In Re: Future Motion, Inc. Products Liability Litigation
ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS AND DENYING MOTION TO STRIKE
[Re: ECF No. 120, 123]
In this putative class action and multi-district litigation (“MDL”) member case, Plaintiffs allege that the Onewheel electronic motorized skateboard has a design defect that causes the board to nosedive, throwing riders off the board, and that Defendant Future Motion, Inc., fraudulently promoted Onewheels as “toys” without adequately warning users of the safety risks. See 21-6088 ECF No. 76 (“CCAC”) ¶¶ 2, 5. Defendant has filed two motions in the class action case: a motion to dismiss the consolidated class action complaint for failure to state a claim and a motion to strike the class allegations. See ECF No. 120 (“MTS”); ECF No. 123 (“MTD”); see also 21-6088 ECF No. 107; 21-6088 ECF No. 109. Plaintiffs oppose both motions. See ECF No. 125 (“MTS Opp.”); ECF No. 126 (“MTD Opp.”). Defendant filed replies. See ECF No. 121 (“MTS Reply”); ECF No. 125 (“MTD Reply”). The Court held a hearing on the motions on May 23, 2024.
For the reasons stated below, the Court GRANTS WITH LEAVE TO AMEND IN PART, GRANTS WITHOUT LEAVE TO AMEND IN PART, and DENIES IN PART the motion to dismiss and DENIES WITHOUT PREJUDICE the motion to strike.
I. BACKGROUND
A. Factual Background
The Onewheel is a self-balancing, battery-powered electric skateboard that has a single
Defendant has developed, produced, and sold the Onewheel since 2013. CCAC ¶ 31. Defendant has also developed and published owner’s manuals, warranty booklets, advertising, and technical information about the Onewheel. Id. ¶ 32. Defendant conducts warranty repairs and monitors the performance of Onewheels throughout the United States. Id.
At issue in this action are all Onewheel models, including the Onewheel (original model), Onewheel+, Onewheel+ XR, Pint, Pint X, and GT. See CCAC ¶1 2 n.2. Defendant lists the top speed of the original Onewheel as 12 miles per hour (“mph”), the Onewheel+ as 19 mph, the Onewheel+ XR as 19 mph, the Pint as 16 mph, the Pint X as 18 mph, and the GT as 20 mph. Id. ¶ 33. However, Onewheels have been documented to carry riders at speeds as high as 32 mph. Id.
On November 16, 2022, the U.S. Consumer Product Safety Commission (“CPSC”) issued a warning to consumers about the risk of death and serious injury associated with the Onewheel ejecting riders and urged consumers to immediately stop using all Onewheel models. CCAC ¶ 36. In response, Defendant refused to agree to a recall and called the CPSC’s statements “unjustified,” “alarmist,” “harsh,” and “unwarranted.” Id. ¶ 37. Defendant maintained that Onewheels are safe when users ride within their abilities and suggested that riders are at fault when they crash. Id. Defendant also stated that it evaluated a number of Onewheels that had suddenly stopped and found no underlying technical issues and that the Onewheels performed as designed. Id. ¶ 38.
Plaintiffs allege that the Onewheel has a “Nosedive Defect” in which the front of the machine or the “nose” slams into the ground while the board is still traveling forward, which
Plaintiffs further allege that the Onewheel’s design (i.e., the length of the board, the wheel, and the position or the rider) causes the machine to operate too close to the functional limits of the motor and battery. CCAC ¶ 68. When the Onewheel operates near its functional limits, the power and torque available to push the rider back is lower, rendering the Pushback warning unnoticeable. See id. ¶¶ 73–76, 81. The Pushback is also “influenced by tire pressure, wind direction, wind speed, battery level, surface conditions, velocity, grade, terrain, moisture, the rider’s stance, the rider’s weight, and any other factor that influences the current drawn by the motor.” Id. ¶ 79. Plaintiffs allege that the following defects exist in the Pushback warning system: (1) Pushback fails to engage before the motor shuts down; (2) Pushback can engage with too little time before the motor shuts down; and (3) the motor draws too much current and does not leave enough power in the battery to supply the energy needed for the Pushback. Id. ¶ 84. Plaintiffs also allege that the lithium battery in every Onewheel is defective because it lacks sufficient capacity to self-balance the board and engage the Pushback system. Id. ¶ 85. Plaintiffs further allege that the motor in every Onewheel is defective because it lacks sufficient torque to self-balance the board and avoid nosedives. Id. ¶ 86.
B. Procedural History
On August 6, 2021, Plaintiffs filed their initial complaint in this class action. See 21-6088 ECF No. 1. On September 28, 2021, Plaintiffs amended their complaint as a matter of course. See 21-6088 ECF No. 7 (“FAC”). After Defendant filed a motion to dismiss and a motion to strike, the parties stipulated to the withdrawal of the motions and leave to allow Plaintiffs to file a second amended complaint. See 21-6088 ECF No. 31 (granting the stipulation). Plaintiffs filed their second amended complaint on February 4, 2022. See 21-6088 ECF No. 33 (“SAC”). On July 11, 2022, Judge Davila granted Defendant’s motion to dismiss with leave to amend and denied Defendant’s motion to strike as moot. See 21-6088 ECF No. 56. Judge Davila found that all claims in the SAC are grounded in fraud and subject to Rule 9(b)’s higher pleading standard. Id. at 9–10. Under this standard, Judge Davila construed the alleged defect to be the Pushback feature and found that Plaintiffs had failed to sufficiently allege facts that would show the pushback feature was defective. See id. at 12–13. After Judge Davila consolidated a related class action against Defendant into this action, ECF No. 75, Plaintiffs filed the operative consolidated class action complaint. See CCAC. Defendant again moved to dismiss and moved to strike class allegations. See MTS; MTD. After those motions were fully briefed, the case was reassigned to
The consolidated class action complaint brings claims on behalf of a Nationwide Class, a Nationwide Direct Purchase Subclass, and ten state-specific subclasses. See CCAC ¶¶ 421–22. Plaintiffs assert the following causes of action:
| Count | Claim | Class and Subclasses | ¶¶ |
|---|---|---|---|
| 1 | Breach of Express Warranty | Nationwide | 433–40 |
| 2 | Breach of Implied Warranty | Nationwide | 441–46 |
| 3 | Unjust Enrichment | Nationwide | 447–52 |
| 4 | Common Law Breach of Contract | Nationwide | 453–57 |
| 5 | Breach of Express Warranty in Violation of the Song-Beverly Consumer Warranty Act | Nationwide; Nationwide Direct Purchase; California | 458–65 |
| 6 | Breach of Implied Warranty in Violation of the Song-Beverly Consumer Warranty Act | Nationwide; Nationwide Direct Purchase; California | 466–79 |
| 7 | Violations of the California Unfair Competition Law (“UCL”) | Nationwide; Nationwide Direct Purchase; California | 480–87 |
| 8 | Violation of California False Advertising Law (“FAL”) | Nationwide; Nationwide Direct Purchase; California | 488–92 |
| 9 | Violations of the California Consumer Legal Remedies Act (“CLRA”) | Nationwide; Nationwide Direct Purchase; California | 493–506 |
| 101 | Violations of the Arizona Consumer Fraud Act | Arizona | 507–23 |
| 11 | Violations of the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”) | Florida | 524–43 |
| 12 | Unjust Enrichment | Florida | 544–55 |
| 13 | Breach of Implied Warranty of Merchantability | Florida | 556–67 |
| 14 | Violation of Hawaii’s Unfair Deceptive Acts & Practices Statute | Hawaii | 568–74 |
| 15 | Breach of Implied Warranty of Merchantability | Hawaii | 575–87 |
| 16 | Violations of the Massachusetts Consumer Protection Act | Massachusetts | 588–604 |
| 17 | Breach of Implied Warranty of Merchantability | Massachusetts | 605–11 |
| 18 | Violation of the Michigan Consumer Protection Act | Michigan | 612–28 |
| 19 | Breach of Implied Warranty of Merchantability | Michigan | 629–35 |
| 20 | Unjust Enrichment | Michigan | 636–44 |
| 21 | Violations of New York General Business Law § 349 | New York | 645–60 |
| 22 | Violations of New York General Business Law § 350 | New York | 661–74 |
| 23 | Breach of Implied Warranty of Merchantability | New York | 675–81 |
| 24 | Violations of the North Carolina Unfair and Deceptive Acts and Practices Act | North Carolina | 682–97 |
| 25 | Breach of Implied Warranty of Merchantability | North Carolina | 698–704 |
| 26 | Violations of the Ohio Consumer Sales Practices Act | Ohio | 705–23 |
| 27 | Breach of Implied Warranty in Tort | Ohio | 724–28 |
| 28 | Violation of Pennsylvania Unfair Trade Practices & Consumer Protection Law | Pennsylvania | 729–40 |
| 29 | Breach of Implied Warranty of Merchantability | Pennsylvania | 741–48 |
| 30 | Unjust Enrichment | Pennsylvania | 749–57 |
II. LEGAL STANDARD
A. Motion to Dismiss
“A Motion to Dismiss under
“In alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake.”
In deciding whether to grant leave to amend, the Court must consider the factors set forth by the Supreme Court in Foman v. Davis, 371 U.S. 178 (1962), and discussed at length by the Ninth Circuit in Eminence Capital, LLC v. Aspeon, Inc., 316 F.3d 1048 (9th Cir. 2003). A district court ordinarily must grant leave to amend unless one or more of the Foman factors is present: (1) undue delay, (2) bad faith or dilatory motive, (3) repeated failure to cure deficiencies by amendment, (4) undue prejudice to the opposing party, or (5) futility of amendment. Eminence Capital, 316 F.3d at 1052. “[I]t is the consideration of prejudice to the opposing party that carries the greatest weight.” Id. However, a strong showing with respect to one of the other factors may warrant denial of leave to amend. Id.
B. Motion to Strike
Under
III. DISCUSSION
A. Motion to Dismiss
1. Applicable Pleading Standard
Defendant argues that all of Plaintiffs’ claims sound in fraud or misrepresentation and must be evaluated by Rule 9(b)’s heightened pleading standard. MTD at 8. Plaintiffs argue that their warranty and design defect claims do not sound in fraud and are only subject to the traditional notice pleading standard under
As stated above,
Judge Davila’s order dismissing the SAC found that all of Plaintiffs’ claims sounded in fraud and were subject to Rule 9(b)’s heightened pleading standard. ECF No. 56 at 9–10. In
2. Adequacy of Allegations of a Defect
Defendant argues that Plaintiffs have not adequately alleged a defect because nosedives are an effect of a defect but not an independent defect and Plaintiffs have identified numerous purportedly defective parts without clearly identifying which of those parts is defective. MTD at 9–11. Plaintiffs argue that they have adequately alleged a defect and they need not allege the causal pathway of the defect to state a claim. MTD Opp. at 11–15. In reply, Defendant argues that, without greater specificity, Plaintiffs allegations would make discovery unwieldy and unmanageable, and that Plaintiffs must identify a single part or component that is defective. MTD Reply at 3–5.
“To comply with
The CCAC alleges that Onewheel users have experienced a phenomenon in which the front of the machine slams into the ground while the board is traveling forward, which brings the board to an abrupt stop and ejects the rider to the ground. See CCAC ¶¶ 54, 59–62. The Court agrees with Defendant that the propensity of the Onewheel to nosedive is not a defect, but an effect. This is significant because other courts have distinguished between the symptoms or consequences of a defect and the defect itself. See, e.g., Sciacca v. Apple, Inc., 362 F.Supp.3d 787, 797 (N.D. Cal. 2019) (noting that the detaching, cracking, and shattering of Apple Watch screens are the consequences of a defect, but such allegations are not sufficient to allege a defect under Rule 9(b)’s heightened pleading standard); DeCoteau v. FCA US LLC, No. 2:15-cv-00020-MCE-EFB, 2015 WL 6951296, at *3 (E.D. Cal. Nov. 10, 2015) (noting that engine failure is a symptom, rather than a defect). While the symptoms or consequences of a defect make the existence of a defect possible, a plaintiff must allege more to make the existence of a defect plausible.
In order to state a claim, Plaintiffs must specifically identify a defect in the design of the Onewheel—be it a component, feature, or some combination thereof—that could conceivably
The CCAC fails to adequately allege a defect with particularity because it is not clear what the alleged defect is. Plaintiffs point to a plethora of components that could be responsible for nosedives, including “the motor, battery, and electrical systems detect that the motor, motor circuits, motor components, the battery, or a combination thereof.” CCAC ¶ 54. Plaintiffs also point to the design of the Onewheel, including “the length of the board, the wheel, and the position of the rider,” as causing the board to operate too close to its functional limits. Id. ¶ 68. Regarding the Pushback feature, Plaintiffs allege that it is defective because it fails to engage, engages too late, and/or engages with too little force to push a rider back. Id. ¶ 84. Plaintiffs also allege that the lithium battery in the Onewheel is defective because it lacks sufficient power and that the motor is defective because it lacks sufficient torque. Id. ¶¶ 85–86. Finally, Plaintiffs allege that the Pushback is defective because it is the only warning system to alert a rider that the board is approaching its functional limits. Id. ¶ 87.
This scattershot approach to pleading is not adequate to give Defendant notice of the “who, what, where, when, and why” of the misconduct alleged such that Defendant can defend against the charge. Plaintiffs’ allegations of a defect identify the overall design of the Onewheel and a laundry list of potentially defective components, but such a pleading is substantially the same as alleging that “the Onewheel is defective” and listing its parts. This is illustrated by the commensurate breadth of Plaintiffs’ discovery requests, which request every document regarding the Onewheel’s design without limitation to a particular part, component, feature, or combination thereof. See MTD Reply at 4. Given the breadth of Plaintiffs’ allegations, Defendant can hardly be expected to know what exactly it is defending against. See Fontalvo ex rel. Fontalvo v. Sikorsky Aircraft Corp., No. 13-CV-0331-GPC-KSC, 2013 WL 4401437, at *4 (S.D. Cal. Aug. 15, 2013) (finding that allegations of a “wide array of parts” that made a helicopter defective were
Plaintiffs arguments to the contrary are unavailing. Plaintiffs argue that the Court should follow MacDonald v. Ford Motor Company, 37 F.Supp.3d 1087 (N.D. Cal. 2014), and hold that their allegations of a defect are adequate. MTD Opp. at 11–12. But the question of whether the allegations of a defect were adequate was not before Judge Tigar in MacDonald. In fact, the section of MacDonald on which Plaintiffs rely does not discuss the adequacy of the allegations of a defect, but instead discusses the adequacy of allegations of the defendant’s knowledge and omissions. See MacDonald, 37 F.Supp.3d at 1095–97. Moreover, Plaintiffs cite MacDonald as stating that a “causal pathway” is not required, but the phrase “causal pathway” does not appear once in that order. To the extent that Plaintiffs argue that other district court cases have found similar allegations sufficient, those cases are distinguishable. In each case cited by Plaintiffs, the complaint alleged a particular defect in a specific part or set of parts in the relevant vehicle. See, e.g., Zuehlsdorf v. FCA US LLC, No. EDCV 18-1877 JGB (KKx), 2019 WL 2098352, at *5 (C.D. Cal. Apr. 30, 2019) (transmission defect); Bryde v. Gen. Motors, LLC, No. 16-CV-02421-WHO, 2016 WL 6804584, at *14 (N.D. Cal. Nov. 17, 2016) (airbag systems defect); Asghari v. Volkswagen Grp. of Am., Inc., 42 F.Supp.3d 1306, 1312 (C.D. Cal. 2013) (engine defect); Price v. Kawasaki Motors Corp., USA, No. SACV 10-01074-JVS, 2011 WL 10948588, at *1 (C.D. Cal. Jan. 24, 2011) (engine defect; in particular, “the pistons, piston rings, and cylinders”). Plaintiffs’ allegations are not similarly specific or narrow.
Finally, Plaintiffs suggest that the Court should depart from Judge Davila’s order and decline to follow DeCoteau’s approach to evaluating pleadings of a defect. See MTD Opp. at 13–14. In DeCoteau, the court observed that “the level of specificity required appears to directly correlate to the complexity of the machinery in question. . . . [C]omplicated systems . . . demand more detailed factual allegations in order to identify a plausible defect.” DeCoteau, 2015 WL 6951296, at *3. Finding DeCoteau relevant, Judge Davila held that the complex nature of the Onewheel necessitated that the Plaintiffs allege more specific details about the alleged defect. See
Because each of Plaintiffs’ claims relies on allegations of a defect, the Court GRANTS Defendant’s motion to dismiss each claim for failure to allege a defect. The Court further finds that amendment is not futile and DISMISSES these claims with LEAVE TO AMEND.
3. Affirmative Misrepresentations
Defendant argues that Counts 1, 3–5, 7–9, 10–12, 14, 16, 18, 20–22, 24, 26, 28, and 30 must be dismissed because Plaintiffs have not pled any misleading statements with particularity. MTD at 13–14. Defendant also argues that the statements which Plaintiffs have alleged are non-actionable puffery. Id. at 14–16. Plaintiffs argue that they have adequately identified numerous misrepresentations that are not puffery because they are specific and measurable statements capable of being proven true or false. MTD Opp. at 18–20.
“To state a claim for fraudulent misrepresentation Plaintiff must allege with sufficient particularity that (1) defendants misrepresented a fact, knowing that the fact was false, and (2) that plaintiff reasonably relied on this fact to his detriment.” Mewawalla v. Middleman, 601 F.Supp.3d 574, 599–600 (N.D. Cal. 2022). “[W]hether an alleged misrepresentation ‘is a statement of fact’ or is instead ‘mere puffery’ is a legal question that may be resolved on a
The Court finds that Plaintiffs have adequately pled with particularity misleading statements. For example, Plaintiffs point to Defendant’s website, which includes statements touting the Onewheel as safe and easy to use. See, e.g., CCAC ¶ 124 (“[T]here are thousands of calculations happening per second to keep you perfect.”); id. ¶ 127 (“Anyone can ride Onewheel with a little instruction and practice. Onewheel is packed with technology that actively helps you balance. . . . Tens of thousands of people of all ages and skill levels have learned to ride and we know you can do it too.”); ¶ 128 (“There is [no maximum age to ride Onewheel]! We have riders of all ages and it is never too late to start riding a Onewheel.”).
The Court also finds that not all of the statements identified by Plaintiffs are non-actionable puffery. General statements that a product is safe and reliable are typically puffery. See, e.g., Azoulai v. BMW of N. Am. LLC, Case No. 16-CV-00589-BLF, 2017 WL 1354781, at *7–8 (N.D. Cal. Apr. 13, 2017). However, terms that are typical of puffery may be provably false when considered in context. See, e.g., Vigil v. Gen. Nutrition Corp., 2015 WL 2338982, at *8–9 (S.D. Cal. May 13, 2015) (noting that the terms “premium” and “maximum” would be puffery in isolation but when considered in context with other statements on the product’s packaging promised some effect on male potency that could be proven false). Although broad statements that a product is safe and reliable are non-actionable puffery, Defendant’s representations that the Onewheel is safe and “keep[s] you perfect” must be viewed in context. Defendant has advertised the Onewheel as being so safe that anyone, of all ages and without any limitation, can ride it, which is a statement that is quantifiable and may be shown to be provably false.
Accordingly, Plaintiffs have adequately alleged affirmative misrepresentations and Defendant’s motion to dismiss is DENIED with respect to this argument.
4. Omission/Duty to Disclose
Defendant also argues that Count 8 must be dismissed because the omission of a material
As an initial matter, the Court notes that Defendant challenges Plaintiffs’ fraudulent omission theories generally but fails to identify which of Plaintiffs’ claims it challenges. Plaintiffs appear to raise fraudulent omission theories in their claims under the consumer protection statutes of California (Counts 7–9), Arizona (Count 10), Florida (Count 11), Hawaii (Count 14), Massachusetts (Count 16), Michigan (Count 18), New York (Counts 21–22), North Carolina (Count 24), Ohio (Count 26), and Pennsylvania (Count 28). However, Defendant has only briefed the relevant standard under California law without specifying whether and to what extent that standard may also be applied to the laws of other states. See MTD at 16 (citing the standard under California law). Because Defendant has failed to brief the laws of other states, the Court will construe Defendant’s challenge as applying only to the California law claims (Counts 7–9). See Gausvik v. Perez, 392 F.3d 1006, 1009 n.1 (9th Cir. 2004) (deeming abandoned issues raised in a notice of appeal but on which no argument or authority was offered in a brief).
“For an omission to be actionable under the CLRA and UCL, ‘the omission must be contrary to a representation actually made by the defendant, or an omission of a fact the defendant was obliged to disclose.’” Elias v. Hewlett-Packard Co., 950 F.Supp.2d 1123, 1134 (N.D. Cal. 2013) (quoting Daugherty v. American Honda Motor Co., Inc., 144 Cal. App. 4th 824, 835 (2006)). A duty to disclose arises under four circumstances: (1) when the defendant is in a fiduciary relationship with the plaintiff; (2) when the defendant had exclusive knowledge of material facts not known or reasonably accessible to the plaintiff; (3) when the defendant actively conceals a material fact from the plaintiff; and (4) when the defendant makes partial representations but also suppresses some material facts. LiMandri v. Judkins, 52 Cal.App.4th 326, 336 (1997).
On the adequacy of Plaintiffs’ allegations regarding omissions, the Court finds that Plaintiffs have failed to adequately allege that Defendant had knowledge of the defect. Under the CLRA, the plaintiff must allege that the defendant was aware of a defect at the time of sale; under the FAL, the plaintiff must allege that the defendant knew that the statement was false or misleading when made; and under the UCL, the plaintiff must also allege knowledge of a defect. See Punian, 2015 WL 4967535, at *9. The Court first observes that the parties have argued and briefed two different prongs of the duty to disclose without addressing the other party’s arguments. Compare MTD at 16–17 (arguing that Plaintiffs have failed to meet the exclusive knowledge prong), with MTD Opp. at 17–18 (arguing that Plaintiffs have met the partial representations prong). However, both prongs require allegations that Defendant had knowledge of the defect. See Herron v. Best Buy Co. Inc., 924 F.Supp.2d 1161, 1175–77 (E.D. Cal. 2013). The Court finds that Plaintiffs have failed to allege that Defendant had knowledge of the defect. Plaintiffs have failed to raise any argument in their opposition brief why Defendant had knowledge of the defect. Moreover, the Court finds that the CCAC fails to allege with particularity the circumstances under which Defendant had knowledge of the alleged defect. The CCAC alleges that Defendant was aware of the defect through the development of the Onewheel’s firmware, the Onewheel application’s reporting, customer complaints, customer reviews, litigation, and third-party safety products. See CCAC ¶¶ 88–105. Without more specific allegations regarding the defect, it is difficult to know how Defendant’s development of firmware
Accordingly, the Court GRANTS Defendant’s motion to dismiss Counts 7–9 to the extent they rely on a theory of fraudulent omissions. The Court finds that amendment is not futile and DISMISSES these claims with LEAVE TO AMEND.
5. Reliance
Defendant argues that Counts 7–10, 18, 21, 24, and 28 should be dismissed because Plaintiffs have not adequately pled reliance. MTD at 17–19. Defendant also argues that Plaintiffs’ unjust enrichment claims at Counts 3, 20, and 30 should be dismissed to the extent that they are based on Counts 7–10, 18, 21, 24, and 28. Id. at 18. Plaintiffs argue that allegations of individualized actual reliance are not required for their fraudulent omission theories, and each Plaintiff has alleged that they viewed and directly relied upon Defendant’s advertising of the Onewheel. MTD Opp. at 16, 20–21.
Plaintiffs’ claims under the UCL, FAL, CLRA, and the consumer protection statutes of Arizona, Michigan, New York (with respect to § 350), North Carolina, and Pennsylvania require allegations of reliance. See Kwikset Corp. v. Superior Ct., 51 Cal.4th 310, 326 (2011) (discussing California law); Sanders v. Harris, No. 1 CA-CV 19-0835, 2021 WL 282261, at *4 (Ariz. Ct. App. Jan. 28, 2021) (discussing Arizona law); Cormier v. PF Fitness-Midland, LLC, No. 331286, 2017 WL 2390691, at *7 (Mich. Ct. App. June 1, 2017), vacated in part on other grounds, 501 Mich. 1046, 909 N.W.2d 266 (2018); Gale v. Int’l Bus. Machines Corp., 9 A.D.3d 446, 447 (N.Y. Sup. Ct. 2004) (discussing New York law); Bumpers v. Cmty. Bank of N. Virginia, 367 N.C. 81, 88 (2013) (discussing North Carolina law); Parrish v. Volkswagen Grp. of Am., Inc., 463 F.Supp.3d 1043, 1050 (C.D. Cal. 2020) (discussing Pennsylvania law). In order to establish reliance, “a plaintiff must show that the misrepresentation
In this case, Plaintiffs allege generally that they viewed and relied on Defendant’s representations to their detriment. See, e.g., CCAC ¶¶ 148–53 (general allegations of reliance). However, “generic allegations of reliance do not satisfy the particularity standards of
Accordingly, Plaintiffs have not adequately alleged reliance, and the Court GRANTS Defendant’s motion to dismiss Counts 7–10, 18, 21, 24, and 28 for failure to allege reliance. The Court finds that amendment is not futile and DISMISSES these claims with LEAVE TO AMEND.
6. Breach of Express Warranty Claims
Defendant argues that Plaintiffs’ breach of express warranty claims (Counts 1 and 5) should be dismissed because Plaintiffs have failed to allege that Defendant denied repairs to any of the Plaintiffs. MTD at 19–21. Plaintiffs conceded that “the Breach of Express Warranty claims are not viable in this class action.” Opp. at 4 n.2. Accordingly, these claims are DISMISSED WITHOUT LEAVE TO AMEND.
7. Breach of Implied Warranty Claims
Defendant argues that the breach of implied warranty claims (Counts 2, 6, 13, 15, 17, 19,
“To state a claim for breach of the implied warranty of merchantability, a plaintiff must plead that ‘the product did not possess even the most basic degree of fitness for ordinary use.’” Sloan v. Gen. Motors LLC, 287 F.Supp.3d 840, 879 (N.D. Cal. 2018) (quoting Mocek v. Alfa Leisure, Inc., 114 Cal.App.4th 402, 406 (2003)). As to vehicle defects, “the ordinary purpose of a car is not just to provide transportation but rather safe, reliable transportation.” In re MyFord Touch Consumer Litig., 46 F.Supp.3d 936, 980 (N.D. Cal. 2014).
The Court finds that Plaintiffs have adequately alleged that Onewheels are unsafe for ordinary use. Plaintiffs have alleged that the Onewheel, a transportation device, has a defect that ejects a rider from the board while it is moving, causing severe injury and in some cases death. See, e.g., CCAC ¶¶ 54, 59–62. These allegations are adequate, on a motion to dismiss, to establish that Onewheels are not fit for ordinary use. To the extent that Defendant argues that Plaintiffs have failed to allege that Onewheels do not meet a minimum level of quality because Plaintiffs have not alleged that they were forced to stop using their Onewheels, this argument is not appropriate at the motion to dismiss stage. See Sloan, 287 F.Supp.3d at 879 (rejecting a similar argument because questions of a defect’s severity are questions of fact to be left for the jury).
Accordingly, Defendant’s motion to dismiss the breach of implied warranty claims for failure to allege unfitness for ordinary use is DENIED.
8. Breach of Contract Claim
Defendant argues that Plaintiffs’ breach of contract claim (Count 4) should be dismissed because Plaintiffs have failed to plead a breach of contract with specificity and this claim is barred by the economic loss rule. MTD at 22. In their opposition, Plaintiffs argue that they have adequately alleged facts to meet the elements of a breach of contract claim and that they may allege claims in the alternative. MTD Opp. at 25. However, at the hearing on the motion to dismiss, Plaintiffs agreed to amend their breach of contract claim to limit its remedy to diminution in value. See 21-6088 ECF No. 116 at 49:3–15. Accordingly, the Court DISMISSES the breach
9. Unjust Enrichment Claims
Defendant argues that Plaintiffs’ unjust enrichment claims (Counts 3, 12, 20, and 30) should be dismissed for the same reasons as Plaintiffs’ other claims: Plaintiffs failed to adequately allege a defect and that Defendant had knowledge of the defect. MTD at 22–23. Plaintiffs have not responded to Defendant’s arguments in their opposition. The Court finds that Plaintiffs’ unjust enrichment claims fail because Plaintiffs have failed to allege a defect and Defendant’s knowledge of the defect and DISMISSES these claims with LEAVE TO AMEND.
10. Conclusion
For the reasons stated above, the Court GRANTS IN PART and DENIES IN PART Defendant’s motion to dismiss. Counts 1 and 5 (breach of express warranty) are DISMISSED WITHOUT LEAVE TO AMEND. All remaining counts are DISMISSED WITH LEAVE TO AMEND for failure to adequately allege a defect. In addition, Counts 7–9 are DISMISSED WITH LEAVE TO AMEND to the extent that they rely on a fraudulent omission theory for failure to allege Defendant’s knowledge of a defect. Counts 7–10, 18, 21, 24, and 28 are DISMISSED WITH LEAVE TO AMEND failure to allege reliance. Count 4 is DISMISSED WITH LEAVE TO AMEND for Plaintiffs to clarify their requested remedies. Defendant’s motion is DENIED with respect to its arguments regarding misrepresentations and breach of implied warranty.
B. Motion to Strike
Defendant moves to strike the class allegations, arguing that Plaintiffs cannot meet the requirements of
The Court finds that Defendant’s motion to strike is premature and will DENY the motion without prejudice to Defendant raising these issues at class certification. Defendant has failed to identify any flaws in the CCAC, which the Court views in the light most favorable to Plaintiffs, that would show that the class allegations are “redundant, immaterial, impertinent, or scandalous” to justify the generally disfavored remedy of striking such allegations from the CCAC. See
Accordingly, Defendant’s motion to strike the class allegations is DENIED WITHOUT PREJUDICE to Defendant raising these issues at class certification.
IV. ORDER
For the foregoing reasons, IT IS HEREBY ORDERED that:
- Defendant Future Motion, Inc.’s Motion to Dismiss (ECF No. 123; 21-6088 ECF No. 107) is GRANTED IN PART and DENIED IN PART.
- Counts 1 and 5 (claims for breach of express warranty) are DISMISSED WITHOUT LEAVE TO AMEND.
- All remaining Counts are DISMISSED WITH LEAVE TO AMEND such that Plaintiffs may more adequately allege a defect.
- Counts 7–9 are DISMISSED WITH LEAVE TO AMEND to the extent that they rely on a fraudulent omission theory for failure to allege Defendant’s knowledge of a defect.
- Counts 7–10, 18, 21, 24, and 28 are DISMISSED WITH LEAVE TO AMEND failure to allege reliance.
- Count 4 is DISMISSED WITH LEAVE TO AMEND for Plaintiffs to clarify their requested remedies.
- Defendant’s motion to dismiss is DENIED with respect to the arguments to dismiss based on the issues of misrepresentations and breach of implied warranty.
- Defendant Future Motion, Inc.’s Motion to Strike (ECF No. 120; 21-6088 ECF No. 109) is DENIED WITHOUT PREJUDICE to Defendant raising these issues at class certification.
- Plaintiffs SHALL file an amended complaint consistent with this Order within 30 days. Plaintiffs may request an extension of time if needed to facilitate settlement discussions.
Dated: July 12, 2024
BETH LABSON FREEMAN
United States District Judge