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