Podpeskar v. Makita U.S.A. Inc.

247 F. Supp. 3d 1001, 2017 U.S. Dist. LEXIS 46573
CourtDistrict Court, D. Minnesota
DecidedMarch 28, 2017
DocketCivil No. 15-3914 (JRT/KMM)
StatusPublished
Cited by14 cases

This text of 247 F. Supp. 3d 1001 (Podpeskar v. Makita U.S.A. Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Podpeskar v. Makita U.S.A. Inc., 247 F. Supp. 3d 1001, 2017 U.S. Dist. LEXIS 46573 (mnd 2017).

Opinion

MEMORANDUM OPINION AND ORDER ON MOTION TO DISMISS

JOHN R. TUNHEIM, Chief Judge

Plaintiff Sean Podpeskar brings this action based on alleged design defects in batteries manufactured by Defendant Makita U.S.A. Inc. (“Makita”). Podpeskar alleges the following claims: violation of the Minnesota Unlawful Trade Practices [1004]*1004Act (“UTPA”); violation of the Minnesota False Statements in Advertising Act (“FSAA”); breach of an express warranty and the implied warranty of merchantability and fitness; fraudulent misrepresentation, concealment, and failure to disclose; declaratory and injunctive relief; and unjust enrichment.

Makita moves to dismiss all claims. Because Podpeskar sufficiently pleaded notice and unconscionability, the Court will deny Makita’s motion with regard to Pod-peskar’s express warranty claim. The Court also finds Podpeskar pleaded his fraud claims with sufficient particularity and properly pleaded an unjust enrichment claim in the alternative, and therefore, the Court will deny Makita’s motion with regard to those claims. But, because Podpes-kar’s declaratory and injunctive relief claims are remedies rather than standalone claims, the Court will grant Makita’s motion on those claims,

BACKGROUND

Makita “design[s], manufactúrete], market[s] and s[ells] power tools featuring lithium-ion batteries that have been sold throughout the United States.” (Am. Compl. at 4, Jan. 29, 2016, Docket No. 29.)1 Podpeskar bought a “Makita Cordless Drill Combo Set” from a retailer in Duluth, Minnesota, in summer 2013. (Id. at 13.) The set contained “a small impact drill and full-sized variable speed drill” as well as a “BL1815 18V rechargeable lithium ion [bjattery.” {Id.) Podpeskar alleges that the “charger indicated] the [bjattery was locked and therefore unusable” after “approximately two years” and “only a handful of uses.” {Id. at 14.) Podpeskar asserts that “he contacted Makita in 2015,” but that “Makita informed him that his [bjat-tery was no longer covered by the warranty and it refused to replace the defective [bjattery.” (Id. at 8.) Podpeskar chose to purchase a new drill set for $270 rather than replace the battery for $120. {Id. at 14.)

Podpeskar contends that the batteries at issue are defective in design because they “rely solely upon the first cell for power.” (Id. at 5.) Podpeskar alleges that this design causes the battery to fail prematurely, and renders it unusable, stating:

Because power is used even when the [bjattery is not in use, the power in the first cell of the [bjattery is depleted. This essentially causes the chip to believe that the cell has shorted out. If a consumer attempts to charge the [bjat-tery three times in this state the charger will believe the [bjattery is not functional and will no longer charge it.

(Id.) Makita later introduced new batteries with “Star Protection Computer Controls which draw power from all cells of the battery,” and which Podpeskar refers to as a “corrective measure.” (Id. at 1-2.) Pod-peskar cites reviews of Amazon.com as a “sampling” of the complaints Makita received, many dated between 2010 and 2012.2 (See id. at 8-12.)

Podpeskar alleges that Makita “advertised and expressly warranted” that the [1005]*1005batteries were “thoroughly inspected and tested before leaving the factory,” and “free of defects.” (Id. at 5 (citation omitted).) Podpeskar asserts that Makita “advertise[d] that the [b]atteries retain optimal battery life based on the built-in chip,” by stating that: the battery and charger combination “optimize[d] battery life by actively controlling current, voltage and temperature;” the built-in fan cooled the battery, “which help[ed] produce more lifetime work;” the specific battery resulted in an “even longer run time;” the battery and charger combination “maximize[d] battery life” and took “only 30 minutes to charge.” (Id. at 5-6 (citation omitted).) Podpeskar also contends that on “information and belief, [Makita] and its agents would represent that the [b]atteries should last approximately 1,000 charges.” (Id. at 6.) Podpes-kar alleges that “Makita ... represented, through its omissions, that the [b]atteries were free of defects and would function properly.” (Id. at 7.) Podpeskar also asserts that Makita

negligently, knowingly and intentionally concealed, and has failed to disclose that ... its [b]atteries routinely fail well short of their usable life and are not receiving maximize battery life or any benefit based on the built-in chip.... Indeed, [Makita’s] [b]atteries have deteriorated and will continue to deteriorate at a rate demonstrating their lack of durability and resiliency.

(Id. at 7 (emphasis added).)

Makita has since extended its express warranty on the batteries from one year to three years;3 however, Podpeskar contends that “no reasonable customer would know he or she should make a warranty claim when a warranty claim was already denied or the product is outside of the original warranty period.” (Id. at 7.)

Podpeskar filed his initial complaint on October 22, 2015, alleging a UTPA claim, an PSAA claim, express and implied warranty claims, and claims based on fraudulent misrepresentation, concealment, and failure to disclose. Podpeskar also requested declaratory and. injunctive relief, and pleaded a claim of unjust enrichment in the alternative. The claims remain the same in Podpeskar’s Amended Complaint. Podpeskar brings his claims as a purported class action on behalf of “a class of all others similarly situated.” (Id. at 1.) Pod-peskar defines the national class as:

All individuals and entities in the United States that purchased [b]atteries, or devices sold with [b]atteries, on or after October 2009. Excluded from the Class are Defendant, any entity in which Defendant has a controlling interest or which has a controlling interest in Defendant, and Defendant’s legal representatives, assigns and successors. Also excluded are the judge to whom this case is assigned and any member of the, judge’s immediate family.

(Id. at 15.) In the alternative, Podpeskar defines a “Minnesota class” the same, except restricted to the state. (Id. at 16.)

Makita initially moved to dismiss Pod-peskar’s complaint on January 8, 2016. Podpeskar responded by amending the complaint on January 29, 2016. Makita [1006]*1006brought the- current motion to dismiss on March 18, 2016.

ANALYSIS

I. STANDARD OF REVIEW

In reviewing a motion to dismiss brought under Fed. R. Civ. P. 12(b)(6), the Court considers all facts alleged in the complaint as true to determine if the complaint “state[s] a claim to relief ’that is plausible on its face.” Braden v. Wal-Mart Stores, Inc., 588 F.3d 585, 594 (8th Cir. 2009) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009)).

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247 F. Supp. 3d 1001, 2017 U.S. Dist. LEXIS 46573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/podpeskar-v-makita-usa-inc-mnd-2017.