OPINION
This matter comes before the Court on Defendants Central Garden & Pet Company (“Central Pet”) and Farnam Companies, Inc. (“Farnam”) motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6). There was no oral argument. Fed.R.Civ.P. 78. For the reasons stated below, Defendants’ motion to dismiss is GRANTED in part and DENIED in part.
I. FACTUAL AND PROCEDURAL BACKGROUND
Plaintiffs’ Complaint (“Complaint”), originally filed in the Northern District of California and transferred to this District on December 12, 2010, brings a putative class action on behalf of themselves and other purchasers and users of “spot on” flea and tick treatments for dogs and cats manufactured by Defendants. Defendants manufacture various flea and tick control pesticide products (“Products”) that are sold over the counter and contain Pyrethrins, or the synthetic version of the same chemical, Pyrethroids. (Compl. ¶ 37.) The Products are considered “spot on” flea and tick treatments because the pesticide is applied directly to one or more localized areas on the body of the pet. (See Compl. ¶ 44.)
On May 5, 2009, as updated January 10, 2010, the Environmental Protection Agency (“EPA”), which regulates the safety of pesticides, issued an advisory, reporting that it is “intensifying its evaluation of spot-on pesticide products for flea and tick control due to recent increases in the number of reported adverse reactions in pets treated with these products.” (Compl. ¶ 44.) Additionally, on August 3, 2009, the national Humane Society of the United States (“HSUS”) released public comments to the EPA addressing the dangers posed by flea and tick products. The HSUS comments stated that, “[o]ver the past decade, the HSUS has received hundreds of complaints regarding severe reactions and even death of companion animals caused by many flea and tick products.” (Compl. ¶ 46.)
Plaintiffs allege that Defendants’ Products are unsafe because they sickened and,
Plaintiffs, on behalf of themselves and other purchasers of Defendants’ Products, bring the following causes of action: (1) violation of the California Unfair Competition Law (Count One); (2) breach of implied warranty of merchantability (Count Two); (3) violation of the Magnuson-Moss Warranty Act, 15 U.S.C. § 2310(d)(1) (Count Three); (4) strict products liability (Count Four, mislabeled Count Five); (5) violation of the California Consumer Legal Remedies Act, Cal. Civ.Code § 1770(a) (Count Five, mislabeled Count Six); and (6) punitive damages pursuant to Cal. Civ. Code § 3345 (Count Six, mislabeled Count Seven).
Defendants filed the instant motion to transfer or, in the alternative, to dismiss the claims on October 22, 2010, while this matter was pending in the Northern District of California. The Northern District of California granted the motion to transfer but did not address Defendants’ arguments regarding dismissal. The Court now addresses this pending motion to dismiss, as supplemented by Defendants’ January 24, 2011 Letter Brief (Docket Entry No. 32) submitted to the Court.
II. DISCUSSION
A. Motion to Dismiss Standard
Federal Rule of Civil Procedure 12(b)(6) provides for the dismissal of a complaint, in whole or in part, if the plaintiff fails to state a claim upon which relief can be granted. The moving party bears the burden of showing that no claim has been stated, Hedges v. United States,
In considering a motion to dismiss, the court generally relies on the complaint, attached exhibits, and matters of public record. Sands v. McCormick,
B. Preemption Under FIFRA
Defendants contend that Plaintiffs’ claims are preempted by the Federal Insecticide, Fungicide, and Rodenticide Act, 7 U.S.C. § 136 (“FIFRA”), as Plaintiffs’ claims for relief seek to alter the EPA-approved labels and package inserts of Defendants’ Products. (Defs.’ Jan. 24 Letter Br. at 4.) FIFRA provides a comprehensive scheme for regulating labels used on pesticides such as Defendants’ Products. When a pesticide manufacturer applies to the EPA for registration of a pesticide product, the manufacturer “must submit a proposed label to [the] EPA as well as certain supporting data.” Bates v. Dow Agrosciences L.L.C,
The Supreme Court’s decision in Bates instructs courts as to what types of claims are preempted by FIFRA. In Bates, the Supreme Court held that, “rules that require manufacturers to design reasonably safe products, to use due care in conducting appropriate testing of their products, to market products free of manufacturing defects, and to honor their express warranties or other contractual commitments plainly do not qualify as requirement for labeling or packaging.”
The Third Circuit has recently addressed when a fraud claim under the New Jersey’s consumer fraud statute is preempted by FIFRA. See Indian Brand Farms,
C. Count One — Violation of the California Unfair Competition Law
Plaintiffs allege that Defendants violated the UCL by marketing their products as safe when in actuality they posed an unreasonable risk of harm. (Compl. ¶¶ 65-68.) As a result of Defendants’ unconscionable and deceptive actions, Plaintiffs claim they suffered ascertainable harm; first, they did not receive the full value of Defendants’ products because of the unreasonable risk they posed to their pets, and second, the product damaged their pets by causing sickness and/or death. (Compl. ¶ 69.)
1. Choice of Law
Since Plaintiffs’ claims are all based on state law, at some point the Court must determine which state’s law to apply to Plaintiffs’ claims. A federal court sitting in diversity must apply the forum, state’s choice of law rules. Klaxon Co. v. Stentor Elec. Mfg. Co.,
Defendants, however, are not moving for a choice of law determination at this time. Instead, they are simply stating that regardless of what law should apply to the non-California Plaintiffs, Plaintiffs have failed to allege any facts that could support the application of California law specifically to such nonresident Plaintiffs. Defendants claim that only Plaintiff Sunny
2. UCL Claim
To state a claim under the UCL, a Plaintiff must allege a (1) unlawful, (2) unfair, or (3) fraudulent business act or practice; or, a Plaintiff must allege a (1) unfair, (2) untrue, or (3) misleading advertising. Cal. Bus. & Prof.Code § 17200. Here, Plaintiffs allege that Defendants’ conduct constituted unconscionable, unfair, unlawful and deceptive commercial practices. (Compl. ¶ 68.) Specifically, Plaintiffs allege that Defendants knew their product “posed an unreasonable risk of harm to pets,” and yet failed to disclose such information, thereby “explicitly and implicitly representing] that such products were safe and could not cause harm to pets.” (Compl. ¶ 67.)
Furthermore, any claim under the UCL based on fraudulent conduct must comply with Rule 9(b)’s heightened pleading requirements, which require that plaintiffs “state with particularity the circumstances constituting fraud or mistake.” See Vess v. Ciba-Geigy Corp. USA
The Court finds that since Plaintiffs’ essential factual allegation under the UCL is that Defendants deceived consumers by selling an unsafe product, the UCL claim as a whole is “grounded in fraud,” even though Plaintiffs are also alleging unlawful and/or unfair business practices under the first two prongs. See Vess,
Plaintiffs argue that their pleading satisfies the Rule 9(b) pleading standard. (Pis.’ Opp. Br. at 8.) They point out that since the fraudulent conduct alleged is essentially fraudulent omissions, it would be impossible for Plaintiffs to plead the specific date, place or time of the omissions. (Id.) Instead, Plaintiffs allege with specificity the date of application of the product on the pets, the reaction the pets had to the product, and the general dan
However, the Court notes that Plaintiffs have only satisfied Rule 9(b) as to any alleged omissions or failures to disclose. Should Plaintiffs wish to challenge any affirmative representations by Defendants as fraudulent, they must plead the “particular circumstances surrounding such representations.” Kearns v. Ford Motor Co.,
D. Count Two — Breach of Implied Warranty of Merchantability
A warranty of merchantability is implied in every contract for the sale of goods. Cal. U. Com.Code § 2314. In order for the implied warranty of merchantability to be breached, the product at issue must have not been fit for the ordinary purpose for which such goods are used. Cal. U. Com.Code § 2314(2)(c). Plaintiffs allege that the Defendants’ goods are unmerchantable, and that all Plaintiffs and putative class members are entitled to revoke their acceptance of these goods. (Compl. ¶¶ 72-73.) As such, Plaintiffs allege they are entitled to a refund and any incidental and consequential damages resulting from their purchases. (Compl. ¶¶ 74-75.)
Defendants argue that Plaintiffs have not stated a breach of implied warranty claim, contending that the product was indeed “fit for its ordinary purpose.” However, while the product may have been effective at killing fleas and ticks, this effectiveness ceases to matter if the product was “unreasonably dangerous” while doing so. (Pis.’ Opp. Br. at 12). The Court agrees with Plaintiffs that their factual allegations state a claim for breach of implied warranty of merchantability, as they allege that the Products do not safely kill fleas and ticks and are therefore unfit.
Defendants further contend that Plaintiffs’ claim still fails under California law, as they have not alleged privity between themselves and the Defendants. Generally, “[p]rivity of contract is a prerequisite in California for recovery on a theory of breach of implied warranties of fitness and merchantability.” Blanco v. Baxter Healthcare Corp.,
E. Count Three — Violation of the Magnuson-Moss Warranty Act
Plaintiffs allege that Defendants expressly and impliedly warranted the Products as safe, merchantable, and fit for a particular purpose, and breached those warranties in violation of the MagnusonMoss Warranty Act (“MMWA”). See 15 U.S.C. § 2310(d)(1). Defendants argue that the statutory warranty claim fails because the only warranty identified is the implied warranty of merchantability, which fails and cannot support a statutory warranty claim.
A claim under the MMWA relies on the underlying state law claim. See Bailey v. Monaco Coach Corp.,
F. Count Five (Labeled Count Six)— Violation of the California Consumer Legal Remedies Act, Cal. Civ. Code § 1770(a)
Plaintiffs allege that Defendants violated the CLRA by selling flea and tick control products to Plaintiffs with misrepresentations regarding the “source, sponsorship, approval or certification;” and by misrepresenting that the goods are “of a particular standard, quality or grade ...” (Compl. ¶ 90.) Essentially, Plaintiffs’ CLRA claim is premised on the same misrepresentations and omissions underlying their UCL claim in Count One.
1. Choice of Law
In its analysis of Count One above, the Court has already determined that a full choice-of-law analysis would be premature at this juncture. However, as in their argument regarding the UCL claim, Defendants contend that regardless of what law should apply to the non-California Plaintiffs, Plaintiffs have failed to allege any facts that could support the application of California law to such nonresident Plaintiffs. Specifically, Defendants argue that to state a claim under CLRA, the
2. CLRA Claim
The CLRA prohibits “unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale ... of goods or services to any consumer.” Cal. Civ.Code § 1770. Like Plaintiffs’ claim under the UCL, their claim under the CLRA based on fraudulent conduct must comply with Rule 9(b)’s heightened pleading requirements, which require that plaintiffs “state with particularity the circumstances constituting fraud or mistake.” See Kearns v. Ford Motor Co.,
Since Plaintiffs’ claims are based on alleged non-disclosures, Plaintiffs are held to a somewhat modified Rule 9(b) pleading standard, requiring that they “allege what the omissions were, the person responsible for failing to disclose the information, the context of the omission and the manner in which it misled plaintiff and what defendant obtained through the fraud.” Luppino v. Mercedes-Benz USA, LLC, Civ No. 09-5582,
G. Count Six (Labeled Count Seven) — Punitive Damages
Plaintiffs claim that they are entitled to punitive damages because Defendants “have known for many years that their flea and tick treatments are unreasonably dangerous, but continue to sell the products without disclosing the unreasonable risk of harm to companion animals.” (Pis.’ Opp. Br. at 14.) Defendants argue that Plaintiffs cannot maintain a claim for punitive damages as there is no “stand alone” claim for punitive damages. However, though Plaintiffs’ claim for punitive damages could not survive independent from Plaintiffs’ allegations of fraud under Counts One and Five, Cal. Civ. § 1294, there is no basis for striking Plaintiffs’ request for punitive damages at this juncture since Counts One and Five have survived Defendants’ motion to dismiss.
III. CONCLUSION
For the reasons stated above, Defendants’ motion to dismiss is GRANTED as to Counts Two and Three, and Counts Two and Three are DISMISSED WITHOUT PREJUDICE. Defendants’ motion to dismiss -is DENIED as to all other Counts. An Order follows this Opinion.
Notes
. In addition to this action, multiple putative class actions have been filed against various other "spot on” flea and tick treatment manufacturers in this Court. The Court has issued parallel opinions on the pending motions to dismiss in the following flea and tick treatment cases: Smith v. Merial, Civ. No. 10-439; McDonough v. Bayer Healthcare, Civ. No. 10-442; Arlandson v. Hartz Mountain Corp., Civ. No. 10-1050; and Snyder v. Farnam, Civ. No. 10-1391.
. Defendants’ Letter Brief additionally refers to arguments made in Defendants’ moving brief in one of the parallel flea and tick treatment actions, Snyder v. Farnam, Civ. No. 10-1391.
.This assumption of truth is inapplicable, however, to legal conclusions couched as factual allegations or to "[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements.” Ashcroft v. Iqbal,
. The Court notes that Defendants also argue that the Court has no jurisdiction to hear the MMWA claim. However, Plaintiffs have properly identified diversity jurisdiction pursuant to 28 U.S.C. § 1332(d) as supporting jurisdiction in this case, meaning the Court need not rely on jurisdiction under MMWA. See Chavis v. Fid. Warranty Servs.,
