Card v. Ralph Lauren Corporation

CourtDistrict Court, N.D. California
DecidedJanuary 21, 2020
Docket3:18-cv-02553
StatusUnknown

This text of Card v. Ralph Lauren Corporation (Card v. Ralph Lauren Corporation) 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
Card v. Ralph Lauren Corporation, (N.D. Cal. 2020).

Opinion

1 2 3 4 5 UNITED STATES DISTRICT COURT 6 NORTHERN DISTRICT OF CALIFORNIA 7 8 VICTORIA CARD, Case No. 18-cv-02553-JSC

9 Plaintiff, ORDER RE: MOTION TO DISMISS 10 v. THIRD AMENDED COMPLAINT

11 RALPH LAUREN CORPORATION, et al., Re: Dkt. No. 66 Defendants. 12

13 14 Plaintiff Victoria Card filed this civil action in San Francisco Superior Court alleging 15 various claims arising out of a business arrangement between Plaintiff and Defendants the Ralph 16 Lauren Corporation, Ralph Lauren Company West, LLC, and E.J Victor Inc, which Defendants 17 terminated in May 2015.1 Following extensive motion practice regarding the pleadings, the 18 parties jointly requested that the action be stayed pending mediation. That mediation was 19 unsuccessful and Defendants now move to dismiss Plaintiff’s Third Amended Complaint. (Dkt. 20 No. 66.2) Having considered the parties’ briefs and having had the benefit of oral argument on 21 January 16, 2020, the Court GRANTS IN PART and DENIES IN PART Defendants’ motion to 22 dismiss. The motion is denied with respect to Plaintiff’s contract claims, but otherwise granted, in 23 part without leave to amend. 24 BACKGROUND 25 The Court’s Order on Plaintiff’s First Amended Complaint contained a detailed summary 26 1 Both parties have consented to the jurisdiction of a magistrate judge pursuant to 28 U.S.C. § 27 636(c). (Dkt. Nos. 6 & 9.) 1 of Plaintiff’s allegations which remain substantially the same. (Dkt. No. 32.) In short, from 2001 2 to 2015, Plaintiff had a “contractual and partnership relationship” with the Ralph Lauren 3 Corporation to act as an approved dealer of Ralph Lauren Home products. (Third Amended 4 Complaint (TAC), Dkt. No. 62 at ¶ 8.) In 2015, Ralph Lauren terminated Plaintiff’s account 5 “thereby killing Plaintiff’s business, which she had built up over 14 years, thereby causing her 6 great economic and non-economic damages.” (Id.) This termination was preceded by a series of 7 interactions between Plaintiff and various representatives of Ralph Lauren as well as entities 8 associated with the Ralph Lauren Corporation including E.J. Victor, which manufactures Ralph 9 Lauren’s products. (Id. at ¶¶ 5, 9-88.) 10 Two years after Ralph Lauren terminated the parties’ relationship, in May 2017, Plaintiff 11 filed suit in San Francisco Superior Court. (Dkt. No. 1-1.) Plaintiff alleged 11 claims for relief 12 against Defendants, the Ralph Lauren Corporation, Ralph Lauren Company West, LLC, and E.J 13 Victor Inc., including claims for: (1) breach of implied contract; (2) promises without intent to 14 perform; (3) intentional misrepresentation; (4) breach of the covenant of good faith and fair 15 dealing; (5) violation of fiduciary obligations; (6) intentional wrongdoing in violation of 16 California Civil Code § 1708; (7) intentional infliction of emotional distress; (8) discrimination in 17 violation of the Unruh Act; (9) violation of California Business and Professions Code § 17200; 18 (10) violation of the Robinson-Patman Act; and (11) RICO. 19 Defendants moved to dismiss the complaint, but Plaintiff did not timely oppose and 20 instead, around the same time sought to file a first amended complaint pleading 11 claims for 21 relief including: (1) breach of implied contract; (2) promises without intent to perform; (3) 22 intentional misrepresentation; (4) breach of the covenant of good faith and fair dealing; (5) 23 violation of fiduciary obligations; (6) interference with prospective advantage; (7) intentional 24 infliction of emotional distress; (8) violation of the Robinson-Patman Act; (9) RICO; (10) 25 discrimination in violation of the Unruh Act; and (11) violation of California Business and 26 Professions Code § 17200. (Dkt. Nos. 10 & 15.) The Court granted in part and denied in part 27 Plaintiffs’ motion to amend and denied Defendants’ motion to dismiss as moot. 1 although it included some additional specificity with respect to the allegations. (Dkt. No. 35.) 2 Defendants again moved to dismiss and the Court denied the motion as to Plaintiff’s claims for 3 breach of implied contract and breach of the covenant of good faith and fair dealing. (Dkt. No. 4 47.) Plaintiff was granted leave to amend her claims for misrepresentation, interference with 5 prospective advantage, violation of the Robinson-Patman Act, RICO, discrimination, and violation 6 of California Business and Professions Code Section 17200. (Id.) Plaintiff’s intentional infliction 7 of emotional distress claim was dismissed without leave to amend. (Id.) 8 Following the Court’s order, the parties requested a referral to private mediation and that 9 the case be stayed pending mediation. (Dkt. No. 48.) The Court granted the parties’ request as 10 well as several additional requests for a stay. (Dkt. Nos. 49, 51, 53, 55.) Mediation, however, was 11 unsuccessful so the parties requested that the Court lift the stay and Plaintiff filed her Third 12 Amended Complaint which includes all the prior claims as well as a claim for breach of express 13 contract. (Dkt. Nos. 58, 60.) Defendants have again moved to dismiss and filed a separate motion 14 for Rule 11 sanctions. (Dkt. Nos. 66, 73.) Those motions are now fully briefed and the Court 15 heard oral argument January 16, 2020. 16 DISCUSSION 17 I. Motion to Dismiss 18 Defendants move to dismiss Plaintiff’s Third Amended Complaint in its entirety including 19 Plaintiff’s breach of implied contract and breach of the covenant of good faith and fair dealing 20 claims which the Court previously found were adequately pled. The Court addresses each of 21 Plaintiff’s nine claims separately. 22 A. Breach of Contract Claims 23 Plaintiff pleads two breach of contract claims. One for breach of an express contract, and a 24 second, for breach of implied contract. Plaintiff improperly added the first claim. A plaintiff 25 cannot add a claim without consent of the other side or permission from the Court. Defendants 26 have not consented to amendment to add the breach of express contract claim and the Court’s 27 Order granting Plaintiff leave to file a third amended complaint only allowed her to amend her 1 Patman Act, RICO, discrimination, and violation of California Business and Professions Code 2 Section 17200. See Fed. Civ. Civ. P 15(a). (Dkt. No. 47.) 3 Further, while parties are allowed to plead “alternative claims at the pleading stage, [] 4 ultimately [defendant] cannot be held liable for both breach of express contract and breach of 5 implied contract on the same subject matter.” Doe v. John F Kennedy Univ., 2013 WL 4565061, at 6 *8 n.6 (N.D. Cal. Aug. 27, 2013); California Spine & Neurosurgery Inst. v. United Healthcare 7 Ins. Co., No. 19-CV-02417-LHK, 2019 WL 4450842, at *4 (N.D. Cal. Sept. 17, 2019) (collecting 8 cases). As Plaintiff explained at oral argument, the express contract claim is based on the same 9 underlying facts as the implied claim and is, in fact, pled, or intended to be pled, in the alternative. 10 The Court will construe it as such. 11 The Court concludes that Plaintiff has adequately pleaded the implied and express breach 12 of contract claims and by this Order grants her leave to allege the express claim. As the express 13 contract claim is based on the same facts as the implied claim, it would be inconsistent with 14 Federal Rule of Civil Procedure 1 to require Plaintiff to file yet another amendment. 15 B. Promises without Intent to Perform and Misrepresentation Claim 16 The Court previously dismissed Plaintiff’s promises without intent to 17 perform/misrepresentation claim because Plaintiff failed to identify a promise that Defendants 18 made that Plaintiff that they never intended to honor. See Chapman v. Skype Inc., 220 Cal. App.

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Bluebook (online)
Card v. Ralph Lauren Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/card-v-ralph-lauren-corporation-cand-2020.