Our Pet Project, LLC v. International Paper Company

CourtDistrict Court, N.D. Illinois
DecidedJanuary 10, 2023
Docket1:22-cv-01209
StatusUnknown

This text of Our Pet Project, LLC v. International Paper Company (Our Pet Project, LLC v. International Paper Company) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Our Pet Project, LLC v. International Paper Company, (N.D. Ill. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

Our Pet Project LLC,

Plaintiff, Case No. 22-cv-1209 v. Judge Mary M. Rowland International Paper Company,

Defendant.

MEMORANDUM OPINION AND ORDER Plaintiff, Our Pet Project, LLC, brings suit against Defendant, International Paper Company, alleging violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA), unjust enrichment and breach of a contract. Defendant moves to dismiss all counts pursuant to Federal Rule of Civil Procedure 12(b)(6). For the reasons stated herein, Defendant’s Motion to Dismiss [11] is granted. I. Background The following factual allegations taken from the complaint (Dkt. 1) are accepted as true for the purposes of the motion to dismiss. See Lax v. Mayorkas, 20 F.4th 1178, 1181 (7th Cir. 2021). Thrive Production and Marketing Plaintiff, Our Pet Project (Pet Project), is the creator of a sustainable pet feeding tray known as “The Original mine Pet Platter.” (Pet Platter) Dkt. 1 ¶ 5. Pet Project began manufacturing the Pet Platter in July 2016. Id. at ¶ 6. Pet Project set out to manufacture its Pet Platter from a sustainable resource to create a BPA-free product, consisting of a more natural material than typical plastics being used by other pet-industry competitors; strong and safe enough to endure pet interaction with no exposure to dangerous toxins; non-porous and dishwasher-safe; and made in the

United States. Id. at ¶ 10. Pet Project learned about THRIVE, a composite material available from a company called Weyerhaeuser. Id. at ¶ 11. Weyerhaeuser represented that its THRIVE product consisted of a specific combination of ingredients, including cellulose fiber derived from wood pulp, mixed together in a proprietary formula that it owned. Id. at ¶ 13. Weyerhaeuser expressed interest in working with Pet Project to

develop its product and to jointly market the product with the THRIVE material. Id. at ¶ 11. Weyerhaeuser directed Pet Project to a specific manufacturing processor familiar with the THRIVE product, United Plastic Molders, Inc. (“UPM”). Id. at ¶ 12. Starting in 2016, Pet Project used THRIVE material in the Pet Platter product. Id. at ¶¶ 7, 14. UPM manufactured the Pet Platter and included labeling that advertised the product as “Food Safe, BPA Free, Made in USA, Dishwasher Safe, Sustainable, Recyclable and 100% SFI (Sustainable Forestry Initiative) Compliant.”

Id. at ¶ 14. Pursuant to Pet Project’s earlier discussions with Weyerhaeuser, the Pet Platter also referred to the THRIVE composite in its marketing and packaging materials. Id. at ¶ 16. Pet Project used Weyerhaeuser’s THRIVE material until 2018. Id. at ¶ 24. Before 2018, UPM had not experienced any production difficulties working with THRIVE in manufacturing the Pet Platter. Id. at ¶ 15. The Pet Platter was a successful product for Pet Project, with orders in the thousands of dollars in the first year of sales and an increase of 300% by its second year in 2017. Id. at ¶¶ 17, 18. Defendant’s Acquisition of Weyerhaeuser

In December 2016, Pet Project learned that Defendant, International Paper Company (IP) would acquire the cellulose division and certain assets from Weyerhaeuser, including the THRIVE material formulation. Id. at ¶ 20. Pet Project expressed concern to IP about the acquisition and continued supply of THRIVE. Id. at ¶ 21. IP told Pet Project that (a) it would continue to be responsible for producing and overseeing the quality of THRIVE material; (b) the mixture comprising THRIVE

would remain the same; (c) members of Weyerhaeuser’s THRIVE team would continue to be employed by IP; and (d) the transition from Weyerhaeuser would be “seamless” in connection with the supply to Pet Project of THRIVE. Id. at ¶ 22. Problems with the Pet Platter Pet Project alleges that in 2018, its manufacturer, UPM, began using the supply of THRIVE provided by IP for Pet Project. Id. at ¶ 24. Soon thereafter, customers complained to Pet Project about the quality of its products. Id. In addition,

Pet Project observed undispersed cellulose fibers in the product. Id. at ¶ 25. Pet Project immediately informed IP of these issues. Id. Defendant initially thought an improper moisture content was responsible and promised that a newly introduced quality control plan would address the problem. Id. at ¶ 27-28. Pet Project and UPM continued to encounter problems including striations on the surface, discoloration, surface puffing, burn marks, and issues leading the product to function defectively. Id. at ¶¶ 32–33. After investigating, IP recommended Pet Project to change manufacturers as a solution to the problem. Id. at ¶ 34. On IP’s advice, in October 2018 Pet Project changed manufacturers from UPM to a company

recommended by IP, Tailor Made Products (“TMP”). Id. at ¶¶ 35, 37. TMP experienced the same problems in the manufacture of the Pet Platter with the THRIVE material from IP. Id. at ¶ 38. In July 2019, with short notice and no assistance in procuring another product, IP advised Pet Project and other THRIVE customers that it would discontinue its production and supply of THRIVE material. Id. at ¶ 41. In doing so, Defendant refused to allow other manufacturers to produce

the THRIVE product for Pet Project’s use.1 Id. II. Standard “To survive a motion to dismiss under Rule 12(b)(6), the complaint must provide enough factual information to state a claim to relief that is plausible on its face and raise a right to relief above the speculative level.” Haywood v. Massage Envy Franchising, LLC, 887 F.3d 329, 333 (7th Cir. 2018) (quoting Camasta v. Jos. A. Bank Clothiers, Inc., 761 F.3d 732, 736 (7th Cir. 2014)); see also Fed. R. Civ. P. 8(a)(2)

(requiring a complaint to contain a “short and plain statement of the claim showing that the pleader is entitled to relief”). A court deciding a Rule 12(b)(6) motion “construe[s] the complaint in the light most favorable to the plaintiff, accept[s] all

1 Pet Project discussed its lost profits with IP. Id. at ¶ 42. In response, IP required Pet Project to engage in a compensation negotiation process. Id. at ¶¶ 44–46. Pet Project gathered records for IP’s negotiation process and provided a complete report on February 10, 2020. Id. at ¶ 47. On December 7, 2020, IP offered $10,000 to compensate Pet Project for its losses—much below what it was owed—and then apparently concluded the compensation negotiation process. Id. at ¶ 52. well-pleaded facts as true, and draw[s] all reasonable inferences in the plaintiff’s favor.” Lax, 20 F.4th at 1181. However, the court need not accept as true “statements of law or unsupported conclusory factual allegations.” Id. (quoting Bilek v. Fed. Ins.

Co., 8 F.4th 581, 586 (7th Cir. 2021)). “While detailed factual allegations are not necessary to survive a motion to dismiss, [the standard] does require ‘more than mere labels and conclusions or a formulaic recitation of the elements of a cause of action to be considered adequate.’” Sevugan v. Direct Energy Servs., LLC, 931 F.3d 610, 614 (7th Cir. 2019) (quoting Bell v. City of Chicago, 835 F.3d 736, 738 (7th Cir. 2016)). Dismissal for failure to state a claim is proper “when the allegations in a

complaint, however true, could not raise a claim of entitlement to relief.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 558 (2007).

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