Omidi v. Wal-Mart Stores, Inc.

CourtDistrict Court, S.D. California
DecidedFebruary 4, 2021
Docket3:14-cv-00857
StatusUnknown

This text of Omidi v. Wal-Mart Stores, Inc. (Omidi v. Wal-Mart Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Omidi v. Wal-Mart Stores, Inc., (S.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 SOUTHERN DISTRICT OF CALIFORNIA 9 10 MOJDEH OMIDI and AURORA Case No.: 14cv00857 JAH-BLM TELLERIA, individually and on behalf of 11 others similarly situated, ORDER GRANTING IN PART AND 12 DENYING IN PART DEFENDANTS’ Plaintiff, MOTIONS TO DISMISS 13 v. [Doc. Nos. 59, 60] 14 WAL-MART STORES, INC., A 15 Delaware corporation, et. al., 16 Defendant. 17 18 INTRODUCTION 19 Pending before the Court are Defendant FirstSight Vision Services’ motion to 20 dismiss (Doc. No. 59) and Walmart, Inc.’s motion to dismiss (Doc. No. 60) the Third 21 Amended Complaint (“TAC”) pursuant to Rules 12(b)(6), 9(b) and 12(f) of the Federal 22 Rules of Civil Procedure. Plaintiffs oppose the motions. After a thorough review of the 23 parties’ submissions and for the reasons discussed below, the Court GRANTS in part and 24 DENIES in part Defendants’ motions. 25 LEGAL STANDARDS 26 I. Rule 12(b)(6) 27 Defendants seek dismissal pursuant to Federal Rule of Civil Procedure 12(b)(6). 28 Rule 12(b)(6) tests the sufficiency of the complaint. Navarro v. Block, 250 F.3d 729, 732 1 (9th Cir. 2001). Dismissal is warranted under Rule 12(b)(6) where the complaint lacks a 2 cognizable legal theory. Robertson v. Dean Witter Reynolds, Inc., 749 F.2d 530, 534 (9th 3 Cir. 1984); see Neitzke v. Williams, 490 U.S. 319, 326 (1989) (“Rule 12(b)(6) authorizes a 4 court to dismiss a claim on the basis of a dispositive issue of law.”). Alternatively, a 5 complaint may be dismissed where it presents a cognizable legal theory yet fails to plead 6 essential facts under that theory. Robertson, 749 F.2d at 534. While a plaintiff need not 7 give “detailed factual allegations,” he must plead sufficient facts that, if true, “raise a right 8 to relief above the speculative level.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 545 9 (2007). 10 “To survive a motion to dismiss, a complaint must contain sufficient factual matter, 11 accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 12 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 547). A claim is facially plausible 13 when the factual allegations permit “the court to draw the reasonable inference that the 14 defendant is liable for the misconduct alleged.” Id. In other words, “the non-conclusory 15 ‘factual content,’ and reasonable inferences from that content, must be plausibly suggestive 16 of a claim entitling the plaintiff to relief. Moss v. U.S. Secret Service, 572 F.3d 962, 969 17 (9th Cir. 2009). “Determining whether a complaint states a plausible claim for relief will 18 ... be a context-specific task that requires the reviewing court to draw on its judicial 19 experience and common sense.” Iqbal, 556 U.S. at 679. 20 In reviewing a motion to dismiss under Rule 12(b)(6), the court must assume the 21 truth of all factual allegations and must construe all inferences from them in the light most 22 favorable to the nonmoving party. Thompson v. Davis, 295 F.3d 890, 895 (9th Cir. 2002); 23 Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337-38 (9th Cir. 1996). However, legal 24 conclusions need not be taken as true merely because they are cast in the form of factual 25 allegations. Ileto v. Glock, Inc., 349 F.3d 1191, 1200 (9th Cir. 2003); Western Mining 26 Council v. Watt, 643 F.2d 618, 624 (9th Cir. 1981). When ruling on a motion to dismiss, 27 the Court may consider the facts alleged in the complaint, documents attached to the 28 complaint, documents relied upon but not attached to the complaint when authenticity is 1 not contested and matters of which the Court takes judicial notice. Lee v. City of Los 2 Angeles, 250 F.3d 668, 688-89 (9th Cir. 2001). If a court determines that a complaint fails 3 to state a claim, the court should grant leave to amend unless it determines that the pleading 4 could not possibly be cured by the allegation of other facts. See Doe v. United States, 58 5 F.3d 494, 497 (9th Cir. 1995). 6 II. Rule 9(b) 7 Under Rule 9(b) of the Federal Rules of Civil Procedure, “[i]n alleging fraud or 8 mistake, a party must state with particularity the circumstances constituting fraud or 9 mistake.” Under Ninth Circuit case law, Rule 9(b) imposes two distinct requirements on 10 complaints alleging fraud. First, the basic notice requirements of Rule 9(b) require 11 complaints pleading fraud to set forth “the who, what, when, where, and how” of the 12 misconduct charged.” Vess v. Ciba-Geigy Corp., U.S.A., 317 F.3d 1097, 1106 (9th Cir. 13 2003); Cooper v. Pickett, 137 F.3d 616, 627 (9th Cir. 1997). Second, the rule requires that 14 the complaint “set forth an explanation as to why the statement or omission complained of 15 was false and misleading.” Yourish v. California Amplifier, 191 F.3d 983, 993 (9th Cir. 16 1999). 17 III. 12(f) 18 A party may move to strike from a pleading “an insufficient defense or any 19 redundant, immaterial, impertinent, or scandalous matter.” FED. R. CIV. P. 12(f). “[T]he 20 function of a 12(f) motion to strike is to avoid the expenditure of time and money that must 21 arise from litigating spurious issues by dispensing with those issues prior to trial.” See 22 Sidney-Vinstein v. A.H. Robins Co., 697 F.2d 880, 885 (9th Cir. 1983). Motions to strike 23 are generally disfavored, unless “it is clear that the matter to be stricken could have no 24 possible bearing on the subject matter of the litigation.” See LeDuc v. Kentucky Central 25 Life Ins. Co., 814 F. Supp. 820, 830 (N.D. Cal. 1992); Cairns v. Franklin Mint Co., 24 26 F. Supp. 2d 1013, 1037 (C.D. Cal. 1998); See also Colaprico v. Sun Microsystems, 758 F. 27 Supp. 1335, 1339 (N.D. Cal. 1991). 28 // 1 DISCUSSION 2 In the TAC, Plaintiffs assert Defendants Walmart and FirstSight engaged in 3 fraudulent and unfair business practices in violation of California’s Business & Professions 4 Code section 17200, engaged in unfair business practices in violation of California Civil 5 Code 1750, et seq, and disseminated false and misleading advertisements throughout the 6 State of California in violation of California’s Business & Professions Code section 17500. 7 Defendant FirstSight argues the TAC is subject to dismissal because Plaintiffs fail 8 to plead their claims with particularity as required by Rule 9(b), Plaintiffs fail to set forth 9 allegations demonstrating a fiduciary or other relationship to support their failure to 10 disclose theory and fail to allege any actual harm from FirstSight’s representations. 11 Defendant Walmart seeks dismissal because Plaintiffs do not allege facts giving rise 12 to a duty to disclose, Plaintiffs’ allegations do not meet the heightened standard of Rule 13 9(b), and the statement “independent doctors of optometry” is not actionable in this case. 14 I. Alleging Fraud with Particularity 15 A. Parties’ Arguments 16 Defendant FirstSight contends Plaintiffs’ allegations impermissibly lump 17 Defendants together and lack the requisite specificity regarding when and how FirstSight’s 18 representations were made to Plaintiffs. Defendant argues Plaintiffs fail to differentiate 19 between Defendants to inform them of their alleged participation in the fraud.

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Omidi v. Wal-Mart Stores, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/omidi-v-wal-mart-stores-inc-casd-2021.