Rosales v. FitFlop USA, LLC

882 F. Supp. 2d 1168, 2012 U.S. Dist. LEXIS 111023, 2012 WL 3224311
CourtDistrict Court, S.D. California
DecidedFebruary 8, 2012
DocketCase No. 11-cv-00973 W (WVG)
StatusPublished
Cited by24 cases

This text of 882 F. Supp. 2d 1168 (Rosales v. FitFlop USA, LLC) 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
Rosales v. FitFlop USA, LLC, 882 F. Supp. 2d 1168, 2012 U.S. Dist. LEXIS 111023, 2012 WL 3224311 (S.D. Cal. 2012).

Opinion

ORDER DENYING DEFENDANT’S MOTION TO DISMISS, AND, IN THE ALTERNATIVE, TO STRIKE [DOC. 14]

THOMAS J. WHELAN, District Judge.

Pending before the Court is Defendant FitFlop USA’s (“Defendant”) motion to dismiss Plaintiffs’ complaint for failure to state a claim upon which relief can be granted. Alternatively, Defendant moves to strike Plaintiffs’ class allegations. Plaintiffs oppose. The Court decides the matter on the papers submitted and without oral argument. See Civ. L. R. 7.1(d.l). For the reasons addressed below, the Court DENIES Defendant’s motion.

I. Background

Defendant manufactures, markets, and sells a line of women’s and men’s sandals, known as FitFlop Footwear. (First Amended Complaint (“FAC”) ¶¶ 3, 11 [Doc. 10].) Since 2007, Defendant has claimed in its advertising and on product packaging labels that FitFlop Footwear provides a variety of health benefits including improved posture, increased muscle activation and toning, and reduced joint strain. (FAC ¶¶ 3, 17-19, 21-31.) Defendant claims that these health benefits are the result of FitFlop Footwear’s patent pending “Microwobbleboard Technology” midsole. (Id.) Because of these claimed benefits, the various styles of Fitflop Footwear are sold at a premium price ranging from $50-240 a pair. (Id.).

During the time period relevant to this action, Plaintiffs Rosales and Arnold were exposed to Defendant FitFlop’s product labeling and advertising. (FAC ¶¶ 9, 10). In 2009, Plaintiff Arnold was exposed to FitFlop advertising in a Victoria’s Secret1 catalog, and shortly thereafter purchased two pairs of FitFlop Sandals from Victoria’s Secret for approximately $59.99 each. (Id.) On or about August 20, 2010, Plaintiff Rosales, in reliance on Defendant’s advertising claims, purchased a pair of FitFlop Sandals for $59.99. (Id.)

Plaintiffs assert that Defendant Fit-Flop’s health benefit claims are deceptive, and that FitFlop footwear is not proven to [1173]*1173provide any of the claimed benefits. (Id. at ¶¶ 3, 32-46.) According to Plaintiffs, consumers including Rosales and Arnold have purchased FitFlop footwear at a significant price premium over other comparable traditional footwear products. Both Rosales and Arnold assert that they would not have purchased FitFlop footwear if they had known the claimed health benefits were untrue. (Id. at ¶¶ 9-10.)

On May 4, 2011, Plaintiffs filed a complaint against Defendant alleging violations of California Business & Professions Code § 17200 et seq. (“UCL”), violations of California Civil Code § 1750 et seq. the Consumer Legal Remedy Act (“CLRA”), and breach of express warranty. Plaintiff Arnold further asserts that Defendant’s deceptive claims affect a broad class of individuals who have purchased FitFlop footwear, and she brings this putative class action on behalf of herself and other class members. On the same day the complaint was filed, Plaintiffs mailed Defendant a letter notifying Defendant of the alleged CLRA violations. (FAC ¶ 74.) Then on July 15, 2011, Plaintiffs filed their FAC, seeking damages as appropriate for the alleged CLRA violations. Defendant’s motion to dismiss, or in the alternative to strike Plaintiffs’ class allegations followed. (Mot. to Dismiss [Doc. 14].)

II. Motion to Dismiss

A. Legal Standards

The court must dismiss a cause of action for failure to state a claim upon which relief can be granted. Fed.R.Civ.P. 12(b)(6). A motion to dismiss under Rule 12(b)(6) tests the complaint’s sufficiency. See N. Star Int’l v. Ariz. Corp. Comm’n., 720 F.2d 578, 581 (9th Cir.1983). All material allegations in the complaint, “even if doubtful in fact,” are assumed to be true. Id. The court must assume the truth of all factual allegations and must “construe them in light most favorable to the non-moving party.” Gompper v. VISX, Inc., 298 F.3d 893, 895 (9th Cir.2002); see also Walleri v. Fed. Home Loan Bank of Seattle, 83 F.3d 1575, 1580 (9th Cir.1996).

As explained by the Supreme Court, “[w]hile a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiffs obligation to provide the grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (internal citations omitted). Instead, the allegations in the complaint “must be enough to raise a right to relief above the speculative level.” Id. A complaint may be dismissed as a matter of law either for lack of a cognizable legal theory or for insufficient facts under a cognizable theory. Robertson v. Dean Witter Reynolds, Inc., 749 F.2d 530, 534 (9th Cir.1984).

Generally, courts may not consider material outside the complaint when ruling on a motion to dismiss. Hal Roach Studios, Inc. v. Richard Feiner & Co., 896 F.2d 1542, 1555 n. 19 (9th Cir.1990). However, courts may consider documents specifically identified in the complaint whose authenticity is not questioned by parties. Fecht v. Price Co., 70 F.3d 1078, 1080 n. 1 (9th Cir.1995) (superceded by statutes on other grounds).

Complaints alleging fraud must also meet the pleading requirements of Federal Rule of Civil Procedure 9(b), which provide that “[i]n all averments of fraud or mistake, the circumstances constituting fraud or mistake shall be stated with particularity.” Fed.R.Civ.P. 9(b). Because Rule 9(b) applies broadly to “averments” of fraud, courts have applied heightened pleading requirements to claims beyond traditional common law fraud. Where fraud is not an essential element of a claim, only those [1174]*1174allegations of a complaint which aver fraud are subject to Rule 9(b)’s heightened pleading standard. Vess v. Ciba-Geigy Corp., 317 F.3d 1097, 1105 (9th Cir.2003). Averments of fraud must be accompanied by “the who, what, when, where, and how” of the alleged misconduct charged. Id. at 1106 (quoting Cooper v. Pickett, 137 F.3d 616, 627 (9th Cir.1997)).

A plaintiff may allege a unified course of fraudulent conduct as the basis for a claim, and in that event, the claim is said to sound in fraud and the pleading as a whole must satisfy the particularity requirement of Rule 9(b). See Kearns v. Ford Motor Co., 567 F.3d 1120, 1125 (9th Cir.2009).

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Bluebook (online)
882 F. Supp. 2d 1168, 2012 U.S. Dist. LEXIS 111023, 2012 WL 3224311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rosales-v-fitflop-usa-llc-casd-2012.