Kowalsky v. Hewlett-Packard Co.

771 F. Supp. 2d 1138, 73 U.C.C. Rep. Serv. 2d (West) 362, 2010 U.S. Dist. LEXIS 131711
CourtDistrict Court, N.D. California
DecidedDecember 13, 2010
DocketCase 10-CV-02176-LHK
StatusPublished
Cited by11 cases

This text of 771 F. Supp. 2d 1138 (Kowalsky v. Hewlett-Packard Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kowalsky v. Hewlett-Packard Co., 771 F. Supp. 2d 1138, 73 U.C.C. Rep. Serv. 2d (West) 362, 2010 U.S. Dist. LEXIS 131711 (N.D. Cal. 2010).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS

LUCY H. KOH, District Judge.

Defendant Hewlett-Packard Company (“HP”) moves to dismiss Plaintiff Chaim Kowalsky’s First Amended Class Action Complaint (“FAC”) for failure to state a claim pursuant to Rules 12(b)(6) and 9(b). The Court heard oral argument on November 23, 2010. Having considered the parties’ submissions and arguments, the Court grants in part and denies in part Defendant’s motion to dismiss.

I. Background

This case arises out of the marketing and sale of allegedly defective HP Office Jet Pro All-in-One printers of the 8500 series (“HP 8500 Printer”). According to Plaintiff, HP marketed its 8500 Printer as a premier all-in-one fax, copier, and scanner with a 50-sheet automatic document feeder (“ADF”). FAC ¶ 4. Plaintiff claims that HP also represented, on its website and on the product’s packaging, that the 8500 Printer is capable of scanning and copying documents fed through the 50-sheet ADF at speeds of 34 pages per minute in color and 35 pages per minute in black and white. FAC ¶ 31. Plaintiff alleges that, contrary to these representations, the HP 8500 Printer has a design defect that causes the printer to randomly skip pages when copying, scanning, and faxing, and that this defect renders the 50- *1141 sheet ADF useable for only two to three sheets at a time. Comp. ¶ 4.

Plaintiff purchased an HP 8500 Printer directly from HP’s website on or around July 2, 2009. FAC ¶ 29. Prior to purchasing the printer, he researched its specifications on the HP website and other third-party sites. FAC ¶¶ 29-30. Plaintiff claims that he relied on the description and specifications on HP’s website and purchased the 8500 Printer specifically because he needed a printer with an ADF capable of printing, scanning, and faxing multi-page documents. FAC ¶ 31. Once Plaintiff began using the printer, however, it began to randomly skip pages while copying, scanning, and faxing multi-page documents. Over the course of a few months, the problem grew progressively worse, and Plaintiff claims that eventually “the printer reached a point where it would always miss random pages when copying, scanning or faxing, rendering it totally unreliable and useless.” FAC ¶ 34. Plaintiff contacted HP customer care and received a replacement printer. FAC ¶ 35. Within a few days, however, Plaintiff noticed the same problem in the new printer. Id. He therefore contacted HP customer care again and received a second replacement printer, which also exhibited the same problem within a few days of use. FAC ¶ 36. At this point, “in need of a multi-function printer that would be reliable and seeing that three printers in a row from HP were all defective,” Plaintiff purchased a new printer from another manufacturer. Id.

Plaintiff alleges that HP knew of the defect in the 8500 Printers, but misrepresented and concealed this information in the marketing, advertising, sale, and servicing of the 8500 Printers. FAC ¶4. Plaintiff claims, further, that HP has manufactured and sold tens of thousands of defective HP 8500 Printers to consumers throughout the United States. FAC ¶ 27. Accordingly, on March 30, 2010, Plaintiff filed a Class Action Complaint against HP in the Santa Clara County Superior Court, seeking damages, restitution, disgorgement, and injunctive relief on behalf of a nationwide class of consumers who purchased 8500 Printers. On May 20, 2010, Defendant removed the action to federal court pursuant to the removal provisions of the Class Action Fairness Act, 28 U.S.C. §§ 1332(d), 1453. Defendant then moved to dismiss Plaintiffs Complaint. Rather than oppose the motion, Plaintiff filed a First Amended Complaint (“FAC”). The FAC asserts five causes of action: (1) unlawful, unfair, and deceptive business practices in violation of California Business & Professions Code § 17200, et seq.; (2) untrue and misleading advertising in violation of California Business & Professions Code § 17500, et seq.; (3) violations of the Consumers Legal Remedies Act, Cal. Civ. Code § 1750, et seq.; (4) breach of express warranty; and (5) breach of implied warranty of merchantability. Defendant now moves to dismiss the entire FAC for failure to state a claim under Federal Rules 12(b)(6) and 9(b).

II. Legal Standard

A motion to dismiss for failure to state a claim under Rule 12(b)(6) tests the legal sufficiency of a complaint. Navarro v. Block, 250 F.3d 729, 732 (9th Cir.2001). In considering whether the complaint is sufficient to state a claim, the court must accept as true all of the factual allegations contained in the complaint. Ashcroft v. Iqbal, — U.S.-, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009). However, the court need not accept as true “allegations that contradict matters properly subject to judicial notice or by exhibit” or “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” St. Clare v. Gilead Scis., Inc. (In re Gilead Scis. Sec. Litig.), 36 F.3d *1142 1049, 1055 (9th Cir.2008). While a complaint need not allege detailed factual allegations, it “must contain sufficient factual matter, accepted as true, to “ ‘state a claim to relief that is plausible on its face.’ ” ” Iqbal, 129 S.Ct. at 1949 (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). A claim is facially plausible when it “allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 129 S.Ct. at 1949.

Additionally, claims sounding in fraud are subject to the heightened pleading requirements of Federal Rule of Civil Procedure 9(b). Under the federal rules, a plaintiff alleging fraud “must state with particularity the circumstances constituting fraud.” Fed. R. Civ. Pro. 9(b). To satisfy this standard, the allegations must be “specific enough to give defendants notice of the particular misconduct which is alleged to constitute the fraud charged so that they can defend against the charge and not just deny that they have done anything wrong.” Semegen v. Weidner, 780 F.2d 727, 731 (9th Cir.1985). Thus, claims sounding in fraud must allege “an account of the time, place, and specific content of the false representations as well as the identities of the parties to the misrepresentations.” Swartz v. KPMG LLP, 476 F.3d 756, 764 (9th Cir.2007). In contrast, the heightened pleading requirement of Rule 9(b) does not apply to allegations regarding the defendant’s state of mind. Thus, knowledge and intent need only be alleged generally to state a valid claim for fraud. See Fed. R. Civ. Pro. 9(b) (“Malice, intent, knowledge, and other conditions of a person’s mind may be alleged generally.”); Swingless Golf Club Corp. v. Taylor,

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771 F. Supp. 2d 1138, 73 U.C.C. Rep. Serv. 2d (West) 362, 2010 U.S. Dist. LEXIS 131711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kowalsky-v-hewlett-packard-co-cand-2010.