238 F. Supp. 3d 1195
N.D. Cal.2017Background
- Plaintiff Laurie Munning (NJ resident) bought three clothing items from Gap Factory / Banana Republic Factory websites advertised as "sale" items and paid $107.95 total.
- Plaintiff alleges the crossed-out "original" prices were never the true selling prices and that the items were effectively always sold at or near the advertised sale prices as part of a uniform deceptive scheme.
- Original complaint asserted 11 claims (including CLRA, UCL, FAL, NJCFA, TCCWNA, breach/warranty, unjust enrichment, negligent misrepresentation); several claims were previously dismissed in part; plaintiff filed a First Amended Complaint (FAC).
- Defendants moved to dismiss the FAC as to the CLRA, NJCFA, TCCWNA, and plaintiff's claims for equitable relief (UCL and FAL restitution/injunctive relief).
- The court accepted FAC allegations as true for the motion-to-dismiss posture and heard argument; it resolved whether plaintiff sufficiently pleaded statutory claims and whether equitable remedies are available given adequate legal remedies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| CLRA venue affidavit requirement | Munning filed the required CLRA venue affidavit | Defendants argued failure to file initially | Denied dismissal — CLRA claim survives (defendants abandoned contest) |
| NJCFA — ascertainable loss and causation | Munning alleges she paid $107.95 in reliance on deceptive pricing and would not have purchased but for misrepresentations (out-of-pocket loss); alleges causation | Defendants: FAC adds no new facts; plaintiff hasn't shown monetary or quantifiable loss like cases where goods were worthless | Denied dismissal — court finds out-of-pocket rule pleaded (paid money in reliance) and causation adequately pled |
| TCCWNA — predicate "clearly established legal right" violation | Munning incorporates NJCFA allegations as predicate for TCCWNA | Defendants: no predicate violation shown; Watkins limits TCCWNA to inclusion of illegal provisions | Denied dismissal — NJCFA violation can serve as predicate; TCCWNA claim survives |
| Equitable remedies (UCL/FAL restitution & injunction) | Plaintiff seeks restitution and injunctive relief in addition to damages | Defendants: equitable relief unavailable because adequate legal remedies exist (breach of contract/warranty/damages) and plaintiff lacks standing for injunction | Granted dismissal WITH PREJUDICE — equitable claims (UCL and FAL) dismissed because adequate remedies at law exist |
Key Cases Cited
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (establishes federal pleading plausibility standard)
- Ashcroft v. Iqbal, 556 U.S. 662 (pleading standard; courts need not accept legal conclusions)
- Lee v. Carter-Reed Co., LLC, 203 N.J. 496 (NJ Supreme Court — out-of-pocket loss under NJCFA where purchaser paid for worthless product)
- Arcand v. Brother Int'l Corp., 673 F. Supp. 2d 282 (D.N.J. — discussion of ascertainable loss under NJCFA)
- Furst v. Einstein Moomjy, Inc., 182 N.J. 1 (NJ Supreme Court — NJCFA is remedial and construed liberally)
- Franklin v. Gwinnett County Public Schools, 503 U.S. 60 (equitable relief principles; consider adequacy of legal remedies first)