Parziale v. HP, Inc.

District Court, N.D. California·Decided September 29, 2020·No. 5:19-cv-05363·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 JOHN PARZIALE, 8 Case No. 5:19-cv-05363-EJD Plaintiff, 9 ORDER GRANTING MOTION TO v. DISMISS PLAINTIFF'S SECOND 10 AMENDED COMPLAINT HP, INC, 11 Re: Dkt. No. 43 Defendant. 12

13 This putative nation-wide class action suit arises out of Defendant HP Inc.’s (“HP” or 14 “Defendant”) implementation of a remote firmware update that allegedly incapacitated Plaintiff 15 John Parziale’s (“Plaintiff”) HP printers and thirty-three other models of HP printers by preventing 16 the use of certain non-HP ink cartridges in those printers. 17 On April 24, 2020, this Court granted in part Defendant’s motion to dismiss the First 18 Amended Complaint (“FAC”), with leave for Plaintiff to amend. Dkt. No. 32. Shortly thereafter, 19 Plaintiff filed a Second Amended Complaint. Dkt. No. 38 (“SAC”). Defendant now moves to 20 dismiss certain claims in the SAC pursuant to Rule 12(b)(6) of the Federal Rules of Civil 21 Procedure. Dkt. No. 43 (“Motion”). The Court took the matter under submission for decision 22 without oral argument pursuant to Civil Local Rule 7-1(b). For the reasons below, Defendant’s 23 motion is GRANTED in full. 24 I. Background 25 The facts giving rise to this dispute are summarized in the Court’s Order granting in part 26 Defendant’s motion to dismiss. Dkt. No. 32. The Court recounts only the pertinent facts here. 27 Case No.: 5:19-cv-05363-EJD 1 Plaintiff alleges that on or around April 12, 2019, HP used dynamic security technology to 2 implement a remote firmware update that modified the firmware on many models of HP printers, 3 including Plaintiff’s printers, without alerting users.1 The update caused affected printers to cease 4 functioning with certain non-HP ink cartridges. SAC ¶ 3. 5 Plaintiff owned two HP printers at the time of the update. Plaintiff bought his printers 6 based at least in part on their “ability to use third party ink cartridges” because such cartridges 7 were less expensive than their HP brand counterparts. Id. ¶ 28. According to Plaintiff, at the time 8 he purchased his HP printers, “almost every printer allowed the use of third party ink cartridges 9 and refilled name brand cartridges.” Id. ¶ 49. Plaintiff alleges that he believed he would be able 10 to use third-party ink cartridges based on information on the printer box and the online “store 11 page.” Id. ¶¶ 28, 38. The printer box included a statement telling consumers to “[p]lease use 12 genuine HP ink cartridges for best results.” Id. ¶ 27. The store page contained the following 13 statement: 14 “Dynamic security enabled printer. Only intended to be used with cartridges using an HP original chip. Cartridges using a non-HP 15 chip may not work, and those that work today may not work in the 16 future. http://www.hp.com/go/learnaboutsupplies.” 17 Samplin Decl. Ex. A, at 5.2 18 As a result of the firmware update, Plaintiff was unable to use his printers unless and until 19

20 1 Plaintiff alleges that the firmware update affected his HP Officejet Pro 7740 model printers as 21 well as an extensive list of other printer models (the “Class Printers”). See SAC ¶ 70 for a 22 complete list of Class Printers. 23 2 As explained further below, the Court may consider the store page as it was at the time of 24 Plaintiff’s purchase, a snapshot of which is attached to Defendant’s motion to dismiss, because 25 Plaintiff incorporates the store page into the SAC (see, e.g., SAC ¶¶ 38, 61) and because the Court 26 may take judicial notice of documents from the Wayback Machine. 27 Case No.: 5:19-cv-05363-EJD 1 he inserted an ink cartridge with an original HP chip. SAC ¶¶ 6, 31, 55. Plaintiff alleges that by 2 limiting the functionality of his printers, the update reduced the value of his printers and rendered 3 the non-HP cartridges he already owned useless. Id. ¶¶ 55, 60. 4 Plaintiff brought this action seeking to certify a nationwide class of all United States 5 Citizens who, between the applicable statute of limitations and the present, purchased or owned 6 one or more of any of the printer models identified in the SAC, and a subclass of all persons in 7 Florida who purchased or owned one or more of any such printer. Id. ¶ 102. Plaintiff initially 8 brought claims on behalf of the Florida subclass for violation of the Florida Deceptive and Unfair 9 Trade Practices Act (“FDUTPA”) (Claim 1) and the Florida Misleading Advertisement Law 10 (“FMAL”) (Claim 2). On behalf of the larger class, Plaintiff asserted claims for violations of the 11 Computer Fraud and Abuse Act (“CFAA”) (Claim 3), trespass to chattels (Claim 4), and tortious 12 interference with contractual relations and/or prospective economic advantage (Claim 5). 13 Defendant moved to dismiss all claims and in response, Plaintiff amended the complaint. See First 14 Amended Complaint (“FAC”), Dkt. No. 19. Defendant then moved to dismiss the FAC. Dkt. No. 15 25. The Court granted the motion in part and denied it in part, dismissing the FDUTPA and 16 FMAL claims, most of the CFAA claims, and the tortious interference claim, for failure to state a 17 claim. Dkt. No. 32. The Court granted Plaintiff leave to amend the complaint. Id. 18 Plaintiff filed the SAC shortly thereafter, reasserting the FDUTPA claim and maintaining 19 the surviving CFAA and trespass to chattels claims. Defendant once again moves to dismiss all 20 claims, arguing that the SAC still fails to state a claim under FDUTPA and that the new 21 allegations undermine the CFAA and trespass to chattels claims that survived the previous motion. 22 II. Legal Standard 23 Federal Rule of Civil Procedure 12(b)(6) provides that a party may seek dismissal of a suit 24 for failure to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). The 25 complaint “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is 26 plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. 27 Case No.: 5:19-cv-05363-EJD 1 Twombly, 550 U.S. 544, 570 (2007)). When deciding whether to grant a motion to dismiss, the 2 court “must accept as true all factual allegations in the complaint and draw all reasonable 3 inferences in favor of the nonmoving party.” Retail Prop. Trust v. United Bhd. of Carpenters & 4 Joiners of Am., 768 F.3d 938, 945 (9th Cir. 2014) (citation omitted). However, “courts are not 5 bound to accept as true a legal conclusion couched as a factual allegation.” Iqbal, 556 U.S. at 678. 6 Dismissal “is proper only where there is no cognizable legal theory or an absence of sufficient 7 facts alleged to support a cognizable legal theory.” Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 8 2001). 9 III. Discussion 10 a. Judicial Notice 11 Defendant’s motion to dismiss attaches as exhibits (1) a historical snapshot of the HP store 12 page for the OfficeJet Pro 7740 archived on the Wayback Machine,3 (2) photos of the OfficeJet 13 Pro 7740 box and packaging, and (3) a copy of the HP support page. Decl. of Ilissa Samplin 14 (“Samplin Decl.”), Dkt. No. 43-1, Exhibits A-C. 15 While the Court generally does not consider materials outside of the complaint on a motion 16 to dismiss, the Court may consider “documents incorporated into the complaint by reference, and 17 matters of which a court may take judicial notice.” Tellabs, Inc. v.

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