Deere Construction, LLC v. Cemex Construction Materials Florida, LLC

198 F. Supp. 3d 1332, 2016 WL 4374970, 2016 U.S. Dist. LEXIS 111145
CourtDistrict Court, S.D. Florida
DecidedJuly 26, 2016
DocketCASE NO. 15-24375-CIV-ALTONAGA/O’Sullivan
StatusPublished
Cited by14 cases

This text of 198 F. Supp. 3d 1332 (Deere Construction, LLC v. Cemex Construction Materials Florida, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deere Construction, LLC v. Cemex Construction Materials Florida, LLC, 198 F. Supp. 3d 1332, 2016 WL 4374970, 2016 U.S. Dist. LEXIS 111145 (S.D. Fla. 2016).

Opinion

ORDER

CECILIA M. ALTONAGA, UNITED STATES DISTRICT JUDGE

THIS CAUSE came before the Court on Defendants, Cemex Construction Materials Florida, LLC (“Cemex Construction”), and Cemex, Inc.’s (“Cemexf’s]”) (collectively “Defendants!’]”) Motion to Dismiss Amended Class Action Complaint ... (“Motion”) [ECF No. 58], filed June 20, 2016.1 Defendants seek to dismiss the Amended Class Action Complaint (“Amended Complaint”) [ECF No. 49] pursuant to Federal Rule of Civil Procedure 12(b)(6), for failure to state a claim for relief. The Court has carefully reviewed the Amended Complaint; the Motion; Plaintiff, Deere Construction, LLC’s (“Deere[’s]”) Response ... (“Response”) [ECF No. 64]; Defendants’ Reply ... (“Reply”) [ECF No. 70]; and applicable law. For the reasons explained below, the Motion is denied.

I. BACKGROUND2

The Amended Complaint states two claims for relief: the first is brought [1335]*1335against both Defendants under the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”), Florida Statutes section 501.201-501.2101 (First and Second Causes of Action);3 and the second is for breach of contract (Third Cause of Action) against Cemex Construction. (See Am. Compl. 18-27). Deere does business in Miami-Dade County and received and paid multiple invoices from Defendants for cement and concrete, including invoices dated December 19, 2011, February 2, 2012, and March 13, 2012. (See id. ¶¶ 2, 15). Defendants collectively are a global building material company whose customers enter into “uniform and effectively identical” written service agreements. (Id. ¶¶ 1-2). Plaintiffs contract, attached as Exhibit A to the Amended Complaint, was with Rinker Materials of Florida, Inc., which converted to Cemex Construction in 2008. (See id. 2 n.1).

The contracts provide an agreed upon rate for cement and concrete, but in addition, Defendants charge their Florida customers two additional fees: a “fuel surcharge” and an “environmental charge” (hereinafter sometimes referred to collectively as “fees”). (See id. ¶¶ 2, 3). Defendants’ naming of the fees is not accidental: Defendants chose the terms intentionally to create the false impression the fees are legitimate charges directly related to specific costs Defendants incur in providing them services. (See id. ¶ 4). Defendants use these uniform terms on each invoice they send their customers charging these fees, including the three referenced invoices paid by Deere. (See id. ¶¶ 4, 15). “Fuel surcharge” bears no relation to any actual or increased fuel costs Defendants incur; if it did, the precipitous drop in fuel prices the last four years would have resulted in a corresponding drop in Defendants’ fuel surcharges. (See id. ¶ 5). The “environmental charge” does not correspond with or offset any actual or increased environmental costs either. (See id. ¶ 6).

Instead, these charges are used to generate extra profit at the expense of customers, who are deceived into believing the fees are legitimate charges directly related to Defendants’ actual or increased fuel and environmental costs. (See id. ¶ 7). The fees are nothing but profit-enhancers disguised as fees that have a legitimate purpose, constituting a violation of the FDUTPA. (See id. ¶ 8). Defendants’ representations, omissions, and practices in charging these fees are deceptive and unfair. (See id. ¶ 7).

The “Standard Terms and Conditions” of the agreement between Deere and Ce-mex Construction states: “Seller reserves the right to charge a fuel surcharge, raw materials surcharge or other surcharges that may apply. Any fuel surcharge will be calculated from the Federal Energy Information Administration’s weekly reporting of diesel fuel pricing for the respective operating region.” (Id., Ex. A ¶ 11)). Defendants4 breached their contract with Deere by charging it and members of the putative class fees that are not calculated pursuant to the Federal Energy Information Administration’s (“EIA[’s]”) weekly reporting of diesel fuel pricing for the [1336]*1336respective operating region and that are unrelated to Defendants’ actual or increased fuel and environmental costs. (See id. ¶ 9). Further, the “environmental charge” is not disclosed or identified anywhere in the Deere-Cemex Construction contract. (See id. ¶ 25).

By using the term “fuel surcharge” in every invoice received by class members charged this fee, Defendants have deceived Deere and members of the putative class into believing the fee is calculated using Defendants’ actual or increased fuel costs and that the fee will be used to defray such costs. (See id. ¶ 27). Defendants also falsely represent the “environmental charge” is directly related to their actual or increased environmental costs, particularly environmental compliance costs, and that the fee is used to offset these costs. (See id. ¶¶ 35, 38-40). Indeed, a Cemex United Kingdom website describes the “fuel surcharge” and “environmental fees” as “cost recovery charges.” (Id. ¶ 29 & n.3). A Cemex website states “we have introduced an Environmental Charge to enable customers to see the environmental taxes and levies to which the readymix concrete industry is subject. The Environmental Charge is applied to recover these costs imposed by government and regulators.” (Id. ¶ 37). Defendants’ misrepresentations and omissions, combined with described deceptive and unfair practices, did in fact deceive Plaintiff and other Florida customers to their detriment, in that each paid “fuel surcharges” and “environmental charges.” (See id. ¶ 46).

Plaintiff alleges two proposed classes, a FDUTPA class and a breach of contract class. (See ¶¶ 48, 49). On its FDUTPA claim, Plaintiff seeks the repayment of all money paid for fuel surcharges and environmental charges plus interest, an order enjoining Defendants’ conduct, and attorney’s fees, (See id. 23, 25). On its breach of contract claim against Cemex Construction, Plaintiff seeks as compensatory damages an amount equal to the improper and excessive fees paid to Defendant. (See id. 27). Defendants move to dismiss the Amended Complaint for failure to state claims for relief.

II. STANDARD

“To survive a motion to dismiss [under Rule 12(b)(6)], a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (alteration added; quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). Although this pleading standard “does not require ‘detailed factual allegations,’ ... it demands more than an unadorned, the defendant-unlawfully-harmed-me accusation.” Id. (alteration added; quoting Twombly, 550 U.S. at 555, 127 S.Ct. 1955). Pleadings must contain “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955 (citation omitted).

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Bluebook (online)
198 F. Supp. 3d 1332, 2016 WL 4374970, 2016 U.S. Dist. LEXIS 111145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deere-construction-llc-v-cemex-construction-materials-florida-llc-flsd-2016.