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Smith v. Washington Post Company
962 F. Supp. 2d 79
D.D.C.
2013
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Background

  • Ricardo Smith filed a class-action suit against The Washington Post Company on behalf of himself and others similarly situated, alleging unilateral contract changes and lack of reimbursements for unsold newspapers.
  • Distributors operated under form contracts and oral agreements incorporating those terms, including a refund for unsold newspapers returned within any week and a prohibition on unilateral changes without written consent.
  • Around 2008, Post allegedly began inaccurately accounting for returns and repeatedly changed the return-deadline to obtain credits, allegedly reducing refunds due.
  • Plaintiff asserts four claims: breach of contract, breach of implied contract, unjust enrichment/promissory estoppel, and accounting, with a potential class defined from October 19, 2009 onward (about 60 members).
  • Defendant moved to dismiss or strike class allegations; the court denied, finding the complaint adequate under notice pleading and allowing discovery before class certification; ordered the parties to propose a discovery plan and schedule.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Timeliness of the claims Smith alleges ongoing breaches through 2011; some acts may toll limitations. All claims accrued by 2008, outside the three-year window. Not conclusively time-barred at this stage; fact-specific questions remain.
Breach of contract pleading adequacy Smith identified the form contracts and key terms affecting refunds. Plaintiff failed to attach the contract or quote specific provisions. Plaintiff pleadings meet notice-pleading standards; sufficient to proceed.
Breach of implied contract viability Oral agreements to distribute other newspapers on the same terms support implied contract. Statute of frauds may bar unwritten contracts; implied terms unclear. Implied-contract claim adequately pled; statute of frauds argument unavailing.
Standing to seek injunctive/declaratory relief Relief sought flows from contract interpretation; not dependent on ongoing employment. Former employee standing issues; may lack standing for forward-looking relief. Plaintiff has standing to seek injunctive and declaratory relief at this stage.
Class action viability and need for discovery Common form contracts and consistent conduct support class treatment; discovery will clarify. Mercury-like concerns about predominance; premature to certify before discovery. Denies striking or dismissing class allegations; initial discovery ordered to assess certification.

Key Cases Cited

  • Browning v. Clinton, 292 F.3d 235 (D.C. Cir. 2002) (standard for motion to dismiss and pleading sufficiency)
  • Twombly v. Bell Atl. Corp., 550 U.S. 544 (S. Ct. 2007) (requirement of plausible claims, not mere allegations)
  • Ashcroft v. Iqbal, 556 U.S. 662 (S. Ct. 2009) (plausibility standard for facially valid claims)
  • Firestone v. Firestone, 76 F.3d 1205 (D.C. Cir. 1996) (statutory limitations and pleading grounds applicable)
  • Snyder v. Hillegeist, 246 F.2d 649 (D.C. Cir. 1957) (statute of frauds scope and performance within one year)
  • Hodge v. Evans Financial Corp., 823 F.2d 559 (D.C. Cir. 1987) (oral agreements and duration not per se within statute of frauds)
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Case Details

Case Name: Smith v. Washington Post Company
Court Name: District Court, District of Columbia
Date Published: Aug 23, 2013
Citation: 962 F. Supp. 2d 79
Docket Number: Civil Action No. 2012-1746
Court Abbreviation: D.D.C.