Charbonnet v. Omni Hotels and Resorts

CourtDistrict Court, S.D. California
DecidedDecember 16, 2020
Docket3:20-cv-01777
StatusUnknown

This text of Charbonnet v. Omni Hotels and Resorts (Charbonnet v. Omni Hotels and Resorts) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charbonnet v. Omni Hotels and Resorts, (S.D. Cal. 2020).

Opinion

1 2 3 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 SOUTHERN DISTRICT OF CALIFORNIA 11 12 NANTILLE CHARBONNET, on behalf Case No.: 20-cv-01777-CAB-DEB of herself and all similarly situated 13 individuals, ORDER GRANTING DEFENDANTS’ 14 MOTIONS TO DISMISS Plaintiff,

15 v.

16 OMNI HOTELS AND RESORTS, OMNI [Doc. No. 8] 17 HOTELS MANAGEMENT CORPORATION, and DOES 1 to 10, 18 Defendants. 19

20 This matter comes before the Court on Defendants Omni Hotels Management 21 Corporation and Omni Hotels and Resorts’ (hereinafter “Defendants” or “Omni”1) motion 22 to dismiss. [Doc. No. 8.] The motion has been fully briefed and the Court finds it suitable 23 for determination on the papers submitted and without oral argument. See CivLR 7.1(d)(1). 24 For the reasons set forth below, the motion is granted. 25 26

27 1 Defendants contend that Omni Hotels and Resorts is not a distinct legal entity from Omni Hotels 28 1 I. BACKGROUND 2 Omni operates and manages various hotels in California. Omni advertises its 3 available rooms and daily room rates on both its own website and the websites of third- 4 party online travel agencies, including Expedia. [Doc. No. 7 ¶¶ 26-27.] When a consumer 5 visits the Expedia page for Omni’s San Diego hotel, the website lists the various hotel 6 rooms available and their daily rate based on the consumer’s dates of travel and number of 7 travelers in their party. [Doc. No. 9 at p. 9.] The daily rate (i.e., $135) is displayed in large, 8 bold font with smaller text underneath stating that the above rate is “per night.” [Id.] On 9 the next line, in roughly the same font size as the “per night” text, the website states a 10 different amount as the “total” cost (i.e., “$181 total”) that “includes taxes & fees.” [Id. at 11 p. 10.] Directly underneath this text, the consumer can click on a drop-down list labeled 12 “Price details,” which then breaks down the total cost into the daily rate, taxes, and the 13 “property fee” 2 of $25.00. [Id.] 14 Whether the consumer clicks on the “Price details” drop-down list or not, the total 15 cost of the booking, which includes that daily rate, taxes and fees are presented to the 16 consumer before any decision to reserve or action by the consumer is required. With the 17 total cost presented, a consumer must then select “Reserve” (below “Price details”) to 18 proceed with booking a room at the Omni hotel. [Id.] The consumer must then pay the 19 total cost (i.e., $181) to reserve the room on Expedia. 20 At some point prior to September 1, 2019, Plaintiff browsed Expedia’s website for 21 available hotel rooms in San Diego for a three-night stay with her family. [Doc. No. 7 ¶ 22 25.] After searching for hotels on Expedia, Plaintiff was “impressed with Omni” and 23 decided to book a room at its San Diego location. [Id. ¶¶ 25-33.] Plaintiff alleges that 24 Omni’s advertised daily rate on Expedia did not reflect the mandatory $25 property fee that 25 26 27 2 In their pleadings, both parties refer to the $25 charge at issue by various names, including “property fee,” “destination charge,” and “resort fee.” Throughout this order, the Court will refer to the $25 28 1 was included in the total room charge, and that this fee was not revealed to her until she 2 was “ready to buy.” [Id. ¶ 31.] Accordingly, Plaintiff alleges she “justifiably relied on 3 [Omni’s] fraudulent omission” of not disclosing the property fee “since she decided to stay 4 at Omni based on the false advertised rate.” [Id. ¶ 33.] 5 On July 31, 2020, Plaintiff, on behalf of herself and all similarly situated individuals, 6 filed a complaint against Omni in state court alleging that the manner in which Omni’s 7 rates appeared on Expedia constituted false and deceptive advertising because it utilized a 8 “drip pricing” scheme and misrepresented the true rates for its hotel rooms. [Doc. No. 7.] 9 Defendants removed the matter to this Court on September 10, 2020 based on diversity 10 jurisdiction. [Doc. No. 1.] On October 15, 2020, Plaintiff filed the First Amended 11 Complaint (“FAC”) against Defendants. [Doc. No. 7.] The FAC asserts three claims under 12 California state law for violations of: (1) the Consumer Legal Remedies Act (“CLRA”), 13 CAL. CIV. CODE §§ 1770(a)(5), 1770(a)(7), and 1770(a)(9); (2) the Unfair Competition Law 14 (“UCL”), CAL. BUS. & PROF. CODE §§ 17200 et seq.; and (3) the False Advertising Law 15 (“FAL”), CAL. BUS. & PROF. CODE §§ 17500 et seq. [Id. ¶¶ 41-58.] 16 On November 5, 2020, Defendants moved to dismiss the FAC pursuant to Federal 17 Rule of Civil Procedure 12(b)(6). [Doc. No. 8.] The motion is now fully briefed and ripe 18 for resolution. 19 II. LEGAL STANDARD 20 The familiar standards on a motion to dismiss apply here. To survive a motion to 21 dismiss under Rule 12(b)(6), “a complaint must contain sufficient factual matter, accepted 22 as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 23 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). Thus, the 24 Court “accept[s] factual allegations in the complaint as true and construe[s] the pleadings 25 in the light most favorable to the nonmoving party.” Manzarek v. St. Paul Fire & Marine 26 Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). On the other hand, the Court is “not bound 27 to accept as true a legal conclusion couched as a factual allegation.” Iqbal, 556 U.S. at 678 28 (quoting Twombly, 550 U.S. at 555). Nor is the Court “required to accept as true allegations 1 that contradict exhibits attached to the Complaint or matters properly subject to judicial 2 notice, or allegations that are merely conclusory, unwarranted deductions of fact, or 3 unreasonable inferences.” Daniels-Hall v. Nat’l Educ. Ass’n, 629 F.3d 992, 998 (9th Cir. 4 2010). “In sum, for a complaint to survive a motion to dismiss, the non-conclusory factual 5 content, and reasonable inferences from that content, must be plausibly suggestive of a 6 claim entitling the plaintiff to relief.” Moss v. U.S. Secret Serv., 572 F.3d 962, 969 (9th 7 Cir. 2009) (quotation marks omitted). If a complaint does not survive scrutiny under Rule 8 12(b)(6), the Court will grant leave to amend unless it determines that no modified claims 9 “consistent with the challenged pleading . . . [will] cure the deficiency.” DeSoto v. Yellow 10 Freight Sys., Inc., 957 F.2d 655, 658 (9th Cir. 1992) (quoting Schreiber Distrib. Co. v. 11 Serv-Well Furniture Co., 806 F.2d 1393, 1401 (9th Cir. 1986)). 12 III. DISCUSSION 13 Plaintiff alleges that Omni’s advertising of its hotel room rates on Expedia is 14 deceptive because “the nonessential [property fee] is not disclosed until finalizing” the 15 process of booking a room. [Doc. No. 9 at p. 16.] In other words, the property fee was 16 “disclosed only after Omni falsely advertised the hotel rate.” [Id. at p. 17.] Defendants 17 argue that Plaintiff’s FAC should be dismissed with prejudice for three reasons: (1) 18 Plaintiff has not plausibly alleged any deceptive conduct by Omni; (2) Plaintiff has not 19 alleged that she relied on any specific representation made by Omni, and therefore lacks 20 statutory standing; and (3) Plaintiff has failed to plead her claims sounding in fraud with 21 particularity as required by Federal Rule of Civil Procedure 9(b). [Doc. No. 8 at p. 9.] The 22 Court addresses each of these arguments in turn. 23 1.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
Charbonnet v. Omni Hotels and Resorts, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charbonnet-v-omni-hotels-and-resorts-casd-2020.