Patrick Warnshuis v. Amazon.Com, Inc.

District Court, E.D. California·Decided December 9, 2020·No. 1:19-cv-01454·Unknown

Opinion

PATRICK WARNSHUIS, CASE NO. 1:19-CV-1454 AWI BAM

Plaintiff ORDER ON DEFENDANT’S MOTION v. TO DISMISS AND PLAINTIFF’S MOTION TO AMEND BAUSCH HEALTH U.S., LLC f/k/a Valeant Pharmaceuticals North America, LLC, et al., (Doc. No. 39)

Defendants

This is a products liability case that stems from the ingestion of an allegedly tainted nasal spray, “Ocean Saline Nasal Spray,” by Plaintiff Patrick Warnshuis (“Warnshuis”). The operative complaint is the Third Amended Complaint (“TAC”), which was filed after the Court granted in part a Rule 12(b)(6) motion. Currently before the Court is Defendant Bausch Health U.S., LLC’s (“Bausch”) Rule 12(b)(6) motion to dismiss. For the reasons that follow, Bausch’s motion will be granted in part and denied in part. From the Complaint, in April 2018, Warnshuis bought Ocean Saline Nasal Spray through Defendants Amazon.com, LLC and Amazon.com, Inc. (collectively “Amazon”) and Americarx. After using the nasal spray, Warnshuis began suffering chronic and unexplained sinus infections that would not respond to treatment. In August 2018, Warnshuis received a recall letter that the nasal spray that he had purchased through Amazon and Americarx could have microbial contamination, namely the bacteria pseudomonas aeruginosa. The recall had been requested by Defendant Product Quest Manufacturing, LLC “PQM”, who was described as the manufacturer. PQM had requested that Bausch recall all lots of Ocean Saline Nasal Spray because the lots could be contaminated with pseudomonas aeruginosa. Warnshuis continued to suffer sinus infections. Subsequent culture tests returned positive results for pseudomonas aeruginosa bacterial infections. The bacterial infections have caused and continue to cause Warnshuis serious injury and damages. RULE 12(b)(6) FRAMEWORK Under Federal Rule of Civil Procedure 12(b)(6), a claim may be dismissed because of the plaintiff’s “failure to state a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). A dismissal under Rule 12(b)(6) may be based on the lack of a cognizable legal theory or on the absence of sufficient facts alleged under a cognizable legal theory. See Mollett v. Netflix, Inc., 795 F.3d 1062, 1065 (9th Cir. 2015). In reviewing a complaint under Rule 12(b)(6), all well- pleaded allegations of material fact are taken as true and construed in the light most favorable to the non-moving party. Kwan v. SanMedica, Int’l, 854 F.3d 1088, 1096 (9th Cir. 2017). However, complaints that offer no more than “labels and conclusions” or “a formulaic recitation of the elements of a cause of action will not do.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009); Johnson v. Federal Home Loan Mortg. Corp., 793 F.3d 1005, 1008 (9th Cir. 2015). The Court is “not required to accept as true allegations that contradict exhibits attached to the Complaint or matters properly subject to judicial notice, or allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” Seven Arts Filmed Entm’t, Ltd. v. Content Media Corp. PLC, 733 F.3d 1251, 1254 (9th Cir. 2013). To avoid a Rule 12(b)(6) dismissal, “a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Iqbal, 556 U.S. at 678; Mollett, 795 F.3d at 1065. “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678; Somers v. Apple, Inc., 729 F.3d 953, 959 (9th Cir. 2013). “Plausibility” means “more than a sheer possibility,” but less than a probability, and facts that are “merely consistent” with liability fall short of “plausibility.” Iqbal, 556 U.S. at 678; Somers, 729 F.3d at 960. The Ninth Circuit has distilled the following principles for Rule 12(b)(6) motions: (1) to be entitled to the presumption of truth, allegations in a complaint or counterclaim may not simply recite the elements of a cause of action, but must contain sufficient allegations of underlying facts to give fair notice and to enable the opposing party to defend itself effectively; (2) the factual allegations that are taken as true must plausibly suggest entitlement to relief, such that it is not unfair to require the opposing party to be subjected to the expense of discovery and continued litigation. Levitt v. Yelp! Inc., 765 F.3d 1123, 1135 (9th Cir. 2014). If a motion to dismiss is granted, “[the] district court should grant leave to amend even if no request to amend the pleading was made . . . .” Ebner v. Fresh, Inc., 838 F.3d 958, 962 (9th Cir. 2016). However, leave to amend need not be granted if amendment would be futile or the plaintiff has failed to cure deficiencies despite repeated opportunities. Garmon v. County of L.A., 828 F.3d 837, 842 (9th Cir. 2016). Defendant’s Argument Bausch argues that dismissal of the second and third causes of action (for negligence and breach of warranty) is appropriate for several reasons. First, contrary to the first dismissal order, the TAC continues to improperly lump all defendants together without differentiating Bausch from any other defendant. This defective pleading does not provide adequate notice of what Bausch allegedly did wrong. Second, to the extent the TAC attempts to allege a negligent recall claim or a negligent failure to warn, those claims fail to allege the requisite elements. Third, the TAC fails to allege a plausible breach of express warranty claim because the TAC fails allege the exact terms of any warranty made by Bausch. Finally, the TAC contains no plausible breach of implied warranty claim because the TAC does not establish vertical privity between Bausch and Warnshuis, and the TAC also fails to adequately allege that Bausch is a manufacturer for purposes of a vertical privity exception. Because these problems were noted in the prior dismissal order yet not corrected in the TAC, Bausch argues that dismissal of the second and third claims against it should be with prejudice. Plaintiff’s Opposition Warnshuis argues that he is unaware of the manufacturing and distribution process of the Ocean Saline Nasal Spray. The only awareness that he has is what can be gleaned from the Amazon website, the recall information provided to him, and the product packaging. However, additional factual allegations were included in Paragraphs 29 and 32 with respect to each defendant’s act of negligence and Paragraphs 40, 43, and 44 with respect to the warranty claim. The TAC specifically alleges that Bausch negligently formulated, processed, manufactured and sold the nasal spray and was aware of prior contamination, yet continued to manufacture a defective product. Bausch’s awareness of prior contamination but failure to fix the problem it had been alerted to by the FDA renders its conduct negligent. Bausch’s failure to take steps to correct the problem differentiates the strict liability claim against Bausch and provides Bausch with adequate awareness of what it did wrong. Because Warnshuis is unaware of which defendants were responsible for which steps in the manufacture and distribution process, the TAC has provided more particularity where possible. With respect to the

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Patrick Warnshuis v. Amazon.Com, Inc., (E.D. Cal. 2020).

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