Schechner v. Whirlpool Corp.

237 F. Supp. 3d 601, 91 U.C.C. Rep. Serv. 2d (West) 1077, 2017 WL 588460, 2017 U.S. Dist. LEXIS 20282
CourtDistrict Court, E.D. Michigan
DecidedFebruary 14, 2017
DocketCase No. 2:16-cv-12409
StatusPublished
Cited by34 cases

This text of 237 F. Supp. 3d 601 (Schechner v. Whirlpool Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schechner v. Whirlpool Corp., 237 F. Supp. 3d 601, 91 U.C.C. Rep. Serv. 2d (West) 1077, 2017 WL 588460, 2017 U.S. Dist. LEXIS 20282 (E.D. Mich. 2017).

Opinion

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS [11]

STEPHEN J. MURPHY, III, United States District Judge

Plaintiffs filed a class-action complaint against Defendant Whirlpool Corporation. The Plaintiffs allege causes of action related to Whirlpool’s “AquaLift” oven self-cleaning technology. Whirlpool moved to dismiss some of the counts for failure to state a claim. For the reasons stated below, the Court will grant the motion in part and deny it in part.

BACKGROUND

Ten people from six states brought suit against Whirlpool: Toby Schechner and Barbara Barnes from Florida; Laura Bliss from Michigan; Kathleen Jordan (she has already voluntarily dismissed her case) and Louise Miljenovic from New Jersey; Kathryn Limpede and Candace Oliarny from Idaho; Beverly Simmons from New Mexico; and Richard Thome and Mary Ellen Thome from Arizona. They allege 12 causes of action related to Whirlpool’s AquaLift system, that arise under (1) Mag-nuson-Moss Warranty Act (MMWA)— Written Warranty, 15 U.S.C. § 2301; (2) MMWA—Implied Warranty, 15 U.S.C. § 2301; (3) Breach of Contract; (4) Breach of UCC Express Warranty; (5) Breach of UCC Implied Warranty of Merchantability; (6) Unjust Enrichment; (7) Michigan Consumer Protection Act (MCPA), M.C.L.A. § 445.902; (8) Florida Deceptive and Unfair Trade Practices Act (FDUTPA), Fla. Stat. § 501.204; (9) New Jersey’s Consumer Fraud Act (NJCFA), N.J.S.A. § 56:8-1; (10) Arizona Consumer Fraud Act (ACFA), Aria Rev. Stat. § 44-1522; (11) Idaho Consumer Fraud Act (ICFA), Idaho Code § 48-603; and (12) New Mexico Unfair Trade Practices Act (NMUPA), New Mexico Statute § 57-12-3. Whirlpool’s motion to dismiss followed.

LEGAL STANDARD

Federal Rule of Civil Procedure 12(b)(6) provides for dismissal of a complaint that fails to state a claim upon which relief can be granted. When evaluating a claim under Rule 12(b)(6), the Court views the complaint in the light most favorable to the plaintiff, presumes the truth of all well-pled factual assertions, and draws every reasonable inference in favor of the non-moving party. Bassett v. Nat’l Collegiate Athletic Ass’n, 528 F.3d 426, 430 (6th Cir. 2008). But “the tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). The Court may only grant a 12(b)(6) motion to dismiss if the allegations are not “sufficient ‘to raise a right to relief above the speculative level,’ and to ‘state a claim to relief that is plausible on its face.’ ” Hensley Mfg. v. ProPride, Inc., 579 F.3d 603, 609 (6th Cir. 2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). If “a cause of action fails as a matter of law, regardless of whether the plaintiffs factual allegations are true or not,” then the Court must grant dismissal. Winnett v. Caterpillar, Inc., 553 F.3d 1000, 1005 (6th Cir. 2009).

DISCUSSION

I. Breach of Contract Claim

At the outset, the Court must address a threshold question: whether [608]*608privity of contract exists . between the Plaintiffs and Whirlpool. A contract requires an “offer, acceptance, consideration, and sufficient specification of essential terms.” See., e.g., St. Joe Corp. v. McIver, 875 So.2d 375, 381 (Fla. 2004). Privity of contract exists between contracting parties and intended beneficiaries. See Montgomery v. Kraft Foods Glob., Inc., No. 1:12-CV-00149, 2012 WL 6084167, at *13 (W.D. Mich. Dec. 6, 2012), aff'd, 822 F.3d 304 (6th Cir. 2016).

The ' intent of the contracting parties determines whether a third-party beneficiary is intended or incidental. See, e.g., Sehmalfeldt v. N. Pointe Ins. Co., 670 N.W.2d 651, 655 (Mich. 2003). If the contracting parties “have undertaken to give or do something directly to or for” a third party, then the third party becomes' an intended beneficiary. Montgomery, 2012 WL 6084167, at *18. And if the contracting, parties have not done so, then the third party is an incidental beneficiary and lacks privity of contract.' Id. “It is axiomatic in-the law of contract that- a person not in privity cannot sue on a contract.” DAFCO LLC v. Stewart Title Guar. Co., 156 Idaho 749, 331 P.3d 491, 496 (2014), Thus, “only intended, rather than incidental, third-party beneficiaries may. sue when a contractual promise in their favor has been breached.” Montgomery, 2012 WL 6084167, at *18.

Here, the complaint alleges no facts to' show that Whirlpool formed a contract with the Plaintiffs. Plaintiffs allege that they bought their ovens from third-party retailers, not directly from Whirlpool. Am. Compl. ¶¶ 14, 19, 24, 30, 37, 42, 48, 54, 58, EOF No. 5. Therefore “[n]o privity of contract exists between [Plaintiffs], who [bought] from a retailer, and [Whirlpool] who has not sold directly to the consumer.” See Montgomery, 2012 WL 6084167, at *18.

Plaintiffs contend, however, that they are. the intended beneficiaries of any contract between Whirlpool and its 'retailers. The argument fails. Plaintiffs do not plead facts to identify the specific contract to which they claim privity. And Plaintiffs’ allegations fail to show that Whirlpool and the retailers “intended in entering their contract to directly benefit” Plaintiffs. See id. at *13-14. Moreover, Plaintiffs muster no authority to support the proposition that an end-user consumer is an intended beneficiary to a contract between a remote manufacturer and a retailer.

Instead, Plaintiffs rely on a series of contradictory or inapposite . cases. See Resp. 34-35, EOF No. 23. The most relevant case Plaintiffs cite to support their intended-beneficiary theory, Caretta Trucking, Inc. v. Cheoy Lee Shipyards, Ltd., 647 So.2d 1028, 1030 (Fla. Dist. Ct. App. 1994), involves a consumer who purchased a yacht from a manufacturer. The purchaser sued the manufacturer and a company that had been hired to paint the yacht. Id. The purchaser alleged he was the intended beneficiary of the contract between the manufacturer and painting company. Id. The Caretta court held that the purchaser lacked privity of contract with the parties because the manufacturer and paint company had not “expressly intended their contract benefit Caretta directly.” Id. Thus, the’ holding in Caretta stands for the exact opposite proposition asserted by Plaintiffs here.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
237 F. Supp. 3d 601, 91 U.C.C. Rep. Serv. 2d (West) 1077, 2017 WL 588460, 2017 U.S. Dist. LEXIS 20282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schechner-v-whirlpool-corp-mied-2017.