Dragoslavic v. Ace Hardware Corp.

274 F. Supp. 3d 578
CourtDistrict Court, E.D. Texas
DecidedAugust 16, 2017
DocketCIVIL ACTION NO. 2:17-CV-00141-JRG
StatusPublished
Cited by6 cases

This text of 274 F. Supp. 3d 578 (Dragoslavic v. Ace Hardware Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dragoslavic v. Ace Hardware Corp., 274 F. Supp. 3d 578 (E.D. Tex. 2017).

Opinion

MEMORANDUM OPINION AND ORDER

RODNEY GILSTRAP, UNITED STATES DISTRICT JUDGE

Before the Court is Defendant Ace Hardware Corporation’s (“Ace Hardware”) Motion to Dismiss Plaintiffs Class Action Complaint (Dkt. No. 13) (“the Motion”). Having considered each Parties’ arguments and for the reasons set forth below, the Motion is GRANTED.

I. Background

On February 17, 2017, Plaintiff Sam Dragoslavic (“Dragoslavic” or “Plaintiff’) [581]*581filed this lawsuit, on behalf of himself and a proposed class of others similarly situated, alleging that Defendant Ace Hardware made false or misleading statements about its products. Specifically, Plaintiff argues that Ace Hardware labeled “certain products” as “Solid Brass” even though these products are not entirely made of brass. (Dkt. No. 1 at ¶ 1.) The Complaint includes no further description of the products at issue except for mention of two examples. (Id. at 17-20.)

Plaintiff Dragoslavic has sought relief on behalf of himself and putative class members under the Texas Deceptive Trade Practices Consumer Protection Act and the laws of 44 other states and the District of Columbia. (Dkt. No. 1 at ¶¶137-86.) Plaintiff does not allege that he purchased products or resides in any of these states, except Texas. (Id. at ¶ 5.)

Defendant Ace Hardware is incorporated in Delaware and has its primary place of business in Illinois. (Id. at ¶ 6.) It operates as a nationwide cooperative in which stores in various communities, including throughout Texas, operate under the same name. (Id.)

On April 25, 2017, Ace Hardware filed the instant Motion seeking to dismiss Plaintiff’s claims for lack of subject matter jurisdiction and failure to state a claim. (Dkt. No. 13.)

II. Legal Standard

A. Dismissal for Lack of Subject Matter Jurisdiction

“Congress and the Constitution together prescribe. the bounds of federal courts’ subject matter jurisdiction.” Genband US LLC v. Metaswitch Networks Ltd, No. 2:16-CV-00582-JRG, 248 F.Supp.3d 825, 828, 2017 WL 1246366, at *2 (E.D. Tex. Mar. 31, 2017). Article III of the Constitution in particular limits the exercise of the judicial power to “Cases” and “Controversies.” U.S. CONST, art. Ill, § 2. “[T]he doctrine of standing serves to identify those [cases and controversies] which are appropriately resolved through the judicial process.” Whitmore v. Arkansas, 495 U.S. 149, 155, 110 S.Ct. 1717, 109 L.Ed.2d 135 (1990). It imposes several requirements. Lujan v. Defs. of Wildlife, 504 U.S. 555, 560-61, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992). First, a plaintiff must establish an “injury in fact” that is “concrete and particularized” rather than “conjectural or hypothetical.” Id. at 560, 112 S.Ct. 2130 (internal quotation marks omitted). Second, a plaintiff must draw a “fairly traceable” causal connection between their injury and the defendant. Id. (internal ellipses and brackets omitted). Third, “it must be likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.” Id. at 561, 112 S.Ct. 2130 (internal quotation marks omitted). Finally, when a plaintiff seeks injunc-tive relief “an additional inquiry is required, namely that Plaintiffs show that they are likely to suffer future injury by the defendant and that the sought-after relief will prevent that future injury.” James v. City of Dallas, Tex., 254 F.3d 551, 563 (5th Cir. 2001), abrogated on other grounds by M.D. ex rel. Stukenberg v. Perry, 675 F.3d 832, 839-41 (5th Cir.2012).

Each of these elements must be supported “with the manner and degree of evidence required at the successive stages of the litigation.” Id. Here, Defendant has raised a “facial attack.” (Dkt. No. 13 at 2-3.) Therefore, the Court “is required merely to look to the sufficiency of the allegations in. the complaint because they are presumed to be true. If those jurisdictional allegations are sufficient the complaint stands.” Paterson v. Weinberger, 644 F.2d 521, 523 (5th Cir. 1981). See also Martin v. Local 556, Transp. Workers Union of Am. AFL-CIO, No. 3:14-CV-0500-D, 2014 WL 4358480, at *1 n.1 (N.D. Tex. Sept. 3, 2014) (“When a party makes a Rule 12(b)(1) [582]*582motion without including evidence ... [t]he court assesses [the] challenge as it does a Rule 12(b)(6) motion .... ”).

B. Dismissal for Failure to State a Claim

A motion to dismiss should generally be granted when a complaint fails to state a plausible claim for relief even where all well-pleaded facts are accepted as true and viewed in the light most favorable to the plaintiff. Bustos v. Martini Club, Inc., 599 F.3d 458, 461 (5th Cir. 2010). However, claims based in fraud must go further by “stat[ing] with particularity the circumstances constituting fraud.” Fed. R. Civ. P. 9(b). “Directly put, the who, what, when, and where must be laid out before access to the discovery process is granted.” Williams v. WMX Techs., Inc., 112 F.3d 175, 178 (5th Cir. 1997).

When considering such a motion, the court may rely on “the complaint, any documents attached to the complaint, and any documents attached to the motion to dismiss that are central -to the claim and referenced by the complaint.” Lone Star Fund V (U.S.) L.P. v. Barclays Bank PLC, 594 F.3d 383, 387 (5th Cir. 2010). “Matters or theories raised in a response are not part of the pleadings” and do not supplement the allegations in the complaint. Lohr v. Gilman, No. 3:15-CV-1931-L, 2017 WL 1178259, at *11 (N.D. Tex. Mar. 30, 2017).

III. Discussion

A. Subject Matter Jurisdiction

Thé Court begins by considering whether Plaintiff has standing to bring claims either in an individual, or representative capacity. Willoughby v. U.S. ex rel. U.S. Dep’t of the Army, 730 F.3d 476, 479 (5th Cir. 2013) (“When a Rule 12(b)(1) motion is filed in conjunction with other Rule 12 motions, the court should consider the Rule 12(b)(1) jurisdictional attack .... ”).

1. Plaintiffs Individual Sanding

i. Fraud Claims

Defendant. argues that because Plaintiff does not identify the false statements that he relied, on with particularity—i.e. what products Plaintiff purchased, where he purchased them, and when— Plaintiff lacks standing to bring his claims. (Dkt. No. -13' at 4.) Obviously,' if Plaintiff did not purchase any products from Ace Hardware, then he would lack standing to bring a claim based on false statements made in relation to Ace Hardware products.

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274 F. Supp. 3d 578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dragoslavic-v-ace-hardware-corp-txed-2017.