Yastrab v. Apple Inc.

173 F. Supp. 3d 972, 2016 WL 1169424, 2016 U.S. Dist. LEXIS 39707
CourtDistrict Court, N.D. California
DecidedMarch 25, 2016
DocketCase No. 5:14-cv-01974-EJD
StatusPublished
Cited by12 cases

This text of 173 F. Supp. 3d 972 (Yastrab v. Apple Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yastrab v. Apple Inc., 173 F. Supp. 3d 972, 2016 WL 1169424, 2016 U.S. Dist. LEXIS 39707 (N.D. Cal. 2016).

Opinion

[975]*975ORDER GRANTING DEFENDANT’S MOTION TO DISMISS

EDWARD J. DAVILA, United States District Judge

Steve Jobs described the iPhone 4 as “the biggest leap since the original iPhone.” First Am. Compl, (“FAC”),, Dkt. No. 38, at ¶52. But for Plaintiffs David Yastrab, John Keller, Daniel Arrellano, Penelope Shaw, Evelyn Cortez, Stanley Williams and Michael Robins (collectively), (“Plaintiffs”), their purchase of the later-released iPhone 4s constituted a leap into functional obsolescence. They allege in this putative class action that the Bluetooth and Wi-Fi capabilities of their iPhones were “grayed out,” or rendered inoperable, after a software update, and contend that Defendant Apple Inc. (“Apple”) falsely represented in statements they viewed pri- or to purchase that iPhones have these capabilities.

Apple now moves to dismiss all of the amended claims-as implausible and lacking particularity. Dkt.-No. 39. After carefully reviewing the parties’ pleadings, the court concurs that Plaintiffs’ claims are defi-ciently pled. Accordingly, Apple’s motion to dismiss will be granted and the claims will be dismissed, this time without leave to amend.

I. BACKGROUND

Plaintiffs allege that “Apple manufactures, designs, produces and sells several types of electronic products,” including the iPhone. FAC, at ¶ 51. Since the debut of the first- iPhone model in 2007, Apple has released a new iPhone model every year, including the iPhone 4s in 2011. Id. at ¶ 2. Plaintiffs each purchased an iPhone 4s. Id. at ¶¶ 42-48.1 -

Plaintiffs allege that Apple marketed and sold each version of the iPhone as a “smartphone” that, like a computer, could run an operating system - in the case of Apple products, software called “iOS” - which allowed users to utilize all of the features of the. product, including certain software applications known as “apps.” Id. at ¶¶ 2, 3. To that end, Plaintiffs allege the iPhone had the “ability to connect to the internet via a Network or Wi-Fi connection ... for users, to have access” to apps and other features. Id. at ¶ 2.

According to Plaintiffs, “Apple has continuously released updates to iOS since the very first iPhone.” Id. at ¶4. “Upon the release of a new version of iOS, users are prompted to download the newest iOS onto their device via a message from Apple.” Id. In fact, Plaintiffs contend Apple encourages users to download an iOS update by “specifically stating” that the update “contains bug fixes and security updates.” Id. at ¶ 7.

One update to the operating system, iOS 7, was unveiled on June 10, 2013, and made available for download on September 17, 2013. Id. at ¶¶ 20, 55. Plaintiffs allege that iOS 7 “was a platform for over a million mobile apps, iCloud,2 and include[d] security features that prevented] unauthorized access to Apple devices.” Id. at ¶ 12. Plaintiffs each downloaded iOS 7 to their iPhones. Id. at ¶¶ 63, 72-79.

Plaintiffs allege, however, that their phones were “grayed out” after, updating the software, such that they “lost the- abili[976]*976ty to connect to Wi-Fi or Bluetooth and were no longer able to run Siri,3 or other applications via a Wi-Fi connection, and could only download and run these applications using a Network connection, this using data from their cellular plan.” Id. at ¶ 63. Plaintiff also allege they could not remedy the “grayed out” because they were unable to download iOS updates without a Wi-Fi connection, and were not permitted to downgrade to an earlier version of the operating software once iOS 7 was installed. Id. at ¶¶ 64, 94. Plaintiffs state that the lack of capabilities “essentially rendered the devices obsolete.” Id. at ¶6. And because the “grayed out” issue was wide-ranging, Plaintiffs believe it “is reasonable and plausible to infer that [Apple] had either, actual or constructive knowledge of the iPhones’ shortcomings prior to their, distribution.” Id. at ¶99.

Plaintiff Yastrab initiated this case on April 29, 2014. The court granted Apple’s ensuing motion to dismiss the complaint and dismissed all of Yastrab’s claims on March 23, 2015. Plaintiffs filed the FAC on May 8, 2015, asserting amended claims for violation of (1) the Consumers Legal Remedies Act (“CLRA”), California Civil Code § 1750 et seq.; (2) the Unfair Competition Law (“UCL”), California Business and Professions Code § 17200 et seq.; (3) breach of express warranty,' (4) intentional misrepresentation, and (5) negligent misrepresentation. This second motion to dismiss followed.

II. LEGAL STANDARD

Federal Rule of Civil Procedure 8(a) requires a plaintiff to plead each claim with sufficient specificity to “give the defendant fair notice of what the ... claim is arid the grounds upon which it rests.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 556, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (internal quotations, omitted). The factual allegations in the complaint “must be enough to raise a right to relief above the speculative level” such that the claim “is plausible on its face.” Id. at 556-57, 127 S.Ct. 1955. A complaint which falls short of the Rule 8(a) standard may be dismissed if it fails to state a claim upon which relief can be granted. Fed. R. Civ. P. 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).

Claims that sound in fraud are subject to a heightened pleading standard. Fed. R. Civ. Proe. 9(b) (“In alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake.”); Vess v. Ciba-Geigy Corp., 317 F.3d 1097, 1103-1104 (9th Cir.2003) (recognizing that claims “grounded in fraud” or which “sound in fraud” must meet the Rule 9(b) pleading standard, even if fraud is not an element of the claim). The allegations must be.“specific enough to give defendants notice of. the particular misconduct which is alleged to constitute the fraud charged so that they can defend against the charge and not just deny that they have done anything wrong.” Semegen v. Weidner, 780 F.2d 727, 731 (9th Cir. 1985). This requires “an account of the time, place, and specific content of - the false representations as well as the identities of the parties to the misrepresentations.” Swartz, 476 F.3d at 764. In other words, fraud or claims asserting fraudulent conduct must generally contain more specific facts than is necessary to support other causes of action.

[977]*977When deciding whether to grant a motion to dismiss, the court must generally accept as true all “well-pleaded factual allegations.” Ashcroft v. Iqbal, 556 U.S. 662, 664, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). The court must also construe the alleged facts in the light most favorable to the plaintiff. Love v. United States, 915 F.2d 1242, 1245 (9th Cir.1988). However, “courts are not bound to accept as true.a legal conclusion couched as a factual allegation.” Iqbal, 556 U.S.

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Cite This Page — Counsel Stack

Bluebook (online)
173 F. Supp. 3d 972, 2016 WL 1169424, 2016 U.S. Dist. LEXIS 39707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yastrab-v-apple-inc-cand-2016.