MEMORANDUM OPINION
Pending before this court are two separate cases, civil actions 2:10-cv-02420-
I. STANDARD OF REVIEW
Under Federal Rule of Civil Procedure 8(a)(2), a pleading must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” “[T]he pleading standard Rule 8 announces does not require ‘detailed factual allegations,’ but it demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation.” Ashcroft v. Iqbal,
Federal Rule of Civil Procedure 12(b)(6) permits dismissal when a complaint fails to state' a claim upon which relief can be granted. “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Iqbal,
On a motion to dismiss under Rule 12(b)(6), the court accepts all of a plaintiffs factual allegations as true. See, e.g., Grossman v. Nationsbank, N.A.,
II. FACTUAL BACKGROUND
TTI designs, markets, and manufactures a variety of vacuums and carpet cleaners including the Hoover SteamVac Spin-' Scrub®. Doc. 1 at ¶ 10 in Boyd. TTI and Wal-Mart allegedly market the Hoover carpet cleaners as “Steam Vacs and Steam Cleaners.” Id. at ¶ 11. Both TTI and Wal-
Similarly, Bissell designs, markets, and manufactures a variety of vacuums and carpet cleaners including the Bissell Pow-erSteamer®. Doc. 1 at ¶ 10 in Green. Bis-sell and Wal-Mart allegedly market the Bissell carpet cleaners as “Power Steamers, Steam Vacs and Steam Cleaners.” Id. at ¶ 11. Both Bissell and Wal-Mart allegedly know that the PowerSteamer® does not produce steam—it also uses hot tap water without heating that water itself—in its cleaning process. Id. at ¶¶ 9, 11-12. Green purchased the PowerSteamer® at a Wal-Mart in Eastwood, Jefferson County, Alabama. Id. at ¶ 14. Green allegedly “suffered damages in the form of being delivered a product worth substantially less than the product ... would have been worth” if it used steam to clean. Id. at ¶¶ 16, 21. Green has notified both Bissell and Wal-Mart of the alleged breach of warranty. Id. at ¶ 15. Nonetheless, Wal-Mart still markets, advertises and sells Bissell’s PowerSteamer® and profits from those sales. Id. at ¶¶ 12-13.
III. PROCEDURAL HISTORY
This is the third action Green and Boyd have filed based upon the same facts. On April 20, 2010, Boyd filed a class action complaint for breach of express warranty based upon the Hoover SteamVac product. See No. 2:10-cv-01022-AKK. Two days later, Boyd filed her notice of voluntary dismissal pursuant to Rule 41, and the court dismissed the case accordingly. Id. at docs. 4, 6. Likewise, on April 20, 2010, Green filed a class action complaint for breach of express warranty based upon the Bissell PowerSteamer product. See No. 2:10-cv-01023-AKK. Two days later, Green also filed a notice of voluntary dismissal, and the case was, likewise, dismissed. Id. at docs. 2, 4.
On April 28, 2010, Green filed a new class action for breach of express warranty. See 2:10-cv-01040-AKK. Defendants Bissell and Wal-Mart filed motions to dismiss on the grounds that the PowerSteamer name did not create an express warranty. Id. at docs. 13, 14. Before the court ruled on those motions, an intervening Eleventh Circuit case
Mirroring Green, on April 28, 2010, Boyd also filed a new class action for breach of express warranty. See 2:10-cv-01065-AKK. Defendants TTI and Wal-Mart filed motions to dismiss on the grounds that the SteamVac name did not create an express warranty. Id. at docs. 10, 12. On September 8, 2010, the court dismissed Boyd’s case without prejudice also
That same day, Boyd and Green filed the instant actions. See doc. 1 in Boyd; doc. 1 in Green. They added no new factual allegations, but asserted RICO claims, see id., ensuring federal subject matter jurisdiction over their cases once again.
Here, Boyd claims that by selling a product called SteamVac® that does not produce steam in its cleaning process, TTI and Wal-Mart breached an express warranty. Doc. 1 in Boyd. In addition, she asserts that TTI and Wal-Mart’s advertisement and sale of the SteamVac® product violates the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1961 et seq., because Defendants know it cannot produce steam. Id. Likewise, Green claims that by selling a product called PowerSteamer® that does not produce steam in its cleaning process, Bis-sell and Wal-Mart breached an express warranty and violated RICO through the advertisement and sale of a product they knew could not produce steam. Doc. 1 in Green. The court addresses the breach of warranty claims first, then moves to Plaintiffs’ RICO allegations.
IV. ANALYSIS
A. Breach of Express Warranty
At the heart of their respective cases, Plaintiffs assert that the PowerSteamer® and SteamVac® trade names alone
(i) Express Warranty Under Alabama Law
Under Alabama law:
(1) Express warranties by the seller are created as follows:
(a) Any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation or promise.
(b) Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description.
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(2) It is not necessary to the creation of an express warranty that the seller use formal words such as “warrant’ or ‘guarantee’ or that he have a specific intention to make a warranty, but an affirmation merely of the value of the goods or a statement purporting to be merely the seller’s opinion or commendation of the goods does not create a warranty.
Ala. Code, 1975, § 7-2-313. The crux of an express warranty claim is that “the goods did not conform to the warranty.” Ex parte Miller,
(ii) Case Law Relied Upon by the Parties
The question before the court is whether the SteamVac® or PowerSteamer® names create an affirmation of fact that the products will use steam in the cleaning process. To help the court resolve that question, the parties cited numerous cases each claimed as analogous to its respective position. Because examination of those cases is helpful in illustrating the contours of the law surrounding express warranty claims,
(a) Plaintiffs’Supporting Case Law
Plaintiffs contend that myriad cases have held that a seller may create an express warranty based on the name it gives a product if that name contains a factual description of the goods sold. See doc. 16 at 7 in Green; doc. 19 at 7 in Boyd. As one of the few Alabama cases even remotely related to the instant action, Plaintiffs cite to La Trace v. Webster,
Likewise, Plaintiffs rely on Neff v. Kehoe,
Plaintiffs also cite to Fleck v. Jacques Seed Co.,
Plaintiffs rely perhaps primarily on Williams v. Gerber Products Co.,
(b) Defendant’s Supporting Case Law
Defendants acknowledge that Plaintiffs’ breach of warranty claim is, apparently, novel in Alabama and in this Circuit. Nonetheless, Defendants assert that other jurisdictions have considered whether trade names alone can create an express warranty to a product’s quality, functioning, or contents. For example, in Szajna v. General Motors Corp.,
Defendants also cite two district court cases in California that reject an express warranty based, in part, on a product’s name. In McKinnis v. Kellogg USA, No. CV-07-2611,
Likewise, in Sugawara v. PepsiCo, Inc., No. 2:08-cv-01335-MCE-JFM,
Additionally, Defendant Wal-Mart asserts that even if products’ names somehow constituted express warranties, as merely the seller, it is not liable for a manufacturer’s warranty. See Gordon v. Pfizer, Inc., No. CV-06-RRA-703-E,
An agent, dealer, or distributor cannot be held liable on a manufacturer’s express warranty unless he has adopted it. The mere sale of goods together with the transmission of the manufacturer’s warranty does not bind an agent; and delivering, presenting, or explaining the manufacturer’s warranty, without more, does not render a dealer a co-warrantor by adoption.
Thorpe v. Hammons Sheet Metal Co.,
(iii) Defendants Did Not Expressly Warrant the Use or Production of Steam
The question before the court is whether a product’s name alone can create an express warranty under Alabama law. To complicate matters further, the Alabama Supreme Court has not directly opined on the subject. However, based on this court’s review of Alabama cases involving express warranties and the precedent cited by the parties here, the court concludes that the name of the products, either SteamVac® or PowerSteamer®, do not create an express warranty to the process that product would use.
Typically, an express warranty arises from specific language promising the buyer a specific service or specifically describing the bargained for item. See, e.g., Terrell v. R & A Mfg. Partners, Ltd.,
The crux of Plaintiffs’ argument is that TTI and Bissell each “expressly warranted that it was selling a ‘steam’ cleaner by naming its product [‘SteamVac’ or ‘Power-Steamer’]—a statement to buyers that the carpet cleaner uses steam in the cleaning process.” Doc. 19 at 12 in Boyd; 16 at 12 in Green. Plaintiffs point to several cases that they claim demonstrate that a breach of warranty claim can be created solely based on the products trade name. A close examination of those cases, however, illustrates just the opposite. The vast majority stand, instead, for the premise that a seller may create an express warranty of a good’s authenticity by referencing its manufacturer, creator, or brand name. See, e.g., La Trace,
The other eases Plaintiffs rely upon simply indicate that a product’s name is a relevant consideration in whether that product violated consumer protection or unfair trade practice claims, neither of which is. present here.
Notably, Plaintiffs do not allege that the respective products fail to clean effectively or do not clean as well as they would if they produced steam. Instead, Plaintiffs vaguely allege an injury because the products purchased would be worth more if they produced steam. Doc. 1 at ¶ 21 in Green; doc. 1 at ¶ 21 in Boyd. Likewise, no where in their complaints do Plaintiffs assert that they purchased the products because they believed they produced steam. Nonetheless, as a matter of contract law, Plaintiffs assert that Bissell and TTI expressly warranted that the SteamVac® and PowerSteamer® produced steam—as opposed to merely using hot water—at some point in the cleaning process. Likewise, Plaintiffs assert that because Wal-Mart sold the products, it apparently ratified the express warranty that they used steam.
Unfortunately for Plaintiffs, the absence of caselaw supporting their claim undermines their contentions. Indeed, other courts considering similar questions have noted that absence as well when rejecting such claims. See, e.g., Szajna,
Conversely, the cases cited by Defendants more clearly address the relationship of a product’s name to an available breach of warranty claim. Indeed, courts reject reliance upon a tradename to show the existence of an express warranty or deception as to a product’s functionality, quality, duration, or effectiveness based solely on the product’s name. See, e.g., Szajna,
Here, the products in question include the word “steam” in their names, which Plaintiffs assert expressly warrants that the vacuums will use steam or produce steam when cleaning. Importantly, Plaintiffs do not allege and apparently concede that the advertising and packaging associated with Defendants’ products make no mention of steam nor any claims to use or produce steam. See doc. 11 in Green at 4-5; doc. 12 in Boyd at 4-5 (Defendants’ briefs note the absence in the respective complaints of allegations that the word “steam” appears on the products’ packaging or in advertisements, which Plaintiffs do not rebut). The court is persuaded, then, that the trademarked name alone, as in Szajna or Sugawara, makes no warranty as to what a product does or contains. Plaintiffs contend, however, that unlike those cases, here, a steam cleaning vacuum is a specific thing and the name of the products misleads consumers into believing the SteamVac® and PowerSteamer® are, in fact, steam cleaning vacuums. However logical Plaintiffs’ contention, a product’s trademarked name is more akin to sales talk and puffery, which are not actionable bases for an express warranty claim, than to a description of a product, a promise, or an affirmation of fact. See Ala. Code § 7-2-313. Again, the court notes that Plaintiffs allege only a breach of warranty claim, not a claim for fraud or a claim under Alabama’s deceptive trade statute.
Ultimately, the court is persuaded that the trade names SteamVac® and Power-Steamer® do not expressly warrant what those products will or can do. Indeed, this is the crucial point. Plaintiffs’ citations to case law reiterate the limit of what a product’s trademarked name can expressly warrant—authenticity. The names in question here do not provide an affirmation of fact as to what the product does. They provide, instead, an affirmation of what the product is—in other words, they provide a
At best, Plaintiffs cite to cases that illustrate a product’s name, when considered in conjunction with a history of advertisements or statements about the product’s contents, can mislead a consumer in violation of consumer protection and deceptive trade laws, see Breath Assure,
In sum, while Plaintiffs’ breach of warranty claims have a logical appeal, the court cannot find any law supporting their contention that a registered trade name, without more, creates an express warranty as to what that product will do. Though Plaintiffs conflate the two concepts, the court views an express warranty as to what a product does as distinct from an express warranty as to a product’s authenticity. Whatever Plaintiffs’ complaints with respect to the PowerSteamer® or Steam-Vac®, neither Plaintiff asserts that she received anything other than an authentic PowerSteamer® or an authentic Steam-Vac®. Thus, to the extent the trade names created express warranties as to the authenticity of the products, as opposed to their function or capabilities, such warranties were satisfied.
B. RICO
Plaintiffs allege claims under § 1962(c) for racketeering activity and § 1962(d) for conspiracy to violate the provisions of RICO, both of which they fail to plead sufficiently. The court addresses the substantive RICO claim under § 1962(c) first, then the § 1962(d) RICO conspiracy claim.
(i). Section 1962(c)
Pursuant to 18 U.S.C. § 1962(c), it is “unlawful for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity or collection of unlawful debt.” “A violation of § 1962(c) ... requires (1) conduct (2) of an enter
(a) A Pattern of Racketeering Activity
“A pattern of racketeering activity, for purposes of the RICO Act, requires at least two acts of racketeering activity. An apt of racketeering is commonly referred to as a predicate act ... [and] is shown when a racketeer commits at least two distinct but related predicate acts.” Mohawk Indus.,
Here, Plaintiffs allege the predicate acts of mail and wire fraud. See doc. 1 at ¶ 69 in Green; doc. 1 at ¶ 69 in Boyd. When a plaintiff alleges that the “racketeering activity” consists of “predicate acts involving fraud, those predicate acts must be pleaded with particularity, in accordance with Fed. R. Civ. P. 9(b).” See Liquidation Comm’n of Banco Intercontinental, S.A. v. Renta,
(b) Conduct of an Enterprise
To state a claim under § 1962(c), the plaintiffs must also establish requirements (1) and (2) above, namely, facts supporting the conduct of an enterprise and that enterprise’s common goal. See United States v. Turkette, 452 U.S. 576, 583,
“An association-in-fact enterprise requires the existence of an entity, ‘an ongoing organization, formal or informal, and evidence that the various associates function as a continuing unit.’ ” In re Managed Care Litig.,
However, an informal and loose association will suffice because “the Eleventh Circuit has not bound itself to strict metaphysical structural requirements.” See In re Managed Care,
(c) Plaintiffs Fail to State a Claim Under § 1962(c)
Defendants move to dismiss Plaintiffs’ 1962(c) claims asserting that Plaintiffs fail to sufficiently plead their respective RICO claims, especially given Rule 9(b)’s heightened standard. The court agrees. In short, Plaintiffs present the court with nothing more than the alleged breach of warranty to support their RICO claims. Taking all of those facts as true, as it must, the court finds Plaintiffs’ allegations fail to meet the heightened pleading required for fraud claims and fail to identify a plausible RICO enterprise. See, e.g., Kivisto v. Miller, Canfield, Paddock, & Stone, PLC,
As to the racketeering activity, Plaintiffs allege predicate acts consisting of mail and wire fraud, presumably arising from the advertisement of the TTI and Bissell products. However, the conclusory nature of Plaintiffs’ RICO claims and, more specifically, the lack of detail Plaintiffs provide when describing the alleged mail and wire fraud falls short of the pleading standards mandated by Rule 9 and the Supreme Court’s instructions in Iqbal, and Twombly. At best, Plaintiffs assert that the alleged mail and wire fraud consists of any mailing or' internet advertisements by Wal-Mart that included the TTI and Bissell products in question. The fraud consists of the sale of products under the trademarked names SteamVac® and PowerSteamer® that do not, in fact, produce steam. Importantly, Plaintiffs do not allege any specifics as to the mail or wire fraud, and, likewise, neglect to specify whether either named Plaintiff received the mail or internet advertisements.
Turning to the conduct of the enterprise, Plaintiffs fail to allege specific facts regarding the conduct of Defendants or any facts supporting the ongoing operation of the alleged enterprise. Typically, “enterprise in subsection (c) [of § 1962] connotes generally the vehicle through which the unlawful pattern of racketeering activity is committed.... ” Nat’l Org. for Women, Inc. v. Scheidler,
Where, as here, Plaintiffs rely upon a common commercial relationship as the basis to allege a RICO enterprise, they should allege facts dispelling the notion that the parties engaged in independent behavior for their own respective economic gain. See In re Managed, Care,
By comparison, the court notes RICO pleadings that the Eleventh Circuit found satisfactory. See Mohawk Indus.,
Here, the court is hard pressed to analyze Plaintiffs’ RICO claims because Plaintiffs do little more than recite hornbook law. Plaintiffs’ RICO claims fail to present the court with any idea how the RICO enterprise operates or even the basis Plaintiffs have to believe it exists—save for the fact that Plaintiffs purchased vacuums from Wal-Mart. Admittedly, the hurdle to survive a motion to dismiss is not a high one. See Twombly,
(b) Section 1962(d)
Section 1962(d) states that “[i]t shall be unlawful for any person to conspire to violate any of the provisions of subsection (a), (b), or (c) of this section.”
Plaintiffs fail to allege any agreement between Wal-Mart and TTI or Bissell. Plaintiffs offer only conclusory statements instead and urge the court to conclude from their assumptions that the parties must have agreed to advertise the allegedly fraudulent products. “Here, the allegations in Plaintiffs’ complaint[s] do not support an inference of an agreement to the overall objective of the conspiracy or an agreement to commit two predicate acts.” Id. at 1293. Simply put, Plaintiffs’ complaints fail to allege anything more than the fact that Wal-Mart sold Bissell and TTI products, including the Power Steamer® and SteamVac®. Plaintiffs conclude from those sales, and the presumed retailer-manufacturer contract between Wal-Mart and each of the manufacturers with whom it does business, that the Defendants must have agreed to carry out a scheme to advertise fraudulent products. The court is “not required to admit as true this unwarranted deduction of fact.” Id. at 1294 (citing Sinaltrainal v. Coca-Cola Co.,
(c) Option to Re-File with RICO Case Statement
“When a statute is broadly worded in order to prevent loopholes from being drilled in it by ingenious lawyers, there is a danger of its being applied to situations absurdly remote from the concerns of the statute’s framers.” Fitzgerald v. Chrysler Corp.,
Although Plaintiffs have not moved to amend their respective complaints, the court dismisses the RICO claims without prejudice, to allow Plaintiffs to refile and replead such claims in sufficient detail. In the event Plaintiffs choose to do so, Plaintiffs should also include a RICO case statement.
Y. CONCLUSION
For the reasons stated more fully above, the court GRANTS Defendants’ respective motion to dismiss.
Notes
. That case, Cappuccitti v. DirecTV, Inc.,
. See supra n.l.
. Notably, Plaintiffs do not allege that any additional advertising, labeling, statements or representations by Defendants support the creation of an express warranty. Likewise, Plaintiffs do not assert that the products in question failed to clean as effectively as they desired. Nor, even, do Plaintiffs assert that they purchased the products because they believed the vacuums used steam. Thus, Plaintiffs base their express warranty claims solely on the argument that the names alone created a core promise to each consumer that the products would clean by producing steam, regardless of the product’s effectiveness.
. The court notes that the parties cite numerous authorities from outside of Alabama. In light of the uniformity with which the UCC is adopted from state to state, non-Alabama cases are helpful in identifying interpretations under virtually the same code.
. In a footnote, the court did note that the plaintiffs had not waived their tort claims, including breach of express warranty, and could reargue them on remand even though they failed to brief those issues on appeal. Gerber Products,
. The court also rejected the plaintiff’s claims for intentional misrepresentation, breach of implied warranty, and violations of various provisions of the California code.
. The distinction between Plaintiffs’ claims for breach of warranty and more general claims for fraud or claims pursuant to consumer protection law or deceptive trade laws in Alabama is important. The Alabama Deceptive Trade Practices Act ("ADTPA”) bars class claims unless brought by the attorney general. Ala. Code § 8—19—10(f). Because of the restrictions on deceptive trade practice class claims, the court must be careful not to confuse Plaintiffs' breach of warranty claim with a more general claim that the choice of name is deceptive or otherwise violates the ADTPA. That Plaintiffs chose to assert one but not the other prevents them from relying upon cases that cited deceptive trade practice statutes to support a claim on a motion to dismiss.
. The court notes, also, that Plaintiffs failed to demonstrate how Wal-Mart would be liable for the express warranty resulting from the name of the products. Alabama courts hold that a seller neither adopts the express warranty nor issues its own express warranty simply by selling a product that the manufacturer has expressly warranted. See Gilliam v. Indiana Nat. Bank,
. The court notes that Plaintiffs' complaints both specify that they purchased the products at physical Wal-Mart locations in Alabama— thus the court can at least determine Plaintiffs did not purchase the items through the mail or internet. See doc. 1 at ¶ 14 in Boyd; doc. 1 at ¶ 14 in Green.
. Plaintiffs also lump together allegations with respect to all of Defendants. But " 'in a case involving multiple defendants ... the complaint should inform each defendant of the nature of his alleged participation in the fraud.' " Ambrosia Coal & Const. Co. v. Pages Morales,
. The court also notes that the Eleventh Circuit decided Mohawk prior to the Supreme Court's decision in Iqbal and, therefore, applied a somewhat more permissive pleading standard than this court is obligated to apply here.
. Unlike its sister circuits, the Eleventh Circuit has not held that a substantive RICO violation is required to find RICO conspiracy. See Am. Dental Ass’n,
. The court also notes that Plaintiffs allege breach of express warranty, yet couple that action with a fraud claim. Doc. 1 in Boyd; doc. 1 in Green. In effect, Plaintiffs are saying that the breach of express warranty amounts to fraud, but plead it as a contract claim. Although Plaintiffs are free to plead their complaint however they please, courts look unfavorably upon breach of contract claims masquerading as RICO claims. See, e.g., Harrell v. Primedia, Inc., No. 02CV2893(JSM),
