Dzielak v. Whirlpool Corp.

120 F. Supp. 3d 409, 2015 U.S. Dist. LEXIS 100217, 2015 WL 4606577
CourtDistrict Court, D. New Jersey
DecidedJuly 31, 2015
DocketCiv. No. 2:12-0089 (KM)(JBC)
StatusPublished
Cited by2 cases

This text of 120 F. Supp. 3d 409 (Dzielak v. Whirlpool Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dzielak v. Whirlpool Corp., 120 F. Supp. 3d 409, 2015 U.S. Dist. LEXIS 100217, 2015 WL 4606577 (D.N.J. 2015).

Opinion

OPINION

KEVIN McNULTY, District Judge,

Has the EPA been wishy-washy about fishy washers? And if so, does its remedial inaction constitute a statement of federal law that preempts the plaintiffs’ state law causes of action against a manufacturer and sellers of washing machines?

The defendants in this case manufactured and sold washing machines that bore the federal Energy Star insignia, an assurance of energy efficiency. After the Environmental Protection Agency (“EPA”) found that the relevant washer models did not qualify for the Energy Star program, the plaintiffs brought suit. In the Second Amended Complaint, they assert state law breach of warranty and consumer fraud claims, as well as a claim under the federal Magnuson-Moss Warranty Act.

The defendants have moved to dismiss the state law claims, asserting that they are preempted by federal law. The federal EPA, they say, could have ordered compensation but did not do so, so any state claim -for compensation is preempted. EPA’s inaction, however, does not create the kind of stark conflict that requires state law to yield. I hold that the state law claims are not preempted. I do, however, grant defendants’ motion to-dismiss the Magnuson-Moss claim. The claim of unjust enrichment is- likewise dismissed, though only as to defendant Whirlpool.

Background1

The clothes washers at issue were manufactured by defendant Whirlpool. The plaintiffs purchased them from the defendant retailers. (Opinion,2 1) All of these [413]*413washing machines bore the logo of a federal program called Energy Star. Id. at 2. Energy Star is designed to promote the development and use of energy efficient products and buildings. See 42 U.S.C. § 6294a(a). It permits an appliance manufacturer to affix the Energy Star logo to a product if it meets certain efficiency standards. (Opinion, 2) Energy Star-products often cost. more . than non-Energy Star products. Id. at 3. On the other hand, their efficiency may result in savings in the long run. (Compl. ¶ 6)

According to' the Complaint, in May 2012 the Department of Energy3 determined that the washer models purchased by the plaintiffs did not comply with Energy Star requirements. Those models were therefore disqualified from the Energy-Star program. (Opinion, 2; Compl., ¶¶ 106,108)

The plaintiffs brought this action, alleging that they had purchased washing machines that were supposed to be compliant with Energy Star requirements, but in fact were not. (Compl. ¶ 1) They alleged various theories, including breach of warranty and violation of state consumer- fraud stat-utek On June 16, 2014,1 filed an Opinion granting in part the defendants’ motion to dismiss the First Amended Complaint. (Dkt. No. 78) Familiarity with that earlier, comprehensive opinion is assumed.

On July 28, 2014, the plaintiffs filed a Second Amended Complaint.4 In this revised complaint, they accuse the defendants of violating the Magnuson-Moss Warranty Act (“MMWA”), a federal‘statute dealing with warranties in consumer products (Count I); they bring state law claims for breach of express warranty (Count II) and the implied warranty of merchantability (Count III); they bring a state law claim of unjust enrichment (Count IV); and they assert claims for violation of the consumer protection statutes of their home states (Counts V through XIV). The defendants are Whirlpool, the manufacturer of the washing machines, as well as several retailers Who sold the-machines to the plaintiffs.5

[414]*414Whirlpool, joined by the other defendants, has. brought a motion (Dkt. Nos. 89, 90) to dismiss the Complaint. First, Whirlpool argues that the federal law and regulations governing the Energy Star program preempt all of the state law claims. (Mot., 14-31) Second, Whirlpool argues that the plaintiffs’ claim under the Magnuson-Moss Warranty Act must be dismissed because MMWA does not apply to warranties that are governed by other federal laws. Id. at 33-34. Third, Whirlpool argues that the claim of unjust enrichment must be dismissed pursuant to my earlier opinion in this case, in which I found that the plaintiffs had not shown that they conferred a sufficiently direct benefit on Whirlpool. Id. at 34.

Discussion

I find that the state law claims are not preempted by federal law (Part I). I find, however, that the MMWA claim must be dismissed for failure to state a claim (Part II), and that the claim of unjust enrichment must be dismissed as to Whirlpool only (Part III).

I. Preemption

The Constitution provides that federal law will be supreme over state law. U.S. Const. art. VI, cl. 2 (“This Constitution, and the Laws of the United States which shall be made in Pursuance thereof ... shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby.”) Where a state law interferes with or is contrary to a federal law, the federal law will preempt the state law. Free v. Bland, 369 U.S. 663, 666, 82 S.Ct. 1089, 8 L.Ed.2d 180 (1962). In general, preemption takes three forms:

(1) “express” preemption, applicable when Congress expressly states its intent to preempt state law; (2) “field” preemption, applicable when “Congress’ intent to pre-empt all state law in a particular area may be inferred [because] the scheme of federal regulation is sufficiently comprehensive” or “the federal interest is so dominant that the federal system will be assumed to preclude enforcement of state laws on the same subject;” and (3) “conflict” preemption, applicable when “state law is nullified to the extent that it actually conflicts with federal law,” even though Congress has not displaced all state law in a given area.

Fellner v. Tri-Union Seafoods, L.L.C., 539 F.3d 237, 242-43 (3d Cir.2008) (quoting Colacicco v. Apotex Inc., 521 F.3d 253, 261 (3d Cir.2008) (quoting Hillsborough County v. Automated Med. Labs., 471 U.S. 707, 713, 105 S.Ct. 2371, 85 L.Ed.2d 714 (1985))).

Whirlpool argues that the federal EPA’s failure to require manufacturers to pay compensation to purchasers of the disqualified washers preempts any state-law requirement that such compensation will be paid. It invokes both field and conflict preemption.6 To resolve that preemption issue, I will consider four questions:

a) Whether this agency action is the kind of federal “law” that has preemptive effect.

b) Whether these are claims traditionally reserved to the states that give rise to a presumption against preemption.

c) Whether federal law so occupies this particular field that there is no room for state law involvement (i.e., “field preemption”). See Farina v. Nokia Inc., 625 F.3d 97, 121 (3d Cir.2010).

[415]

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
120 F. Supp. 3d 409, 2015 U.S. Dist. LEXIS 100217, 2015 WL 4606577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dzielak-v-whirlpool-corp-njd-2015.