Perez v. Monster Inc.

149 F. Supp. 3d 1176, 2016 U.S. Dist. LEXIS 7256, 2016 WL 234370
CourtDistrict Court, N.D. California
DecidedJanuary 20, 2016
DocketCase No. 15-cv-03885-EMC
StatusPublished
Cited by5 cases

This text of 149 F. Supp. 3d 1176 (Perez v. Monster Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perez v. Monster Inc., 149 F. Supp. 3d 1176, 2016 U.S. Dist. LEXIS 7256, 2016 WL 234370 (N.D. Cal. 2016).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS

EDWARD M. CHEN, United States District Judge

Plaintiff Benjamin Perez has filed a putative class action against Defendants Monster ínc. and two Best Buy entities (Best Buy Stores, LP and Bestbuy.com LLC) (collectively, “Best Buy”), based on Monster’s sale of certain High-Definition Multimedia Interface (“HDMI”) cables. The gist of the case is that Defendants purportedly claim that “1080p and 4K HDTVs will not work properly unless consumers use Monster HDMI cables with bandwidths of 18,0, 22.5 or 27.0 gigabits per second (‘Gbps’)” when, “[i]n fact, any HDMI cable with a bandwidth of just 10.2 Gbps can transmit all 1080p and 4K signals perfectly.” Compl. ¶ 2. Currently pending before the Court is Defendants’ motion to dismiss.

Having considered the parties’ briefs, as well as the ¡oral argument of counsel, the Court hereby GRANTS in part and DENIES in part Defendants’ motion.

I. FACTUAL & PROCEDURAL BACKGROUND

In the complaint, Mr. Perez alleges as follows.1

“HDMI is a proprietary standard [which belongs to HDMI Licensing, LLC] for transmitting digital video and audio from high definition (‘HD’) sources (e.g., digital cable boxes and Blu-ray players) to [¶] [1179]*1179monitors (e.g., HDTVs).” Compl. ¶ 17. “The HDMI format was intended to streamline the numerous methods for transmitting digital video and audio signals then in use with a single connection and cable type that could transmit digital video, multi-channel surround audio and advanced control data through a single cable, thereby simplifying installation and clutter.” Compl. 1120.

Currently, HDMI cables have two basic classifications: “Standard” (Category 1) and “High Speed” (Category 2).2 See Compl. ¶26. HDMI High Speed “is ‘designed and tested -to handle video resolu-, tions of 1080p and beyond, including advanced display technologies such as 4K, 3D, and Deep Color:’” Compl; if 28. “To qualify as ‘HDMI High Speed,’ an HDMI cable must have a bandwidth of 10.2 Gbps, meaning that it can transmit 10.2 billion bits of digital information per second.” Compl. ¶ 27.' “[A]ny HDMI cable with a bandwidth of just 10.2 Gbps can transmit all 1080p and 4K signals perfectly.” Compl. ¶ 2. '

Monster sells cable that meets.the bandwidth requirement of 10.2 Gbps. It labels that cable “High Speed.” But Monster also sells cable that exceeds that bandwidth. Those cables are labeled as follows:

• “Advanced High Speed” — bandwidth of 18.0 Gbps.
• “Ultra High Speed” — bandwidth of 22.5 Gbps.
• “Ultimate High Speed” — bandwidth of 27.0 Gbps.

See Compl. ¶ 32. According to Mr. Perez, these labels “have no established standard or meaning.” Compl. ¶ 36 (“While HDMI Licensing, LLC created and regulates the term ‘HDMI High Speed,’ Monster invented the terms ‘Advanced high Speed,’ ‘Ultra High Speed’ and ‘Ultimate High Speed’ entirely from whole cloth.”).

In or about March 2014, Mr. Perez purchased a Monster Ultra High Speed HDMI cable (22.5 Gbps) from a Best Buy retail store in Orange, California, .for.about $189. See Compl. ¶ 11. Before buying the product, Mr. Perez “carefully reviewed the product’s, packaging.” Compl. ¶ 11. According to Mr. Perez, the product packaging falsely represented that a HDMI cable “with a bándwidth exceeding 10.2 Gbps' was needed to transmit video signals to his television,” when in fact 10.2 Gbps was all that was needed. See Compl. ¶ 11; see also Compl. ¶ 31 (“Despite the fact that any HDMI High Speed cable with a bandwidth of 10.2 Gbps can transmit a perfect digital picture, Monster misrepresents to consumers that they need even faster cables for their'HD connections.”).

Mr, Perez indicates that the above representations were made in the product packaging via a chart that is “[o]n the back of the packaging of all [Monster’s] HDMI cables.” -Compl. ¶ 32 (emphasis. added). That chart is replicated below.

[1180]*1180[[Image here]]

Compl. ¶32. Notably, the chart includes the following statement: “Use This Bandwidth Comparison Chart To Get The Speed You Need.” Compl. ¶ 32 (emphasis added). According to Mr. Perez, the implication is that, to get the speed you need for, e.g., a 4K television, you need a HDML cable with at least a bandwidth of 18,0 Gbps. .

Mr. Perez also claims that Monster’s chart above is “bunk” as established by the fact that “Defendants[ ] have ramped up the bandwidth requirements on their Performance Chart over time. According to Defendants, video connections that previously required only 17.8 Gbps now require 27.0 Gbps.” Opp’n at 14 (citing Compl. ¶ 35); see also Opp’n at 6.

Based on, inter alia, the above allegations, Mr. Perez has asserted the following claims for relief:

(1) Violation of the Magnuson-Moss Warranty Act (“MMWA”). See 15 U.S!C. § 2301 et seq.

(2) Breach of express warranty.

(3) Breach of the implied warranty of merchantability.

(4) Unjust enrichment.

(5)Negligent misrepresentation.

(6)Fraud.

(7) Violation of California’s Consumer Legal Remedies Act (“CLRA”). See Cal. Civ. Code § 1750 et seq.

(8) Violation of California Business & Professions Code § 17200.

(9) Violation of California Business & Professions Code § 17500.

As Defendants point out, the above claims can generally be grouped into two categories: (1) the fraud-based claims and (2) the warranty-based claims.

II. DISCUSSION

A. Legal Standard

Under Federal Rule of Civil Procedure 12(b)(6), a defendant may move to dismiss for failure to state a claim for relief.

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” The plausibility standard requires more than the sheer possibility or conceivability that a defendant has acted unlawfully. “Where a complaint pleads facts that are merely consistent with a defendant’s liability, it [1181]*1181stops short of the line between possibility and plausibility of entitlement to relief.” Dismissal under Rule 12(b)(6) is proper only when the complaint either (1) lacks a cognizable legal theory or (2) fails to allege sufficient facts to support a cognizable legal theory.

Li v. Kerry, 710 F.3d 995, 999 (9th Cir.2013) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678-79, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009)); see also Bell Atl. Corp. v. Twombly,

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149 F. Supp. 3d 1176, 2016 U.S. Dist. LEXIS 7256, 2016 WL 234370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perez-v-monster-inc-cand-2016.