Rushing v. Williams-Sonoma, Inc.

District Court, N.D. California·Decided July 20, 2022·No. 3:16-cv-01421·Unknown

Opinion

WILLIAM RUSHING, et al., Case No. 16-cv-01421-WHO

Plaintiffs, ORDER DENYING DEFENDANTS’ v. MOTION FOR SUMMARY JUDGMENT AND DIRECTING WILLIAMS-SONOMA, INC., et al., DEFENDANTS TO RESPOND TO PERLIN’S ADMINISTRATIVE Defendants. MOTION TO SEAL

Re: Dkt. Nos. 268, 271

Plaintiff Elizabeth Perlin purchased sheets—the PB Classic 400-Thread-Count Sheet Set, to be precise—from defendants Williams-Sonoma, Inc., Williams-Sonoma DTC, Inc., and Williams-Sonoma Advertising, Inc. (collectively, “Williams-Sonoma”) on January 19, 2011, and January 28, 2011. Both sets of sheets ripped shortly after she began using them. Several years later, Perlin learned that, based on some methods used to calculate thread count, the thread count in the PB Classic 400-Thread-Count sheets is allegedly closer to 200 threads. As a result, Perlin contends that Williams-Sonoma misleadingly advertises the thread count of certain bed linens and has brought claims under the Consumer Legal Remedies Act, False Advertising Law, Unfair Competition Law, and unjust enrichment. Although Perlin’s claims are subject to three- and four-year statutes of limitations, she did not file suit until June 5, 2020. The question that I must decide on summary judgment is whether the discovery rule or the fraudulent concealment doctrine may extend the limitations period to allow this litigation. I find that there are genuine issues of material fact concerning whether Perlin Because Perlin has met her burden to show that the discovery rule may apply to toll the statute of limitations, I DENY Williams-Sonoma’s motion for summary judgment. I agree with Williams- Sonoma, however, that Perlin has not established that the doctrine of fraudulent concealment applies. In January 2011, Elizabeth Perlin decided that she wanted to purchase new sheets. See Deposition Transcript of Elizabeth Perlin (“Perlin Depo. Tr.”) [Dkt. 268-2] at 42:11–18. She specifically wanted soft, luxurious sheets that were high-quality and were “going to last.” Id. at 57:5–11. She visited Williams-Sonoma’s Pottery Barn1 website on January 19, 2011, and purchased the Pottery Barn-branded “PB Classic 400-Thread-Count Sheet Set” and “PB Classic 400-Thread-Count Extra Pillowcases” (the “PB Classic Bedding”). Id. at 50:11–51:7; Perlin Declaration (“Perlin Decl.”) [Dkt. 272-2] ¶ 2. In the course of deciding whether to buy the PB Classic Bedding, Perlin read and relied upon the website’s product description, which repeatedly claimed that the PB Classic Bedding had a 400-thread count. See Eighth Amended Class Action Complaint (“8AC”) [Dkt. 217] ¶¶ 15, 174–76. To Perlin’s dismay, the PB Classic Bedding were “not as advertised.” Id. ¶ 180. Within a week of using the PB Classic Bedding in a normal and ordinary fashion, she noticed a tear in the bottom fitted sheet. Perlin Depo Tr. at 76:8–24. Because she believed that “she may have done something wrong to cause the rip or that the rip was a fluke,” id. at 82:15–83:4, Perlin decided to buy a replacement set from Williams-Sonoma. On January 28, 2011, nine days after her initial purchase, she purchased a second (identical) set of PB Classic Bedding. Id. at 84:13–21; Perlin Decl. ¶ 5. The second set started ripping after only a short time of regular use, which was “likely less than a year,” although it could have been up to three years. Perlin Depo. Tr. at 98:4–99:16; 100:8–13; Perlin Decl. ¶ 5. After the second set of PB Classic Bedding ripped, Perlin compared it to the lower thread count sheets that were on her daughter’s bed. Perlin Decl. ¶ 6. Based on that comparison, she concluded that lower thread-count sheets “are more durable” than high thread count sheets. Id. As a result, Perlin, who was “extremely unhappy” with the PB Classic Bedding, has started to purchase “lower thread count sheets in hopes they were more durable.” 8AC ¶ 184. In 2014, Perlin called Williams-Sonoma’s customer service to complain about the PB Classic Bedding and ask for a refund or a replacement set. Perlin Depo. Tr. at 136:21–137:2–5. According to Perlin, she was told that “there was nothing wrong with [the] sheets and denied a refund.” Perlin Decl. ¶ 6. According to Williams-Sonoma’s records, though, the customer service representative told Perlin that “the sheets should not have” ripped. Cardon Decl. Ex. A [Dkt. 268- 2] at WSI0016075. Plaintiff William Rushing filed a putative class action against Williams-Sonoma on January 29, 2016, alleging that Williams-Sonoma deceptively advertised its bedding. [Dkt. 1]. Over the course of the litigation, Rushing, who was a resident of Kentucky, brought claims under the California Consumer Legal Remedies Act (“CLRA”), False Advertising Law (“FAL”), Unfair Competition Law (“UCL”), and unjust enrichment. See October 24, 2018 Order on Pending Motions [Dkt. 170] at 3. On April 10, 2018, Williams-Sonoma moved for summary judgment on the grounds that Rushing lacked standing to pursue these California claims. [Dkt. 119] at 1. On October 24, 2018, I concluded that Kentucky law applied to Rushing’s claims, but granted him leave to conduct pre-certification discovery so that he could attempt to find a named plaintiff who was a resident of California who could pursue the California claims. See Order on Pending Motions at 12, 16–17. Pursuant to my Order, in December 2018 Williams-Sonoma produced a list of California consumers that had purchased the bedding products at issue in this litigation. Cardon Decl. Ex. E [Dkt. 268-2]. Perlin was on that list. Id. In or around December of 2018, Perlin began communicating with one of Rushing’s attorneys, Amber Eck. 2 Over the course of their conversations, Perlin and Eck discussed Perlin’s 2 In her deposition, Perlin testified that she spoke to her attorney and learned of her claims “roughly in 2018.” See Perlin Depo. Tr. at 74:21-23; 123:1-3; 124:22-24. Perlin’s opposition brief claims that she experiences with the PB Classic Bedding, and Perlin learned that Williams-Sonoma allegedly did not comply with industry standards for advertising thread counts. Perlin Depo. Tr. at 143:25– 144:3. Until that point, Perlin was not aware that the PB Classic Bedding that she had purchased was allegedly closer to 200-thread-count. Perlin Decl. ¶ 7. Perlin filed the Eighth Amended Class Action Complaint on June 5, 2020.3 [Dkt. 217]. For the first time, Perlin was alleged as a named plaintiff on behalf of a class of consumers with claims under California law. Id. ¶ 19. On April 18, 2022, Williams-Sonoma moved for summary judgment on the basis that Perlin’s claims were time-barred. Motion for Summary Judgment (“Mot.”) [Dkt. 268-1] at 1. In her opposition brief, Perlin implicitly acknowledged that the statutes of limitations for her claims had lapsed but contended that two exceptions to the statute of limitations—the discovery rule and fraudulent concealment tolling—applied. See Opposition to Motion for Summary Judgment (“Opp.”) [Dkt. 271-3] at 8. I heard oral argument on June 29, 2022. Summary judgment on a claim or defense is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). In order to prevail, a party moving for summary judgment must show the absence of a genuine issue of material fact with respect to an essential element of the nonmoving party’s claim, or to a defense on which the non-moving party will bear the burden of persuasion at trial. See Celotex Corp. v. Catrett, 477 U.S. 317, 322–323 (1986). Once the movant has made this showing, the burden then shifts to the party opposing summary judgment to identify “specific facts showing there is a genuine issue for trial.” Id. at 324. The party opposing

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Rushing v. Williams-Sonoma, Inc., (N.D. Cal. 2022).

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