MEMORANDUM OPINION AND ORDER REGARDING CERTAIN DEFENDANTS’ MOTION TO DISMISS
TABLE OF CONTENTS
I. INTRODUCTION.803
II. STANDARDS FOR MOTION TO DISMISS.804
III. LEGAL ANALYSIS. 00 o d
A. Negligence and Strict Liabilitg Claims. 00 o d
1. Design defect claims. 00 o d
а. What test is used in Iowa to determine whether or not a product is unreasonably dangerous?. ZD O 00
b. Does Comment i of § 402A of the Restatement (Second) of Torts bar Mr. Wright’s design defect claims? . 05 O 00
c. The “common knowledge” doctrine . O 1-1 00
d. Is the risk of addiction a “lesser included risk” of the risks of smoking?.
e. Will the court take judicial notice that the risks of smoking are “common knowledge?” LQ i — l 00
2. Failure to warn claims. 00 t — 1 00
*803 .819 Express Warranty, Fraudulent Misrepresentation and Fraudulent Nondisclosure Claims. B.
.819 1. Does the common knowledge doctrine bar Mr. Wright’s fraudulent misrepresentation and fraudulent nondisclosure claims?.
2. Does the common knowledge doctrine bar Mr. Wright’s express warranty claim?. Federal Preemption . c. CO OO toco coco
1. Does the Labeling Act preempt Mr. Wright’s post-1969 fraudulent nondisclosure and failure to warn claims? . OO to cn
a. Fraudulent nondisclosure claim. OO to ctt
b. Failure to warn claim. OO to o
Manufacturing defect claim. D. OO CO
Claim for Breach of Implied or Express Warranties. E. OO to oo
1. Implied warranty of merchantability. OO to co
2. Express warranty claim. OO to oo
3. Does Mr. Wright’s failure to notify defendants of the alleged
breach of warranty preclude his warranty claims?. Claim for Breach of Special Assumed Duty.. Fraud Claims. F. G. X» OO OO iO CO to íooo
1. Mr. Wright’s ñ'audulent misrepresentation claim.833
2. Mr. Wright’s fraudulent nondisclosure claims .834
Civil Conspiracy Claim and Loss of Consortium Claim.835 H.
1. Mr. Wright’s civil conspiracy claim.836
2. Mrs. Wright’s loss of consortium claim.838
TV. CONCLUSION. .838
Over 23 centuries ago, Aristotle wrote: “Thus every action must be due to one or other of seven causes: chance, nature, compulsion, habit, reasoning, anger, or appetite.” ARISTOTLE’S RHETORIC, Bk. I, ch. 10. The ultimate resolution of the rising tide of tobacco litigation may some day prove the wisdom of Aristotle’s observation. However, this Motion to Dismiss presents initial vexing legal questions that must be resolved by interpreting more mundane issues of Iowa law on the lengthy journey to that final resolution.
I. INTRODUCTION
On October 29, 1999, Robert A. Wright (“Mr. Wright”) and DeeAnn K. Wright (“Mrs. Wright”) filed a petition in state court, alleging that they have been damaged as a result of Mr. Wright’s cigarette smoking. Mr. Wright alleges that he has developed cancer, as well as suffering from other personal injuries, and Mrs. Wright alleges loss of consortium because of Mr. Wright’s alleged injuries. Plaintiffs’ complaint contains the following nine counts: (1) Negligence; (2) Strict Liability; (3) Breach of Implied Warranty; (4) Breach of Express Warranty; (5) Breach of Special Assumed Duty; (6) Fraudulent Misrepresentation; (7) Fraudulent Nondisclosure; (8) Civil Conspiracy; and (9) Loss of Consortium. On November 26, 1999, defendants removed this case to federal court based on diversity jurisdiction. See 28 U.S.C. § 1441. 1
Thereafter, on January 21, 2000, certain defendants, 2 Philip Morris Incorporated, R.J. Reynolds Tobacco Company, Brooke Group Ltd., Liggett & Myers, Inc. and Liggett Group Inc. 3 , filed a Motion to Dis *804 miss plaintiffs’ complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. Defendants 4 assert that all nine of the plaintiffs claims fail as a matter of law because of the following reasons. First, defendants assert that common knowledge of the risks of cigarette smoking bars Mr. Wright’s negligence and strict liability design defect and failure to warn claims (Counts I and II) because cigarettes are not unreasonably dangerous under Iowa law and defendants contend they had no duty to warn Mr. Wright of commonly known risks. Second, defendants assert that Mr. Wright’s express warranty, fraudulent misrepresentation, and fraudulent nondisclosurе claims (Counts IV, VI, and VII) are barred because Mr. Wright could not have justifiably relied on any statements or nondisclo-sures of defendants in light of the common knowledge of the risks of cigarette smoking and express warnings on cigarette packages and cigarette advertisements. Third, defendants assert that to the extent that Mr. Wright’s negligence and strict liability failure to warn and fraudulent nondisclosure claims (Counts I, II, and VII) are based on alleged actions or omissions occurring after 1969, they are preempted by the Federal Cigarette Labeling and Advertising Act (the “Labeling Act”). Fourth, defendants assert that Mr. Wright fails to state a claim that there was a negligent manufacturing defect (Count I), and that there was a breach of implied or express warranties (Counts II and IV), or that there was a breach of special assumed duty (Count V). Fifth, defendants assert that Mr. Wright’s fraudulent misrepresentation and fraudulent nondisclosure claims (Counts VI and VII) are not pleaded in accordance with Rule 9(b) of the Federal Rules of Civil Procedure. Sixth, defendants assert that Mr. Wright’s civil conspiracy claim (Count VIII) and Mrs. Wright’s consortium claim (Count IX) fail, because Mr. Wright’s substantive claims fail.
On February 3, 2000, plaintiffs filed a stipulated Motion for Extension of Time, which this court granted, allowing plaintiffs to and including March 15, 2000, in which to file their resistance. Plaintiffs complied, filing their resistance on March 15, 2000, and asking this court to deny, in its entirety, defendants’ Motion to Dismiss. Defendants, thereafter, filed a reply, to which the plaintiffs, after seeking permission from this court, filed a surreply.
On July 19, 2000, the court heard oral arguments on defendants’ Motion to Dismiss. Plaintiffs were represented by E. Ralph Walker, David J. Darrell and Harley C. Erbe of Walker Law Firm, Des Moines, Iowa. Defendant Philip Morris, Inc., was represented by Robert A. Van-Vooren and Thomas Waterman of Lane & Waterman, Davenport, Iowa, and Timothy E. Congrove and J. Patrick Sullivan of Shook, Hardy & Bacon, L.L.P., Kansas City, Mo. Defendants The Brooke Group, Ltd., Liggett & Myers, Inc., and Liggett Group Inc. were represented by Richard R. Chabot of Sullivan & Ward, P.C., Des Moines, Iowa. Defendant R.J. Reynolds Tobacco Co., was represented by Steven L. Nelson of Davis, Brown, Koehn, Shors & Roberts, P.C., Des Moines, Iowa, and J. Todd Kennard of Jones, Day, Reavis & Pogue, Cleveland, Ohio.
II. STANDARDS FOR MOTION TO DISMISS
The issue on a motion to dismiss for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6) is not whether a plaintiff will ultimately prevail, but whether the plaintiff is entitled to offer evidence in support of his or her claims.
Scheuer v. Rhodes,
The United States Supreme Court and the Eighth Circuit Court of Appeals have both observed that “a court should grant the motion and dismiss the action only if it is clear that no relief could be granted under any set of facts that could be proved consistent with the allegations.”
Handeen v. Lemaire,
III. LEGAL ANALYSIS
A. Negligence and Strict Liability Claims
Plaintiffs’ pleading essentially alleges that defendants’ cigarettes were unreasonably dangerous and caused the plaintiff, Mr. Wright, “to become addicted to tobacco products, including but not limited to Defendants’ tobacco products, and to suffer adverse health effects arising from the use of these products,” including cancer of the right tonsil, severe emphysema, chronic obstructive pulmonary disease, and permanent cellular damage. See Plaintiffs’ Complaint ¶ 4.13, ¶ 5.5 and ¶ 6.3. Mr. Wright asserts that the alleged unreasonable dangerousness of defendants’ cigarettes is caused by all three types of defects: design, manufacturing and failure to warn.
1. Design defect claims
In adopting strict liability for defective products, codified at § 402A of the Restatement (Second) Torts, the Supreme Court- of Iowa specifically recognized that this theory did not replace claims based on negligence.
Lovick v. Wil-Rich,
However, the Iowa Supreme Court has held that despite the distinctions between the two theories of liability, the “unreasonably dangerous” element of a negligent design claim is the same as the “unreasonably dangerous” element of a strict liability design claim.
See id.; accord Hillrichs v. Avco Corp.,
“The article sold must be dangerous to an extent beyond that which would be contemplated by the ordinary consumer who purchases it, with the ordinary knowledge common to the community as to its characteristics.”
Restatement (Second) of Torts § 402A cmt. i (1965). Comment i is commonly referred to as the consumer contemplation test.
In this case, defendants assert that the Maguire case makes it abundantly clear that, under both negligence and strict liability theories, only the consumer contemplation test is applied in determining whether a product is unreasonably dangerous. Plaintiffs, however, disagree, contending that not only is the consumer contemplation test applied in determining whether a product is unreasonably dangerous, but that the risk-utility test is also applied in determining whether a product is unreasonably dangerous. Thus, while it is clear that Iowa law utilizes the consumer contemplation test to determine if a product is unreasonably dangerous, whether this is the only test used to determine if a product is unreasonably dangerous under Iowa law is not so clear.
a. What test is used in Iowa to determine whether or not a product is unreasonably dangerous?
In
Alter v. Rodgers Mach. Mfg. Co.,
Whether the doctrine of negligence or strict liability is being used to impose liability the same process is going on in each instance, i.e., weighing the utility of the article against the risk of its use. Therefore, the same language and concepts of reasonableness are used by courts for the determination of unreasonable danger in product liability cases.
Id. at 835. The Aller court stated that “this balancing process is the same as that used in negligence cases.” Id.
Thereafter, the Iowa Supreme Court, in
Chown v. USM Corp.,
In a design case, the risk-utility analysis involves balancing the gravity of the danger posed by the challenged design, the likelihood that such danger would occur, the mechanical feasibility of a safer alternative design, and the adverse consequences to the product and to the consumer that would result from an alternative design.
Id. at 220 (internal citation marks omitted). The Chown court, like its predecessor, failed to indicate whether there was a single proper test, and instead applied both tests:
“Under this record, we cannot say the trial court was compelled as a matter of law to find the calender [machine] was unreasonably dangerous. The court was not required to find that the defendant in 1900-1904 could reasonably have foreseen that a consumer in 1975 would expect barrier guards to be included in the design.... Furthermore, employing the risk-utility analysis, the court was not compelled to find that the safety device was technologically and practically feasible at the time of the manufacture.”
Chown,
Similarly, in
Fell v. Kewanee Farm Equip. Co.,
Moreover, in
Lovick v. Wil-Rich,
First, the trial court did not instruct on both negligence and strict liability theories. It only instructed on strict liability. The instruction to the jury included the risk-utility balancing analysis utilized in negligence. Thus, even if strict liability actually applied negligence principles, no prejudice occurred.
Id. at 699. The Lovick case follows Aller, Chown, and Fell, in applying both the consumer contemplation test and the risk-utility test in strict liability and negligent design defect claims. Indeed, even though the trial court instructed only on a strict liability claim, the Lovick court found that no error occurred due to the trial court’s failure to submit a separate instruction for negligence because the strict liability instruction included the risk-utility test “utilized in negligence”. Id.
This court notes that although the court in
Maguire v. Pabst Brewing Co.,
b. Does Comment i of § 402A of the Restatement (Second) of Torts bаr Mr. Wright’s design defect claims?
According to the defendants, because the plain language of Comment i makes it clear that cigarettes are not unreasonably dangerous, Mr. Wright cannot properly state a claim for design defect with respect to the cigarettes he allegedly smoked. Defendants point out that tobacco is explicitly held out as an example of a product that is not unreasonably dangerous in § 402A and Comment i:
Many products cannot be made safe for all consumption, and any food or drug necessarily involves some risk of harm ... That is not what is meant by unreasonably dangerous in this section. The article sold must be dangerous to an extent beyond that which would be contemplated by the ordinary consumer who purchases it, with the ordinary common to the community as to its characteristics. Good whiskey is not unreasonably dangerous merely because it will make some people drunk, and is especially dangerous to alcoholics; but bad whisky, containing a dangerous amount of fuel oil, is unreasonably dangerous. Good tobacco is not unreasonably dangerous merely because the effects of smoking may be harmful; but tobacco containing something like marijuana may be unreasonably dangerous.
Restatement (Second) of Torts § 402A, cmt. i (emphasis added). Rased on the plain language of this comment, therefore, defendants argue that because tobacco is not unreasonably dangerous, an essential element under Mr. Wright’s negligence and strict liability design defect claims, such claims fail as a matter of law.
Additionally, in their reply brief, defendants argue that the distinction asserted by the plaintiffs between “good tobacco,” as listed in Comment i, and manufactured cigarettes is without merit. This is so, because defendants contend that Comment e of § 402A specifically contemplates § 402A’s application to manufactured products:
Normally, the rule stated in this Section will be applied to articles which already have undergone some processing before sale, since there is today little in the way of consumer products which will reach the consumer without such processing.
Restatement (Second) of Torts § 402A, cmt. e. Thus, defendants assert that in addition to Comment e, the plain language of Comment i, as well as its historical context and “legislative history,” make it clear.that the framers of § 402A meant to exempt manufactured cigarettes as a definitional example of a non-defective product. Defendants’ Reply Brief at 4. The court rejects this argument.
Initially, defendants are correct that Iowa has adopted Comment i of § 402A. However, this court finds that even so, plaintiffs’ claims would not necessarily be barred. Indeed, while not binding on this court, many courts that have addressed this same argument have concluded that, because cigarettes are manufactured products and not raw tobacco, Comment i “does not, as a matter of law, remove all claims of defective tobacco
products from the operation of Section 402A.”
Burton v. R.J. Reynolds Tobacco Co.,
This court points out that no Iowa court has concluded that cigarettes are not an unreasonably dangerous product, as a matter‘of law, based on Comment i of § 402A. The court is mindful that this tobacco case is one of first impression in the State of Iowa, and, thus, to a large extent, is the reason that this part of Comment i dealing with tobacco has never been mentioned in any Iowa case. However, even the majority of cases that have dismissed cigarette product liability claims have done so not based on Comment i, but after a thorough analysis of the specific risks claimed by the respective plaintiff to have caused his or her injury and whether those risks were “common knowledge” during the relevant time period.
See Guilbeault v. R.J. Reynolds Tobacco Co.,
c. The “common knowledge” doctrine
In the alternative, defendants argue that even if the plain language of Comment i § 402A of the Restatement (Second) of Torts does not persuade this court that cigarettes are not unreasonably dangerous, the common knowledge doctrine completely defeats Mr. Wright’s design defect claims. The common knowledge doctrine rests upon the premise that a product is not unreasonably dangerous if everyone knows of its inherent dangers. Comment i of § 402A of the Restatement of (Second) of Torts incorporates the common knowledge doctrine. Comment i, which describes the term “unreasonably dangerous,” states: “The article sold must be dangerous to an extent beyond that which would be contemplated by the ordinary consumer who purchases it, with the ordinary knowledge common to the community as to its characteristics.” Restatement (Second) of Torts § 402A cmt. i (1965).
According to defendants, both state and federal courts throughout the country have applied the laws of the states in which they sit and repeatedly dismissed claims brought by cigarette smokers because information regarding the risks of smoking,
*811
including addiction, have long been available to, and known by, the public.
See e.g. Roysdon v. R.J. Reynolds Tobacco Co.,
Whether the common knowledge doctrine defeats plaintiffs’ design defect claims based on both strict liability and negligence, as a matter of law, is a novel question in Iowa. Other courts considering this very issue have reached different results regarding when, if at all, assorted risks, namely general disease-related risks and risks of addiction, associated with smoking became common knowledge. In
Guilbeault v. R.J. Reynolds Tobacco Co.,
[AJfter thoroughly reviewing the facts regarding the evolution of the public’s knowledge of smoking-related dangers, the Court is satisfied that it can take judicial notice of the community’s common knowledge of the general disease-related health risks associated with smoking, including the risk of contracting cancer, as of 1964.
Guilbeault,
Moreover, several courts have granted summary judgment to the. defendant tobacco companies because the risks associated with smoking were common knowledge.
See Allgood v. R.J. Reynolds Tobacco Co.,
Courts in other jurisdictions, however, have refused to dismiss claims based on the common knowledge doctrine.
See Tompkins,
[T]he judicial notice inquiry [in this case] would focus on the state of popular consciousness concerning cigarettes before 1969. The Court is simply unwilling to take judicial notice of something as intangible as public knowledge over three decades in the past. The exercise seems inherently speculative and an inappropriate topic for judicial notice.
Hill,
d. Is the risk of addiction a “lesser included risk” of the risks of smoking?
Several courts have said that whether or not there is a distinction between knowing about the general risks of smoking and knowing about the risk of addiction is a question of fact that should be decided by the jury.
See State of Texas v. American Tobacco Co.,
“[tjhere is no basis for our judicially noticing what the ordinary consumer’s
knowledge concerning the addictive qualities of cigarettes may have been *813 when [plaintiff] began smoking in 1940. The state of knowledge attributable to the community of individuals consuming cigarettes has changed over time and will continue to do so. It was not until 1988 that the Surgeon General published a report informing of the addictive nature of cigarettes.”
Id.
(quoting
Rogers v. R.J. Reynolds Tobacco Co.,
The Seventh Circuit Court of Appeals, in
Insolia v. Philip Morris Incorp.,
In Insolia, the plaintiffs appealed the district court’s granting summary judgment on their strict liability claim based on the common knowledge doctrine, arguing that although the typical consumer was aware that smoking was bad, he or she didn’t know back then that smoking was addictive. Id. at 601. The Insolia court affirmed the district court’s decision, stating that the evidence in the record “that the ordinary consumer at the time the plaintiffs began smoking was unaware of smoking’s addictive danger [was] surprisingly thin.” Id. at 603. The Insolia court also emphasized the plaintiffs’ concession that the ordinary consumer at the time in question knew that smoking was habit forming, which the Insolia court concluded was tantamount to plaintiffs conceding that the ordinary consumer at the time in question knew that smoking was addictive. Id. The court rejected plaintiffs attempt to distinguish between a habit that can easily be broken and a physiological addiction that is difficult to stop, stating that whether smoking is habit forming or addictive is a “semantical distinction beyond the grasp of our Average Joe.” Id. Therefore, the Insolia court affirmed the district court’s granting summary judgment to defendant because of plaintiffs’ concession and the “surprisingly thin” amount of evidence plaintiffs presented that tobacco’s addictive nature was generally unknown. Significantly, the Seventh Circuit Court of Appeals in Insolia stated with clarity that its ruling was limited to the facts in the record before it, stating:
Based on this particular evidentiary record, no reasonable trier of fact could find for the plaintiffs that the ordinary consumer in 1935 and in the early 1950’s did not appreciate the health risks of smoking. This decision does not foreclose the possibility that other plaintiffs might prevail on a strict liability claim against the tobacco industry. Another record in another case might be different. Another plaintiff might marshal better evidence that the haze of the tobacco companies’ propaganda obscured whatever hazards were known to the average consumer. We explicitly reject the tobacco industry’s invitation to declare that cigarettes are not unreasonably dangerous.
Id.; See also Guilbeault,
Most recently, moreover, the Sixth Circuit Court of Appeals handed down two decisions that stress the distinction between common knowledge of the general health hazards of smoking versus common knowledge of specific illnesses or injuries allegedly caused by the defendants’ tobacco products. In
Tompkin v. American
*814
Brands,
The pertinent issue here is not whether the public knew that smoking was hazardous to health at some undifferentiated level, but whether it knew of the specific linkages between smoking and lung cancer.
Tompkin, 219 at 572. Thus, because the plaintiffs in Tompkin alleged that defendants’ tobacco products caused Mr. Tomp-kin’s lung cancer, the Sixth Circuit Court of Appeals concluded that the common knowledge inquiry must be narrowed to the question of whether the link between cigarette smoking and lung cancer was common knowledge, not merely whether the link between cigarette smoking and general health maladies was common knowledge. The Tompkin court explained its reason for narrowing the inquiry, stating:
It is one thing to be aware generally that a product might have an attenuated and theoretical connection with a deadly disease like lung cancer; it is another altogether to comprehend that it is the cause of an overwhelming majority of lung cancer cases. The “common knowledge” requirement is emasculated if a defendant may show merely that the public was aware that a product presented health risks at some vague, unspecified, and undifferentiated level.
Tompkin,
Additionally, in
Glassner v. R.J. Reynolds Tobacco Co.,
In this case, defendants argue that this court should not recognize this distinction, because defendants assert that the risk of addiction is a “lesser included risk” of the risks of smoking. Defendants attempt to marshal case-law in support of their claim that the risks of smoking, and the “lessor included risk” of addiction, have been common knowledge.
See e.g. Allgood,
Defendants correctly state that the Fifth Circuit Court of Appeals in
Allgood
affirmed the trial court’s dismissal of product liability claims brought by a deceased smoker’s spouse. Defendants assert that by explaining that “like the dangers of alcohol consumption, the dangers of cigarette smoking have long been known to the community” with knowledge that the plaintiff claimed that her husband started smoking as early as 1936 and “was so addicted that no amount of warning could induce him to quit,”
Id.
at 172, the
Allgood
court implicitly refused to distinguish between the risk of addiction and the risks of smoking. In so doing, defendants, by way of inference, contend that the
Allgood
court held that the risk of addiction was subsumed within the risks of smoking when it concluded that “the dangers of cigarette smoking have long been known to the community.”
Id.
at 172. This court, however, points out that the
Allgood
court did not inquire into the extent of knowledge regarding the link between smoking and addiction, nor did it specify the nature of the risk the public allegedly knew. It merely made a bald finding that people believe that smoking has health hazards. Indeed, this court concludes that, such a bare finding is an insufficient predicate for concluding as a matter of law that the nexus between cigarette smoking and addiction was common knowledge. Furthermore, because the Fifth Circuit Court of Appeals in
AUgood
did not expressly hold that the risk of addiction was subsumed within the risks of smoking, the
Allgood
court did not pass on whether or not such a distinction existed.
See Castano v. The American Tobacco Co.,
In
Sanchez v. Liggett & Myers, Inc.,
Based on the foregoing authority, this court concludes that there is a considerable difference between knowing that smoking is bad and knowing that smoking is addictive.
See Insolia,
e. Will the court take judicial notice that the risks of smoking are “common knowledge?”
Defendants assert that both the Eighth Circuit Court of Appeals and the Iowa *816 Supreme Court recognize that judicial notice can be taken of commonly known facts. Defendants ask that this court take judicial notice that the health risks of smoking, including addiction, are commonly known in Iowa. Defendants assert that many courts in other jurisdictions, cited above, have taken judicial notice of the fact that the health risks of smoking, including addiction, are common knowledge.
Plaintiffs, however, argue that taking judicial notice that the health hazards of smoking were common knowledge in the Northern District of Iowa since the 1950’s through the present is improper because there exists considerable dispute devoted to the issues of what information was known among the scientists during this period, what information was known to the tobacco companies, what public statements and actions were being undertaken by the tobacco companies through this period to create false controversy as to those issues, and what the public actually knew or understood during this time. Also, plaintiffs stress that it is improper for this court to take judicial notice of a fact merely because a different court took judicial notice of that same fact.
Pursuant to Rule 201 of the Federal Rules of Evidence, a federal court may take judicial notice of an adjudicative fact that is both “not subject to reasonable dispute” and either:
(1) generally known within the territorial jurisdiction of the trial court or
(2) capable of accurate and ready determination by resort to sources whose accuracy cannot rеasonably be questioned.
Fed.R.Evid. 201(b);
See Qualley v. Clo-Tex Int’l, Inc.,
This court is familiar with Rule 201 of the Federal Rules of Civil Procedure and its application, having taken judicial notice of various adjudicative facts.
See Laird v. Stilwill,
In this case, however, the court will refrain from taking judicial notice that the risks of cigarette smoking have been common knowledge to consumers since Mr. Wright began smoking in 1954. Additionally, because this court agrees,with the Seventh Circuit Court of Appeals in
Inso-
*817
lia
that “there is a considerable difference between knowing that smoking is bad and knowing that smoking is addictive,”
Inso-lia,
As this is a motion to dismiss, the court must assume that all the facts alleged in Mr. Wright’s complaint are true, and must liberally construe those allegations in the light most favorable to Mr. Wright.
See St. Croix,
Furthermore, this court noted that defendants’ previous argument — that the risk-utility test is not applicable to Mr. Wright’s design defect claims because the test does not apply to products whose potеntial risks are well-known such as cigarettes — presupposed that this court would take judicial notice that the risks associated with smoking, including addiction, are common knowledge. Because this court will refrain from taking judicial notice that the risks associated with smoking, including addiction, are common knowledge at this preliminary motion to dismiss stage, application of the risk-utility test, in addition to the consumer contemplation test, to Mr. Wright’s negligent and strict liability design defect claims is appropriate.
2. Failure to warn claims
In
Olson v. Prosoco, Inc.,
One who supplies directly or through a third person a chattel for another to use is subject to liability to those whom the supplier should expect to use the chattel with the consent of the other or to be endangered by its probable use, for physical harm caused by the use of the chattel in the manner for which and by a person for whose use it is supplied, if the supplier
(a) knows or has reason to know that the chattel is or is likely to be dangerous for the use for which it is supplied, and
(b) has no reason to believe that those for whose use the chattel is supplied will realize its dangerous condition, and
(c) fails to exercise reasonable care to inform them of its dangerous condition or of the facts which make it likely to be dangerous.
Restatement (Second) of Torts § 388 (§ 394 makes § 388 applicable to manufacturers).
*819
In testing the defendants’ liability for negligence in failing to warn, the defendants should be held to the standard of care of an expert in its field.
Id.
at 289 (citing
West,
Defendants contend that because the risks of smoking have long been commonly known, they had no duty to warn of such risks. Defendants argue that given the warnings printed on each package of cigarettes since 1966, and the common knowledge that smoking can be hazardous, they had no duty to warn of such risks. Conversely, plaintiffs contend that the risks from smoking are not an obvious danger or within the contemplation of the ordinary consumer. Indeed, in their complaint, plaintiffs allege that Mr. Wright and the general public did not know and understand the dangers presented by smoking.
The court concludes that although defendants properly state the rule that a manufacturer cannot be held liable for obvious or commonly known dangers, dismissal based on the common knowledge that smoking is dangerous is inappropriate. Because this court previously refrained from taking judicial notice that the health risks of smoking are commonly known, whether the health risks of smoking, including the risk of addiction, in terms of a duty to warn, and whether Mr. Wright appreciated the danger sufficiently to obviate defendants’ liability, are questions of fact for the jury. In his complaint, Mr. Wright alleges that he had no knowledge of the risks associated with smoking, including addiction, thus creating a jury question as to whether the danger was open and obvious or part of the common knowledge and whether a warning was required. Moreover, as this court explained in
Rowson v. Kawasaki Heavy Indus., Ltd.,
B. Express Warranty, Fraudulent Misrepresentation and Fraudulent Nondisclosure Claims
Defendants assert that because of the common knowledge doctrine, Mr. Wright cannot allege justifiable reliance, and, consequently, Mr. Wright’s fraud and express warranty claims are barred as matter of law.
I. Does the common knowledge doctrine bar Mr. Wright’s fraudulent misrepresentation and fraudulent nondisclosure claims?
The required elements of fraudulent misrepresentation under Iowa law are: (1) a material (2) false (3) representation coupled with (4) scienter and (5) intent to deceive, which the other party (6) relies upon with (7) resulting damages to the relying party.
Doe v. Hartz,
1. Special circumstances existed which gave rise to a duty of disclosure between the plaintiff and the defendant. (Describe the relationship found to give rise to a duty of disclosure.)
2. While such relationship existed, the defendant [was aware of the following facts] [intended the following course of action] (state the facts or intent alleged to have been withheld).
3. While such relationship existed, the defendant concealed or failed to disclose [the knowledge or intent alleged to have been withheld].
4. The undisclosed information was material to the transaction.
5. The defendant knowingly failed to make the disclosure.
6. The defendant intended to deceive the plaintiff by withholding such information.
7. The plaintiff acted in reliance upon the defendant’s failure to disclose and was justified in such reliance.
8. The failure to disclose was a proximate cause of the plaintiffs damage.
9. The nature and extent of the plaintiffs damage.
Iowa Civil Jury Instructions, 810.2;
see also Jones Distrib. Co.,
[F]or concealment to be actionable, the representation must “relate to a material matter known to the party ... which it is his legal duty to communicate to the other contracting party whether the duty arises from a rеlation of trust, from confidence, from inequality of condition and knowledge, or other attendant circumstances.” Sinnard [v. Roach], 414 N.W.2d [100,] 105 [ (Iowa 1987) ] (quoting Wilden Clinic, Inc. v. City of Des Moines,229 N.W.2d 286 , 293 (Iowa 1975)).
Clark,
Both misrepresentation and fraudulent nondisclosure require reliance that is justified. The Iowa Supreme Court explained that:
Reliance is justified when a reasonably careful person would be justified in relying on the information supplied. Reliance is not justified if the person receiving the information knows or in the exercise of ordinary care should know that the information is false.
Pollmann v. Belle Plaine Livestock Auction, Inc.,
that the test for determining whether a party to a transaction has a right to rely on representations of the other is not whether a reasonably prudent person would be justified in relying on such representations but rather, whether the complaining party, in view of his own information and intelligence, had a right to rely on the representations. This subjective standard depends not on what an ordinarily prudent person reasonably would do to protect his or her interests, but upon what the complaining party reasonably could be expected to do.
Id. at 877.
According to defendants, because the risks associated with cigarette smoking are common knowledge and have been communicated to smokers through package warnings and advertisements since 1966 and 1972, as matter of law, Mr. Wright cannot show justifiable reliance on any alleged statements or nondisclosures of defendants. The court does not agree.
As indicated previously, the court refuses, at this early stage in the proceedings, to take judicial notice of the fact that the risks associated with smoking, including addiction, are common knowledge. Even if this court did take judicial notice of this fact, it does not mean that Mr. Wright may not have been defrauded by defendants’ alleged statements denying their conduct in manipulating the level of nicotine in cigarettes and by their attempts to refute the common knowledge of the harm of cigarettes by representing to the public that nicotine and cigarettes are not addictive.
Under Iowa law, justifiable reliance is a subjective rather than an objective inquiry and because this is a motion to dismiss, Mr. Wright’s allegations must be viewed as true and in the light most favorable to him.
See Gross,
2. Does the common knowledge doctrine bar Mr. Wright’s express warranty claim?
Defendants also claim that Mr. Wright cannot allege justifiable reliance because the risks of smoking are commonly known, and, therefore, his express warranty claim fails as a matter of law.
Under Iowa law, an express warranty may be created by any affirmation of fact or promise made by a seher which relates to the goods. Iowa Cоde § 554.2813(l)(a). Iowa Code § 554.2313(l)(a) provides that an express warranty is created by “[a]ny 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.” Further, § 554.2313(l)(a) states that the express warranty must serve as part of the “basis of the bargain.”
11
The language creating an express warranty need not contain special phrases or formal words such as guarantee or warranty. Iowa Code § 554.2313(l)(b). In fact, a seller need not have intended that the language create an express warranty. Iowa Code § 554.2313(2). Every statement made by a seller, however, does not create an express warranty. Moreover, “affirmations relating merely to the seller’s opinion or commendation of goods do not create a warranty.”
Falcon Equip. Corp. v. Courtesy Lincoln Mercury, Inc.,
As indicated previously, because the court will not take judicial notice that the risks of smoking, including addiction, were common knowledge, the court also denies defendants’ motion to dismiss plaintiffs’ express warranty claims based on the common knowledge doctrine.
C. Federal Preemption
In the alternative, defendants argue that plaintiffs’ post-1969 fraudulent nondisclosure claims, and failure to warn claims are preempted by the Federal Cigarette Labeling and Advertising Act of 1965, as amended by the Public Health Cigarette Smoking Act of 1969, 15 U.S.C. § § 1331-1340. Initially, this court notes that there is a presumption that the historic police powers of the states are not to be superceded by a federal act unless that is the “clear and manifest” purpose of Congress.
Cipollone v. Liggett Group, Inc.,
In July 1965, Congress enacted the Federal Cigarette Labeling and Advertising Act. 15 U.S.C. § § 1331-1340. The 1965 Act mandated warnings on cigarette packages (§ 5(a)), but barred the requirement of such warnings in cigarette advertising (§ 5(b)). § 1333-1334. Section 2 of the 1965 Act declares the statute’s two purposes: (1) adequately informing the public that cigarette smoking may be hazardous to health, and (2) protecting the national economy from the burden imposed by diverse, nonuniform, and confusing cigarette labeling and advertising regulations. 12 In furtherance of the first purpose, § 4 of the 1965 Act made it unlawful to sell or distribute any cigarettes in the United States unless the package bore a conspicuous label providing: “Caution: Cigarette Smoking May Be Hazardous to Your Health.” In furtherance of the second purpose, § 5, entitled “Preemption,” providеd in relevant part:
“(a) No statement relating to smoking and health, other than the statement required by section 4 of the Act, shall be required on any cigarette package.
(b) No statement relating to smoking and health shall be required in the advertising of any cigarettes the packages of which are labeled in conformity with the provisions of this Act.”
15 U.S.C. § 1334.
Thereafter, Congress enacted the Public Health Cigarette Smoking Act of 1969 (“the Labeling Act”), which amended the 1965 Act in the following ways. First, the Labeling Act strengthened the warning label, in part by requiring a statement that cigarette smoking “is dangerous” rather than it may be “hazardous.” See 15 U.S.C. § 1333 (1969). Second, the Labeling Act banned cigarette advertising in “any medium of electronic communication subject to [FCC] jurisdiction.” Third, and related, the Labeling Act modified the preemption provision by replacing the original § 5(b) with a provision that reads:
(b) No requirement or prohibition based on smoking and health shall be imposed under State law with respect to the advertising or promotion of any cigarettes the packages of which are labeled in conformity with the provisions of this Act.
15 U.S.C. § 1334.
In
Cipollme v. Liggett Group, Inc.,
Cipollone clearly stated that positive enactments by a state with respect to cigarette promoting and advertising are preempted by the Labeling Act. The question is to what extent state damagе actions founded upon the common law are preempted. In Cipollone, the plurality held that the Labeling Act expressly preempts certain state law damage actions, including some actions based on the common law:
The phrase “[n]o requirement or prohi- • bition” sweeps broadly and suggests no distinction between positive enactments and common law; to the contrary, those words easily encompass obligations that take the form of common law rules.
Cipollone
rejected the notion that the descriptive label a plaintiff attaches to a particular claim determines whether it is preempted. “Nor does the statute indicate that any familiar subdivision of common law claims is or is not preempted.”
Id.
at 523,
The central inquiry in each case is straightforward: we ask whether the legal duty that is the predicate of the common law damages action constitutes a “requirement or prohibition based on smoking and health ... imposed under State law with respect to ... advertising or promotion,” giving that clause a fair but narrow reading.
Id.
at 523-24,
The claims held to be preempted were broad in scope. The plurality held that any common law failure to warn action is preempted to the extent that is relies on a state law requirement or prohibition with respect to advertising or promotion.
Id.
In other words, “insofar as claims under either failure to warn theory require a showing that respondents’ post-1969 advertising or promotions should have included additional, or more clearly stated, warnings, those claims are preempted.”
Id.
The Court also held that claims that the tobacco companies neutralized the effect of the federally mandated warnings through their advertising and promotional activities were preempted.
Id.
at 527,
While many claims were held to be preempted, the Court also held that some claims were not preempted. These non-preempted claims included: (1) claims based on a “contractual commitment voluntarily undertaken” and therefore not “regarded as a ‘requirement ... imposed under State Law1 ” (i.e., breach of express warranty).
Id.
at 524,
1. Does the Labeling Act preempt Mr. Wright’s post-1969 fraudulent nondisclosure and failure to warn claims?
As indicated previously, the question of whether or not Mr. Wright’s claims are preempted turns on “whether the legal duty that is the predicate of the common law damages action constitutes a ‘requirement or prohibition based on smoking and health ... imposed under State law with respect to ... advertising or promotion.’ ”
Cipollone,
a. Fraudulent nondisclosure claim
Plaintiffs have alleged that defendants are liable for fraudulent nondisclosure. This claim is based on the defendants’ alleged concealment of information pertaining to the addictive nature of nicotine, the level of nicotine used in their tobacco products, and the health hazards associated with smoking cigarettes. Plaintiffs argue the Cipollone decision squarely addressed the issue of whether fraudulent nondisclosure claims are preempted by the Labeling Act, and assert that fraudulent nondisclosure claims, whether they are based on affirmative representations or on concealment, and even if they concern advertising and promotion, are not preempted. Plaintiffs argue that their fraud claims are not preempted because such claims are predicated not on a duty based on smoking and health, but rather on a more general obligation, the duty not to deceive, which falls squarely within one of the exceptions to preemption carved out in Cipollone.
In
Cipollone,
the plaintiff alleged two theories of fraudulent misrepresentation. Plaintiffs first theory alleged that the cigarette manufacturers, through their advertising, neutralized the effect of federally mandated warning labels. Such a claim wаs predicated on a state-law prohibition against statements in advertising and promotional materials that tend to minimize the health hazards associated with smoking. The
Cipollone
court held this fraud claim was preempted by the Labeling Act, because it was inextricably linked to the plaintiffs failure to warn theory.
Cipollone,
Therefore, this court finds that Wright’s posN1969 claim of fraud based upon concealment is preempted to the extent that it is predicated on a duty to issue additional or clearer warnings through advertising and promotion. However, the court finds that Mr. Wright’s post-1969 claim that defendants concealed material facts is not preempted insofar as the claim relies on a state-law duty to disclose such facts through channels of communication other than advertising or promotion.
Id.
at 528,
Although the court does not understand defendants to be arguing that the Labeling Act preempts plaintiffs’ fraudulent misrepresentation claims, which are based on' allegations that defendants included false statements in their advertising and promotional materials, assuming defendants did make this argument, preemption would not apply to these claims because, as indicated previously, the Supreme Court clearly stated that “such claims are predicated not on a duty ‘based on smoking and health’ but rather on a more general obligation — the duty not to deceive,”
id.
at 528-29,
b. Failure to warn claim
Plaintiffs argue that their failure to warn claim is not preempted by the Labeling Act because they do not claim that the warnings in defendants’ advertising and promotions were inadequate; rather, plaintiffs argue that the warnings on cigarette packages were inadequate. 13 Specifically, plaintiffs argue that, following Ci-pollone’s intеrpretation of § 5(a) of the Labeling Act, which deals with the required warnings on cigarette packages, plaintiffs are not preempted from bringing a state tort action for money damages with regard to cigarette packaging and labeling. Plaintiffs contend that the Ci-pollone court held that the 1965 version of § 5(a) preempted only affirmative legislative acts by state legislatures or agencies which would require additional warning labels on cigarette packages, and does not preempt state tort actions based on inadequate warnings. According to plaintiffs’ argument, because § 5(a) was not modified by the 1969 Act, the preemptive scope of § 5(a) remains the same, which plaintiffs contend is limited. In essence, therefore, by focusing on the warnings on defendants’ cigarette packages, instead of focusing on the warnings in defendants’ advertisements and promotions, plaintiffs argue that they effectively circumvent Ci-pollone’s preemption holding. The court, however, is not so convinced.
Although plaintiffs’ allegations are couched in terms of the packaging of the cigarettes and not the advertising and promotion, the allegations are nonetheless predicated primarily on the theory that the products are unreasonably dangerous because the warnings on cigarette packages are inadequate. Such a claim, in this court’s opinion, would have the effect of requiring defendants to include additional cautionary statements on cigarette packages, a requirement that is prohibited by § 5(b) of the Labeling Act.
See Glassner,
Furthermore, the court points out that the Labeling Act states as one of its purposes that interstate commerce “not (be) impeded by diverse, nonuniform, and confusing cigarette labeling and advertising regulations with respect to any rela *827 tionship between smoking and health.” 15 U.S.C. § 1331. The court finds that permitting a package based failure to warn claim basеd on inadequate warnings would conflict with the statutory purpose of national uniformity for cigarette packaging. 14 Therefore, the court concludes that plaintiffs’ post-1969 package based failure to warn claim is preempted.
D. Manufacturing defect claim
Defendants assert that Mr. Wright’s negligent manufacturing defect claims should be dismissed because the allegations in the complaint do not support a claim for relief. Defendants argue that Mr. Wright has not alleged that he suffered harm from using cigarettes that were not in the condition intended by the manufacturing defendants. Based on his allegations, defendants contend that the negligent manufacturing defect theory is inapplicable to these allegations and to further buttress their argument, defendants rely on
Shaw v. Brown & Williamson Tobacco Corp.,
In
Schmedding v. Tnemec Co., Inc.,
Here, Mr. Wright has alleged, inter alia, in support of his, negligent manufacturing defect claim that the defendants negligently breached one or more of their duties in the following ways:
1. failing to test, to test adequately, or conduct scientific research on their tobacco products for harmful or addictive properties, and in failing to establish a reasonably safe dosage for foreseeable users; ¶ 5.4.6
2. in designing, manufacturing, and .selling a product that when used as intended was not reasonably safe for foreseеable users; ¶ 5.4.7
3. in failing to make such feasible improvements in design, composition, or manufacture of their tobacco products such as to materially decrease the foreseeable risk to users. ¶ 5.4.8
Because it does not appear beyond a doubt that Mr. Wright can prove no set of facts which would entitle him to relief based on *828 these allegations, as well as other allegations in the complaint, the court denies defendants’ motion to dismiss his negligent manufacturing claim for failure to state a claim on which relief can be granted.
E. Claim for Breach of Implied or Express Warranties
1. Implied warranty of merchantability
Iowa Code § 554.2314 governs warranties of merchantability. Section 554.2314 2(c) .states that, to be merchantable, goods must be “fit for the ordinary purposes for which such goods are used.”
Id.
Under this theory, a plaintiff is required to prove (1) a merchant sold the goods; (2) the goods were not “merchantable” at the time of the sale; (3) injury or damage occurred to the plaintiffs person or property; (4) the defective nature of the goods caused the damage “proximately and in fact”; and (5) notice was given to the seller of the injury.
See Van Wyk v. Norden Laboratories, Inc.,
Defendants assert that Mr. Wright’s implied warranty of merchantability claim should be dismissed because the authorities cited by defendants demonstrate that, absent a manufacturing defect, cigarettes do not breach the implied warranty of merchantability. Conversely, plaintiffs assert that defendants’ contention should be rejected by this court. Plaintiffs argue that they are not limited to proving their implied warranty of merchantability claim by showing that the defendants’ cigarettes were defective; rather, plaintiffs contend that the cigarettes were unmerchantable because they were not accompanied by adequate warnings of the health hazards associated with smoking. The court does not agree.
As indicated previously, the Labeling Act preempts plaintiffs’ post-1969 failure to warn claims. Accordingly, plaintiffs’ implied warranty of merchantability claim is preempted to the extent it alleges failure to provide additional warnings after 1969, and is therefore dismissed. However, Mr. Wright’s breach of an implied warranty claim survives to the extent that it is based on specific allegations that defendants knowingly designed, manufactured and distributed a product which they knew was both carcinogenic and addictive and, thus, not fit for the ordinary purpose for which it was intended.
See Magnus v. Fortune Brands, Inc.,
2. Express warranty claim
Defendants assert that Mr. Wright’s allegations that defendants’ advertising and promotional statements relating to addiction, tar and nicotine level in cigarettes, smoking, and health created express warranties, fail as a matter of law to state an express warranty claim. Specifically, defendants contend that Mr. Wright has failed to identify sufficiently the nature, extent, and language of any alleged representations and how he relied on them. 15
*829 The court discussed in further detail Mr. Wright’s allegations and the requirements for an express warranty claim under Iowa law in the preceding section, captioned B 2. It must be remembered that this is a motion to dismiss, which is premised on the pleadings. As such, plaintiffs are not required to produce any explicit statements or affirmations regarding smoking, particularly when no discovery has been conducted. In his complaint, Mr. Wright alleges that:
Defendants sold tobacco products and warranted through their advertisements and promotional statements that their products were not addictive, that they did not intend to addict Mr. Wright, that the tar and nicotine levels in their products were at non-addictive levels, and that there were no adverse health effects arising from the use of their products. ¶ 8.1
As a result of defendants’ warranties and in reliance thereon, Mr. Wright purchased and used defendants’ tobacco products. ¶ 8.2
The defendants’ tobacco products did not conform to the foregoing express warranties in that defendants manipulated levels in the tobacco products, the tobacco products were addictive and the products caused Mr. Wright to suffer adverse health effects. ¶ 8.3
Thus, the court finds that Mr. Wright has sufficiently plead an express warranty claim in accordance with Rule 8(a)(2) of the Federal Rule of Civil Procedure. See Fed.R.Civ.P. 8(a)(2) (rеquiring “a short and plain statement of the claim showing that the pleader is entitled to relief’).
3. Does Mr. Wright’s failure to notify defendants of the alleged breach of warranty preclude his warranty claims?
Defendants assert that because Mr. Wright has not alleged in his complaint that he provided notice of any defect to any defendant or agent of the defendant, Mr. Wrights warranty claims should be dismissed. Plaintiffs concede that they did not give notice to the ■ defendants, however, they contend that the notice requirement should not preclude their warranty claims. First, plaintiffs assert that Mr. Wright purchased the cigarettes from a retailer, and therefore, because he never purchased cigarettes directly from the defendants, application of the notice requirement between a buyer and seller is inapplicable. Second, plaintiffs argue that because other courts have held that the Uniform Commercial Code’s (“UCC”) notice provision is inapplicable to products liability cases, so too should this court in this case. Plaintiffs argue in the alternative, that if Mr. Wright was required to give notice to defendants, that notice should not be required here because they assert that notifying defendants about Mr. Wright’s injuries and warranty claims would only serve to tell the defendants what they already know— that the cigarettes that they manufacture are hazardous. Thus, plaintiffs appear to be asserting that the defendants were on “constructive notice” of the alleged defects in their cigarettes in light of the vast amount of litigation. Lastly, plaintiffs argue that notice of their warranty claims was provided in the form of this lawsuit.
The UCC notice requirement that defendants assert bars Mr. Wright’s warranty claims in Iowa is codified at Iowa Code § 554.2607(3)(a). § 554.2607(3)(a) provides in pertinent part:
When the buyer has accepted a tender of goods, the buyer must notify the seller of any breach of warranty within a reasonable time or be barred from any remedy.
Id.
The Iowa Supreme Court has held that “the giving of a notice must be pleaded as a condition precedent to recovery.”
Randa v. U.S. Homes, Inc.,
Here, defendants argue that because § 554.2607(3)(a) expressly required timely notice as a condition precedent for recovery of breach of warranty and because Mr..Wright did not give notice to defendants, his warranty claims should be dismissed. Although defendants correctly state the requirements of this notice provision, this court does not find that it is applicable here. This is so, because the defendants are not sellers within the meaning of this notice provision. Indeed, § 554.2103 defines seller as “a person who sells or contracts to sell goods.” Because defendants never sold cigarettes to Mr. Wright or contracted to sell cigarettes to Mr. Wright, the notice provision of § 554.2607(3)(a) was never triggered. In so doing, § 554.2607(3)(a) never imposed a duty on Mr. Wright to notify defendants of his warranty claims.
In
McKnelly v. Sperry Corp.,
[W]e are not persuaded the Iowa Supreme Court would, under all the circumstances here, hold the notice provision of the Uniform Commercial Code applicable to McKnelly’s suit. By its terms Section 554.2607(3)(a) applies only to a buyer who has accepted tender of goods from a seller. It does not expressly apply as between an injured third person other than the buyer and a manufacturer instead of a seller.
Id. at 1107 (emphasis added). Thus, in interpreting § 554.2607(3)(a), the Eighth Circuit Court of Appeals stated that the notice provision of § 554.2607(3)(a) was not applicable to third persons, and was likewise not applicable to manufacturers; rather, § 554.2607(3)(a) is only applicable to a buyer and seller. In light of the Eighth Circuit’s interpretation of § 554.2607(3)(a), and the definition of a “seller,” this court concludes that Mr. Wright’s warranty claims are not barred because § 554.2607(3)(a) is not applicable here. Because the court finds that § 554.2607(3)(a) is not applicable, the court need not address plaintiffs’ other arguments in support of their contention that failure to notify defendants about the alleged breach should not bar their warranty claims. Nevertheless, even if the Iowa Supreme Court were to conclude that section § 554.2607(3)(a) is applicable in such a case as this, this court finds that such notice was given in the form of plaintiffs’ lawsuit.
As far as defendants’ argument that they will be prejudiced if Mr. Wright is permitted to circumvent the notice provisions, the court is not persuaded. First, the court points out that Mr. Wright is not circumventing UCC notice provisions because § 554.2607(3)(a) is not applicable. Second, defendants fail to elucidate in what capacity they are prejudiced. In fact, based on the defendants’ thoroughly written and researched briefs, coupled with their strong oral arguments, it is clear to this court that the defendants were not prejudiced by the lack of notice of the alleged breach of warranty claims in this case. Therefore, defendants’ motion to dismiss Mr. Wright’s warranty claims for failure to notify of the alleged breach is denied.
F. Claim for Breach of Special Assumed Duty
Plaintiffs incorrectly state that Restatement (Second) of Torts § 323, captioned “Negligent Performance of Under
*831
taking to Render Services,” has not been adopted in Iowa.
16
Indeed, in
American State Bank v. Enabnit,
One who undertakes, gratuitously or for consideration, to render services to another which he should recognize as necessary for the protection of the other’s person or things, is subject to liability to the other for physical harm resulting from his failure to exercise reasonable care to perform his undertaking,’if
(a) his failure to exercise such care increases the risk of such harm, or
(b) the harm is suffered because of the other’s reliance upon the undertaking.
Id.
Mr. Wright alleges, inter alia, in his complaint that defendants’ breached their duty and responsibility to report research regarding smoking and health regarding their tobacco products through their public pronouncements, suppressed unfavorable research data, and perpetuated a false “controversy” regarding the human health consequences of smoking, and that this breach caused Mr. Wright to become ad-dieted to tobacco products and to suffer adverse health effects arising from the use of cigarettes, thus causing Mr. Wright to incur damages.
On the other hand, defendants argue that the above alleged actions do not amount to voluntary assumption of duty, emphasizing that a legal duty is a question of law appropriately decided by the court on a motion to dismiss.
See, e.g. J.A.H. v. Wadle & Associates, P.C.,
*832
The court agrees with plaintiffs’ assertion that dismissal of this claim would be premature, and that they should be afforded the opportunity to establish whether defendants owed plaintiffs a special duty through discovery. The court reiterates that because this is a motion to dismiss, the court must take the well-pleaded allegations in the complaint as true and view the complaint, and all reasonable inferences in the light most favorable to plaintiffs.
See St. Croix,
Moreover, to the extent that defendants argue that plaintiffs’ post-1969 duty to disclose claim that “defendants voluntarily assumed the duty to report honestly and competently on all research regarding smoking and health regarding their tobacco products through their public announcement,” ¶ 9.2, is preempted, the court does not agree. If it is established that defendants “voluntarily undertook this duty to disclose” such claim would not be preempted as it would fall squarely within one of the exceptions articulated by Cipollone, because the predicate duty is imposed not by the State but by the party assuming the obligation. Id at 524 (“[A] common-law remedy for a contractual commitment voluntarily undertaken should not be regarded as a ‘requirement ... imposed under State law’ within the meaning of [Federal Cigarette Labeling and Advertising Act] § 5(b).”).
G. Fraud Claims
Defendants correctly point out that Mr. Wright’s fraud claim is subject to the heightened pleading requirements of Rule 9(b). This court has articulated the elements of fraud under Iowa law and the standards for pleading fraud with the particularity required by Rule 9(b) of the Federal Rules of Civil Procedure in several recent decisions.
See Doe v. Hartz,
Rule 9(b) of the Federal Rules of Civil Procedure “ ‘requires a plaintiff to allege with particularity the facts constituting the fraud.’ ”
See Brown,
Rule 9(b) requires that “[i]n all aver-ments of fraud or mistake, the circumstances constituting fraud or mistake shаll be stated with particularity.” “ ‘Circumstances’ include such matters as the time, place and content of false representations, as well as the identity of the person making the misrepresentation and what was obtained or given up thereby.” Bennett v. Berg,685 F.2d 1053 , 1062 (8th Cir.1982), adhered to on reh’g,710 F.2d 1361 (8th Cir.), cert. denied,464 U.S. 1008 ,104 S.Ct. 527 ,78 L.Ed.2d 710 (1983). Because one of the main purposes of the rule is to facilitate a defendant’s ability to respond and to prepare a defense to charges of fraud, Greenwood v. Dittmer,776 F.2d 785 , 789 (8th Cir.1985), conclusory allegations *833 that a defendant’s conduct was fraudulent and deceptive are not sufficient to satisfy the rule. In re Flight Transp. Corp. Sec. Litig.,593 F.Supp. 612 , 620 (D.Minn.1984).
Commercial Property,
Defendants assert that Mr. Wright’s allegations of fraudulent misrepresentation and fraudulent nondisclosure fall short of satisfying Rule 9(b), because defendants contend that Mr. Wright has failed to identify the speakers or the time and place of the alleged fraudulent statements necessary to comply with Rule 9(b). 17 Plaintiffs disagree. Plaintiffs contend that, when viewed as a whole, their petition does meet the pleading requirements of Rule 9(b). In other words, plaintiffs virtually concede that the allegations contained in the complaint under the captioned headings for fraudulent misrepresentation and fraudulent nondisclosure are not pleaded with the particularity required by Rule 9(b), however, plaintiffs argue that the allegations set forth in the complaint under the captioned heading, civil conspiracy, do specify the alleged fraudulent statements, identify the speaker, state where and when the statements were made and explain why the statements were fraudulent. Although the court agrees that the allegations under the civil conspiracy claim do provide more specificity, the court is still not convinced that the pleadings satisfy the heightened pleading requirement for fraudulent misrepresentation and fraudulent nondisclosure pursuant to Rule 9(b).
1. Mr. Wright’s fraudulent misrepresentation claim
Mr. Wright alleges that defendants, through advertising in the mass media and by other communications, repeatedly made representations that nicotine was not addictive, that cigarette smoking was not a proven cause of disease, and that they did not manipulate nicotine levels in tobacco products so as to addict consumers. ¶ 10.2. Also, Mr. Wright alleges that defendants have fraudulently represented that “light” cigarettes deliver less tar and nicotine. Id. Mr. Wright alleges that he relied on these misrepresentations to his detriment, including addiction to tobacco products and suffering adverse health effects. Based on the pleadings, the court concludes that Mr. Wright’s fraudulent misrepresentation allegations fail to satisfy the pleading with particularity requirement of Rule 9(b) even when read in concert with his claim of civil conspiracy for the following reasons.
First, as noted by the defendants, Mr. Wright does not specifically identify the speakers of the various statements that he alleges were fraudulent; rather, he collectively alleges the following: The following persons and parties participated in a civil conspiracy ...:
R.J. Reynolds Tobacco Company; RJR Nabisco, Inc.; The American Tobacco Company; American Brands, Inc.; Brown & Williamson Tobacco Corporation; B.A.T. Industries, P.L.C.; Batus Holdings, Inc.; British American Tobacco, Ltd.; British-American (Holdings) Ltd.; Philip Morris Incorporated (Philip Morris U.S.A.); Philip Morris Companies, Inc.; Liggett & Myers, Inc.; Lig-gett Group, Inc.; the Brooke' Group, Limited; Lorillard Tobacco Company; Lorillard Incorporated; Loews Corporation, United States Tobacco Company; and United States, Inc. Brown and Wil *834 liamson Tobacco Company, successor by merger to American Tobacco Company; Brown and Williamson Tobacco Company; The Tobacco Institute, Inc., Council for Tobacco Research- — USA, Inc., f/k/a The Tobacco Industry Research Committee, Hill and Knowlton, Inc.
Plaintiffs’ complaint at 12.2.1. Significantly, of the eighteen (18) tobacco companies that plaintiffs identify, several were never defendants in this action, and two, namely R.J.R. Nabisco, Inc. and Philip Morris Companies, have been dismissed by this court pursuant to a joint and stipulated motion to dismiss. As this court explained in
DeWit v. Firstar Corp.,
2. Mr. Wright’s fraudulent nondisclosure claims
Mr. Wright must also plead his fraudulent nondisclosure claims with the particularity in accord with Rule 9(b) of the Federal Rules of Civil Procedure.
See Roberts v. Francis, M.D.,
that nicotine is addictive ¶ 11.3.1 that nicotine is highly addictive ¶ 11.3.2
that defendants manipulate nicotine levels in their tobacco products so as to addict consumers ¶ 11.3.3
*835 that smoking cigarettes causes adverse health consequences ¶ 11.3.4
Mr. Wright further alleges the suppression of and refusal to publish, various and sundry research studies carried out by a co-conspirator which revealed that cigarette smoking was harmful and addicting. ¶ 12.6.8. Mr. Wright asserts that defendants were under a duty to disclose the full extent of their research and knowledge concerning the adverse health effects of using their products, because of their superior knowledge regarding cigarette products. The court previously concluded that Mr. Wright has sufficiently plead justifiable reliance
18
, however, the court has not passed on whether or not the defendants were under a duty to disclose the alleged information they possessed coh-cerning these allegations outlined above. This is so, because the defendants have not moved to dismiss Mr. Wright’s fraudulent nondisclosure claims on a lack of duty argument. Nevertheless, even if the defendants set forth this argument, the court would disagree because the existence of a legal duty can arise from inequality of condition and knowledge.
See Doe,
Rule 15(a) of the Federal Rules of Civil Procedure allows parties to amend pleadings freely before responsive pleadings are filed or otherwise upon leave of court. Because this case was removed to federal court by defendants, 19 and plaintiffs have not yet amended their complaint, they will be given leave to amend the complaint to cure the Rule 9(b) defect. Therefore, for the reasons stated above, defendants’ motion to dismiss plaintiffs’ fraudulent misrepresentation and fraudulent nondisclosure claims pursuant to Rule 9(b) is denied, and plaintiffs are given leave to amend their complaint to state claims for fraud adequately.
H. Civil Conspiracy Claim and Loss of Consortium Claim
Defendants assert that because Mr. Wright’s fraudulent misrepresentation and fraudulent nondisclosure claims fail as a matter of law, so too does his conspiracy claim. Similarly, defendants assert that Mrs. Wright’s consortium claim fails because Mr. Wright’s substantive claims fail. Plaintiffs, on the other hand, contend that their conspiracy claim is not contingent on their fraud claims. This is so, because plaintiffs argue that their civil conspiracy *836 claim can survive based on their other substantive claims, namely their negligence claim. In the same vein, plaintiffs argue that the loss of consortium claims does not fail as a matter of law.
1. Mr. Wright’s civil conspiracy claim
A recognized aspect of Iowa law is the legal theory of civil liability for conspiracy to commit a wrongful act.
Basic Chems., Inc. v. Benson,
A conspiracy is a combination of two or more persons by concerted action to accomplish an unlawful purpose, or to accomplish by unlawful means some purpose not in itself unlawful. It may be proven by substantial evidence.
Basic Chems., Inc.,
In this case, defendants contend that Mr. Wright’s conspiracy claim is inextricably linked with his fraud claims — that is, plaintiffs’ conspiracy claim falls if their fraud-based claims fall. Plaintiffs disagree, arguing that even if their fraud claims do not survive, their civil conspiracy claim still survives if any of their other substantive claims survive. Specifically, plaintiffs argue that the underlying tort of the civil conspiracy need not be an intentional tort, and, therefore, plaintiffs argue that the defendant tobacco companies can conspire to commit negligence, stating that “without a doubt people can conspire to act in a careless fashion.” For this proposition, plaintiffs rely on
Robbins v. Heritage Acres,
In Robbins, the plaintiff had been involuntarily discharged from a nursing home. Plaintiff Robbins set forth a negligence and civil conspiracy claim. Robbins based his civil conspiracy claim on the defendants’ decision to “rid” the nursing home and staff of Robbins who allegedly required more attention and work than the staff was willing to perform. Id. at 263. Even though Robbins did not set forth an intentional tort as the underlying wrong, the Iowa Court of Appeals reversed the district court’s granting of defendants’ motion to dismiss, explaining:
Robbins’ conspiracy allegations include an agreement to withhold or deprive him of necessary medical or nursing home care. These allegations implicate Heritage’s contractual duties to Robbins and the standards of professional care and conduct of the named employees. We cannot say Robbins is unable to sustain a civil conspiracy claim under any state of facts under the petition.
Id. at 265. Thus, the wrong contemplated by the Robbins court was allegedly based on an agreement to withhold or deprive the plaintiff of necessary medical or nursing home care. The Robbins court further stated that the underlying wrong of plaintiffs civil conspiracy claim was based on breach of contract or violation of the standards of professional care. Significantly, however, the Robbins court did not hold that the underlying wrong of a civil conspiracy could be predicated on negligence.
*837
In so far as the plaintiffs contend that the underlying tort in a civil conspiracy claim may be based on negligence, the court does not agree. Indeed, the court finds this contention to be a paradox. The Supreme Court of Iowa has explained that a “conspiracy involves some mutual action coupled with an intent to commit the act which results in injury.”
Bump v. Stewart, Wimer & Bump, P.C.,
Furthermore,
Robbins
is not to the contrary. While the
Robbins
court held that the underlying wrong on which plaintiffs civil conspiracy claim was based was breach of contract or violation of the standards of professional care, the
Robbins
court did not hold that the underlying wrong of a civil conspiracy could be predicated on negligence. Simply because the plaintiff in
Robbins
only set forth two claims, civil conspiracy and negligence, does not mean that, in permitting the civil conspiracy claim to survive, the
Robbins
court held that the underlying wrong was based on negligence. Indeed, the
Robbins
court clearly stated that the plaintiff’s conspiracy allegations “include an agreement to withhold or deprive him of necessary medical or nursing care.”
Robbins,
Notwithstanding, it must be remembered that Mr. Wright also alleges,
inter alia,
that the defendants manufacture cigarettes, acting in concert or individually with knowledge and ratification, in such a way as to control and manipulate the nicotine content in such cigarettes, with the purpose of securing acceptance, habituation, and addiction.
See
¶ 12.6.21. Indeed, this claim appears to be grounded in Mr. Wright’s allegation that cigarettes are unreasonably dangerous. Whether Mr. Wright may maintain a cause of action for conspiracy to produce unreasonably dangerous products — as a strict liability tort — under Iowa law is a matter of first impression. At this early stage of the proceeding, the court concludes that Mr. Wright has adequately plead a civil conspiracy claim premised on the allegation that defendants intentionally agreed to produce an unreasonably dangerous product — cigarettes—an underlying wrong for which they could be held strictly liable.
See Basic Chemicals, Inc.,
251 N.W.2d at
*838
233;
Ezzone v. Riccardi,
For now however, the court concludes that although Mr. Wright cannot state a viable cause of action for conspiracy based on his negligence claim, Mr. Wright can state a viable cause of action for civil conspiracy based on his allegation that defendants intentionally agreed to produce an unreasonably dangerous product — cigarettes — an underlying wrong for which they could be held strictly liable. Accordingly, defendants’ motion to dismiss Mr. Wright’s civil conspiracy claim is denied. This is true even if Mr. Wright cannot successfully amend his fraud claims in accordance with Rule 9(b) of the Federal Rules of Civil Procedure.
2. Mrs. Wright’s loss of consortium claim
Similarly, Mrs. Wright’s consortium claim does not fail as a matter of law, because several of Mr. Wright’s substantive claims still exist. Thus, defendants’ motion to dismiss Mrs. Wright’s loss of consortium claim is denied.
IV. CONCLUSION
Upon review, the court concludes that the plaintiffs have stated valid claims for the following: negligent manufacturing defect claim, negligent design defect claim, pre-1969 negligent failure to warn claim, strict liability design defect claim, pre-1969 strict liability failure to warn claim, breach of special assumed duty, breach of implied warranty of merchantability, breach of express warranty, civil conspiracy claim and loss of consortium claim. Therefore, defendants’ motion to dismiss these claims is denied. The court further concludes that plaintiffs have failed to state a claim for the following: post-1969 negligent package-based failure to warn claim, and post-1969 strict liability package-based failure to warn claim. Therefore, defendants’ motion to dismiss these claims is granted. With regard to the fraud claims, plaintiffs are granted leave to amend. Therefore, the court concludes that defendants’ Motion to Dismiss is granted in part, and denied in part.
Furthermore, plaintiffs’ Objection to and Motion to Strike Defendants’ Exhibits and Alternative Motion for Leave to File Response and Supplemental Exhibits (# 62) is denied as moot.
IT IS SO ORDERED.
Notes
. Because this case is before the court based' on diversity jurisdiction, it is controlled by Iowa law.
First Bank of Marietta v. Hogge,
. The court dismissed defendant R.J.R. Nabisco, Inc. on February 12, 2000, from this action without prejudice pursuant to a Joint and Stipulated Motion. Thereafter, on April 12, 2000, the court also dismissed from this action without prejudice defendant Philip Morris Companies, Inc. pursuant to a Joint and Stipulated Motion.
.On January 26, 2000, defendants Brooke Group Ltd., Liggett & Myers, Inc., and Liggett Group Inc. joined in all statements, arguments, and defenses asserted by defendants Philip Morris Inc. and R.J. Reynolds Tobacco Company in their Motion to Dismiss and the accompanying Memorandum in Support of *804 their Motion to Dismiss filed herein on January 24, 2000.
. Rather than referring to "certain defendants” throughout this opinion, the court will refer to them simply as "defendants.” Additionally, the court refers to the plaintiffs in all three of the following ways throughout this opinion: Mr. Wright, Mrs. Wright and plaintiffs.
. Iowa Civil Jury Instruction 1000.5 provides the following:
Unreasonably Dangerous — Definition. A defective product is unreasonably dangerous if:
1. The danger is greater than an ordinary consumer with knowledge of the product’s characteristics would expect it to be.
2. The danger outweighs the utility of the product.
3. The benefits of the design do not outweigh the risks. In determining whether the design benefits outweigh the risks, you may consider:
a. The seriousness of the harm posed by the design.
b. The likelihood that such danger would occur.
c. The mechanical feasibility of a safer alternate design.
d. The costs of an improved design.
e. The adverse consequences to the product and the user that would result from an alternate design.
f. Any other facts or circumstances shown by evidence having any bearing on the question.
. The court’s holding in
Grinnell
regarding the addictive nature of cigarettes has been superseded by statute as stated by the Fifth Circuit Court of Appeals in
Sanchez v. Liggett & Myers, Inc.,
. In
Arnold,
the district court in Rhode Island stated that "the dangers of smoking and the addictive nature of nicotine have become common knowledge in today’s society.”
Arnold,
. In
Lonkowski,
the district court held that " [although a precise finding of when the dangers of cigarettes become common knowledge is beyond the scope of this ruling, the court notes that as early as 1952, prior to the start of Mr. Londkowski’s smoking, knowledge of the dangers of cigarettes was widespread.”
Id.,
. See supra note 6 for a more detailed discussion of the Sanchez decision.
. Under Iowa law, fraudulent nondisclosure and fraudulent concealment are the same. Therefore, for purposes of this motion to dismiss, the court will refer to fraudulent nondisclosure and fraudulent concealment interchangeably.
. Iowa Code § 554.2313 states in full that:
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.
c.Any sample or model which is made part of the basis of the bargain creates an express warranty that the whole of the goods shall conform to the sample or model.
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 the seller 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.
. “It is the policy of the Congress, and the purpose of this chapter, to establish a comprehensive Federal program to deal with cigarette labeling and advertising with respect to any relationship between smoking and health, whereby—
"(1) the public may be adequately informed that cigarette smoking may be hazardous to health by inclusion of a warning to that effect on each package of cigarettes; and "(2) commerce and the national economy may be (A) protected to the maximum extent consistent with this declared policy and (B) not impeded by diverse, nonuniform, and confusing cigarette labeling and advertising regulations with respect to any relationship between smoking and health.”
15 U.S.C. § 1331 (1982 ed.);
See also Food & Drug Admin, v. Brown & Williamson Tobacco Corp.,
. Plaintiffs refer to a 1997 law review article in support of their argument that package-based failure to warn claims are not preempted by the Labeling Act. See Michael D. Green, Cipollone Revisited: A Not So Little Secret About the Scope of Cigarette Preemption, 82 Iowa L.Rev. 1257 (1997).
. In his article, Green takes issue with this point, arguing that the
Cipollone
court found that the 1965 Labeling Act did not preempt warnings claims despite the existence of this statement of purpose. This, however, is undoubtedly the reason that Congress amended the 1965 Labeling Act with the broader language contained in the 1969 version of the Labeling Act that extended § 5(b)’s preemptive reach.
Cipollone,
. Defendаnts also contend that in light of the common knowledge of the risks of cigarette smoking, they had not duty to provide Mr. Wright with any additional information. This argument is unavailing as this court has previously refused to take judicial notice of the fact that the risks of smoking are common knowledge. The court reiterates that taking *829 judicial notice as to whether or not the risks of smoking are common knowledge would be improper at this motion to dismiss stage.
. Plaintiffs assert that despite the inapplicability of § 323 they still state a claim for relief because Restatement (Second) of Torts § 324A, which has been adopted by the Iowa Supreme Court, is closely related to § 323. § 324A provides:
One who undertakes, gratuitously or for consideration, to render services to another which he should recognize as necessary for the protection of a third person or his things, is subject to liability to the third person for physical harm resulting from his failure to exercise reasonable care to protect his undertaking, if
(a) his failure to exercise reasonable care increases the risk of such harm, or
(b) he has undertaken to perform a duty owed by the other to the third person, or
(c) the harm is suffered because of reliance of the other or the third person upon the undertaking.
The rule stated in this section parallels the one stated in § 323, as to the liability of the actor to the one to whom he has undertaken to render services. This section, however, deals with liability to third persons.
. Because the court previously articulated the elements for fraudulent misrepresentation and fraudulent nondisclosure in the section Bl, a reprisal of these elements here is unnecessary.
. See discussion under heading Bl.
. In support of plaintiffs' argument for permission to amend their fraud complaint in accordance with Rule 9(b), they impress upon the court that this case was originally filed in state court, having been removed by defendants to federal court, and that Iowa's state court standards for pleading fraud are substantially less stringent than those imposed by Rule 9(b).
. Iowa Civil Instructions 3500.1, "Essentials for Recovery-Conspiracy,” states: In order to recover for the claim of conspiracy, the plaintiff must prove all of the following propositions:
1.(Name of co-conspirator) committed the wrong of (describe the alleged wrong), as defined in Instruction No. --
2. The defendant participated in a conspiracy with (name of co-conspirator) to (describe the alleged wrong).
3. The nature and extent of damage.
The Note to this instruction provides: The "wrong” must be a tortious act.
But see Robbins,
