Mary Rose Arellano v. Copart Incorporated

CourtDistrict Court, D. Arizona
DecidedJune 10, 2026
Docket2:26-cv-00770
StatusUnknown

This text of Mary Rose Arellano v. Copart Incorporated (Mary Rose Arellano v. Copart Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mary Rose Arellano v. Copart Incorporated, (D. Ariz. 2026).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 Mary Rose Arellano, No. CV-26-00770-PHX-SMB

10 Plaintiff, ORDER

11 v.

12 Copart Incorporated,

13 Defendant. 14 15 Before the Court are Plaintiff’s Application for Leave to Proceed In Forma Pauperis 16 (Doc. 14); Plaintiff’s Motion to Remand (Doc. 15); and Defendant’s Motion to Dismiss 17 (Doc. 21). The Court grants Plaintiff’s Application, denies Plaintiff’s Motion to Remand, 18 and grants Defendant’s Motion to Dismiss for the reasons below. 19 I. BACKGROUND 20 Plaintiff appears pro se. Her Complaint alleges as follows. On March 8, 2024, 21 Plaintiff purchased a 2012 Hyundai Sonata from Defendant on an online auction. (Doc. 22 1-1 at 3.) Defendant advertised the price of the vehicle as $1,500 but ultimately charged 23 Plaintiff $2,520.40. (Id.) Plaintiff asserts that Defendant overcharged her $279 because 24 her bill of sale only showed payment for $2,241.40. (Id. at 4.) When challenged, 25 Defendant explained this difference was due to separate fees combined with the 26 transaction. (Id.) 27 Plaintiff then alleges Defendant engaged in a series of systematic accounting 28 irregularities, citing: “duplicate invoice numbers for different transactions”; “duplicate 1 refund invoice numbers across separate transactions”; “phantom charges and refunds 2 appearing on receipts but not reflected in actual bank statements”; and “double billing 3 practices without corresponding financial institution records.” (Id.) In support of these 4 allegations, Plaintiff describes receiving receipts from Defendant where one used the same 5 number under invoice and refund, and another used the prior receipts invoice number under 6 refund. (Id. at 5.) These receipts also contained conflicting payment and refund entries 7 irreconcilable with actual banking records. (Id.) 8 Next, Plaintiff alleges Defendant misrepresented the vehicle as operational and 9 roadworthy by advertising “Buy It Now” and listing the vehicle as “Run & Drive.” (Id. 10 at 3, 6–7.) The vehicle also did not display a “Buyers Guide,” indicating whether it was 11 sold “as is” or with warranty. (Id. at 8.) When Plaintiff attempted to pick up the vehicle 12 at Defendant’s facility, the vehicle was “completely inoperable and undriveable due to 13 major undisclosed mechanical defects, including complete engine failure, transmission 14 problems preventing gear engagement, and electrical system failures.” (Id.) Specifically, 15 the vehicle would not start, requiring Plaintiff’s mother to purchase a new battery. (Id. 16 at 7.) Even after replacing the battery, the vehicle only traveled a few feet before emitting 17 smoke and becoming completely inoperable while on Defendant’s premises. (Id.) 18 Defendant did not offer any assistance or refund, insisting the sale was “as-is.” (Id.) 19 Defendant then, without authorization, towed the vehicle to Plaintiff’s address, abandoning 20 it on the street. (Id. at 9.) 21 Plaintiff then sent Defendant a formal complaint letter regarding the unauthorized 22 transportation and abandonment of the vehicle. (Id.) Defendant responded with an email 23 stating that a subcontractor would retrieve the vehicle. (Id.) Though Plaintiff did not 24 consent to this plan, Defendant repossessed the vehicle. (Id.) Defendant emailed Plaintiff, 25 guaranteeing a refund once the car was back on its lot. (Id.) However, Defendant instead 26 offered to either have the vehicle towed back to Plaintiff, or for Plaintiff to surrender the 27 vehicle in exchange for a partial refund.1 (Id.) 28 1 It appears the partial refund was for $2,241.40 but not the additional $279 in fees. 1 Plaintiff reported Defendant to the Yuma Police Department, but they labeled it as 2 a civil matter and refused to investigate for possible criminal conduct. (Id. at 10.) Plaintiff 3 then made repeated demands to Defendant for either a full refund or delivery of a promised 4 operational vehicle. (Id. at 11.) Defendant refused. (Id.) 5 Plaintiff initially filed her Complaint in state court, asserting five counts: 6 - Count I: Violation of Arizona Consumer Fraud Act 7 - Count II: Breach of Contract / Breach of Good Faith and Fair Dealing 8 - Count III: Fraud, Theft by Conversion, and Extortion 9 - Count IV: Violations of Federal Trade Commission Act and FTC Used Car Rule 10 - Count V: Racketeering, Wire Fraud, and Systematic Billing Fraud 11 (Id. at 13–22.) 12 Defendant subsequently removed the case to federal court, and now moves for 13 dismissal pursuant to Federal Rules of Civil Procedure 12(b)(6). (Doc. 21 at 2.) 14 II. LEGAL STANDARD 15 To survive a Rule 12(b)(6) motion for failure to state a claim, a complaint must meet 16 the requirements of Rule 8(a)(2). Rule 8(a)(2) requires a “short and plain statement of the 17 claim showing that the pleader is entitled to relief,” so that the defendant has “fair notice 18 of what the . . . claim is and the grounds upon which it rests.” Bell Atl. Corp. v. Twombly, 19 550 U.S. 544, 555 (2007) (alteration in original) (quoting Conley v. Gibson, 355 U.S. 41, 20 47 (1957)). This notice exists if the pleader sets forth “factual content that allows the court 21 to draw the reasonable inference that the defendant is liable for the misconduct alleged.” 22 Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). “Threadbare recitals of the elements of a 23 cause of action, supported by mere conclusory statements, do not suffice.” Id. 24 Dismissal under Rule 12(b)(6) “can be based on the lack of a cognizable legal theory 25 or the absence of sufficient facts alleged under a cognizable legal theory.” Balistreri v. 26 Pacifica Police Dep’t, 901 F.2d 696, 699 (9th Cir. 1988). A complaint that sets forth a 27 cognizable legal theory will survive a motion to dismiss if it contains sufficient factual 28 matter, which, if accepted as true, states a claim to relief that is “plausible on its face.” 1 Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 570). Plausibility does not equal 2 “probability,” but requires “more than a sheer possibility that a defendant has acted 3 unlawfully.” Id. “Where a complaint pleads facts that are ‘merely consistent with’ a 4 defendant’s liability, it ‘stops short of the line between possibility and plausibility . . . .’” 5 Id. (quoting Twombly, 550 U.S. at 557). 6 In ruling on a Rule 12(b)(6) motion to dismiss, the well-pleaded factual allegations 7 are taken as true and construed in the light most favorable to the nonmoving party. Cousins 8 v. Lockyer, 568 F.3d 1063, 1067 (9th Cir. 2009). However, legal conclusions couched as 9 factual allegations are not given a presumption of truthfulness, and “conclusory allegations 10 of law and unwarranted inferences are not sufficient to defeat a motion to dismiss.” Pareto 11 v. FDIC, 139 F.3d 696, 699 (9th Cir. 1998). A court ordinarily may not consider evidence 12 outside the pleadings when ruling on a Rule 12(b)(6) motion to dismiss. See United States 13 v. Ritchie, 342 F.3d 903, 907 (9th Cir. 2003).

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Mary Rose Arellano v. Copart Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mary-rose-arellano-v-copart-incorporated-azd-2026.