DiMuro v. Clinique Laboratories, LLC
572 F. App'x 27
| 2d Cir. | 2014Background
- DiMuro, Ohayon, and Stein filed a putative class action against Clinique Laboratories, LLC and Estee Lauder Companies, Inc. alleging consumer fraud and breach of express/implied warranties related to seven Repairwear products.
- District Court for the District of Connecticut dismissed the consolidated complaint with prejudice on November 22, 2013.
- On appeal, plaintiffs argued they had class standing to assert claims for Repairwear products they did not buy, based on NECA-IBEW Health & Welfare Fund v. Goldman Sachs & Co.
- The seven products have different ingredients and advertising claims, so each product presents unique proof obligations.
- The court held plaintiffs lack class standing to pursue claims for products they did not purchase, so those claims were properly dismissed.
- The court also affirmed dismissal of consumer fraud claims for failure to plead with particularity under Rule 9(b), and affirmed dismissal of unjust enrichment and warranty claims; leave to amend was denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue for unpurchased products | DiMuro argues NECA-IBEW permits class standing across products. | Clinique contends each product requires distinct proof; no cross-product standing. | No class standing for unpurchased products; claims dismissed. |
| Sufficiency of pleading under Rule 9(b) for consumer fraud claims | Plaintiffs contend group pleading suffices for multiple products. | Clinique argues allegations are conclusory and lack specificity for fraud claims. | Consumer fraud claims dismissed for lack of particularity. |
| Adequacy of allegations regarding product-specific deceptive claims | Allegations show products do not work as advertised. | Allegations fail to identify specific ingredients and claims for each product. | Insufficient factual basis to show specific deceptive claims; claims dismissed. |
| Unjust enrichment when fraud claims dismissed | Unjust enrichment should survive with fraud. | Unjust enrichment cannot stand where fraud is dismissed. | Affirmed dismissal of unjust enrichment claim. |
| Breach of express and implied warranty viability | Products failed to perform as promised; warranties breached. | Allegations are conclusory and not plausibly supported. | Dismissed Plaintiffs' warranty claims. |
| Leave to amend the complaint | District court should have allowed amendment to cure deficiencies. | Amendment would not plausibly cure deficiencies; advisory opinion not required. | District court did not abuse discretion in denying leave to amend. |
Key Cases Cited
- NECA-IBEW Health & Welfare Fund v. Goldman Sachs & Co., 693 F.3d 145 (2d Cir. 2012) (class standing across related securities requires nearly identical misrepresentations)
- Mills v. Polar Molecular Corp., 12 F.3d 1170 (2d Cir. 1993) (Rule 9(b) particularity requires identifying fraudulent statements)
- Shields v. Citytrust Bancorp, Inc., 25 F.3d 1124 (2d Cir. 1994) (Rule 9(b) not a license for speculative allegations)
- DiVittorio v. Equidyne Extractive Indus., Inc., 822 F.2d 1242 (2d Cir. 1987) (fair notice requirement under Rule 9(b))
- Luce v. Edelstein, 802 F.2d 49 (2d Cir. 1986) (detailed facts needed to plead fraud under Rule 9(b))
- Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (plausibility standard for complaint sufficiency)
- Galiano v. Fid. Nat’l Title Ins. Co., 684 F.3d 309 (2d Cir. 2012) (pleading requirements under Rule 12(b)(6) for plausibility)
