Chicago Faucet Shoppe, Inc. v. Nestlé Waters North America Inc.

24 F. Supp. 3d 750, 2014 WL 541644, 2014 U.S. Dist. LEXIS 16871
CourtDistrict Court, N.D. Illinois
DecidedFebruary 11, 2014
DocketNo. 12 C 08119
StatusPublished
Cited by15 cases

This text of 24 F. Supp. 3d 750 (Chicago Faucet Shoppe, Inc. v. Nestlé Waters North America Inc.) 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
Chicago Faucet Shoppe, Inc. v. Nestlé Waters North America Inc., 24 F. Supp. 3d 750, 2014 WL 541644, 2014 U.S. Dist. LEXIS 16871 (N.D. Ill. 2014).

Opinion

MEMORANDUM OPINION AND ORDER

John J. Tharp, Jr., United States District Judge

This putative class action alleges a violation of the Illinois Consumer and Decep[754]*754tive Business Practices Act, 815 ILCS 505/1 et seq. (“ICFA”), and the materially similar consumer protection statutes of other states. The plaintiff, Chicago Faucet Shoppe, Inc., on behalf of itself and a class of other purchasers of Ice Mountain ® 1 5-gallon bottled water, alleges that defendant Nestlé Waters North America, Inc. committed unfair and deceptive trade practices in violation of the ICFA by intentionally failing to disclose on its website, invoices, and delivery trucks, the fact that Ice Mountain 5-gallon bottled water is resold municipal tap water and not natural spring water. Chicago Faucet allegedly would not have purchased the Ice Mountain 5-gallon bottled water had Nestlé Waters disclosed that the 5-gallon water was not natural spring water. The complaint also alleges that Nestlé Waters was unjustly enriched because its failure to disclose the true source of the water allowed it to charge a premium for inferior water. Nestlé Waters moves to dismiss the complaint on numerous grounds. For the reasons that follow, the court concludes that the plaintiffs claim is largely preempted, and to the extent that it is not, plaintiff fails to plead a valid claim.

BACKGROUND

Nestlé Waters sells bottled water in the United States under various brand names, including Ice Mountain, which it sells in Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. Ice Mountain bottled water is available in different serving sizes, such as eight-ounce bottles and five-gallon jugs. Five-gallon jugs for delivery to the consumer’s home or office can only be purchased by phone or through a website, www.ieemowntain water.com. One of Nestlé Waters’ marketing websites stated that “[ejvery 3^4 weeks you’ll have pure, refreshing spring water in 5-gallon bottles or cases delivered right to your door.” Compl. Dkt. # 1 ¶ 29, & Ex. D. Another website displayed a picture of a five-gallon jug accompanied by the language “Convenient Home Delivery” and “100% Natural Spring Water.” Nes-tlé Waters’ websites did not disclose anywhere that the water in its Ice Mountain five-gallon jugs was municipal tap water and not natural spring water.

The complaint alleges that, in 2008, after viewing the website www.ieemowntain water.com, an officer of Chicago Faucet began purchasing Ice Mountain five-gallon bottled water for the company. The officer purchased the water by telephone and believed that the water being purchased was “100% Natural Spring Water.” The bottles were delivered to the plaintiff by trucks displaying the Ice Mountain Natural Spring Water logo, and the plaintiff received monthly billing invoices with the “Ice Mountain Natural Spring Water” logo on them. In July 2012, some employees of the defendant informed the plaintiff for the first time that the five-gallon bottled water was not spring water. Chicago Faucet immediately stopped purchasing the five-gallon bottled water from Nestlé Waters, and it would not have purchased them to begin with had it known that the water was not 100% natural spring water but rather was sourced from municipal water systems.

Based on these allegations, Chicago Faucet contends that Nestlé Waters deceptively marketed its five-gallon bottles of municipal tap water, in violation of the ICFA. The case was originally brought in the Circuit Court of Cook County, and [755]*755Nestlé Waters removed it to this Court.2 Nestlé Waters now moves to dismiss the entire complaint on the following grounds: (1) the plaintiff lacks Article III standing, as it has not alleged a causal connection between Nestlé Water’s conduct and plaintiffs claimed injury, see Fed.R.Civ.P. 12(b)(1); (2) the plaintiffs state-law claim is expressly preempted by the Federal Food, Drug & Cosmetic Act (“FDCA”), 21 U.S.C. § 3-1 et seq. Nestlé Water’s non-disclosures of the source of the 5-gallon bottled water are not actionable under the ICFA’s safe-harbor provision, as they were specifically authorized by federal regulations; (4) the ICFA claim is barred by the three-year statute of limitation; (5) there can be no unjust enrichment claim because there was a contract governing the two parties’ relationship; (6) plaintiffs claims should be barred by the UCC’s safe-harbor provision, 810 ILCS 5/2-607(3)(a); (7) plaintiffs claims are barred by the voluntary payment doctrine; and (8) the plaintiff has not alleged facts plausibly showing that it was actually deceived by Nestlé Waters’ alleged conduct in violation of the ICFA.

DISCUSSION

The ICFA makes it unlawful to use deception or fraud in the conduct of trade or commerce, and anyone who suffers “actual damage” as a result of any other’s violation of the ICFA is entitled to bring an action. See 815 ILCS 505/2, 505/10A. A cause of action under the ICFA has five elements; a plaintiff must establish that: “(1) a deceptive act or unfair practice occurred, (2) the defendant intended for plaintiff to rely on the deception, (3) the deception occurred in the course of conduct involving trade or commerce, (4) the plaintiff sustained actual damages, and (5) such damages were proximately caused by the defendant’s deception.” Dubey v. Public Storage, Inc., 395 Ill.App.3d 342, 335 Ill.Dec. 181, 918 N.E.2d 265, 277 (Ill.App.Ct.2009); see Davis v. G.N. Mortg. Corp., 396 F.3d 869, 883 (7th Cir.2005).

When considering a motion to dismiss under either Rule 12(b)(1) or Rule 12(b)(6), the Court accepts as true all well-pleaded facts and draws all reasonable inferences in favor of the plaintiff. E.g., Yeftich v. Navistar, Inc., 722 F.3d 911, 915 (7th Cir.2013) (Rule 12(b)(6) motion); Scanlan v. Eisenberg, 669 F.3d 838, 841 (7th Cir.2012) (Rule 12(b)(1) motion to dismiss for lack of standing). Exhibits attached to a complaint become part of the pleadings, see Fed.R.Civ.P. 10(c), and can be considered on a motion to dismiss. Bogie v. Rosenberg, 705 F.3d 603, 609 (7th Cir.2013). Therefore, the plaintiffs Exhibits A through D, which are screenshots websites purportedly maintained by the defendant, are properly before the Court, whether they support or undermine the plaintiffs claims. See id. Whether the additional materials submitted by the parties can be considered will be addressed as necessary.

In deciding the motion, the Court will consider the threshold issues first: (1) whether the plaintiff has Article III standing; (2) whether the plaintiffs ICFA claim is time-barred; and (3) whether the plain[756]*756tiffs state law claim is preempted by federal law.

A. Standing

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Bluebook (online)
24 F. Supp. 3d 750, 2014 WL 541644, 2014 U.S. Dist. LEXIS 16871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-faucet-shoppe-inc-v-nestle-waters-north-america-inc-ilnd-2014.