Smith v. Apple, Inc.

District Court, N.D. California·Decided February 17, 2023·No. 4:21-cv-09527·Unknown

Opinion

CHRIS SMITH, et al., Case No. 21-cv-09527-HSG

Plaintiffs, ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT'S v. MOTION TO DISMISS

APPLE, INC., Re: Dkt. No. 41 Defendant.

Before the Court is Defendant’s motion to dismiss the First Amended Complaint. Dkt. No. 41. The Court finds this matter appropriate for disposition without oral argument and takes the motion under submission. See Civil L.R. 7-1(b). The Court GRANTS IN PART and DENIES IN PART the motion. This is a putative class action brought on behalf of purchasers of Apple Watches. See Dkt. No. 31 (“FAC”) ¶ 1. Plaintiffs allege that First Generation, Series 1 through Series 6, and Series SE Apple Watches contain “an undisclosed and unreasonably dangerous safety hazard.” Id. ¶ 2. More specifically, Plaintiffs allege that sudden swelling of the watch batteries can cause the screen to detach, shatter, or crack, “exposing its razor-sharp edges and leading to operational failure of the Watch and/or personal injuries . . . .” Id. Plaintiffs allege that Apple failed to allot sufficient space within the watch to prevent the screen issue, “[d]espite knowing that the battery inside the Watch can suddenly swell.” Id. Plaintiffs further allege that the watches have injured Plaintiffs and putative class members, creating a “substantial and material risk of serious injury, including lacerations, cuts, abrasions, and other injuries.” Id. ¶¶ 5–6. Plaintiffs seek to represent a nationwide class, an internet subclass, and state-specific subclasses in Alabama, California, New York, Ohio, Michigan, and Texas. Plaintiffs assert the following causes of action against Defendant: (1) violations of the California Unlawful Competition Law, Cal. Bus. & Prof. Code §§ 17200, et seq. (“UCL”); (2) violations of the California Consumers Legal Remedies Act, Cal. Civ. Code §§ 1750, et seq. (“CLRA”); (3) fraud by omission under various state laws; (4) violations of the Song-Beverly Consumer Warranty Act, Cal. Civ. Code § 1791 et seq.; (5) breach of implied warranty; (6) violations of the Magnuson- Moss Warranty Act, 15 U.S.C. § 2301, et seq.; and violations of consumer protection laws in New York, Michigan, and Texas. See FAC ¶¶ 241–362. Federal Rule of Civil Procedure 8(a) requires that a complaint contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). A defendant may move to dismiss a complaint for failing to state a claim upon which relief can be granted under Rule 12(b)(6). “Dismissal under Rule 12(b)(6) is appropriate only where the complaint lacks a cognizable legal theory or sufficient facts to support a cognizable legal theory.” Mendiondo v. Centinela Hosp. Med. Ctr., 521 F.3d 1097, 1104 (9th Cir. 2008). To survive a Rule 12(b)(6) motion, a plaintiff must plead “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible when a plaintiff pleads “factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Rule 9(b) imposes a heightened pleading standard where fraud is an essential element of a claim. See Fed. R. Civ. P. 9(b) (“In alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake.”); see also Vess v. Ciba–Geigy Corp. USA, 317 F.3d 1097, 1107 (9th Cir. 2003). A plaintiff must identify “the who, what, when, where, and how” of the alleged conduct, so as to provide defendants with sufficient information to defend against the charge. Cooper v. Pickett, 137 F.3d 616, 627 (9th Cir. 1997). However, “[m]alice, intent, knowledge, and other conditions of a person’s mind may be alleged generally.” Fed. R. Civ. P. In reviewing the plausibility of a complaint, courts “accept factual allegations in the complaint as true and construe the pleadings in the light most favorable to the nonmoving party.” Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). Nonetheless, courts do not “accept as true allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Secs. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008). Defendant moves to dismiss on several grounds, including that the non-California plaintiffs may not pursue claims under California law, that the claims for equitable relief fail because Plaintiffs have an adequate remedy at law, and that Plaintiffs have not adequately alleged pre-sale knowledge of the defect. See generally Mot. A. Non-California Plaintiffs The Court finds that whether non-California plaintiffs may bring claims under California law is an issue better addressed at a later stage. “State statutory remedies may be invoked by out-of-state parties when they are harmed by wrongful conduct occurring in California.” Norwest Mortg., Inc. v. Super. Ct., 72 Cal. App. 4th 214, 224–225 (1999); see also In re iPhone 4S Consumer Litig., No. C 12-1127 CW, 2013 WL 3829653, at *7–9 (N.D. Cal. July 23, 2013). “However, a choice of law analysis might demonstrate that a different state law should apply to a non-resident’s California claims.” In re Big Heart Pet Brands Litig., No. 18-CV-00861-JSW, 2019 WL 8266869, at *12 (N.D. Cal. Oct. 4, 2019). Plaintiffs allege that Defendant is a California company, where it makes all of its decisions about promotional materials, product design, and pre-release testing. FAC ¶¶ 36–37. Thus, “application of California law poses no constitutional concerns.” Forcellati v. Hyland’s, Inc., 876 F. Supp. 2d 1155, 1160 (C.D. Cal. 2012); see also Banh v. Am. Honda Motor Co., Inc., No. 2:19- CV-05984-RGK-AS, 2019 WL 8683361, at *3–4 (C.D. Cal. Dec. 17, 2019). Defendant does not argue that the non-California plaintiffs fail to meet the Article III standing requirements, nor does it offer any analysis of the differences between California law and other potential jurisdictions. Thus, the Court declines to conduct a choice of law analysis at this stage and finds that Defendant has “failed to meet its burden on this motion to show that the non-resident Plaintiffs cannot pursue claims under California law.”1 See In re Big Heart Pet Brands Litig, 2019 WL 8266869, at *12–13 (distinguishing cases where plaintiffs attempted to bring claims under state laws where no named plaintiff resided and deferring choice of law analysis).2 B. Availability of an Adequate Remedy at Law Defendant argues that Plaintiffs’ claims must be dismissed to the extent they seek equitable remedies because Plaintiffs have an equitable remedy at law. See Mot. at 6. Under Sonner v. Premier Nutrition Corp., 971 F.3d 834 (9th Cir. 2020), and Guzman v. Polaris Indus. Inc., 49 F.4th 1308 (9th Cir. 2022), the Court agrees.

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Smith v. Apple, Inc., (N.D. Cal. 2023).

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