Derbaremdiker v. Applebee's International, Inc.
1:12-cv-01058
E.D.N.YSep 26, 2012Background
- Plaintiff filed a putative class action on March 1, 2012 alleging deceptive practices and unjust enrichment related to Applebee’s sweepstakes.
- Defendant moved to dismiss under Rule 12(b)(6); oral argument occurred September 21, 2012.
- Sweepstakes entries were made via Plaintiff’s receipt and the website www.MyApplebeesVisit.com, leading to a daily drawing.
- Receipts and website disclosed prizes and directed users to Official Rules; Complete Sweepstakes Rules detailed daily prizes, entries, and pooling.
- Plaintiff alleged misrepresentations that prizes and competition were limited to Applebee’s customers; asserted multiple daily prizes; and claimed unfavorable odds against non-Applebee’s entrants.
- Court granted defendant’s motion to dismiss the complaint in its entirety and refused leave to amend.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §349 claim is plausibly alleged. | Derbaremdiker argues receipts/website misled consumers. | Disclosures on Website/Rules render omissions non-material. | Dismissed; §349 claim fails. |
| Whether there is actionable injury under §349. | Plaintiff claims reduced odds constitute actual injury. | No legally cognizable injury beyond deception; no positive harm shown. | Dismissed; no actual injury shown. |
| Whether unjust enrichment claim is viable. | Plaintiff conferred benefits; defendant enriched unjustly. | No enrichment or inequity; claim duplicates §349 and fails. | Dismissed; unjust enrichment claim insufficient. |
| Whether §350 false advertising claim remains viable. | Plaintiff contends false advertising claims; later withdrawn. | Withdrawal acknowledged; claim should be dismissed. | Dismissed; §350 claim withdrawn and granted. |
Key Cases Cited
- Koch v. Acker, Merrall & Condit Co., 18 N.Y.3d 940 (N.Y. 2012) (elements for §349 deception: consumer-oriented, materially misleading, injury)
- Oswego Laborers’ Local 214 Pension Fund v. Marine Midland Bank, N.A., 85 N.Y.2d 20 (N.Y. 1995) (material deception requirement and standing in consumer actions)
- Gaidon v. Guardian Life Ins. Co. of Am., 94 N.Y.2d 330 (N.Y. 1999) (objective test for materially misleading statements)
- Cohen v. JP Morgan Chase & Co., 498 F.3d 111 (2d Cir. 2007) (materiality and reasonable consumer standard in §349 context)
- Small v. Lorillard Tobacco Co., 94 N.Y.2d 43 (N.Y. 1999) (injury required separate from deception; not purely restitutionary)
- Baron v. Pfizer, Inc., 840 N.Y.S.2d 445 (N.Y. App. Div. 3d Dep’t 2007) (duty to plead actual harm in §349 actions)
- Ricciuti v. N.Y.C. Transit Auth., 941 F.2d 119 (2d Cir. 1991) (adverse ruling quote on insufficient pleading under Rule 12(b)(6))
