1:18-cv-02560
N.D. Ill.Jan 15, 2019Background
- Plaintiff Vladislav Bazer bought two Brew Dr. Kombucha products in Illinois labeled as containing “billions” of probiotic bacteria but laboratory testing showed ~50,000 CFUs and ~161,000 CFUs per bottle.
- Bazer sued Brew Dr. Kombucha, LLC asserting a putative nationwide class and an Illinois subclass, alleging: violations of consumer fraud statutes (ICFA and similar state laws), breach of express and implied warranty, and unjust enrichment.
- Defendant moved to dismiss under Rules 12(b)(1), (2), and (6) and to strike: arguing failure to plead fraud with particularity, lack of standing for unpurchased products and nonresident class members, failure of pre-suit notice for warranty claims, lack of privity, and lack of standing for injunctive relief.
- The court found Bazer adequately pleaded an ICFA claim (Rule 9(b) satisfied by alleging who/what/where/when/how and by attaching labels) and denied dismissal of the ICFA and unjust enrichment claims.
- The court dismissed Bazer’s breach of express and implied warranty claims for failure to provide the required pre-suit notice and dismissed his claim for injunctive relief for lack of Article III standing (no likelihood he will be deceived again).
- The court struck the nationwide class allegations as premature and unworkable given likely variations in other states’ laws, but allowed Bazer to seek leave to amend if circumstances later justify a multi-state or additional representative approach.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ICFA/consumer-fraud claim pleaded with required particularity | Bazer alleged label text, purchase facts, and testing showing low CFUs; scienter plausible | Labels are generalized and not pleaded with Rule 9(b) particularity; claim duplicates warranty | Denied dismissal — 9(b) satisfied by labels and purchase details; claim not merely a warranty in different garb |
| Standing to assert claims for products not purchased | Bazer may represent purchasers of substantially similar products with the same “billions” labeling | Bazer lacks standing to assert claims for products he did not buy | Denied as premature; court skeptical but finds present allegations focus on products Bazer purchased and may support representation of sufficiently similar products |
| Nationwide class viability | Bazer seeks nationwide class under common theory | Defendant says differing state laws and typicality/ predominance problems make a nationwide class unmanageable and Bazer lacks standing for out-of-state claims | Nationwide class allegations stricken as unworkable at pleading stage; leave to amend if support later arises |
| Breach of warranty pre-suit notice requirement | Bazer contends defendant knew of product defects and thus notice excused | Defendant contends Bazer failed to give the required pre-suit notice under UCC 2-607 | Warranty claims dismissed for failure to provide pre-suit notice (no actual notice of Bazer’s grievance) |
| Unjust enrichment dependency on ICFA | Bazer argues unjust enrichment independent or coextensive with ICFA | Defendant argues unjust enrichment fails if ICFA fails | Unjust enrichment survives because ICFA claim survives |
| Standing for injunctive relief | Bazer seeks injunction to stop deceptive labeling | Defendant: Bazer already knows the alleged deception and thus faces no future injury | Injunctive relief dismissed for lack of Article III standing (no real likelihood of future harm) |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (pleading must state plausible claim)
- Ashcroft v. Iqbal, 556 U.S. 662 (facial plausibility standard for complaints)
- Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (concrete injury requirement for Article III standing)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (standing requirements overview)
- Friends of the Earth, Inc. v. Laidlaw Env’t Servs., 528 U.S. 167 (injunctive relief and redressability/standing)
- Connick v. Suzuki Motor Co., 675 N.E.2d 584 (Ill.) (pre-suit notice requirement under UCC 2-607)
- Bankers Trust Co. v. Old Republic Ins. Co., 959 F.2d 677 (7th Cir.) (Rule 9(b) fraud particularity standards)
- In re Bridgestone/Firestone, Inc., 288 F.3d 1012 (7th Cir.) (differences in state law can preclude nationwide consumer classes)
- Camasta v. Jos. A. Bank Clothiers, Inc., 761 F.3d 732 (7th Cir.) (past exposure to deception does not alone support injunction relief)
