Phillips v. Royal Appliance Mfg. Co.

CourtDistrict Court, S.D. California
DecidedSeptember 3, 2021
Docket3:21-cv-00987
StatusUnknown

This text of Phillips v. Royal Appliance Mfg. Co. (Phillips v. Royal Appliance Mfg. Co.) 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
Phillips v. Royal Appliance Mfg. Co., (S.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 8 9 10 UNITED STATES DISTRICT COURT 11 SOUTHERN DISTRICT OF CALIFORNIA 12 13 SUSAN PHILLIPS, EKATERINI Case No.: 21-cv-987-WQH-KSC CAMPOS, ROBERT JELLINEK, 14 and JANINE HARRISON, ORDER 15 Individually And On Behalf Of All Others Similarly Situated, 16 Plaintiffs, 17 v. 18 ROYAL APPLIANCE MFG. CO. 19 d/b/a Hoover, 20 Defendant. 21 HAYES, Judge: 22 The matters before the Court are the Motion to Dismiss Class Action Complaint and 23 Motion for a More Definite Statement filed by Defendant Royal Appliance Mfg. Co. (ECF 24 No. 5) and the Motion to Remand filed by Plaintiffs Susan Phillips, Ekaterini Campos, 25 Robert Jellinek, and Janine Harrison (ECF No. 8). 26 /// 27 /// 28 1 I. BACKGROUND 2 On April 6, 2021, Plaintiffs Susan Phillips, Ekaterini Campos, Robert Jellinek, and 3 Janine Harrison filed a Class Action Complaint against Defendant Royal Appliance Mfg. 4 Co. d/b/a Hoover (“Royal Appliance”) in the San Diego County Superior Court. (Compl., 5 Ex. A to Notice of Removal (“NOR”), ECF No. 1-2 at 4). Plaintiffs bring consumer claims 6 against Defendant Royal Appliance under California state law arising from Royal 7 Appliance’s alleged unlawful warranty practices. 8 On May 24, 2021, Royal Appliance removed the action to this Court under 28 U.S.C. 9 § 1441(b) and “28 U.S.C. § 1332 . . . based on diversity of citizenship of the parties.” 10 (NOR, ECF No. 1 ¶ 3). In the Notice of Removal, Royal Appliance asserts that each named 11 Plaintiff is “a citizen of the State of California” and is diverse from Royal Appliance, which 12 is “incorporated in the State of Ohio, with its principal place of business in Charlotte, North 13 Carolina.” (Id. ¶¶ 4-8). Royal Appliance asserts that the Statement of Damages filed by 14 Plaintiffs demonstrates that “the amount in controversy, exclusive of interest[] and costs, 15 exceeds $75,000.” (Id. ¶ 9). 16 On June 1, 2021, Royal Appliance filed a Motion to Dismiss Class Action Complaint 17 and Motion for a More Definite Statement. (ECF No. 5). Royal Appliance moves to dismiss 18 the Complaint pursuant to Rule 9(b) of the Federal Rules of Civil Procedure for failure to 19 allege fraud with particularity. In the alternative, Royal Appliance moves for a more 20 definite statement pursuant to Rule 12(e) of the Federal Rules of Civil Procedure. 21 On June 10, 2021, Plaintiffs filed a Motion to Remand. (ECF No. 8). Plaintiffs move 22 to remand this case to the San Diego County Superior Court, or, in the alternative, “remand 23 at least Plaintiffs’ equitable claims.” (ECF No. 8 at 2). Plaintiffs contend that Royal 24 Appliance fails to demonstrate that the amount in controversy exceeds $75,000. Plaintiffs 25 further contend that the Court lacks subject matter jurisdiction over Plaintiffs’ equitable 26 claims pursuant to the decision of the Court of Appeals for the Ninth Circuit in Sonner v. 27 Premier Nutrition Corp., 971 F.3d 834 (9th Cir. 2020), because “Defendant does not 28 1 demonstrate, nor even allege, that Plaintiffs’ legal remedies are inadequate.” (ECF No. 8- 2 1 at 7). 3 On June 22, 2021, Plaintiffs filed an Opposition to the Motion to Dismiss. (ECF No. 4 9). On June 28, 2021, Royal Appliance filed a Reply in support of the Motion to Dismiss. 5 (ECF No. 10). 6 On July 2, 2021, Royal Appliance filed an Opposition to the Motion to Remand. 7 (ECF No. 11). Royal Appliance contends that this action meets the requirements for 8 diversity jurisdiction under the Class Action Fairness Act (“CAFA”), because the parties 9 are minimally diverse, there are more than 100 putative class members, and the aggregate 10 amount in controversy exceeds $5,000,000. Royal Appliance further contends that Sonner 11 is inapplicable, and it would be premature for the Court to remand Plaintiffs’ equitable 12 claims. 13 On July 12, 2021, Plaintiffs filed a Reply in support of the Motion to Remand. (ECF 14 No. 12). Plaintiffs contend that Royal Appliance fails to provide sufficient evidence that 15 the amount in controversy exceeds $5,000,000 under CAFA. 16 II. ALLEGATIONS IN THE COMPLAINT 17 Defendant Royal Appliance “is a manufacturer of products and advertises that its 18 products are sold with express warranties.” (Compl., Ex. A to NOR, ECF No. 1-2 ¶ 2). 19 Royal Appliance “makes a warranty registration form available online and includes 20 warranty registration cards with the packaging of its products.” (Id. ¶ 3). In 2019, Plaintiffs 21 each viewed an advertisement by Royal Appliance for a vacuum or carpet cleaner, which 22 “advertised . . . that the Product was accompanied by Defendant’s express warranties.” (Id. 23 ¶¶ 26, 36, 43, 53). The advertisements “did not contain any other terms, conditions, 24 exclusions or limitations with respect to the warranty availability.” (Id. ¶¶ 27, 37, 44, 54). 25 Plaintiffs relied on the warranty promises and purchased the Royal Appliance products. 26 When Plaintiffs opened the product packaging, they “discovered that the Product[s] 27 did not come with a warranty as Plaintiff[s] [] were led to believe.” (Id. ¶¶ 29, 39, 46, 56). 28 The online warranty registration form and the warranty card registration included with the 1 packaging “failed to inform Plaintiff[s] [] that it was for product registration only, and did 2 not inform Plaintiff[s] [] that failure to complete the online form did not diminish 3 Plaintiffs[’] warranty rights as required by California Civil Code § 1793.1.” (Id. ¶¶ 32-33, 4 40, 49-50, 57). “[A]s a result of Defendant’s unlawful and deceitful business practices, 5 Defendant is able to chill warranty claims and benefit economically by duping consumers 6 into thinking that they do not have warranty rights unless they fill out the form and provide 7 their personal information to Defendant.” (Id. ¶ 6). “[C]onsumers actually do not have the 8 warranties that were promised to them when they purchased their products as they must 9 now register their warranties, a requirement that was not disclosed at the time of purchase.” 10 (Id.). If the exterior packaging of the products Plaintiffs purchased “disclosed that the 11 warranty was contingent on registration by Plaintiffs providing their personal information, 12 Plaintiffs would not have purchased the Products, or alternative would not have paid a 13 premium for the Products.” (Id. ¶ 61). 14 Plaintiffs seek to represent the following classes: 15 a. All persons who purchased one or more of Defendant’s products within California during the four (4) years immediately preceding the filing of the 16 Complaint through the date of class certification, which were accompanied 17 by a warranty or product registration card or form, or an electronic online warranty or product registration form, to be completed and returned by the 18 consumer, which do not contain statements, each displayed in a clear and 19 conspicuous manner, informing the consumer that: i) the card or form is for product registration, and ii) informing the consumer that failure to 20 complete and return the card or form does not diminish his or her warranty 21 rights.

22 b. All persons who purchased one or more of Defendant’s products within 23 California during the three (3) years immediately preceding the filing of the Complaint through the date of class certification, which were 24 advertised as being accompanied with an express warranty but which do 25 not contain a warranty, and/or contain warranty activation, confirmation or registration cards requiring persons to provide their personal data or take 26 additional steps in order to receive a warranty. 27 28 1 (Id. ¶ 64).

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Bluebook (online)
Phillips v. Royal Appliance Mfg. Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-v-royal-appliance-mfg-co-casd-2021.