MCCOY v. SAMSUNG ELECTRONICS AMERICA, INC.

CourtDistrict Court, D. New Jersey
DecidedSeptember 20, 2023
Docket2:21-cv-19470
StatusUnknown

This text of MCCOY v. SAMSUNG ELECTRONICS AMERICA, INC. (MCCOY v. SAMSUNG ELECTRONICS AMERICA, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MCCOY v. SAMSUNG ELECTRONICS AMERICA, INC., (D.N.J. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

TONY MCCOY, FRANCIS WOOD, CHRISTIAN DUTESCU, MICHELLE PEDERSON, and MEGAN TOMSIK, individually and on behalf of all others similarly situated,

Plaintiffs, Civ. No. 21-19470 (KM) (JSA)

v. OPINION

SAMSUNG ELECTRONICS AMERICA, INC.,

Defendant.

KEVIN MCNULTY, U.S.D.J.: Named plaintiffs Tony McCoy, Francis Wood, Christian Dutescu, Michelle Pederson, and Megan Tomsik (together, “Plaintiffs”), on behalf of themselves and others similarly situated, filed this putative consumer class action against Defendant Samsung Electronics America, Inc., alleging that Samsung concealed a known material defect in two of its portable computer products, the Chromebook Plus 2-in-1 and the Chromebook Plus 2-in-1 V2. (Herein, “Chromebook” refers to either or both.) Now before the Court is Samsung’s motion to dismiss Plaintiffs’ Second Amended Class Action Complaint. For the reasons expressed below, Samsung’s motion to dismiss is GRANTED in part and DENIED in part. I. BACKGROUND1

1 Certain citations to the record are abbreviated as follows: “DE” = Docket entry number in this case “SAC” = DE 24 “Mot.” = DE 27-1 A. Factual Allegations Plaintiffs allege that, between November 2018 and November 2019, they each bought a Chromebook from third-party retailer Best Buy (SAC ¶¶ 19, 28, 37, 46, 54.)2 They also allege that, after varying periods of use, the display hinge on their device separated from the device screen, resulting in cracking or shattering of the screen (the purported “Defect”). (Id. ¶¶ 21, 30, 39, 48, 56, 59.) Plaintiffs acknowledge that their devices were covered by a one-year limited warranty (Id. ¶ 101; Opp. at 3),3 and allege that the display hinges on their Chromebooks failed after that one-year warranty period had lapsed.4 Plaintiffs allege that in making their purchases, they relied on representations of “durability and functionality” which were contained in “marketing and sales materials present at the Best Buy retail location” or website, and on the Chromebooks’ packaging. (SAC ¶¶ 20, 29, 38, 47, 55.) Plaintiffs also allege that “[t]he fact that Defendant advertised and warranted it as a premium and durable 2-in-1 laptop/tablet with high-end features was

“Opp.” = DE 28 “Reply” = DE 29 2 For purposes of a motion to dismiss, all well-pleaded facts stated in the Second Amended Complaint are assumed to be true. See Section II, infra. 3 Samsung attached the “Samsung Computer Limited Warranty” to its motion, (DE 27- 3), and I consider it because it is integral to and explicitly relied upon in the SAC. U.S. Express Lines Ltd. v. Higgins, 281 F.3d 383, 388 (3d Cir. 2002). 4 McCoy bought a Chromebook from a Best Buy in or around December 2018 and the purported Defect allegedly manifested in or around August 2021. (SAC ¶¶ 19, 21.) Wood bought a Chromebook from a Best Buy in or around November 2019 and the purported Defect allegedly manifested in or around November 2021. (Id. ¶¶ 28, 30). Dutescu bought a Chromebook from a Best Buy in or around June 2019 and the purported Defect allegedly manifested in or around December 2021. (Id. ¶¶ 37, 39.) Pederson bought a Chromebook from a Best Buy on or around November 26, 2018 and the purported Defect allegedly manifested in or around January 2022. (Id. ¶¶ 46, 48.) Tomsik bought a Chromebook from Best Buy’s website on July 24, 2019 and the purported Defect allegedly manifested in or around late May 2021. (Id. ¶¶ 54, 56.) Tomsik received a free-of-charge repair, and her Chromebook was returned to her by the end of August 2021. (Id. ¶ 58.) The purported Defect allegedly manifested again in or around late January 2022. (Id. ¶ 59.) material to [Plaintiffs] and to other reasonable consumers.” (Id.) They further allege that, after the hinges on their Chromebooks broke, they each spent a substantial amount of time researching the issue on the internet and, in doing so, discovered numerous publicly available negative reviews regarding the same purported Defect. (Id. ¶¶ 24, 33, 42, 50, 58, 60.) According to Plaintiffs, the Chromebooks’ hinges have a defect which prevents them “from being used as advertised.” (Id. ¶ 78.) The purported Defect “causes one or more of the hinge arms to separate from its mount inside the display, which ultimately damages the display and cracks the screen and/or prevents owners from opening, closing, or adjusting the displays of the Class Device for fear of damaging the screen glass.” (Id.) Plaintiffs continues that “the plastic mount in the display to which the hinge assembly is affixed fails and detaches from its attachment point within the display, thus causing the Defect.” (Id. ¶ 80.) When the consumer “attempts to change the display angle by applying force to it, the detached hinge arm exerts pressure on the underside of the display glass.” (Id.) Plaintiffs continue that “when the display is moved, the resistance of the hinge causes the screen and surrounding plastic to shatter, damaging the screen and rendering further use of the laptop very difficult (and dangerous).” (Id.) Plaintiffs also allege that Samsung was aware, or should have been aware, of the Defect based on pre-release product testing, warranty repair inquiries, online posts and comments, and its affiliate’s patent applications. (Id. ¶¶ 83–100.)5 In their Second Amended Complaint, Plaintiffs assert claims for: 1) violation of the Magnuson-Moss Warranty Act (“MMWA”); 2) breach of the implied warranty of merchantability; 3) violation of the Florida Unfair and Deceptive Trade Practices Act (“FDUTPA”); 4) violation of the Oklahoma Consumer Protection Act (“OCPA”); 5) violation of the Missouri Merchandising

5 I will address the substance of Plaintiffs’ knowledge allegations in my analysis below. Practices Act (“MMPA”); 6) violation of the Ohio Consumer Sales Practices Act (“OCSPA”); 7) unjust enrichment; 8) fraudulent omission or concealment; and 9) “declaratory and injunctive relief.” Samsung now moves to dismiss the Second Amended Complaint. B. Procedural History Plaintiff Tony McCoy initiated this action on November 1, 2021. (DE 1.) On February 4, 2022, Plaintiffs together filed the Amended Complaint. (DE 13.) On April 5, 2022, Samsung moved to dismiss the Amended Complaint. (DE 15.) On May 20, 2022, Plaintiffs opposed Samsung’s motion to dismiss (DE 18), and separately filed a cross-motion to amend the Amended Complaint (DE 19). On June 20, 2022, Samsung filed a reply brief in support of its motion to dismiss and in opposition to Plaintiffs’ motion to amend. (DE 20.) I granted leave to file the Second Amended Complaint, administratively terminated the prior motion to dismiss, and granted Samsung leave to refile or supplement the motion to dismiss in light of the Second Amended Complaint. (DE 22.) Plaintiffs filed the Second Amended Complaint (DE 24), and the current motion followed (DE 27). Plaintiffs filed their opposition on March 6, 2023 (DE 28), and Samsung filed a reply on March 27, 2023 (DE 29). II. STANDRARD OF REVIEW Federal Rule of Civil Procedure 8(a) does not require that a pleading contain detailed factual allegations but “more than labels and conclusions.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). The allegations must raise a claimant’s right to relief above a speculative level, so that a claim is “plausible on its face.” Id. at 570. That standard is met when “factual content [] allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009).6 Rule 12(b)(6) provides for the dismissal of a complaint if it fails to state a claim.

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