RL Liquidators LLC v. Amazon.com Services LLC

District Court, W.D. Washington·Decided July 15, 2025·No. 2:24-cv-02096·Unknown

Opinion

UNITED STATES DISTRICT COURT AT SEATTLE RL LIQUIDATORS LLC, a California CASE NO. 2:24-cv-02096-JHC limited liability company, SEALED ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S Plaintiff, MOTION TO DISMISS v. AMAZON.COM SERVICES, LLC, a Delaware limited liability company,

Defendant.

I INTRODUCTION This matter comes before the Court on Defendant Amazon.com Services, LLC’s Motion to Dismiss. Dkt. # 15. The Court has reviewed the materials filed in support of and in opposition to the motion, the record, and the governing law. Being fully advised, and for the reasons below, the Court GRANTS in part and DENIES in part the motion. And the Court grants RL leave to amend its complaint. II BACKGROUND The Court takes as true the facts alleged in the complaint. See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Plaintiff RL Liquidators, LLC, based in California, is one of the largest liquidation companies in the Western United States. Dkt. # 13 at 3, ¶ 10. It purchases and transports unsold inventory from large retailers. Id. On July 6, 2021, RL entered an agreement (effective June 28, 2021) with Amazon, one of the largest retailers in the world, to purchase liquidation merchandise. Id. at 2, 3–4, ¶¶ 6, 11. On November 8, 2022, the parties entered another agreement (the Agreement) (effective September 15, 2022), Dkt. # 16 (Exhibit A), that superseded the prior one.1 As detailed further below, RL alleges that Amazon breached the Agreement by “routinely send[ing] RL fraudulent and misleading invoices for loads that RL did not take, items that Amazon did not place on RL’s trucks, and inflat[ing] prices for Liquidation Merchandise that did not represent Amazon’s true cost of goods sold.” Dkt. # 13 at 5, ¶ 16. On May 6, 2024, Amazon terminated the Agreement and demanded payment of invoices related to liquidation merchandise. Id. at 12, ¶ 46. RL estimates that it has incurred millions of dollars in overcharges due to issues with the invoices. Id. at 12, ¶ 47.

1 RL bases its complaint on the prior July 6, 2021 agreement, but the parties do not dispute that they entered into the later Agreement. See Dkt. ## 15 at 9 & n.3; 19 at 4–5. Although RL did not attach the Agreement to its complaint, Amazon filed a redacted version of the Agreement and the related Doing Business with Amazon Liquidations Guide with its motion to dismiss. Dkt. # 16. RL asks the Court to consider these documents. Dkt. # 19 at 5 n.1. The Court considers these documents because the parties rely on them and because they are incorporated into the complaint by reference. See Khoja v. Orexigen Therapeutics, Inc., 899 F.3d 988, 1002 (9th Cir. 2018) (a court may consider documents even when a complaint does not refer to them because the claim “necessarily depend[s] on them”). The Court, however, stresses the importance of proper pleading and directs RL to refer to the proper contract in an amended complaint, if it chooses to file one. RL brings four claims: (1) breach of contract; (2) breach of implied duty of good faith and fair dealing; (3) violation of the Washington Consumer Protection Act (WCPA), RCW 19.86 et seq.; and (4) violation of California’s Unfair Competition Law (UCL), Cal. Bus. & Prof. Code

§ 17200 et seq. Amazon moves to dismiss for failure to state a claim. Dkt. # 15. III DISCUSSION In reviewing a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the Court takes all well-pleaded factual allegations as true and determines whether the complaint “state[s] a claim to relief that is plausible on its face.” Iqbal, 556 U.S. at 678 (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “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.” Id. Although the Court draws all reasonable inferences in favor of RL, the Court is not “required to accept as true allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir. 2001). The Court may grant leave to amend a dismissed claim when it is possible that the claim can be cured with additional factual allegations. Ebner v. Fresh, Inc., 838 F.3d 958, 963 (9th Cir. 2016). A. Breach of Contract RL brings a breach of contract claim as to several invoices that it disputed through the Agreement’s dispute process. The Court concludes that RL states a claim as to only one of these disputed invoices. “In a breach of contract action, the plaintiff must prove that a valid agreement existed between the parties, the agreement was breached, and the plaintiff was damaged.” Univ. of Washington v. Gov’t Emps. Ins. Co., 404 P.3d 559, 566 (Wash. Ct. App. 2017). RL asserts that Amazon breached the Agreement by charging inflated prices and refusing to compensate it for overcharges.2 1. Inflated prices RL contends that Amazon charged inflated prices for liquidation merchandise. RL alleges that Amazon charged “more than the price established by the Agreement based on the cost of goods sold and, in some cases, more than retail pricing for Liquidation Merchandise.” Dkt. # 13 at 11, ¶ 35. Amazon counters that RL waived such claims. First, Amazon relies on Section 10 of the Agreement: ALL LIQUIDATION MERCHANDISE IS CONVEYED TO LIQUIDATOR “AS IS, WHERE IS” WITH ALL FAULTS AND DEFECTS WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, CONCERNING THE LIQUIDATION MERCHANDISE OR ITS FITNESS FOR A PARTICULAR PURPOSE OR MERCHANTABILITY. ALL SALES ARE FINAL AND NO SELLER OF LIQUIDATION MERCHANDISE WILL BE LIABLE FOR ANY CLAIM, LOSS, DAMAGE, LIABILITY OR EXPENSE OF ANY KIND CAUSED DIRECTLY OR INDIRECTLY BY ANY LIQUIDATION MERCHANDISE, AND LIQUIDATOR HEREBY RELEASES EACH SELLER OF LIQUIDATION MERCHANDISE FROM ANY AND ALL SUCH CLAIMS. Dkt. # 16 at 11. Amazon characterizes this section as a broad waiver of claims related to the sale of liquidation merchandise. But the section limits the release of “any and all such claims” to those “caused directly or indirectly by any liquidation merchandise.” Liquidation merchandise cannot give rise to pricing claims; it is Amazon, not the liquidation merchandise, that sets prices. And when read in context, the release pertains to claims based on “faults and defects” of the liquidation merchandise that is sold “as is.” See Warner v. Design & Build Homes, Inc., 114 P.3d 664, 668 (Wash. Ct. App. 2005) (an “as is” clause is a “warranty disclaimer”). Amazon

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RL Liquidators LLC v. Amazon.com Services LLC, (W.D. Wash. 2025).

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