OPINION
This matter comes before the Court on Defendants Farnam Companies, Inc. (“Farnam”), and Wellmark International’s (“Wellmark”) 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’ Amended Complaint (“Complaint”) 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 fleа and tick control pesticide products (“Products”) containing insecticides Permethrin, (S)-Methoprene, Pyriproxyfen, and Etonfenprox. (Compl. ¶ 5-6.) 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., Ex. E.) On April 21, 2009, the Environmental Protection Agency (“EPA”), which regulates the safety of pesticides, issued a press release, reporting a “recent sharp increase in the number of incidеnts being reported from the use of spot-on pesticide
Plaintiffs allege that Defendants’ Products are unsafe because they caused skin irritation and neurological problems for their pets. (Compl. ¶ 7.) Plaintiff Christy Snyder, a resident of Pennsylvania, alleges that on July 20, 2009, she purchased and used Farnam’s Product on her dog, which she alleges led to her dog becoming lethargic, losing weight, and suffering hearing loss. (Compl. ¶¶ 40^13.) Plaintiff Wendy Reilley, a resident of New Jersey, alleges that on or about Mаy 2009, she purchased and treated her dog with Farnam’s Product, after which the dog “exhibited neurological problems.” (Compl. ¶¶ 44-47.) Plaintiff Kyle Baldasano, a resident of California, alleges that on March 8, 2010, he treated his cat with Wellmark’s Product, after which the cat became “very disoriented, sickly and generally showed abnormal behavior.” (Compl. ¶¶ 48-49.)
Plaintiffs, on behalf of themselves and other purchasers of Defendants’ products, bring the following causes of action: (1) breach of express warranty (Count One); (2) breach of implied warranty of merchantability (Count Two); (3) unjust enrichment (Count Three); (4) violation of the New Jersey Consumer Fraud Act (“NJCFA”) (Count Four); and (5) violation of the Illinois Consumer Fraud and Deceptive Business Practice Act (“ICFA”) (Count Five). Specifically, Plaintiffs seek economic damages based upon the difference between the amount they paid for the product and the diminished (or nonexistent) value of the product as a result of it being unsafe to apply to their pets. 1
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 рart, 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 mаtters of public record.
Sands v. McCormick,
B. Claims Against Defendants Central Life Sciences and Central Garden & Pet Company
Defendants point out that Farnam doеs business as “Central Life Sciences,” and that “Central Life Sciences is not a separate legal entity.” (Defs.’ Moving Br. at 5.) Therefore, the Court will properly treat Farnam and Central Life Sciences as a single Defendant (“Farnam”). Additionally, .Defendants note that the Complaint contains no factual allegations as to actions by Farnam and Well-mark’s parent company, Central Garden & Pet Company (“Central Garden”). A parent corporation cannot be held liable for the acts of its subsidiaries solely because of its ownership of those subsidiaries.
United States v. Bestfoods,
C. Choice of Law Principles
Since Plaintiffs’ claims are all based on state law, at the outset the Court must determine which law to apply to Plaintiffs’ claims. New Jersey’s choice of law rules apply, as a federal court sitting in diversity must apply the forum state’s choice of law rules.
Klaxon Co. v. Stentor Elec. Mfg. Co.,
Plaintiffs argue that it is premature to cоnduct a proper choice of law analysis, as
2010);
Warma Witter Kreisler, Inc. v. Samsung Electronics America, Inc.,
Civ. No. 08-5380,
In order to decide whether choice of law analysis is appropriate at the motion to dismiss stage in this particular case, the Court will follow the guidance provided in
Harper,
and detеrmine whether the choice of law issues “require a full factual record” or not.
D. Preemption Under FIFRA
Defendants’ primary argument is 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. 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.,
In 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 сonducting 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.”
If Plaintiffs’ claims for (1) breach of express warranty, (2) breach of implied warranty of merchantability, (3) unjust enrichment, (4) violation of the NJCFA, and (5) violation of the ICFA amount to labeling requirements, they will be preempted by FIFRA. First, as to Count One, the Third Circuit has specifically held that FI-FRA does not preempt claims based on breach of express warranty.
See Mortellite v. Novartis Crop Protection, Inc.,
The Third Circuit has recently addressed when a fraud claim under the NJCFA is preempted by FIFRA.
See Indian Brand Farms,
E. Count One — Breach of Express Warranty
Defendants contend that even if not preempted by FIFRA, Count One still fails to state a claim because Plaintiffs’ allegations amount to no more than “puffery,” and fail to allege any express warranty made by Defendants.
1. Choice of Law
Under the first step of New Jersey’s “most significant relationship” test, courts have agreed that state laws regarding breach of express warranty vary widely, especially as to whether reliance or privity of contract must be demonstrated to state such a claim.
See Payne v. FujiFilm U.S.A., Inc.,
Civ. No. 07-385,
Under the second step, since breach of express warranty claims sound in contract, courts look to Section 188 of the Restatement to determine which state’s law applies. The Restatement requires courts to consider: “(1) the place of contracting, (2) the place of negotiation of the contract, (3) the place of performance, (4) the location of the subject matter of the contract, and (5) the domicile, residence, nationality, place of incorporation and place of business of the parties.” Restatement (Second) of Conflict of Laws § 6;
Agostino v.
Applying the factors necessary to determine choice of law for a contract or quasi-contract claim is a very fact-intensive inquiry. Courts in this District have found in some cases that a choice of law inquiry as to contract-based claims is premature at the motion to dismiss stage.
See In re K-Dur Antitrust Litigation,
2. Breach of Express Warranty
Under New Jersey law, in order to state a claim for breach of express warranty, Plaintiffs must properly allege: (1) that Defendant made an affirmation, promise or description about the product; (2) that this affirmation, promise or description became part of the basis of the bargain for the product; and (3) that the product ultimately did not conform to the affirmation, promise or description.
New Hope Pipe Liners,
Plaintiffs allege that Defendants made the following affirmations and promises:
(1) A statement on Farnam’s website that it is “the brand pet owners trust to aid in the well-being of their pets.” (Compl. ¶ 55; Ex. A.)
(2) A statement on Farnam and Well-mark’s Products’ boxes reading, “[sensitivities may occur after using ANY pesticide product for pets.” (Compl. ¶ 55, 57; Exs. B, C.)
(3) A statement on Wellmark’s website that, “[t]he amount of active ingredient in each dose is just enough to be effective against a flea, tick or other targeted pest. The pet, which is much larger than the targeted pest, should not be affected by this small amount of active ingredient. All of our products have been designed and tested for use on dogs and/or eats, knowing they will groom themselves.” (Compl. ¶ 56; Ex. D.)
Defendants allege that these statements do not constitute express warranties, as they amount to no more than mere puffery.
See In re Toshiba,
At the motion to dismiss stage, it is enough that Plaintiffs provide more than “bald assertions,” and identify specific affirmations by Defendant that could be found to constitute an express warranty.
Compare In re Ford Motor Co. E-350 Van,
F. Count Three — Unjust Enrichment
Finally, Defendants contend that even if Count Three is not preempted by FIFRA, it still fails to state a claim as Plaintiffs have not alleged the elements necessary to demonstrate unjust enrichment. 8
1. Choice of Law
Under the first step of New Jersey’s “most significant relationship” test, the Court must determine whether there is an actual сonflict between the laws of the different states.
P.V. v. Camp Jaycee,
2. Unjust Enrichment
Plaintiffs allege that since Defendants profited from the sale of their Products even though said Products caused Plaintiffs to incur damages, Defendants were unjustly enriched by those profits since Plaintiffs received no benefit in return. (Compl. ¶¶ 71-72.) Plaintiffs therefore allege that they are entitled to recover the amount of Defendants’ unjust enrichment. (Compl. ¶ 75.) “Generally, to claim unjust enrichment, a plaintiff must allege that (1) at plaintiffs expense (2) defendant received benefit (3) under circumstances that would make it unjust for defendant to
Since Plaintiffs have failed to allege that they purchased the Products directly from Defendants, they cannot rightfully expect any remuneration from Defendants, since they never directly conferred a benefit on Defendants. The facts alleged here are almost identical to the facts in
Cooper v. Samsung:
Plaintiffs are alleging that they are unsatisfied with purchases from retailers, yet they want their money returned by the manufacturer.
III. CONCLUSION
Fоr the reasons stated above, Defendants’ motion to dismiss as to Defendant Central Garden is GRANTED, and the Complaint is DISMISSED without prejudice as to Defendant Central Garden. Defendants’ motion to dismiss as to all Defendants is GRANTED as to Count Three, and Count Three is 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 pеnding 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 Johansson v. Central Garden and Pet Company, Civ. No. 10-6372.
. 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,
. Until the New Jersey Supreme Court’s decision in
Camp Jaycee,
New Jersey used the "governmental interest” analysis. The "most significant relationship” test now used "embodies all of the elements of the governmental interest test plus a series of other factors deemed worthy of cоnsideration.”
Camp Jaycee,
. Since t he ICFA essentially mirrors the NJCFA, and since Plaintiffs’ factual allegations underlying the two claims are essentially the same, the Court will address FIFRA preemption as to the two Counts simultaneously.
. This case reversed the District Court's grant of summary judgment in the case cited in Defendants' moving brief,
Indian Brand Farms, Inc. v. Novartis Crop Protection, Inc.,
Civ. No. 99-2118,
. Furthermore, since Defendants make no further formal arguments regarding dismissal of Counts Two (breach of implied warranty of merchantability), Four (violation of the NJCFA), or Five (violation of the ICFA), Defendants’ motion to dismiss as to these Counts is denied.
. The choice оf law analysis for Count Two, breach of implied warranty of merchantability, is identical. Therefore, while Defendants argue in a footnote in their Reply Brief that Plaintiff Baldasano's claim for implied warranty fails due to lack of privity, whether or not privity is even required cannot be determined until a choice of law analysis has been applied.
See Payne v. FujiFilm U.S.A., Inc.,
Civ. No. 07-385,
. The Court notes that while Defendants mainly address Plaintiffs' unjust enrichment claim in their Reply Brief, Plaintiffs had taken the opportunity to challenge the argument in their Opposition Brief. (Defs.' Moving Br. at 35 n. 7; Pis.' Opp. Br. at 27-30; Defs.’ Reply Br. at 13-14.)
. In case Plaintiffs can amend the Complaint to allege that they directly dealt with Defendants, Count Three is being dismissed without prejudice. Furthermore, the Court notes that it has not addressed Defendants' additional argument that a class cannot be certified based on the allegations in the Complaint. However, no motion for class certification has been made at this time, and therefore it is premature for the Court to consider these arguments.
