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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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). “A court may, however, consider 14 materials—documents attached to the complaint, documents incorporated by reference in 15 the complaint, or matters of judicial notice—without converting the motion to dismiss into 16 a motion for summary judgment.” Id. at 908. 17 III. DISCUSSION 18 The Court first addresses Plaintiff’s Motion to Remand. 19 A. Motion to Remand 20 Removal was proper. Plaintiff alleges violations of federal and state consumer 21 protection laws. Therefore, the Court has federal question jurisdiction over Plaintiff’s 22 federal claims, and supplemental jurisdiction over her parallel state claims. Even so, 23 Plaintiff argues removal is barred by Defendant’s forum selection clause. (Doc. 15 at 3.) 24 That clause reads: “Any action or proceeding arising directly or indirectly out of a vehicle 25 bid or purchase transaction shall be conducted in the state/province and county where the 26 vehicle was located at the time the bid was entered or the purchase transaction was 27 consummated.” (Id.) Notably, this clause only circumscribes the forum to Arizona—not 28 a particular court system within the state. Therefore, this Court’s federal question 1 jurisdiction does not violate Defendant’s forum selection clause. 2 The Court finds Plaintiff’s remaining arguments are either meritless or inapposite 3 to analyzing jurisdiction. For example, Plaintiff contends Defendant acted in bad faith by 4 requesting an extension of time to respond to Plaintiff’s Complaint, and then, instead of 5 filing a response, removed the case to federal court. (Id. at 5.) Or Plaintiff contends 6 removal violates her constitutional right of access to courts because the federal system 7 “discriminates against pro se litigants, requiring judicial permission for electronic access 8 while attorneys receive automatic filing privileges.” (Id. at 6.) The Court rejects both 9 arguments wholesale. 10 Accordingly, the Court denies Plaintiff’s Motion to Remand, which includes a 11 Motion for Constitutional Relief and Motion for Attorneys’ Fees.2 12 B. Motion to Dismiss 13 The Court now turns to Plaintiff’s five claims, beginning with the ACFA. 14 1. ACFA 15 Under the ACFA, it is unlawful for any person to use “any deception, deceptive or 16 unfair act or practice, fraud, false pretense, false promise, misrepresentation, or 17 concealment, suppression or omission of any material fact with intent that others rely on 18 such concealment, suppression or omission, in connection with the sale or advertisement 19 of any merchandise.” A.R.S. § 44-1522(A). Plaintiff alleges Defendant violated the 20 ACFA by: (1) falsely advertising the vehicle’s condition; (2) deceptively pricing the 21 vehicle as $1,500; (3) failing to disclose material defects of the vehicle; (4) refusing to 22 provide a refund or honor purchase obligations; (5) unlawfully repossessing the vehicle; 23 (6) issuing unauthorized refunds to third parties without her consent; and 24 (7) misrepresenting the vehicle history and title status in violation of A.R.S. § 28-2531(c)3. 25 (Doc. 12-1 at 13–14.)
26 2 Plaintiff appears pro se so she cannot be awarded attorneys’ fees. See Kay v. Ehrler, 499 U.S. 432, 435 & n.5 (1991). 27 3 Section 28-2531 is a criminal statute with no accompanying private action. See Strong Cmtys. Found. of Ariz. Inc. v. Yavapai County, No. 1 CA-CV 25-0310, 2026 WL 1092156, 28 at *3 (Ariz. Ct. App. Apr. 22, 2026). Therefore, Plaintiff may not premise any claim on this statute. 1 The ACFA statute of limitations is one year. A.R.S. § 12-541(5); see also Teran v. 2 Citicorp Pers.-to-Pers. Fin. Ctr., 706 P.2d 382, 389 (Ariz. Ct. App. 1985). Plaintiff missed 3 this deadline. Plaintiff’s ACFA claims began accruing when she knew or should have 4 known “of both the what and who elements of causation.” Alaface v. Nat’l Inv. Co., 892 5 P.2d 1375, 1379 (Ariz. Ct. App. 1994) (citation modified) (emphasis in original). 6 Plaintiff’s Complaint states that “[t]he extent of the vehicle’s defects was immediately 7 apparent during attempted pickup at Defendant’s Phoenix facility” on March 8, 2024. 8 (Doc. 12-1 at 6.) The emails Plaintiff attached to her Complaint show she refused a refund 9 and return of the battery her mother purchased in May 2024. (Doc. 12-1 at 35–36.) 10 Consequently, all ACFA claims expired by May 2025. Yet Plaintiff filed her Complaint 11 on October 17, 2025. (Doc. 12-1 at 2.) 12 Accordingly, the Court dismisses Plaintiff’s ACFA claims with prejudice because 13 they are barred by the one-year statute of limitations. 14 2. Breach of Contract and Breach of Good Faith and Fair Dealing 15 Plaintiff claims Defendant breached its contractual obligations, and accompanying 16 duty of good faith and fair dealing, by: (1) failing to deliver an operational vehicle as 17 advertised; (2) failing to disclose defects prior to sale; (3) unlawfully seizing the vehicle 18 from Plaintiff’s possession after purchase; (4) failing to transfer title ownership upon 19 payment; (5) and improperly denying Plaintiff’s demands for remedies. (Doc. 12-1 at 15.) 20 Notably, Plaintiff does not cite any contractual provision to support this claim. Instead, 21 she relies entirely on Defendant’s marketing of the vehicle as “Run & Drive” to constitute 22 a binding promise of functionality. (Id. at 7.) This theory fails on its face. 23 Plaintiff cites and attaches the Defendant’s Terms and Glossary to argue “Run & 24 Drive” was a promise that the vehicle “started under its own power” and “moved forward.” 25 (Doc. 12-1 at 7.) But that same attachment expressly disclaims this construction.4 It reads: Run & Drive: At the time the vehicle arrived at Copart’s location, Copart 26
27 4 “If an exhibit attached to a complaint contradicts an assertion in the complaint, the information provided in the exhibit trumps the allegation in the complaint.” Martinez v. 28 Eastside Fire & Rescue, No. 2:24-CV-01706-TL, 2025 WL 1654649, at *4 (W.D. Wash. June 10, 2025) (citation modified). 1 verified that the vehicle (i) started, (ii) could be put into gear and (iii) was capable of moving forward under its own power. . . . There is no guarantee, 2 representation or warranty that the vehicle will (i) start, (ii) drive or (iii) move 3 forward under its own power at the time the vehicle is picked up at Copart’s location. 4 (Doc. 12-1 at 94; Doc. 21-1 at 15.) Therefore, Plaintiff cannot premise her breach of 5 contract claim on a promise Defendant expressly disclaimed. Plaintiff’s remaining theories 6 of breach are fatally vague. Plaintiff does not connect Defendant’s alleged failure to 7 disclose defects, unauthorized repossession of the vehicle, refusal to transfer tile, and 8 refusal to comply with her requested relief with a contractual obligation or promise. 9 Without such, allegations of breach alone are insufficient. 10 Next, Plaintiff fails to plead a breach of the implied covenant of good faith and fair 11 dealing. This covenant is implied in every contract and is a promise that “neither party will 12 act to impair the right of the other to receive the benefits which flow from their agreement 13 or contractual relationship.” Bike Fashion Corp. v. Kramer, 46 P.3d 431, 434 (Ariz. Ct. 14 App. 2002) (quoting Rawlings v. Apodaca, 726 P.2d 565, 569 (Ariz. 1986)). Put 15 differently, “this obligation preserves the spirit of the bargain rather than the letter and 16 guarantees the protection of the parties’ reasonable expectations.” Id. (citation modified). 17 Given Defendant’s express disclaimer of operability at pickup, Plaintiff’s contrary 18 expectations were not reasonable. 19 The Complaint states: “Plaintiff made repeated demands to Defendant for either a 20 full refund or delivery of the operational vehicle as promised, which Defendant refused 21 without legal justification. Defendant’s refusal constituted bad faith dealing and a breach 22 of the implied covenant of good faith and fair dealing required under Arizona contract 23 law.” (Doc. 12-1 at 11.) Plaintiff is incorrect. Defendant did not promise Plaintiff an 24 operational vehicle; the Court cannot construe the implied covenant as promising 25 otherwise. Bike Fashion Corp., 46 P.3d at 434 (“[A]n implied covenant of good faith and 26 fair dealing cannot directly contradict an express contract term.”). Therefore, Plaintiff’s 27 only reasonable expectation was either a refund or a return of the vehicle she purchased. 28 In an email to Plaintiff, Defendant offered these options: “A) You can have the car and the 1 title. B) We can refund you what you paid for the car and you can take the battery.” (Doc. 2 12-1 at 35.) Plaintiff refused, demanding both a refund and title to the vehicle. (Id. at 36.) 3 Therefore, there are no allegations to suggest Defendant denied Plaintiff what she could 4 reasonably expect when purchasing a “Run & Drive” vehicle from an online auction. 5 Accordingly, the Court will dismiss Plaintiff’s breach of contract claim and breach 6 of the implied covenant of good faith and fair dealing claim with leave to amend. 7 3. Fraud, Theft by Conversion, and Extortion 8 Count III asserts claims for fraud, conversion, and extortion. The Court finds that 9 Plaintiff fails to adequately plead each claim. 10 Plaintiff alleges Defendant “engaged in fraudulent misrepresentation by knowingly 11 advertising the vehicle as operational and roadworthy when Defendant knew or should 12 have known of the vehicle’s major mechanical defects that rendered it completely 13 inoperable.” (Doc. 12-1 at 16.) She adds that she “reasonably relied on Defendant’s 14 representations regarding the vehicle’s condition and operability, as confirmed by 15 Defendant’s own terms and conditions requiring such reliance.” (Id.) For the reasons 16 discussed above, the Court dismisses this claim. Again, Defendant expressly disclaimed 17 any representation that the vehicle was operable. Accordingly, because Plaintiff’s claim 18 rests entirely on Defendant’s allegedly fraudulent representation of operability, the Court 19 dismisses this claim with prejudice. 20 Next, Plaintiff alleges Defendant’s “unauthorized repossession and continued 21 possession of the vehicle after purchase constitutes unlawful theft by conversion under 22 Arizona law.” (Id.) Again, Plaintiff’s exhibits contradict this framing. After Defendant 23 transported the vehicle to Plaintiff’s address, she sent an email complaining that Defendant 24 left an inoperable vehicle at her house. She wrote: “Which let me remind you you have 25 brought it to Yuma and you expect me do with a vehicle that will not go in gear or turn 26 on.” (Doc. 12-1 at 25–26.) In that same email, she requested “Copart immediately refund 27 the full $2,520.40,” and provide “a vehicle in your inventory that is in good condition be 28 added to the full $2524 refund to compensate for negative bidder enjoyment.” (Id.) 1 Defendant then responded that the vehicle will be picked up in the morning, and Plaintiff 2 would receive a refund once the car was back in the yard. (Id. at 27.) After Defendant 3 towed the car back, Plaintiff rejected the refund and Defendant offered to either return the 4 vehicle or mail her a check for what she paid for the car. 5 “Conversion is defined as an act of wrongful dominion or control over personal 6 property in denial of or inconsistent with the rights of another.” Case Corp. v. Gehrke, 91 7 P.3d 362, 365 (Ariz. Ct. App. 2004) (citation modified). Plaintiff cannot argue Defendant 8 wrongly repossessed her vehicle when she implicitly asked Defendant to do so by 9 demanding a refund and complaining about Defendant leaving the vehicle in the first place. 10 Nor can she argue Defendant wrongly retained the vehicle when it continually offered to 11 tow the car back to her. Therefore, the Court finds Plaintiff cannot plausibly state a claim 12 for conversion. 13 Alternatively, the Court finds that Plaintiff’s conversion claim is barred by the 14 economic loss doctrine. “Courts in Arizona dismiss conversion claims based on the 15 economic loss doctrine if the harms alleged in the tort claim are based on the same alleged 16 conduct in the contract claim.” Navajo Health Found. - Sage Mem’l Hosp., Inc. v. Razaghi 17 Dev. Co., LLC, No. 2:19-CV-00329-GMN-EJY, 2022 WL 960109, at *13 (D. Nev. Mar. 18 30, 2022) (citing cases). As noted above, Plaintiff alleges Defendant breached its 19 contractual obligations by seizing her vehicle. Therefore, Plaintiff cannot recover in tort 20 what she can recover through an action on a contract. See Cook v. Orkin Exterminating 21 Co., Inc., 258 P.3d 149, 153 (Ariz. Ct. App. 2011) (holding that the economic loss doctrine 22 barred plaintiff’s tort claims and limited them “to their contractual remedies for purely 23 economic loss”). Accordingly, the Court dismisses Plaintiff’s conversion claim with 24 prejudice. 25 Finally, neither Arizona nor federal law recognizes a civil cause of action for 26 extortion. See Watkins v. Complete Skycap Servs., Inc., No. CV 05-0698-PHX-ROS, 2006 27 WL 8440752, at *2 (D. Ariz. Feb. 6, 2006) (holding that Arizona’s criminal extortion 28 statute does not create a private right of action); see also Brown v. Lucidworks, No. 2:25- 1 CV-0607-DC-CKD (PS), 2025 WL 1695997, at *7 (E.D. Cal. June 17, 2025) (dismissing 2 extortion claim because there is no federal private right of action). Accordingly, the Court 3 dismisses Plaintiff’s extortion claim with prejudice. 4 Based on the foregoing, the Court dismisses Count III with prejudice. 5 4. FTC Violations 6 Plaintiff attempts to sue Defendant for violations of Section 5 of the FTC Act and 7 the FTC Used Car Rule. (Doc. 12-1 at 20.) However, “[t]here is no private right of action 8 under the FTC Act.” Teeter v. Easterseals-Goodwill N. Rocky Mountain, Inc., No. CV-22- 9 96-GF-BMM, 2023 WL 2330241, at *4 (D. Mont. Mar. 2, 2023) (citation modified) 10 (quoting Mazza v. Am. Honda Motor Co., Inc., 666 F.3d 581, 592 (9th Cir. 2012)). 11 Accordingly, the Court dismisses Plaintiff’s FTC claims with prejudice. 12 5. Racketeering, Wire Fraud, and Systematic Billing Fraud 13 Plaintiff alleges Defendant violated both federal and state racketeering laws. (Doc. 14 12-1 at 19.) A claim under either requires sufficient allegations demonstrating a pattern of 15 racketeering activity. Piper v. Gooding & Co. Inc., 334 F. Supp. 3d 1009, 1019 (D. Ariz. 16 2018); A.R.S. § 13-2314.04(A). Here, Plaintiff alleges Defendant engaged in pattern of 17 wire fraud by including duplicate invoice and refund numbers and contradictory transaction 18 dates on two receipts, thereby creating “deliberately confusing records.” (Doc. 12-1 19 at 20–21.) Although wire fraud is a predicate act for both federal and state RICO claims, 20 Plaintiff fails to adequately plead wire fraud. 21 “Wire or mail fraud consists of the following elements: (1) formation of a scheme 22 or artifice to defraud; (2) use of the United States mails or wires, or causing such a use, in 23 furtherance of the scheme; and (3) specific intent to deceive or defraud.” Corewest Res. 24 LLC-FZ v. Gideon Grp. Inc., No. CV-24-03613-PHX-SMB, 2025 WL 3637447, at *5 (D. 25 Ariz. Dec. 16, 2025) (quoting Sanford v. MemberWorks, Inc., 625 F.3d 550, 557 (9th Cir. 26 2010)). Importantly, “[t]he wire fraud statute prohibits only deceptive schemes to deprive 27 the victim of money or property.” Children’s Health Def. v. Facebook Inc., 546 F. Supp. 28 3d 909, 938 (N.D. Cal. 2021) (citation modified) (quoting Kelly v. United States, 590 U.S. 1 391, 398 (2020)). There are no allegations to suggest the two “confusing” receipts deprived 2 Plaintiff of any money or property. Plaintiff’s Complaints states the receipts reflected 3 “phantom charges and refunds,” i.e., transactions that never manifested in bank statements. 4 (Doc. 12-1 at 4.) Therefore, the only alleged injury is confusion itself. This is insufficient 5 to establish a predicate act of wire fraud. Because Plaintiff’s monetary and property 6 injuries are related to Plaintiff’s other claims—not Defendants receipt 7 records—amendment would be futile. 8 “Federal courts have long since been wary of the potential for abuse of civil RICO 9 claims, which attract plaintiffs to their treble damages and attorney’s fees.” Crawford v. 10 Countrywide Home Loans, Inc., No. 3:09CV247-PPS-CAN, 2011 WL 3875642, at *13 11 (N.D. Ind. Aug. 31, 2011). Here, Plaintiff joins other “civil RICO plaintiffs [who] persist 12 in trying to fit a square peg in a round hole by squeezing garden-variety business disputes 13 into civil RICO actions.” Midwest Grinding Co. v. Spitz, 976 F.2d 1016, 1025 (7th Cir. 14 1992). 15 Accordingly, the Court dismisses Plaintiff’s RICO claims with prejudice. 16 IV. LEAVE TO AMEND 17 “[A] district court should grant leave to amend even if no request to amend the 18 pleading was made, unless it determines that the pleading could not possibly be cured by 19 the allegation of other facts.” Lopez v. Smith, 203 F.3d 1122, 1127 (9th Cir. 2000) (citation 20 modified). The Court only grants Plaintiffs leave to amend her breach of contract and 21 breach of the implied covenant of good faith and fair dealing claims in Count II. The Court 22 does not grant Plaintiff leave to amend any of her other claims, which are dismissed with 23 prejudice as discussed above. 24 Plaintiff’s amended complaint must follow the form detailed in Rule 7.1 of the Local 25 Rules of Civil Procedure. Within thirty (30) days from the date of entry of this Order, 26 Plaintiff may submit her first amended complaint. Plaintiff must clearly designate on the 27 face of the document that it is the “First Amended Complaint.” The amended complaint 28 must be retyped or rewritten in its entirety and may not incorporate any part of the original 1 || Complaint by reference. 2 The Court draws attention to the District of Arizona’s Federal Court Advice Only || Clinic, Federal Court Advice Only Clinic - Phoenix | District of Arizona | United States District Court (uscourts.gov). The Court also notes the E-Pro Se program which assists || litigants with creating a complaint form, Welcome - eProSe (uscourts.gov). Lastly, the 6|| Court advises Plaintiff that certain resources for self-represented parties, including a 7\|| handbook and the Local Rules, are available on the ourt’s website, 8 || www.azd.uscourts.gov, by following the link “For Those Proceeding Without an Attorney.” V. CONCLUSION 11 Accordingly, 12 IT IS HEREBY ORDERED denying Plaintiff's Motion to Remand (Doc. 15), 13 || Motion for Constitutional Relief (Doc. 15), and Motion for Attorneys’ Fees (Doc. 15). 14 IT IS FURTHER ORDERED granting Plaintiff's Application for Leave to 15 || Proceed In Forma Pauperis (Doc. 14). 16 IT IS FURTHER ORDERED granting Defendant’s Motion to Dismiss (Doc. 21). 17 IT IS FURTHER ORDERED giving Plaintiff leave to amend Count II only. If 18 || Plaintiff so chooses, she shall file a First Amended Complaint no later than thirty (30) days 19|| after the date this Order is issued. 20 Dated this 10th day of June, 2026. 21 = .
3 A lonorable Susan M. Brnovich United States District Judge 24 25 26 27 28
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