularity the circumstances constituting fraud.” Fed. R. Civ. P. 9(b). The allegations must be “specific enough to give defendants notice of the particular misconduct which is alleged to constitute the fraud charged so that they can defend against the charge and not just deny that they have done anything wrong.” Semegen v. Weidner, 780 F.2d 727, 731 (9th Cir.1985). To that end, the allegations must contain “an account of the time, place, and specific content of the false representations as well as the identities of the parties to the misrepresentations.” Swartz v. KPMG LLP, 476 F.3d 756, 764 (9th Cir.2007) (citation omitted). Averments of fraud must be accompanied by the “who, what, when, where, and how” of the misconduct charged. Vess v. Ciba-Geigy Corp. USA 317 F.3d 1097, 1106 (9th Cir.2003) (citation omitted). Additionally, “the plaintiff must plead facts explaining why the statement was false when it was made.” Smith v. Allstate Ins. Co., 160 F.Supp.2d 1150, 1152 (S.D.Cal.2001); see also In re GlenFed, Inc. Sec. Litig., 42 F.3d 1541, 1549 (9th Cir.1994) (en banc) (superseded by statute on other grounds).

C. Rule 12(b)(1)

A party may file a motion to dismiss with the Court for lack of subject matter jurisdiction. Fed. R. Civ. P.

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Bluebook (online)
37 F. Supp. 3d 1058, 2014 WL 1620946, 2014 U.S. Dist. LEXIS 56010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bishop-v-7-eleven-inc-cand-2014.