Hennessey v. The Gap Inc.

CourtDistrict Court, E.D. Missouri
DecidedSeptember 23, 2022
Docket4:19-cv-01867
StatusUnknown

This text of Hennessey v. The Gap Inc. (Hennessey v. The Gap Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hennessey v. The Gap Inc., (E.D. Mo. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI individually and onE ASTERN DIVISION behalf of all others similarly situated JILL HENNESSEY, ) , ) ) Plaintiff, ) ) v. ) Case No. 4:19-cv-01867-SEP ) THE GAP, INC. and OLD NAVY, LLC, ) ) Defendants. MEM ORAND U )M AND ORDER

Before the Court is Defendants’ Motion to Dismiss. Doc. 54. The Motion is fully briefed and ready for disposition. FFAoCrT tSh AeN rDe aBsAoCnKsG sReOtU fNorDt h below, the Motion is granted. This is a putative class action brought under the laws of the State of Missouri pursuant to the Class Action Fairness Act of 2005. Plaintiff Jill Hennessey alleges that Defendants The Gap and Old Navy violated the Missouri Merchandising Practices Act (MMPA) by making false and misleading price comparisons in connection with the advertisement and sale of their merchandise. Doc. 26 ¶ 2. Plaintiff alleges that she id. purchased numerous products at advertised discount prices at “one or more Gap and Old Navy retail stores” in Missouri, ¶¶ 9, 32, 37, 40, 45, and seeks to represent herself and a putative class of similarly situated Missouri purchasers who, within five years prior to the id. date of filing, purchased products from Defendants at prices that purported to be discounts of 20% or more, ¶ 49. As many stores do, Defendants sell products at “regular” prices and at discounted “sale” prices. According to Plaintiff, the sale prices that Defendants advertised for many of their products were deceptive, because Defendants did not sell a substantial quantity of Id. those products at the regular price for a substantial period of time prior to selling them at the sale price. ¶ 3. She further alleges that, “through their use of fictitious and unsubstantiated former price comparisons, Defendants intentionally and/or negligently Id. or worth of the products they sold to Plaintiff and the Class.” ¶ 29. Plaintiff claims that by advertising the sale prices in comparison with the illusory former prices, Defendants id. “represent[ed] that consumers can buy products . . . on ‘sale’ and at a substantial discount from their advertised former price,” ¶ 3, and “intended to induce Plaintiff and members Id. of the Class to purchase products in quantities and/or at prices at which they would not otherwise have agreed.” ¶ 29. Plaintiff also alleges that, in addition to their comparative pricing scheme, Defendants offer “a constant array of promotions, such as store-wide sales, less Id. coupons, and other discounts, such that the average actual selling price (and therefore the market value) of each item is often than the advertised ‘sale’ price.” ¶ 27. Plaintiff claims that as a result of Defendants’ misleading advertising practices, she and the putative class members did not receive the benefit of the bargain that Defendants promised them, Id. because the products they purchased from Defendants did not have the higher value that Defendants allegedly represented they had. ¶ 3. The Amended Complaint details three specific transactions and includes at least 21 id. items that Plaintiff purchased during the putative class period, such as: a blouse with a id. regular price of $15.29 and a sale price of $9.17, ¶ 32; a tank-top with a regular price of id. $4.99 and a sale price of $2.49, ¶ 37; and a crew-neck T-shirt with a regular price of $14.99 and a sale price of $7.49, ¶ 41. Plaintiff alleges that she “is now informed and Id. believes . . . that all of the alleged former prices were false and misleading . . . because they did not represent . . . actual, bona fide prices” as required by Missouri law. ¶ 44. She also alleges that she “is further informed and believes that the prevailing retail price and, therefore, the actual fair market value of each item at the time of her purchase was Id. materially lower than the advertised former prices and may have even been less than the discounted prices that she paid.” ¶¶ 44, 28. Based oCno tuhnet f Io:r eugnolianwg faullle pgraaticotnicse, sth ien Avmioelantdieodn Coofm thpela MinMt bPrAin; g s two counts: Count II: unjust enrichment. Id. at 21-27. In their Motion to Dismiss, Defendants argue that The Gap should be dismissed as a party because Plaintiff fails to allege a specific transaction with The Gap; Count I should be bargain rule; and Count II should be dismissed because Plaintiff received what she intended to purchase. Doc. 55 at 1. Because the Court finds that Counts I and II should be dismissed, the Court does not consider Defendants’ argument regarding the individual dismissal of The Gap. LEGAL STANDARD The purpose of a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) Neitzke v. Williams is to test the legal sufficiency of the complaint. When considering a Rule 12(b)(6) motion, a court assumes the factual allegations of the complaint are true, ,490 U.S. 319, 32B 6r -a 2d 7e (n 1 v 9. 8W 9a ),l - aM na dr dt rS at wor se as, l lI n rec. asonable inferences in the non-movant’s favor. , 588 F.3d 585, 595 (8th Cir. 2009) (citation omitted). Although Plaintiff brings only state law claims, because she filed her action in See Karnatcheva v. JPMorgan Chase Bank, N.A. In re federal court, the federal pleading standards of the Federal Rules of Civil Procedure apply. Baycol Prods. Litig. , 704 F.3d 545, 548 (8th Cir. 2013); , 616 F.3d 778, 786 (8th Cir. 2010). The sufficiency of a complaint is ordinarily tested by the general pleading standard of Federal Rule of Civil Procedure 8. All Streambend Properties II, LLC v. Ivy Tower claims “grounded in fraud,” however, must meet the heightened pleading standard of Minneapolis, LLC Federal Rule of Civil Procedure 9(b). , 781 F.3d 1003, 1010 (8th Cir. 2015) (citations omitted). Plaintiff’s claims are both grounded in fraud. The MMPA prohibits the “act, use or employment by any person of any deception, fraud, false pretense, false promise, misrepresentation, unfair practice or the concealment, suppression, or omission of any material fact in connection with the sale or advertisement of any merchandise in trade or Goldman v. Tapestry, Inc. commerce . . . .” Mo. Rev. Stat. § 407.020. “The Eastern and Western Districts of Missouri accord Blake v. Career Educ. Corp. have consistently held that Rule 9(b) applies to MMPA cases.” , see also Lavender v. Wolpoff & 501 F. Supp. 3d 662, 666 (E.D. Mo. 2020); , 2009 WL Abramson, L.L.P 140742, at *2 (E.D. Mo. Jan. 20, 2009) (collecting cases); , 2007 WL 2507752, at *2 (W.D. Mo. Aug. 30, 2007) (“Rule 9(b)’s Courchene v. Citibank N.A. particularity requirements apply with equal force to state consumer fraud statutes as they do to common law fraud claims.” (quoting , 2006 WL 2192110 (W.D. Mo. Aug. 1, 2006))). Rule 9(b) applies to Plaintiff’s unjust enrichment claim because seePodpeskar v. Makita U.S.A. Inc. , 247 F. Supp. 3d 1001, 1013 n.8 (D. Minn. 2017) (applying OrthoAccel Technologies, Rule 9(b) to unjust enrichment claim because it relied on the same misrepresentations that Inc. v. Devicix, LLC formed the basis of the plaintiff’s fraud claims) (citation omitted); , 2015 WL 4563134, at *6 (D. Minn.

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