Velez v. Lasko Products, LLC

CourtDistrict Court, S.D. New York
DecidedDecember 14, 2023
Docket1:22-cv-08581
StatusUnknown

This text of Velez v. Lasko Products, LLC (Velez v. Lasko Products, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Velez v. Lasko Products, LLC, (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK JUAN VELEZ, individually and on behalf of all others similarly situated, Plaintiff, Case No. 1:22-cv-08581 (JLR) -against- OPINION AND ORDER LASKO PRODUCTS, LLC, Defendant. JENNIFER L. ROCHON, United States District Judge: Plaintiff Juan Velez (“Plaintiff”) brings this putative class action against Lasko Products, LLC (“Defendant”), based on alleged defects with space heaters manufactured by Defendant. ECF No. 14 (the “Amended Complaint” or “Am. Compl.”). Plaintiff asserts that Defendant (1) violated the New York General Business Law (the “GBL”), N.Y. Gen. Bus. Law §§ 349-350, (2) violated nine other states’ consumer-fraud statutes, (3) breached an express warranty, (4) breached the implied warranties of merchantability and fitness for a particular purpose, (5) breached the Magnuson-Moss Warranty Act (the “MMWA”), 15 U.S.C. § 2301 et seq., (6) committed common-law fraud, and (7) was unjustly enriched. See Am. Compl. ¶¶ 68-92. Defendant has filed a motion to dismiss the Amended Complaint under Federal Rule of Civil Procedure (“Rule”) 12(b)(6). ECF Nos. 17 (“Br.”), 21 (“Reply”). Plaintiff opposes this motion. ECF No. 20 (“Opp.”). As explained below, Defendant’s motion is GRANTED in part and DENIED in part. BACKGROUND The following facts, taken from the Amended Complaint, are accepted as true for the purpose of deciding the motion to dismiss, and the Court draws all reasonable inferences in Plaintiff’s favor. See MacNaughton v. Young Living Essential Oils, LC, 67 F.4th 89, 95 (2d Cir. 2023). Defendant “manufactures, markets, and sells low profile portable space heaters.” Am. Compl. ¶ 1. On the space heaters’ packaging and in advertising copy provided to third-party sellers such as Amazon and Home Depot, Defendant describes the space heaters “as having an ‘Automatic Temperature [feature which] controls room temperature’ and an ‘Easy-to-read

digital display [that] allows you to control the warm air to your comfort level.’” Id. (alterations in original). The automatic-temperature feature “relies on a temperature control panel and thermostat inside of the device to ensure the temperature matches what the user sets.” Id. ¶ 2. But “due to defective design and manufacture of the temperature control board, including the internal thermostat, the device is capable [of overheating] and does consistently overheat the area.” Id. ¶ 3. Defendant’s space heaters also suffer from a “high failure rate where the unit will shut off prematurely after several minutes plugged in.” Id. ¶ 21. “Numerous users have documented their experiences with the flawed temperature controls through online forums and customer reviews during the past several years.” Id. ¶ 7; see id. ¶¶ 8-12, 23-24 (quoting various customer reviews).

In the spring of 2022, Plaintiff bought one of Defendant’s space heaters from a Home Depot store in the Bronx. Id. ¶ 48. The device “functioned adequately for a short period of time following Plaintiff’s purchase.” Id. ¶ 50. But “[w]ithin several months, when Plaintiff turned his unit on and attempted to use its automatic temperature control, the device would keep generating heat far above the programmed temperature.” Id. ¶ 51. At some later point in time, the space heater began to “repeatedly and prematurely shut off after being plugged in for only several minutes.” Id. ¶ 53. “Plaintiff initially sought Defendant’s assistance in repairing and/or replacing” the space heater, but Plaintiff was “stymied” by Defendant’s “warranty process and failure to attend to the needs of customers.” Id. ¶¶ 56-57. “This included being placed on hold for upwards of half an hour, being disconnected from phone calls, and being asked for proof of purchase even though most people, including Plaintiff, do not retain the large, long box [that the space heater] was sold in for several months, which is when the above-described issues typically begin to manifest.” Id. ¶ 58. Plaintiff filed suit on October 7, 2022. ECF No. 1. Defendant moved to dismiss the

complaint on February 13, 2023. ECF No. 12. On February 27, 2023, Plaintiff filed an amended complaint. Am. Compl. Defendant moved to dismiss the Amended Complaint on March 13, 2023. Br. Plaintiff filed his opposition on March 27, 2023. Opp. Defendant filed its reply on April 3, 2023. Reply. LEGAL STANDARD To survive a motion to dismiss under Rule 12(b)(6), “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A complaint must allege “more than a sheer possibility that a defendant has acted unlawfully” and more than “facts that are ‘merely consistent with’ a

defendant’s liability.” Id. (quoting Twombly, 550 U.S. at 557). “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. Determining whether a complaint states a claim is “a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Id. at 679. DISCUSSION I. The GBL The Court begins with Plaintiff’s claims under GBL Sections 349 (prohibiting deceptive acts or practices) and 350 (prohibiting false advertising). “The standard for recovery under General Business Law § 350, while specific to false advertising, is otherwise identical to section 349.” Lugones v. Pete & Gerry’s Organic, LLC, 440 F. Supp. 3d 226, 239 (S.D.N.Y. 2020) (quoting Goshen v. Mut. Life Ins. Co. of N.Y., 774 N.E.2d 1190, 1195 n.1 (N.Y. 2002)). Hence, the Court will analyze Plaintiff’s claims under Sections 349 and 350 together. See, e.g., id. at 239-42 (doing so); MacNaughton, 67 F.4th at 95-99 (same). To state a claim under either Section 349 or 350 of the GBL, “a plaintiff must allege

that a defendant has engaged in (1) consumer-oriented conduct that is (2) materially misleading and that (3) [the] plaintiff suffered injury as a result of the allegedly deceptive act or practice.” Orlander v. Staples, Inc., 802 F.3d 289, 300 (2d Cir. 2015) (quoting Koch v. Acker, Merrall & Condit Co., 967 N.E.2d 675, 675 (N.Y. 2012)). These claims are “not subject to the pleading-with-particularity requirements of Rule 9(b)” and “need only meet the [ordinary pleading] requirements of Rule 8(a).” Pelman ex rel. Pelman v. McDonald’s Corp., 396 F.3d 508, 511 (2d Cir. 2005); accord Duran v. Henkel of Am., Inc., 450 F. Supp. 3d 337, 346 (S.D.N.Y. 2020); Stutman v. Chem. Bank, 731 N.E.2d 608, 612 (N.Y. 2000) (“A deceptive practice . . . need not reach the level of common-law fraud to be actionable under section 349.”).

Plaintiff has adequately alleged all three elements of a claim under Sections 349 and 350. First, Defendant’s alleged misrepresentations about its space heaters qualify as “consumer-oriented conduct.” Koch, 967 N.E.2d at 675 (citation omitted). “The ‘consumer- oriented’ requirement may be satisfied by showing that the conduct at issue ‘potentially affects similarly situated consumers.’” Wilson v. Nw. Mut. Ins. Co., 625 F.3d 54, 64 (2d Cir. 2010) (brackets omitted) (quoting Oswego Laborers’ Loc. 214 Pension Fund v.

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