Spencer Sheehan v. Big Lots, Inc.

Court of Appeals for the Eleventh Circuit·Decided August 27, 2025·No. 24-13354·Unpublished

Opinion

NOT FOR PUBLICATION

In the

United States Court of Appeals For the Eleventh Circuit

No. 24-13354

Non-Argument Calendar

ATTORNEY SPENCER SHEEHAN, Plaintiffs-Appellants,

versus

BIG LOTS, INC., Defendant-Appellee.

.

Appeal from the United States District Court for the Middle District of Florida D.C. Docket No. 5:23-cv-00561-GAP-PRL

Before JILL PRYOR, BRANCH, and ANDERSON, Circuit Judges. PER CURIAM:

After the district court dismissed a lawsuit that attorney Spencer Sheehan filed on behalf of client Peggy Durant against

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retailer Big Lots, Inc., the court ordered Sheehan to pay the retailer ’s attorney’s fees and ultimately awarded Big Lots $144,047 in attorney’s fees. On appeal, Sheehan challenges the amount of the fee award. After careful consideration, we affirm.

I. FACTUAL BACKGROUND Big Lots is a national retailer that operates stores around the country. In its stores, Big Lots sells products under its own “Fresh Finds” label. One of these products is a 24-ounce can of Colombian medium-dark roast coffee.

The back of the coffee canister has a label with brewing directions . The label gives instructions for brewing one, five, or ten servings of coffee at a time. One serving requires one tablespoon of coffee and six fluid ounces of water. Five servings require onequarter cup (four tablespoons) of coffee and 30 fluid ounces of water . Ten servings require one-half cup (eight tablespoons) of coffee and 60 fluid ounces of water. The label states that the “canister makes up to 210 suggested strength 6 fl oz servings.” Doc. 1 at 2. 1 Sheehan has twice sued Big Lots alleging that this label is deceptive and misleads consumers. We begin by reviewing the proceedings in the first lawsuit, which Sheehan filed on behalf of client Amy Devey, and then discuss the proceedings in this lawsuit, which he filed on Durant’s behalf.

1 “Doc.” numbers refer to the district court’s docket entries.

24-13354 Opinion of the Court 3

A. The Devey Litigation Sheehan first sued Big Lots on Devey’s behalf in the Western District of New York. See Devey v. Big Lots, Inc., 635 F. Supp. 3d 205 (W.D.N.Y. 2022). The complaint alleged that the coffee canister’s label was deceptive because it was impossible for a consumer following the instructions for brewing a single serving of coffee at a time to make 210 servings from the canister. Id. at 210. Sheehan filed the complaint as a putative class action and asserted claims under New York law for deceptive marketing, breach of express warranty, breach of the implied warranty of merchantability, negligent misrepresentation, fraud, and unjust enrichment, as well as a claim alleging a violation of the federal Magnuson-Moss Warranty Act. Id.

The district court dismissed the complaint. Id. It explained that all Devey’s claims rested on a theory that the label contained a misrepresentation. Id. at 213. The court noted that the complaint’s allegations “focus[ed] solely on the instructions for brewing a single serving” and “completely overlook[ed] the brewing instructions on the label for larger batches,” which “require[d] 20% less ground coffee: ¼ cup (4 Tblsp.) for 5 servings, and ½ cup (8 Tblsp.) for 10.” Id. at 212. After considering the label “as a whole,” the court concluded that “as a matter of law” the label “would not have misled a

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reasonable consumer, who followed the instructions on the label, in a manner that the consumer would find to be material.” Id. 2 In its order dismissing the complaint, the court discussed Sheehan’s conduct. It stated that he regularly filed complaints alleging that products were misleadingly labeled, noting that he had “filed over 70 such cases in the Second Circuit, and a few dozen more in other circuits nationwide,” and that the “vast majority” of these cases had been dismissed. Id. at 213 n.3. The court “admonished ” Sheehan because, in both the complaint and the opposition to the motion to dismiss, he had misquoted the text of the coffee canister’s label and reminded him of an attorney’s “ethical and professional ” responsibilities. Id. at 211 n.2. B. The Durant Litigation About a year after Devey was dismissed, Sheehan sued Big Lots for a second time. This time he filed a lawsuit on behalf of Durant in the Middle District of Florida, again alleging that the coffee canister’s label was deceptive. Sheehan filed this lawsuit together with Florida attorney William Wright. The complaint represented that a pro hac vice application for Sheehan was “[f ]orthcoming.” Doc. 1 at 18.

2 The court also concluded that even if the complaint plausibly alleged that a

reasonable consumer would have been misled by the label, each claim was due to be dismissed for other, alternative reasons. Devey, 635 F. Supp. 3d at 213–19.

24-13354 Opinion of the Court 5

Like the complaint in Devey, Durant’s complaint alleged that the coffee canister’s label was deceptive because it was impossible for a consumer following the instructions for brewing a single serving of coffee to make 210 servings from the canister. The complaint also asserted that an “[i]ndependent laboratory analysis” revealed that the canister made only 152 servings when the directions on the label were followed. Id. at 3.

Sheehan filed the complaint as a putative class action. The complaint asserted claims under the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”), Fla. Stat. §§ 501.201–501.213, and Florida’s false advertising statute, Fla. Stat. § 817.41. It also raised claims under Florida law for breach of an express warranty and fraud. It asserted that the amount in controversy exceeded $5 million .

In this section, we review in more detail the proceedings on two of the motions Big Lots filed: its motion to dismiss and its motion for attorney’s fees.

1. Proceedings on the Motion to Dismiss Big Lots filed a motion to dismiss Durant’s complaint.

Throughout the Durant litigation, it was represented by the same attorneys who represented it in the Devey litigation, a team from the law firm Davis Wright Tremaine LLP.

In its motion, Big Lots explained that all Durant’s claims rested on the premise that the coffee canister’s label was misleading . It argued that the label was not misleading as a matter of law because “no reasonable consumer would be misled by the label”

6 Opinion of the Court 24-13354

given the “alternative brewing instructions, as well as the qualifying ‘up to’ language.” Doc. 11 at 21.

Big Lots also raised alternative arguments about why individual claims should be dismissed. It argued that (1) the FDUTPA, false advertising, and fraud claims were due to be dismissed because the complaint failed to satisfy the heightened pleading standard under Federal Rule of Civil Procedure 9(b); (2) the fraud claim was barred by the economic loss rule; and (3) the breach of express warranty claim failed because Durant had not provided notice to Big Lots before filing suit as Florida law required.

Big Lots also discussed Sheehan’s litigation history. It reviewed the Devey litigation and argued that Durant’s complaint was an attempt by Sheehan “to relitigate already[ ]rejected mislabeling claims . . . in a new judicial district.” Id. at 7. It also cited a recent Northern District of New York case finding that Sheehan had a pattern of filing frivolous lawsuits, holding him in contempt of court, and sanctioning him under Federal Rule of Civil Procedure 11. See Brownell v. Starbucks Coffee Co., No. 5:22-cv-1199, 2023 WL 9053058 (N.D.N.Y. Nov. 30, 2023). Big Lots noted that Sheehan “apparently fabricat[ed] allegations of a laboratory analysis of the product at issue” in that case. Doc. 11 at 10 (citation modified).

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