William Klaehn v. Cali Bamboo, LLC

CourtCourt of Appeals for the Ninth Circuit
DecidedJune 3, 2022
Docket21-55738
StatusUnpublished

This text of William Klaehn v. Cali Bamboo, LLC (William Klaehn v. Cali Bamboo, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William Klaehn v. Cali Bamboo, LLC, (9th Cir. 2022).

Opinion

NOT FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS JUN 3 2022 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS FOR THE NINTH CIRCUIT

WILLIAM KLAEHN, et al., No. 21-55738

Plaintiff-Appellants, D.C. No. 3:19-cv-01498-TWR- KSC v.

CALI BAMBOO LLC, et al., MEMORANDUM*

Defendant-Appellees.

Appeal from the United States District Court for the Southern District of California Todd W. Robinson, District Judge, Presiding

Argued and Submitted May 13, 2022 San Francisco, California

Before: MURGUIA, Chief Judge, BUMATAY, Circuit Judge, and BAKER,** International Trade Judge.

Plaintiff-Appellants, a putative class of purchasers of flooring sold by

Defendant-Appellee Cali Bamboo (“Cali”), appeal from the district court’s dismissal

with prejudice of their third amended complaint, which asserts California Consumer

* This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3. ** The Honorable M. Miller Baker, Judge for the United States Court of International Trade, sitting by designation. Legal Remedies Act (“CLRA”), Unfair Competition Law (“UCL”), and other state

law claims, for failure to state a claim upon which relief can be granted. We have

appellate jurisdiction under 28 U.S.C. § 1291, and we affirm.

1. The district court concluded that Plaintiffs lacked standing to bring CLRA

claims of affirmative misrepresentations based on allegations as to which Plaintiffs

failed to plead reliance. On appeal, Plaintiffs fail to challenge that determination.

We therefore deem any claim of error waived.

The district court next analyzed the remaining allegations of affirmative

misrepresentations as to which Plaintiffs pleaded reliance. It held that other than

statements relating to a 50-year warranty or “guarantee[] to last 50 years,” any

remaining statements were non-actionable puffery. “[G]eneralized, vague[,] and

unspecific assertions” are “mere ‘puffery’ upon which a reasonable consumer” may

not rely. Glen Holly Ent., Inc. v. Tektronix Inc., 343 F.3d 1000, 1015 (9th Cir. 2003).

Puffery does not include “misdescriptions of specific or absolute characteristics of a

product,” Southland Sod Farms v. Stover Seed Co., 108 F.3d 1134, 1145 (9th Cir.

1997) (quoting Cook, Perkiss and Liehe, Inc. v. N. Cal. Collection Serv., Inc., 911

F.2d 242, 246 (9th Cir. 1990)), or “[a] specific and measurable advertisement claim

of product superiority based on product testing,” id. Plaintiffs’ allegations that Cali

represented its flooring as “durable” and “long lasting” therefore fail because such

statements are puffery.

2 Citing McAdams v. Monier, Inc., 105 Cal. Rptr. 3d 704 (Ct. App. 2010),

Plaintiffs contend that the remaining representations that the flooring was

“guaranteed to last 50 years” and “has a 50-year warranty” render the “long lasting”

and “durable” representations deceptive. McAdams, however, did not address

whether the warranty representation was false or whether other representations were

puffery. Furthermore, Plaintiffs do not challenge the district court’s determination

that Cali’s 50-year warranty representation itself is not actionable under the CLRA

because a warranty is only a promise to replace or repair, not a promise of zero

defects. Plaintiffs cannot bootstrap the “durable” and “long lasting” representations

into anything more than puffery based on their non-actionable warranty claim.1

2. Plaintiffs also assert two theories for CLRA claims based on alleged

fraudulent omissions. Omissions are actionable under the CLRA when they are

“contrary to a representation actually made by the defendant” or are “of a fact the

defendant was obliged to disclose.” Hodsdon v. Mars, Inc., 891 F.3d 857, 861 (9th

Cir. 2018) (cleaned up) (quoting Daugherty v. Am. Honda Motor Co., 51 Cal. Rptr.

3d 118, 126 (Ct. App. 2006)). On appeal, Plaintiffs contend that they adequately

alleged both theories.

1 While Plaintiffs asserted claims for breach of implied and express warranty, they have not appealed the district court’s dismissal of those claims.

3 First, insofar as Plaintiffs’ omission theory relies on the first prong of

Hodsdon, it fails for the same reason that their affirmative misrepresentation claim

fails. Because we affirm the district court’s dismissal of Plaintiffs’ affirmative

misrepresentation claim as discussed above, we also affirm the district court’s

dismissal of the omission claim.

Second, Plaintiffs contend Cali knew of the alleged defect in its flooring and

failed to disclose it. Under Fed. R. Civ. P. 9(b), a plaintiff must plead circumstances

from which a court can plausibly infer the defendant’s knowledge. So, the question

here is whether Plaintiffs pleaded facts about the circumstances of the alleged defect

that would allow us to infer that Cali knew about the defect at the time of sale to

Plaintiffs. Plaintiffs contend Cali knew of the defect based on online complaints,

warranty claims, and a 2019 change in warranty terms.

For any such evidence to demonstrate knowledge at the time of purchase, the

evidence must show the defendant’s knowledge predated the purchase. The district

court therefore correctly rejected Plaintiffs’ reliance on Cali’s 2019 warranty amend-

ments because the latest date on which any named Plaintiff purchased the Cali floor-

ing was during April 2018. While Plaintiffs argue on appeal that a warranty modifi-

cation “does not happen instantly,” Plaintiffs fail to respond to the district court’s

finding that they offered nothing to support an inference that Cali must have known

about the alleged defect prior to April 2018.

4 The district court also noted that only 12 of the customer complaints Plaintiffs

cited plausibly predated the latest of Plaintiffs’ purchases and only two predated the

earliest such purchases. Plaintiffs now argue that their complaint collected “approx-

imately 100 online complaints,” that “several” of them pre-dated Plaintiffs’ pur-

chases, and that Cali responded to some of those. Plaintiffs also insist the online

complaints “are of a volume and type where it is reasonable to infer that they would

have put the defendants on notice.” But the “volume and type” of the complaints are

simply irrelevant if the complaints post-date the relevant purchases. Therefore, be-

cause Plaintiffs have failed to respond to the substance of the district court’s conclu-

sions, we affirm the district court’s dismissal of their omissions-based claims based

on the insufficiency of their allegations about Cali’s knowledge.

3. Plaintiffs assert UCL claims, but all those claims rise or fall with their

CLRA claims because some are predicated on prevailing under the CLRA and some

are premised on the same conduct Plaintiffs claim violates the CLRA. Accordingly,

we affirm the district court’s dismissal of the UCL claims.

4. Plaintiffs’ second amended complaint included a standalone count for “un-

just enrichment.” The district court dismissed that count without prejudice because

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Related

Southland Sod Farms v. Stover Seed Co.
108 F.3d 1134 (Ninth Circuit, 1997)
Melchior v. New Line Productions, Inc.
131 Cal. Rptr. 2d 347 (California Court of Appeal, 2003)
McAdams v. MONIER, INC.
182 Cal. App. 4th 174 (California Court of Appeal, 2010)
Daugherty v. American Honda Motor Co., Inc.
51 Cal. Rptr. 3d 118 (California Court of Appeal, 2006)
Robert Hodsdon v. Mars, Inc.
891 F.3d 857 (Ninth Circuit, 2018)
Kathleen Sonner v. Premier Nutrition Corp.
971 F.3d 834 (Ninth Circuit, 2020)

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William Klaehn v. Cali Bamboo, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-klaehn-v-cali-bamboo-llc-ca9-2022.