ORDER
THIS CAUSE came before the Court on Defendants, Cemex Construction Materials Florida, LLC (“Cemex Construction”), and Cemex, Inc.’s (“Cemexf’s]”) (collectively “Defendants!’]”) Motion to Dismiss Amended Class Action Complaint ... (“Motion”) [ECF No. 58], filed June 20, 2016.
I. BACKGROUND
The Amended Complaint states two claims for relief: the first is brought
The contracts provide an agreed upon rate for cement and concrete, but in addition, Defendants charge their Florida customers two additional fees: a “fuel surcharge” and an “environmental charge” (hereinafter sometimes referred to collectively as “fees”). (See id. ¶¶ 2, 3). Defendants’ naming of the fees is not accidental: Defendants chose the terms intentionally to create the false impression the fees are legitimate charges directly related to specific costs Defendants incur in providing them services. (See id. ¶ 4). Defendants use these uniform terms on each invoice they send their customers charging these fees, including the three referenced invoices paid by Deere. (See id. ¶¶ 4, 15). “Fuel surcharge” bears no relation to any actual or increased fuel costs Defendants incur; if it did, the precipitous drop in fuel prices the last four years would have resulted in a corresponding drop in Defendants’ fuel surcharges. (See id. ¶ 5). The “environmental charge” does not correspond with or offset any actual or increased environmental costs either. (See id. ¶ 6).
Instead, these charges are used to generate extra profit at the expense of customers, who are deceived into believing the fees are legitimate charges directly related to Defendants’ actual or increased fuel and environmental costs. (See id. ¶ 7). The fees are nothing but profit-enhancers disguised as fees that have a legitimate purpose, constituting a violation of the FDUTPA. (See id. ¶ 8). Defendants’ representations, omissions, and practices in charging these fees are deceptive and unfair. (See id. ¶ 7).
The “Standard Terms and Conditions” of the agreement between Deere and Ce-mex Construction states: “Seller reserves the right to charge a fuel surcharge, raw materials surcharge or other surcharges that may apply. Any fuel surcharge will be calculated from the Federal Energy Information Administration’s weekly reporting of diesel fuel pricing for the respective operating region.” (Id., Ex. A ¶ 11)). Defendants
By using the term “fuel surcharge” in every invoice received by class members charged this fee, Defendants have deceived Deere and members of the putative class into believing the fee is calculated using Defendants’ actual or increased fuel costs and that the fee will be used to defray such costs. (See id. ¶ 27). Defendants also falsely represent the “environmental charge” is directly related to their actual or increased environmental costs, particularly environmental compliance costs, and that the fee is used to offset these costs. (See id. ¶¶ 35, 38-40). Indeed, a Cemex United Kingdom website describes the “fuel surcharge” and “environmental fees” as “cost recovery charges.” (Id. ¶ 29 & n.3). A Cemex website states “we have introduced an Environmental Charge to enable customers to see the environmental taxes and levies to which the readymix concrete industry is subject. The Environmental Charge is applied to recover these costs imposed by government and regulators.” (Id. ¶ 37). Defendants’ misrepresentations and omissions, combined with described deceptive and unfair practices, did in fact deceive Plaintiff and other Florida customers to their detriment, in that each paid “fuel surcharges” and “environmental charges.” (See id. ¶ 46).
Plaintiff alleges two proposed classes, a FDUTPA class and a breach of contract class. (See ¶¶ 48, 49). On its FDUTPA claim, Plaintiff seeks the repayment of all money paid for fuel surcharges and environmental charges plus interest, an order enjoining Defendants’ conduct, and attorney’s fees, (See id. 23, 25). On its breach of contract claim against Cemex Construction, Plaintiff seeks as compensatory damages an amount equal to the improper and excessive fees paid to Defendant. (See id. 27). Defendants move to dismiss the Amended Complaint for failure to state claims for relief.
II. STANDARD
“To survive a motion to dismiss [under Rule 12(b)(6)], a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal,
Defendants raise several arguments in support of their Motion. First, Defendants argue the Amended Complaint does not state a claim for violation of the FDUTPA, as: (a) the terms “fuel surcharge” and “environmental charge” are not deceptive; and (b) Plaintiff fails to plead reasonable reliance. (See Mot. 6-12). Second, Defendants argue Plaintiff fails to allege the threshold requirements for standing. (See id. 12-14). Third, Defendants argue the express terms of the contract’s standard terms and conditions bar the breach of contract claim. (See id. 14-16). Fourth, Defendants argue the voluntary payment doctrine bars Plaintiffs claims. (See id. 16-17). Last, according to Defendants, the allegations are conclusory and fail to satisfy Federal Rule of Civil Procedure 8(a); and as to the FDUTPA claim, Rule 9. (See id. 17-20). The Court addresses each argument in turn.
A. The FDUTPA Claim
Defendants argue, much as they did in their first motion to dismiss, that Plaintiffs FDUTPA claim must be dismissed, with prejudice (see id. 21), because the terms “fuel surcharge” and “environmental charge” are not deceptive, those terms are disclosed in Plaintiffs agreement and invoices, and Plaintiff fails to identify any statements or representations by Defendants as to how the fees would be calculated that could support a charge of deception or falsity. (See id. 6-11). This is Defendants’ principal argument in the Motion. Defendants chiefly rely on Deere I; Berry v. Budget Rent A Car Sys., Inc.,
As explained by Plaintiff in its Response, the Amended Complaint alleges the “fuel surcharge” is not calculated from the EIA weekly reporting of diesel fuel as is represented in the contract’s Terms and Conditions, and in fact, no calculation whatsoever is performed to arrive at the fuel surcharge amount;
“The FDUTPA is designed ‘[t]o protect the consuming public and legitimate business enterprises from those who engage in unfair methods of competition, or unconscionable, deceptive, or unfair acts or practices in the conduct of any trade or commerce.’” Kenneth F. Hackett & Assocs., Inc. v. GE Capital Info. Tech. Sols., Inc.,
With regard to the claimed deceptive act or unfair practice, the Amended Complaint makes abundantly clear Plaintiffs claim is not that it did not know about the “fuel surcharge” and “environmental charge.” Those fees are undoubtedly disclosed in the agreement and Defendants’ invoices. What is allegedly deceptive is that the so-called “fuel surcharges” and “environmental charges,” labeled as such by Defendants, were not in fact designed to cover anything related to fuel or the environment. Defendants chose the two adjectives that describe the fees being assessed. Each adjective carries meaning. But the messages, according to Plaintiff, are deceptive. Plaintiffs contention is it did not know the fees were illegitimate mechanisms designed merely to contribute to Defendants’ profits rather than address any costs Defendants were incurring with regard to activities falling under the descriptive terms “fuel” or “environmental.”
Latman v. Costa Cruise Lines, N.V.,
For purposes of FDUTPA, we think the inquiry is how a reasonable consumer would interpret the term “port charges.” The term necessarily constitutes a representation to a reasonable consumer that these are “pass-through” charges which the cruise line will pay to the relevant port authorities (and possibly others).
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We therefore conclude that where the cruise line bills the passenger for port charges but keeps part of the money for itself, that is a deceptive practice under FUDTPA. Reliance and damages are sufficiently shown by the fact that the passenger parted with money for what should have been a “pass-through” port charge, but the cruise line kept the money.
Id. at 703 (footnote call number omitted; alterations added).
Similarly, in In re NationsRent Rental Fee Litig., No. 06-60924-CIV,
In Bemj, the court considered the sufficiency of a claim that Budget Rent A Car System’s practice of adding an additional cost recovery fee (“CRF”) of $3.00 to the daily rental rate charged to customers violated the FDUTPA and other consumer fraud laws because the CRF is a hidden profit center for Budget rather than a legitimate means of recouping the cost of licensing and registering its fleet of vehicles, as the amount of the fee grossly exceeded the actual cost of vehicle registration and licensing. See
The court’s dismissal of the complaint in Berry does not aid Defendants here. Unlike Berry, but similar to the plaintiffs in Latman, Deere does not allege it is the excess amount of the fees that is deceptive. Deere precisely alleges it is the fact Defendants charge what appear to be fees related to fuel and environmental costs, but instead retain those amounts for themselves. There is nothing in the terms “fuel surcharge” or “environmental charge” that implies Defendants will keep the monies collected. See, e.g., Dover v. British Airways, PPLC (UK), No. 12 CV 5567(RJD)(MDG),
Finally, that the terms are disclosed in the agreements and invoices does not defeat the sufficiency of the FDUTPA claim. Had the terms been disclosed and their purpose and intent accurately described in the agreements and invoices, the Court could see how a claim predicated on deception and falsity would fail. (See, e.g., Resp. 9 (“[U]nlike many of the class members in both Latman and Berry, Plaintiff was not fully informed of the exact costs at the outset and could not consider whether such fees were fair.” (alteration added)). But Defendants’ documentation does not advise the purchaser the charges have nothing to do with fuel or environmental costs, and instead are ways for Defendants
Morris v. ADT Security Services,
The Amended Complaint properly states a claim for relief under the FDUTPA.
B. Standing
Defendants argue Plaintiff fails to allege the threshold requirements for standing because it cannot establish any causal connection between the alleged conduct—Defendants making misleading representations about fuel and environmental charges—and injury. (See Mot. 13-14). This argument lacks merit.
“To have standing, a plaintiff must establish (1) an injury in fact, which is concrete and particularized ...; (2) a causal connection between the injury and the causal conduct; and (3) a substantial likelihood that a favorable decision will redress the injury.” Amnesty Inter., USA v. Battle,
Given the Deere-Cemex Construction agreement prohibits reliance on representations that contradict its terms, Cemex Construction maintains the breach of contract claim fails because Deere cannot have relied on any representation regarding the calculation of the fees that contradicts or varies the terms of the agreement. (See Mot. 14 (citing cases)). Similarly, Ce-mex Construction asserts the allegation it breached the agreement because it did not perform any calculation before determining the amount of the fees also contradicts the agreement. (See id. 15). According to Cemex Construction, it did in fact calculate the fuel surcharge based on the FEIA’s reporting of diesel fuel pricing for the respective operating region, as the parties’ agreement provides.
It is certainly true, as Cemex Construction argues, a “party cannot recover in fraud for alleged oral misrepresentations that are adequately covered and expressly contradicted in a later written contract.” Hillcrest Pacific Corp. v. Yamamura,
To state a breach of contract claim, a plaintiff must allege: “(1) a valid contract; (2) a material breach; and (3) damages.” Beck v. Lazard Freres & Co., LLC,
The real question, then, is whether it alleges a material breach. According to Deere, Cemex Construction breached the written service agreement by charging and collecting improper “fuel surcharges” and “environmental charges,” in that: the contract represented Defendant would perform a calculation to arrive at its fuel surcharge amount; the fuel surcharge would be calculated from the EIA’s weekly reporting of diesel fuel pricing for the respective operating region; but Defendant did not in fact perform any calculation to arrive at the fuel surcharge amount, let alone perform a calculation from the EIA’s weekly diesel fuel price. (See Am. Compl. ¶ 79). The EIA reports the price of diesel fuel by the gallon; but as the invoices demonstrate, Cemex Construction charges the same fuel surcharge amount no matter how many gallons of fuel it uses to service its customers, or the location of such service. (See id.). Furthermore, the “environmental charge” is not referred to anywhere in the contract, and Deere did not agree or contract to pay such a fee, which is unrelated to Defendant’s actual or increased environmental costs. (See id. ¶ 80). As explained by Deere, it is not relying on
Defendant fails to show dismissal of the breach of contract claim is warranted.
D.Voluntary Payment Doctrine
Defendants next argue the voluntary payment doctrine bars Plaintiffs claims. (See Mot. 16-17). But the very cases Defendants rely on to make their argument shows the weakness of their position in advancing this argument. According to Defendants, “Florida recognizes the rule that money voluntarily paid under a claim of right to the payment, and with knowledge of the facts by the person making the payment, cannot be recovered back [sic].” (Id. 16 (emphasis added; citations omitted). Defendants insist the doctrine may be used to dismiss a claim where the complaint discloses knowledge and payment by the plaintiff. (See Reply 9).
As correctly observed by Plaintiff, the voluntary payment doctrine is an affirmative defense that may not be raised on a motion to dismiss, as it entails a fact-based inquiry not suited for resolution on a Rule 12(b)(6) motion. (See Resp. 18-19 (citing, e.g., Carrero v. LVNV Funding, LLC, No. 11-62439-CIV,
E. Federal Rules of Civil Procedure 8(a) and 9
Defendants assert the Amended Complaint fails to satisfy the requirements of Federal Rule of Civil Procedure 8(a). (See Mot. 17-19). This argument is largely repetitive of the challenges Defendants raise to the sufficiency of Plaintiffs claims. As the Court has already found the FDUTPA and breach of contract claims sufficient, it does not address this point further.
Defendants last argue the FDUTPA claim fails to meet the heightened pleading requirements of Rule 9. (See Mot. 19). This argument, too, fails.
The undersigned has previously stated:
The requirements of Rule 9(b) do not apply to claims under the FDUTPA. “FDUTPA was enacted to provide remedies for conduct outside the reach of traditional common law torts such as fraud, and therefore, The plaintiff need not prove the elements of fraud to sustain an action under the statute.’ ” Florida v. Tenet Healthcare Corp.,420 F.Supp.2d 1288 , 1310 (S.D.Fla.2005) (quoting Davis v. Powertel, Inc.,776 So.2d 971 , 974 (Fla. 1st DCA 2000)). Because Rule 9(b) does not apply to FDUTPA claims, its requirements cannot serve as a basis to dismiss those claims.
Galstaldi,
IV. CONCLUSION
Defendants’ Motion largely repeats the challenges made to Plaintiffs original Complaint, in many instances verbatim. The arguments fail this second time. Being fully advised, it is
ORDERED AND ADJUDGED that the Motion to Dismiss Amended Class Action Complaint [ECF No. 58], and Defendants’ request for a hearing (see Reply 9), are DENIED.
DONE AND ORDERED in Miami, Florida this 26th day of July, 2016.
Notes
. The parties' memoranda are for the most part repetitive of the written submissions made with regard to Defendants' Motion to Dismiss Class Action Complaint ("first motion to dismiss”) [ECF No. 11], that resulted in an order dismissing the original Complaint with leave to amend. See Deere Constr., LLC v. Cemex Constr.Materials Florida, LLC, No. 15-24375-CIV-KING,
. On a motion to dismiss for failure to state a claim for relief under Federal Rule of Civil Procedure 12(b)(6), the allegations of the Amended Complaint are accepted as true.
. The First and Second Causes of Action are in truth but one claim. The First seeks money damages for violations of the FDUTPA; the Second seeks injunctive relief for violations of the FDUTPA. See Vargas v. Wells Fargo Bank, N.A., No. C 12-02008 WHA,
. It is not clear why Plaintiff references both Defendants in its discussion of the breach when the contract is between Plaintiff and Cemex Construction, and the breach of contract count seeks damages only from Cemex Construction.
. Defendants’ contention Plaintiff improperly references practices by Cemex Construction in calculating the fuel "surcharge” after Plaintiff stopped being a customer in March 2012 falls short of showing the FDUTPA claim fails. (See Reply 3). The pleading's references to websites that post-date 2012 appear to be examples of improper practices that predate the information contained therein.
. As additional support for dismissal of the FDUTPA claim, Defendants rely on Braswell Wood Co.,
In Braswell, the district court rejected RICO, misrepresentation, and fraud claims premised on the charging of fees titled “fuel surcharge” and "environmental charge” as constituting misrepresentations where the charges did not correspond to the defendants' increased costs.
A recent settlement of FTC charges by Budget-Rent-A-Car, cited by Defendants (see Mot. 10), involved the rental car company failing to adequately inform customers about an option of presenting a gas receipt to obtain a refund of a fuel fee, and being required to clearly and conspicuously disclose the option in the future. (See Resp. 12). The Court fails to see how this settlement supports dismissal of the FDUTPA claim.
. Cemex Construction fails to point to any allegation or supporting documentation attached to the Amended Complaint that provides this ''fact,” As Cemex Construction knows, on a Rule 12(b)(6) motion the Court is limited to reviewing the well-pled allegations (including necessary exhibits) and accepting them as true.
