Kramer v. Alterra Mountain Company

CourtDistrict Court, D. Colorado
DecidedJune 25, 2021
Docket1:20-cv-01057
StatusUnknown

This text of Kramer v. Alterra Mountain Company (Kramer v. Alterra Mountain Company) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kramer v. Alterra Mountain Company, (D. Colo. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge Raymond P. Moore

Civil Action No. 20-cv-01057-RM-SKC Consolidated for Pretrial: 20-cv-01158-RM-SKC 20-cv-01175-RM-SKC 20-cv-01186-RM-SKC 20-cv-01254-RM-SKC 20-cv-01347-RM-SKC 20-cv-01520-RM-SKC 20-cv-01583-RM-SKC 20-cv-01691-RM-SKC 20-cv-01699-RM-SKC 20-cv-02021-RM-SKC 20-cv-02907-RM-SKC

TIMOTHY GOODRICH, NOLTE MEHNERT, GEORGE T. FARMER JOSEPH PANGANIBAN, ERIK ERNSTROM, W. WALTER LAYMAN, BRADLEY BRIAR, and KERI REID, each individually and on behalf of all others similarly situated,

Plaintiffs,

v.

ALTERRA MOUNTAIN COMPANY, ALTERRA MOUNTAIN COMPANY U.S. INC., and IKON PASS INC.,

Defendants. ______________________________________________________________________________

ORDER ON MOTION TO DISMISS ______________________________________________________________________________

Plaintiffs purchased Ikon ski passes for the 2019-20 ski season but, due to the COVID-19 pandemic, Defendants closed their ski resorts on March 15, 2020. Plaintiffs have requested a refund or other relief from Defendants but, although the CEO of Alterra Mountain Company acknowledged “People didn’t get what they paid for,” Defendants have declined to do so. This consolidated putative class action lawsuit followed, with Plaintiffs asserting ten (10) claims for relief. At issue before the Court is Defendants’ Motion to Dismiss (the “Motion”). Defendants contend Plaintiffs fail to state any claim for relief and, therefore, the complaint must be dismissed. On this record, for the reasons stated below, the Motion is granted in part and denied

in part. I. LEGAL STANDARD In evaluating a motion to dismiss under Fed. R. Civ. P. 12(b)(6), a court must accept as true all well-pleaded factual allegations in the complaint, view those allegations in the light most favorable to the non-movant, and draw all reasonable inferences in that party’s favor. Brokers’ Choice of Am., Inc. v. NBC Universal, Inc., 757 F.3d 1125, 1136 (10th Cir. 2014); Mink v. Knox, 613 F.3d 995, 1000 (10th Cir. 2010). The complaint must allege a “plausible” right to relief. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 569 n.14 (2007); see also id. at 555 (“Factual allegations must be enough to raise a right to relief above the speculative level.”). Conclusory allegations are

insufficient, Cory v. Allstate Ins., 583 F.3d 1240, 1244 (10th Cir. 2009), and courts “are not bound to accept as true a legal conclusion couched as a factual allegation,” Twombly, 550 U.S. at 555 (quotation marks omitted). In determining whether a claim has been plausibly alleged, courts “do not require plaintiffs to establish a prima facie case. Instead, [courts] consider whether [plaintiffs] have set forth a plausible claim in light of the elements of their claim.” Frappied v. Affinity Gaming Black Hawk, LLC, 966 F.3d 1038, 1050 (10th Cir. 2020). See also Khalik v. United Air Lines, 671 F.3d 1188, 1192 (10th Cir. 2012) (same). “Generally, the sufficiency of a complaint must rest on its contents alone.” Gee v. Pacheco, 627 F.3d 1178, 1186 (10th Cir. 2010). Exceptions to this restriction are “(1) documents that the complaint incorporates by reference, (2) documents referred to in the complaint if the documents are central to the plaintiff’s claim and the parties do not dispute the documents’ authenticity, and (3) matters of which a court may take judicial notice.” Id. (quotation marks and

citations omitted). See also Smallen v. The W. Union Co., 950 F.3d 1297, 1305 (10th Cir. 2020) (same). “Mere legal conclusions and factual allegations that contradict such…properly considered document[s] are not well-pleaded facts that the court must accept as true.” GFF Corp. v. Associated Wholesale Grocers, Inc., 130 F.3d 1381, 1385 (10th Cir. 1997). Thus, “if there is a conflict between the allegations in the complaint and the content of the attached exhibit, the exhibit controls.” Brokers’ Choice of Am., Inc., 861 F.3d at 1105. II. BACKGROUND Construing the factual allegations in a light most favorable to Plaintiffs, combined with the matters which the parties agree the Court may consider in evaluating the operative complaint,

they allege the following. Defendants offered Ikon Passes which promised (1) “unlimited access” to “ski or ride as many days as you want” with (in some instances) some blackout dates, (2) at covered resorts, (3) during the 2019/20 ski season. Plaintiffs each accepted this offer when they purchased their Ikon Passes. However, in March 2020, Defendants closed their resorts due to the COVID-19 pandemic, in the midst of the 2019/20 ski season. Further, beginning about March 2020, various governmental entities issued stay-at-home orders. Plaintiffs demanded a return or refund of pass fees they paid which Defendants have retained; Defendants, however, have publicly announced they would not be refunding any pass fees. Unsurprisingly, this lawsuit followed. Plaintiffs raise 10 claims for relief. Defendants move to dismiss all claims, raising a myriad of arguments challenging the plausibility of the allegations including that the Ikon Passes are “non-refundable” and are “season/frequency” passes. Plaintiffs’ response advises they are no longer pursuing the claim for conversion (Claim 4).1 For this reason, the Court will dismiss Claim 4. The Court examines Defendants’ arguments as to the remaining nine claims below.

III. DISCUSSION A. Defendants’ “Actual Promises” and the Pandemic Defendants’ Motion has a section containing what they contend their “actual promises” were and how the pandemic precludes Plaintiffs from recovery on all claims. According to Defendants, Plaintiffs fail to plausibly allege: • That Defendants made any specific promise or representation that could form the basis of a breach or other wrongful conduct. That Defendants promised a “complete ski season,” a season of any length, or a guaranteed season. Instead, the allegations are of an undefined season, which would vary year to year, subject to Defendants’

discretion, to be exercised in good faith; and • That Defendants caused the season to end earlier than Plaintiffs had “subjectively expected.” Instead, it was the pandemic and governmental orders that caused Plaintiffs’ inability to ski after March 15, 2020. It was these orders which prohibited Defendants from operating indefinitely (the orders required closing of the ski areas) and prevented Plaintiffs from traveling or using the ski resorts (the orders to stay-at- home).

1 Response, ECF No. 80, p. 16 n.9. The Court finds, however, that such arguments must be considered in light of the elements of each claim and how, if at all, they show such claims are not plausibly pled. And, as set forth below, the Court finds Defendants’ arguments unavailing. B. Breach of Contract In order to recover on a claim for breach of contract, a plaintiff should plausibly allege

(1) the existence of a contract between the parties; (2) performance by the plaintiff or some justification for nonperformance; (3) failure to perform the contract by the defendant; and (4) resulting damages to the plaintiff (causation).2 W. Distrib. Co. v. Diodosio, 841 P.2d 1053, 1058 (Colo.

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Kramer v. Alterra Mountain Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kramer-v-alterra-mountain-company-cod-2021.