ADAM v. BARONE
3:20-cv-10321
D.N.J.May 31, 2021Background
- Plaintiff Cindy Adam clicked a Snapchat ad for "Nuvega Lash," ordered two "free samples" and a $15 item; weeks later her card was billed a $92.94 recurring subscription charge.
- Plaintiff's bank temporarily reversed the charge then reinstated it after investigation; Plaintiff alleges defendants told the bank she had agreed to the subscription.
- Plaintiff contacted the company and a company representative offered a full refund if she returned the products; Plaintiff refused the offer and later sued.
- The First Amended Complaint (filed in Feb. 2020 in N.D. Cal., later transferred to D.N.J.) asserted numerous consumer-protection claims, RICO, and conspiracy/aid-and-abet theories on behalf of a proposed nationwide class.
- Defendants moved to dismiss for lack of subject-matter jurisdiction, arguing the pre‑litigation refund offer mooted Plaintiff’s claims.
- The District of New Jersey granted the motion: the court held the pre‑suit ordinary‑course refund offer mooted Plaintiff’s claims, Campbell‑Ewald did not apply, and the FAC was dismissed without prejudice for lack of subject‑matter jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a pre‑suit refund offer moots the case / deprives court of Article III jurisdiction | Campbell‑Ewald and its Third Circuit progeny mean an unaccepted refund/settlement does not moot the action | A full refund offered before litigation in the ordinary course of business moots Plaintiff’s claims (Hayes) | Refund offered pre‑suit in ordinary course was not a settlement/Rule 68 offer; Campbell‑Ewald inapplicable; claims are moot; dismissal for lack of subject‑matter jurisdiction |
| Whether Plaintiff alleged other continuing harms (shipping costs, loss‑of‑use/time value, reversal rights) sufficient to avoid mootness | These alleged incidental costs and procedural limits preserve a live controversy | The offered refund would have made Plaintiff whole; the asserted incidental harms were not adequately pled or legally sufficient to defeat mootness | Court found Plaintiff failed to show a continuing, cognizable injury; these theories did not preserve jurisdiction |
Key Cases Cited
- Campbell-Ewald Co. v. Gomez, 577 U.S. 153 (2016) (an unaccepted Rule 68 offer does not moot a plaintiff’s case)
- Hayes v. Wal-Mart Stores, Inc., 725 F.3d 349 (3d Cir. 2013) (pre‑suit refund offer can eliminate injury and standing)
- Weitzner v. Sanofi Pasteur, Inc., 819 F.3d 61 (3d Cir. 2016) (adopting Campbell‑Ewald principles regarding unaccepted Rule 68 offers)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992) (plaintiff bears burden to establish standing at each litigation stage)
