RAO v. SLEEP NUMBER BED, INC.

CourtDistrict Court, W.D. Pennsylvania
DecidedNovember 18, 2024
Docket2:23-cv-02150
StatusUnknown

This text of RAO v. SLEEP NUMBER BED, INC. (RAO v. SLEEP NUMBER BED, INC.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RAO v. SLEEP NUMBER BED, INC., (W.D. Pa. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA

DR. GUTTI RAO, Plaintiff, Civil Action No. 2:23-cv-2150 Vv. Hon. William S. Stickman IV SLEEP NUMBER BED, INC. and SYNCHRONY BANK, Defendants.

MEMORANDUM OPINION Defendants Sleep Number Bed, Inc. (“Sleep Number”) and Synchrony Bank (“Synchrony”) (collectively “Defendants”) move to dismiss Plaintiff Dr. Gutti Rao’s (“Rao”) amended complaint (“Amended Complaint”). (ECF Nos. 28 and 30). The Amended Complaint, filed on March 26, 2024, followed Plaintiff's complaint against Defendants filed on December 21, 2023. Rao first asserted claims against Sleep Number and Synchrony in a complaint filed on February 21, 2023, which was voluntarily dismissed. (2:23-cv-00263-NBF-LPL, ECF No. 23). Defendants move to dismiss Rao’s six-count Amended Complaint in its entirety, or alternatively, Defendants move for Rao to make a more definite statement. For the following reasons, the Court will grant Defendants’ motions to dismiss. I. FACTUAL BACKGROUND This suit arises out of a transaction between Rao and Sleep Number for the purchase of a bed. Rao contacted Sleep Number to purchase a bed on December 27, 2021. (ECF No. 19, □ 15). During the transaction, Rao was advised that he could utilize the bed on a trial basis for 90 days. (Ud. at § 17). The bed was delivered seven weeks after its order date, and it had defective

locking and oscillation capabilities. (Ud. at §§ 19, 22). At Rao’s home, a service technician attempted to remedy the defects, but was unable to do so. Cd. at ff] 21-22). The technician reported back to Sleep Number that the bed was defective. (/d.). As a result, Rao took steps to return the defective bed prior to the 90-day warranty expiration. (Ud. at { 23). Rao alleges that Synchrony and Sleep Number, through a Synchrony Bank Credit Card Statement, issued notifications for payment and charged late fees for the bed despite him never executing an agreement nor authorizing an account or the opening of a credit card with Synchrony. (d. at □□ 25, 28). Rao further alleges that Synchrony and Sleep Number continually harassed and demanded payment for the defective bed, and that they falsely reported a default to credit agencies along with unverified statements of record. (Ud. at § 29, 35). In the Amended Complaint, Rao asserts six claims against Sleep Number and Synchrony. Rao asserts one claim against Sleep Number individually: Count V, Violation of Pennsylvania Unfair Trade Practices Act “UTPCPL”). (ECF No. 19, pp. 21-23). Rao asserts two claims against Synchrony individually: Count I - Violations of the Fair Credit Reporting Act (FCRA”) to Furnisher (/d. at 9-15); and Count II - Violation of Fair Debt Collection Practices Act (“FDCPA”), Communicates False Credit Information to the Credit Bureaus. (/d. at 15-16). Rao asserts three claims against Sleep Number and Synchrony collectively: Count III - Credit Slander at 16-19); Count IV - Fraud (/d. at 19-21); and Count VI - Conspiracy. (dd. at 24-25). Sleep Number moves to dismiss Rao’s Amended Complaint pursuant to Federal Rules of Civil Procedure 12(b)(6) and 12(b)(1) (ECF No. 30), or in the alternative, for a more definite statement pursuant to Fed. R. Civ. P. 12(e). (ECF No. 31). Synchrony also moved to dismiss Rao’s Amended Complaint pursuant to Fed. R. Civ. P. 12(b)(6) (ECF No. 28), and in the alternative, moved for a more definite statement pursuant to Fed. R. Civ. P. 12(e). (ECF No. 27).

II. STANDARD OF REVIEW A motion to dismiss filed under Federal Rule of Civil Procedure (“Rule”) 12(b)(6) tests the legal sufficiency of the complaint. Kost v. Kozakiewicz, 1 F.3d 176, 183 (3d Cir. 1993). A plaintiff must allege sufficient facts that, if accepted as true, state a claim for relief plausible on its face. See Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007); see also Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). A court must accept all well-pleaded factual allegations as true and view them in the light most favorable to a plaintiff. See Doe v. Princeton Univ., 30 F.4th 335, 340 (3d Cir. 2022); see also Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir. 2009). Although a court must accept the allegations in the complaint as true, it is “not compelled to accept unsupported conclusions and unwarranted inferences, or a legal conclusion couched as a factual allegation.” Baraka v. McGreevey, 481 F.3d 187, 195 (3d Cir. 2007) (citations omitted). The “plausibility” standard required for a complaint to survive a motion to dismiss is not akin to a “probability” requirement but asks for more than sheer “possibility.” Jgbal, 556 U.S. at 678 (citing Twombly, 550 U.S. at 556). In other words, the complaint’s factual allegations must be enough to raise a right to relief above the speculative level, on the assumption that all the allegations are true even if doubtful in fact. 7Twombly, 550 U.S. at 555. Facial plausibility is present when a plaintiff pleads factual content that allows the court to draw the reasonable inference that a defendant is liable for the misconduct alleged. Jgbal, 556 U.S. at 678. Even if the complaint’s well-pleaded facts lead to a plausible inference, that inference alone will not entitle a plaintiff to relief. Jd at 682. The complaint must support the inference with facts to plausibly justify that inferential leap. Id.

TIE. ANALYSIS A. Count V will be dismissed. Count V of Rao’s Amended Complaint alleges that Sleep Number violated a number of provisions of the UTPCPL, including 73 P.S. § 201-2(4)(i), (v), (vi), (vil), @x), (xi), and (xii). (ECF No. 19, § 100). Section 201-2(4)(xx1), referred to as the “catch-all provision,” makes it unlawful to engage in “any other fraudulent or deceptive conduct which creates a likelihood of confusion or of misunderstanding.” 73 P.S. § 201-2(4)(xil). The UTPCPL requires a plaintiff to show that the defendant’s misrepresentation caused him to suffer some loss of money or property, an “ascertainable loss.” Grear v. U.S. Bank, No. 1:21-cv-237-SPB, 2022 WL 4450400, at *10 (Sept. 23, 2022). A plaintiff must also demonstrate that he justifiably relied on the deceptive acts. Weinberg v. Sun Co., 777 A.2d 442, 446 (Pa. 2001); see also Sexton v. PNC Bank, 792 A.2d 602, 607 (Pa. Super. 2002) (“the Court has interpreted this language to mean that a plaintiff must establish his specific reliance on some conduct or representation by the defendant that caused him to incur the loss in question.”). The United States Court of Appeals for the Third Circuit has interpreted this justifiable reliance rule to apply to all UTPCPL subsections. Hunt v. U.S. Tobacco, 538 F.3d 217, 224 3d. Cir. 2008).

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RAO v. SLEEP NUMBER BED, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/rao-v-sleep-number-bed-inc-pawd-2024.