Bruno v. American Textile Company, Incorporated

CourtDistrict Court, N.D. Illinois
DecidedOctober 23, 2023
Docket1:22-cv-02937
StatusUnknown

This text of Bruno v. American Textile Company, Incorporated (Bruno v. American Textile Company, Incorporated) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bruno v. American Textile Company, Incorporated, (N.D. Ill. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

JAMES BRUNO, on behalf of himself and all ) others similarly situated, ) ) Case No. 22-cv-2937 Plaintiff, ) ) Hon. LaShonda A. Hunt v. ) ) AMERICAN TEXTILE COMPANY, ) INCORPORATED, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER

Plaintiff James Bruno filed this putative class action against Defendant American Textile Company, Inc., the manufacturer and seller of Sealy brand sheet sets labeled as having a 1250 thread count, alleging that product description is false and misleading. Defendant has moved to dismiss the complaint under Federal Rule Civil Procedure 12(b)(6). For the reasons that follow, the motion [8] is granted in part and denied in part. BACKGROUND

Plaintiff, an Illinois resident, bought a set of Defendant’s Sealy brand sheets from Walmart’s website in May 2022. (Dkt. 1 at ¶¶ 1, 45, 52). Although the sheets were advertised as having a thread count of 1250, Plaintiff alleges the actual thread count is only 223. (Id. at ¶¶ 1, 24-25). Plaintiff claims the common practice in the bedding industry is to count the number of threads in both the warp (vertical direction) and filling (horizontal direction), with each yarn as one thread, regardless of whether it is single-ply or multi-ply. (Id. at ¶¶ 7-8). But Defendant allegedly counted each ply in the yarns that comprise its sheets as a separate thread, which inflated the thread count “by several times over what it would be if industry standard methods were used.” (Id. at ¶ 28). For example, a laboratory analysis of the sheets Plaintiff purchased showed 57 warp yarns, with 19 plies in each yarn; instead of counting that as 57 threads—as supposedly required by industry practice—Defendant multiplied 57 by 19 to deceptively inflate its thread count. (Id.

at ¶¶ 26-27). Plaintiff alleges that this practice resulted in a product with lower quality, durability, and longevity, and allowed Defendant to charge a higher price than it would have had it advertised the lower, more accurate thread count. (Id. at ¶¶ 29, 35). The Chairman of the National Textile Association wrote the Federal Trade Commission (“FTC”) that decades-long common practice in the bedding industry has been to count each yarn individually (as opposed to counting each ply), and stated that deviation from that practice “create[s] confusion in the marketplace and has caused consumers to compare thread counts that may have been calculated in two dramatically different ways.” (Dkt. 7-1). Likewise, the Executive Vice President for the American Textile Manufacturers Institute informed the FTC that “[l]abeling [sheets] based on a count that includes each ply in plied yarns deceives the customer into believing

that bedding products with higher counts are better when, in fact, they might be inferior because of the method used to determine the count.” (Dkt. 7-2). The FTC has not issued any opinion or guidance on the appropriate way to measure thread counts in bedding. Plaintiff filed the instant suit on behalf of himself and a class consisting of Illinois consumers who purchased the relevant sheets during the limitations period, as well as a multi-state class for similar individuals in Montana, Kansas, Maine, Wyoming, Idaho, Kentucky, West Virginia, Kansas, Iowa, Mississippi, and Utah. (Dkt. 1 at ¶ 63). The complaint raises the following claims: (1) violation of the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”); (2) violation of the analogous consumer fraud statutes in the states listed above for the multi-state class; (3) breach of express warranty, implied warranty, and the Magnuson Moss Warranty Act; (4) negligent misrepresentation; (5) common law fraud; and (6) unjust enrichment. Defendant contends that Plaintiff has failed to state a claim under any of those theories. (Dkt. 8). The motion is fully briefed.

DISCUSSION A motion to dismiss pursuant to Rule 12(b)(6) for failure to state a claim tests the sufficiency of the complaint, not its merits. Skinner v. Switzer, 562 U.S. 521, 529–30, 131 S. Ct. 1289, 179 L. Ed. 2d 233 (2011). When considering dismissal of a complaint, the Court accepts all well-pleaded factual allegations as true and draws all reasonable inferences in favor of the Plaintiff. See Erickson v. Pardus, 551 U.S. 89, 94, 127 S. Ct. 2197, 167 L. Ed. 2d 1081 (2007) (per curiam). To survive a motion to dismiss, a Plaintiff must “state a claim to relief that is plausible on its face.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S. Ct. 1955, 167 L. Ed. 2d 929 (2007). A complaint is facially plausible when the Plaintiff alleges “factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct

alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S. Ct. 1937, 173 L. Ed. 2d 868 (2009). The Court concludes that Plaintiff has stated a plausible claim under the ICFA and analogous multi-state consumer fraud statutes, and for unjust enrichment. The remaining claims and Defendant’s request for injunctive relief are dismissed. I. ICFA and Multi-State Consumer Fraud Statutes “The ICFA ‘is a regulatory and remedial statute intended to protect consumers, borrowers, and business persons against fraud, unfair methods of competition, and other unfair and deceptive business practices.’” Siegel v. Shell Oil Co., 612 F.3d 932, 934 (7th Cir. 2010) (quoting Robinson v. Toyota Motor Credit Corp., 201 Ill.2d 403, 266 Ill. Dec. 879, 775 N.E.2d 951, 960 (2002)). “In order to state a claim under the ICFA, a plaintiff must show: ‘(1) a deceptive or unfair act or promise by the defendant; (2) the defendant's intent that the plaintiff rely on the deceptive or unfair practice; and (3) that the unfair or deceptive practice occurred during a course of conduct involving trade or commerce.’” Camasta v. Jos. A. Bank Clothiers, Inc., 761 F.3d 732, 739 (7th Cir. 2014)

(quoting Wigod v. Wells Fargo Bank, N.A., 673 F.3d 547, 574 (7th Cir. 2012)). “[A] practice is deceptive ‘if it creates a likelihood of deception or has the capacity to deceive.’” Rudy v. Family Dollar Stores, Inc., 583 F. supp.3d 1149, 1158 (N.D. Ill. 2022) (quoting Benson v. Fannie May Confections Brands, Inc., 944 F.3d 639, 646 (7th Cir. 2019)). The Seventh Circuit has explained that “deceptive advertising claims should take into account all the information available to consumers and the context in which that information is provided and used” and “[w]hat matters most is how real consumers understand and react to the advertising.” Bell v. Publix Super Markets, Inc., 982 F.3d 468, 477-479 (7th Cir. 2020). The Court finds that a reasonable consumer could be deceived by Defendant’s representation that the sheets in question had a thread count of 1250. The practice of counting

each ply within the individual yarns instead of each yarn creates a likelihood of confusion among consumers. Plaintiff alleges that consumers use thread counts “as an indicator of fabric quality, with higher thread counts able to provide greater comfort, durability, and longevity relative to lower thread counts,” and “rely on the represented thread count as a gauge of product quality.” (Dkt. 1 at ¶¶ 2-3).

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