Forcellati v. Hyland's, Inc.

876 F. Supp. 2d 1155, 2012 U.S. Dist. LEXIS 91393, 2012 WL 2513481
CourtDistrict Court, C.D. California
DecidedJune 1, 2012
DocketNo. CV 12-1983-GHK (MEWx)
StatusPublished
Cited by29 cases

This text of 876 F. Supp. 2d 1155 (Forcellati v. Hyland's, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Forcellati v. Hyland's, Inc., 876 F. Supp. 2d 1155, 2012 U.S. Dist. LEXIS 91393, 2012 WL 2513481 (C.D. Cal. 2012).

Opinion

Proceedings: (In Chambers) Order re: Motion to Dismiss Complaint; [8]

GEORGE H. KING, District Judge.

Beatrice Herrera, Deputy Clerk.

This matter is before us on Defendants Hyland’s, Inc. (“Hyland’s”), Standard Homeopathic Laboratories, Inc., and Standard Homeopathic Company’s (collectively, “Defendants”) Motion to Dismiss Complaint (“Motion”). We have considered the papers filed in support of and in opposition to this Motion and deem this matter appropriate for resolution without oral argument. L.R. 7-15. As the Parties are familiar with the facts, we will repeat them only as necessary. Accordingly, we rule as follows.

I. Background

On a motion to dismiss, we accept the allegations of the Complaint as true and construe them in the light most favorable to the plaintiff. Cousins v. Lockyer; 568 F.3d 1063, 1067 (9th Cir.2009). Plaintiff Enzo Forcellati (“Plaintiff’), a New Jersey resident, states that Defendants “represent! 1 that [their] homeopathic Cold and Flu Remedies offer children ‘Fast acting,’ ‘Safe & Effective,’ ‘Multi-symptom’ relief from cold and flu symptoms, including run[1158]*1158ny noses, sore throats, coughs, headaches, body aches, flu and congestion.” (Class Action Complaint (“CAC”) ¶ 2). Plaintiff asserts, however, that Defendants’ products are “nothing more than sweetened, flavored water with only highly diluted concentrations of the products’ so-called ‘active ingredients.’ ” (Id.). On the basis of these allegations, Plaintiff asserts the following claims: (1) Violation of MagnusonMoss Act, 15 U.S.C. §§ 2301 et seq.; (2) Unjust Enrichment; (3) Breach of Express Warranty; (4) Breach of Implied Warranty; (5) Violation of the New Jersey Consumer Fraud Act, N.J.S.A. §§ 58:8-1 et seq. (“NJCFA claim”); (6) Violation of the Consumer Legal Remedies Act, Cal. Civ.Code §§ 1750 et seq. (“CLRA claim”); (7) Violation of the False Advertising Law, Cal. Bus. & Prof.Code §§ 17500 et seq. (“FAL claim”); and (8) Violation of the Unfair Competition Law, Cal. Bus. & Prof. Code 17200 et seq. (“UCL claim”). Plaintiff brings the first, second, third, and fourth claims individually and on behalf of a nationwide class and New Jersey subclass; the fifth claim on behalf of a New Jersey sub-class; and the sixth, seventh, and eighth claims on behalf of a nationwide class.

Defendants move to dismiss the CAC for the following reasons: First, Defendants argue that based on the Ninth Circuit’s opinion in Mazza v. Am. Honda Motor Co., 666 F.3d 581 (9th Cir.2012), Plaintiff “lacks standing to assert claims under California’s consumer protection laws, for himself or on behalf of a putative nationwide class.” (Mot. 1). Second, Defendants argue, also pursuant to Mazza, that “Plaintiff cannot certify a nationwide class for alleged violations of consumer protection laws.” (Id. at 2). Third, Defendants argue that Plaintiff lacks standing to assert claims regarding any products that he did not use.1 Fourth, Defendants argue that Plaintiffs warranty claims fail because “Plaintiff has not alleged any statements that create any actionable express or implied warranties.” (Id. at 1-2). Defendants further argue that Plaintiffs Magnuson-Moss Act claim fails because their over-the-counter medications are not “consumer products” within the meaning of Magnuson-Moss. Fifth, Defendants argue that Plaintiffs purported unjust enrichment claim fails because unjust enrichment is a remedy, rather than a claim.2 Sixth, Defendants argue that Plaintiffs NJCFA claim is deficient because he does not allege that Defendants engaged in any unlawful conduct or that Plaintiff suffered an ascertainable loss.

II. Legal Standard for Motion to Dismiss

In order to survive dismissal for failure to state a claim, a complaint must set forth “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). It must contain factual allegations sufficient [1159]*1159to “state a claim to relief that is plausible on its face.” Id. at 570, 127 S.Ct. 1955; see also Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). Additionally, Plaintiffs fraud-based claims are subject to Federal Rule of Civil Procedure 9(b)’s heightened pleading requirement. See Neilson v. Union Bank of Cal., 290 F.Supp.2d 1101, 1141 (C.D.Cal.2003). Rule 9(b) requires Plaintiff to “state with particularity the circumstances constituting fraud or mistake.” This means that Plaintiff must allege the “who, what, when, where and how” supporting his fraud-based allegations made in the Complaint. Vess v. Cibar-Geigy Corp. USA, 317 F.3d 1097, 1106 (9th Cir.2003). Although we must accept the allegations of the Complaint as true and construe them in the light most favorable to Plaintiff in resolving this Motion, we need not accept as true legal conclusions “cast in the form of factual allegations.” W. Mining Council v. Watt, 643 F.2d 618, 624 (9th Cir.1981).

III. Discussion

A. Plaintiff’s Nationwide Class Claims

Defendants argue that under the Ninth Circuit’s decision in Mazza, 666 F.3d 581, “the variances in state laws overwhelm any common issues and, as a result, neither the predominance of common issues nor the superiority requirements for class certification under F.R.C.P. 23(b)(3) can be met.” (Mot. 22). We find Defendants’ argument to be unripe at this stage of litigation. Mazza did not purport to hold that nationwide classes are, as a matter of law, uncertifiable under California’s consumer protection laws, which is unsurprising given the case-specific nature of choice-of-law analysis. Indeed, the court made clear that its holding was cabined to the facts before it, holding: “Under the facts and circumstances of this case, we hold that each class member’s consumer protection claim should be governed by the consumer protection laws of the jurisdiction in which the transaction took place.” Id. at 594. Importantly, Mazza (and nearly every other case cited by Defendants) undertook a class-wide choice-of-law analysis at the class certification stage, rather than the pleading stage at which we find ourselves. Until the Parties have explored the facts in this case, it would be premature to speculate about whether the differences in various states’ consumer protection laws are material in this case. See Pokorny v. Quixtar, Inc., 601 F.3d 987

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Bluebook (online)
876 F. Supp. 2d 1155, 2012 U.S. Dist. LEXIS 91393, 2012 WL 2513481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forcellati-v-hylands-inc-cacd-2012.