Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 1 of 20 Page ID #:406 1 2 3 4 5 6 7 M.D. SCULLY (SBN: 135853) mscully@gordonrees.com JUSTIN D. LEWIS (SBN: 239686) jlewis@gordonrees.com GORDON & REES, L.L.P. 101 W. Broadway, suite 2000 San Diego, California 92101 Telephone: (619) 696-6700 Facsimile: (619) 696-7124 Attorneys for defendants L’ORÈAL USA, INC., and SOFT SHEEN-CARSON, L.L.C. 8 9 UNITED STATES DISTRICT COURT 10 CENTRAL DISTRICT OF CALIFORNIA 19 ) ) ) ) ) ) ) ) ) ) ) ) ) 20 NOTICE OF MOTION Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 11 12 SHARON MANIER and DOROTHY RILES, Plaintiffs, 13 14 15 16 17 18 21 vs. L’ORÈAL USA, INC., and SOFT SHEEN-CARSON, L.L.C., Defendants. Case no. 16-cv-6886-ODW-KSx NOTICE OF DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS; MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT THEREOF (F.R.C.P. 12(C)) Date: Jan. 23, 2017 Time: 1:30 p.m. Judge: Hon. Otis D. Wright II TO ALL PARTIES AND THEIR COUNSEL OF RECORD: 22 PLEASE TAKE NOTICE THAT, at 1:30 p.m. on January 23, 2017, before 23 Hon. Judge Otis D. Wright II in Courtroom 11 of the United States District Court 24 for the Central District of California, located at 312 North Spring Street, Los 25 Angeles, California, or as soon thereafter as the matter may be heard, defendants 26 Soft Sheen-Carson, L.L.C., and L’Oreal USA, Inc. (together, “Defendants”), shall 27 and hereby do move this Court for judgment on the pleadings pursuant to Rule 28 12(c) of the Federal Rules of Civil Procedure as to (1) the entire complaint of -1DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 2 of 20 Page ID #:407 1 plaintiffs Sharon Mainer and Dorothy Riles, and (2) its cause of action for unjust 2 enrichment. 3 4 safety warnings on the exterior packaging of the disputed consumer product render 5 implausible the theory underlying each cause of action in the complaint; and (2) 6 that the complaint does not and cannot state a cause of action for unjust 7 enrichment. 8 9 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 This motion is made on the following independent grounds: (1) that the This motion is made following conferences of counsel pursuant to Local Rule 7-3, which took place on November 16, 2016. 10 This motion is and will be based on this notice of motion, the accompanying 11 memorandum of points and authorities, the exhibit filed herewith, the pleadings on 12 file in this matter, and any arguments presented at the hearing of this motion. 13 Dated: December 15, 2016 14 15 16 17 GORDON & REES, L.L.P. By:/s/ Justin D. Lewis M.D. Scully Justin D. Lewis Attorneys for defendants L’ORÈAL USA, INC., and SOFT SHEEN-CARSON, L.L.C. 18 19 20 21 22 23 24 25 26 27 28 -2DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 3 of 20 Page ID #:408 1 TABLE OF CONTENTS 2 Page 3 I. INTRODUCTION ........................................................................................... 1 4 II. FACTS............................................................................................................. 1 5 III. ARGUMENT .................................................................................................. 2 6 A. 7 1. 8 B. 9 10 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 11 12 13 14 15 Plaintiffs Must Have Pleaded Plausible Claims To Survive This Motion. .................................................................................................. 2 C. IV. The Court Should Consider the Relaxer’s Packaging. ............... 3 Reasonable Consumers Do Not Take the Implausible Interpretation of the Product’s Packaging Upon Which All of Plaintiffs’ Claims Ultimately Rely. ...................................................... 4 1. All of Plaintiffs’ Claims Depend on Reasonable Consumers Adopting Plaintiffs’ Interpretation of the Packaging. ................................................................................... 4 2. Reasonable Consumers Do Not Take Plaintiffs’ Interpretation of the Packaging’s Statements. ............................ 6 There Is No Cause of Action for Unjust Enrichment Here. ............... 12 CONCLUSION ............................................................................................. 13 16 17 18 19 20 21 22 23 24 25 26 27 28 -iDEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 4 of 20 Page ID #:409 1 TABLE OF AUTHORITIES 2 3 4 Arevalo v. Bank of Am. Corp., 850 F. Supp. 2d 1008 (N.D. Cal. 2011) ............................................................... 12 5 6 7 8 9 10 11 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 Page(s) Cases 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Ashcroft v. Iqbal, 556 U.S. 662 (2009)............................................................................................... 3 Astiana v. Hain Celestial Grp., Inc. 783 F.3d 753 (9th Cir. 2015) ............................................................................... 12 Balistreri v. Pacifica Police Dep't, 901 F.2d 696 (9th Cir. 1990) ................................................................................. 3 Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007)............................................................................................... 3 Bruton v. Gerber Products Co., 961 F. Supp. 2d 1062 (N.D. Cal. 2013) ............................................................... 12 Cafasso, U.S. ex rel. v. General Dynamics C4 Systems, Inc., 637 F.3d 1047 (9th Cir. 2011) ............................................................................... 2 Chavez v. United States, 683 F.3d 1102 (9th Cir. 2012) ............................................................................... 2 Colgan v. Leatherman Tool Grp., Inc., 135 Cal. App. 4th 663 (2006) ................................................................................ 5 Davis v. HSBC Bank Nevada, N.A., 691 F.3d 1152 (9th Cir. 2012) ............................................................................... 3 Delacruz v. Cytosport, Inc., No. 11-3532, 2012 U.S. Dist. LEXIS 51094 (N.D. Cal. Apr. 11, 2012) .................................................................................................................... 10 Ebner v. Fresh, Inc., 818 F.3d 799 (9th Cir. 2016) ................................................................................. 9 Erickson v. Boston Scientific Corp., 846 F.Supp.2d 1085 (C.D. Cal. 2011) ................................................................... 2 Freeman v. Time, Inc., 68 F.3d 285 (9th Cir. 1995) ................................................................................... 6 Gallagher v. Chipotle Mexican Grill, Inc., No. 15-cv-03952-HSG, 2016 U.S. Dist. LEXIS 14479 (N.D. Cal. Feb. 5, 2016) .......................................................................................................... 9 Gerlinger v. Amazon.com, Inc., 311 F. Supp. 2d 838 (N.D. Cal. 2004) ................................................................. 13 -iiDEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 5 of 20 Page ID #:410 1 2 3 4 Henderson v. Gruma Corp., No. 10-4173, 2011 U.S. Dist. LEXIS 41077 (C.D. Cal. Apr. 11, 2011) .................................................................................................................... 11 5 Hill v. Roll Internet. Corp., 195 Cal. App. 4th 1295 (2011) ............................................................................ 12 6 In re Sony Gaming Networks & Customer Data Sec. Breach Litig., 903 F. Supp. 2d 942 (S.D. Cal. 2012) ................................................................... 5 7 8 Lavie v. Procter & Gamble Co., 105 Cal. App. 4th 496 (2003) ................................................................................ 5 9 Lee v. City of Los Angeles, 250 F.3d 668 (9th Cir. 2001) ................................................................................. 3 10 11 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 Girard v. Toyota Motor Sales, U.S.A., Inc., 316 F.App'x 561 (9th Cir. 2008) ( ......................................................................... 6 12 13 14 15 16 17 18 19 20 21 Phillips v. P.F. Chang's China Bistro, Inc., No. 15-CV-0344-RMW, 2015 U.S. Dist. LEXIS 103481 (N.D. Cal. Aug. 6, 2015)................................................................................................ 12 Red v. Kraft Foods, Inc., No. CV 10-1028-GW, 2012 U.S. Dist. LEXIS 164461 (C.D. Cal. Oct. 25, 2012) ...................................................................................................... 11 Reid v. Johnson & Johnson, 780 F.3d 952 (9th Cir. 2015) ................................................................................. 5 Smith v. Allmax Nutrition, Inc., No. 15-CV-0744-SAB, 2015 U.S. Dist. LEXIS 171897 (E.D. Cal. Dec. 23, 2015)...................................................................................................... 12 Sprewell v. Golden State Warriors, 266 F.3d 979 (9th Cir. 2001) ................................................................................. 3 Strumlauf v. Starbucks Corp., No.16-cv-01306-TEH, 2016 U.S. Dist. LEXIS 79456 (N.D. Cal. Jun. 17, 2016)....................................................................................................... 13 22 Temple v. Velcro U.S., 148 Cal. App. 3d 1090 (1983) ............................................................................... 6 23 United States v. Corinthian Colls., 655 F.3d 984 (9th Cir. 2011) ................................................................................. 3 24 25 26 27 Werbel v. Pepsico, Inc., No. C-09-04456-SBA, 2010 U.S. Dist. LEXIS 76289 (N.D. Cal. Jul. 1, 2010) ........................................................................................................... 5 Williams v. Gerber Prods. Co., 552 F.3d 934 (9th Cir. 2008) ................................................................................. 5 28 -iiiDEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 6 of 20 Page ID #:411 1 2 3 Workman v. Plum, Inc., 141 F. Supp. 3d 1032 (N.D. Cal. 2015) ............................................................... 11 Rules 4 Federal Rules of Civil Procedure Rule 12 ................................................................................................................... 2 5 Regulations 6 2-12 MOORE’S FEDERAL PRACTICE – CIVIL Section 12.38 ......................................................................................................... 2 7 8 9 10 50A CA. JUR. 3D Products Liability § 95 .................................................................. 6 James M. Wagstaffe et al., FEDERAL CIVIL PROCEDURE BEFORE TRIAL p. 9-126, ¶ 9:339.1 (The Rutter Group 2016) ........................................................ 3 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -ivDEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 7 of 20 Page ID #:412 1 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 2 MEMORANDUM OF POINTS AND AUTHORITIES I. INTRODUCTION 3 In this putative class action, the plaintiffs allege that they purchased a 4 chemical hair straightening product because they interpreted its packaging or other 5 advertising as minimizing or concealing the product’s capacity to cause injury. 6 The product is used safely when consumers follow it instructions and heed its 7 safety warnings. Those warnings foreclose the plaintiffs’ unreasonable 8 interpretation of the collection of marketing statements they challenge. Moreover, 9 the unjust enrichment claim fails as a matter of law. As such, judgment on the 10 pleadings is proper in the defense’s favor. 11 II. FACTS 12 Plaintiffs Sharon Manier and Dorothy Riles (together, “Plaintiffs”) contend 13 that defendant Soft Sheen-Carson, L.L.C., and its corporate parent L’Oreal USA, 14 Inc. (together, “Defendants”), sold them a chemical hair-relaxing consumer 15 product by misrepresenting and concealing the product’s capacity to cause 16 personal injuries. The disputed product is called the “Soft Sheen-Carson Amla 17 Legend Relaxer” (“Relaxer”). See complaint, ¶ 1. 18 More particularly, Plaintiffs allege that Defendants misled them and other 19 consumers to believe that the Relaxer’s “key ingredient Amla Oil,” and its lack of 20 lye as an ingredient, eliminated or greatly reduced the “safe,” “nourishing” 21 product’s capacity to cause personal injuries, “including hair loss and breakage, as 22 well as scalp irritation, blisters, and burns.” Complaint, ¶¶ 3-4. Plaintiffs allege 23 that they suffered such injuries after using the Relaxer. Id. at ¶¶ 13-14. 24 Based on these allegations, the complaint asserts the following causes of 25 action: (1) violation of California’s Consumers Legal Remedies Act (“CLRA”) 26 (Cal. Civil Code, § 1750), (2) violation of California’s False Advertising Law 27 (“FAL”) (Cal. Bus. & Prof. Code, § 17500), (3) violation of California’s Unfair 28 Competition Law (“UCL”) (Cal. Bus. & Prof. Code, § 17200), (4) violation of -1DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 8 of 20 Page ID #:413 1 Illinois’s Consumer Fraud and Deceptive Business Practices Act (815 Ill. Comp. 2 Stats. 505/1 et seq.), (5) breach of express warranty, (6) breach of the implied 3 warranty of merchantability, (7) unjust enrichment, (8) fraud, and (9) negligence. Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 4 Plaintiffs purport to represent a fifty-state class of “all persons in the United 5 States” who purchased the Relaxer “within the relevant statute of limitations 6 period.” Complaint, ¶ 55. They allege the warranty, unjust enrichment, fraud, and 7 negligence claims on behalf of that putative national class. Id. at ¶¶ 117, 127, 138, 8 143, 152. Plaintiff Manier, a California resident, asserts the CLRA, FAL, and 9 UCL claims on behalf of a putative subclass comprising all members of the 10 purported national class “who purchased the Product in California.” Id. at ¶¶ 56, 11 68, 82, 90. Plaintiff Riles, an Illinois domiciliary, asserts the claim for violation of 12 the Illinois statute on behalf of an Illinois subclass. Id. at ¶¶ 57, 102. 13 III. 14 15 16 ARGUMENT A. Plaintiffs Must Have Pleaded Plausible Claims To Survive This Motion. “After the pleadings are closed – but early enough not to delay trial – a party 17 may move for judgment on the pleadings.” Fed. R. Civ. P. 12(c). In deciding a 18 Rule 12(c) motion for judgment on the pleadings, a court applies the same 19 standards applicable to a Rule 12(b)(6) motion to dismiss. Cafasso, U.S. ex rel. v. 20 General Dynamics C4 Systems, Inc., 637 F.3d 1047, 1054, fn. 4 (9th Cir. 2011) 21 (“Rule 12(c) is ‘functionally identical’ to Rule 12(b)(6)”); Erickson v. Boston 22 Scientific Corp., 846 F.Supp.2d 1085, 1089 (C.D. Cal. 2011); 2-12 MOORE’S 23 FEDERAL PRACTICE – CIVIL § 12.38 (“any distinction between [the motions] is 24 merely semantic”). This includes the “plausibility” pleading standard. Chavez v. 25 United States, 683 F.3d 1102, 1108-1109 (9th Cir. 2012). 26 Under the plausibility pleading standard, a complaint will fail either for a 27 lack of a cognizable legal theory, or for insufficient facts pleaded to support an 28 otherwise cognizable legal theory. Balistreri v. Pacifica Police Dep't, 901 F.2d -2DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 9 of 20 Page ID #:414 1 696, 699 (9th Cir. 1990). To survive such a pleading challenge, a complaint’s 2 factual “allegations must be enough to raise a right to relief above the speculative 3 level.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). That is, the 4 complaint must “contain sufficient factual matter, accepted as true, to state a claim 5 to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). 6 A claim is plausible on its face only if “the plaintiff pleads factual content that 7 allows the court to draw the reasonable inference that the defendant is liable for the 8 misconduct alleged.” Id. The determination whether a complaint satisfies the 9 plausibility standard is a “context-specific task that requires the reviewing court to Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 10 draw on its judicial experience and common sense.” Id. at 679. 11 A court must construe all “factual allegations set forth in the complaint…as 12 true and…in the light most favorable” to the plaintiff. Lee v. City of Los Angeles, 13 250 F.3d 668, 688 (9th Cir. 2001). However, a court need not blindly accept 14 conclusory allegations, unwarranted deductions of fact, and unreasonable 15 inferences. Sprewell v. Golden State Warriors, 266 F.3d 979, 988 (9th Cir. 2001). 16 17 1. The Court Should Consider the Relaxer’s Packaging. When a considering a Rule 12(c) motion for judgment on the pleadings, a 18 court must usually constrain its analysis to the facts alleged in the complaint. 19 However, if a complaint relies on the content of a document but fails to attach it as 20 an exhibit, a court may consider the document in deciding a pleading challenge. 21 See Davis v. HSBC Bank Nevada, N.A., 691 F.3d 1152, 1159-1160 (9th Cir. 2012); 22 United States v. Corinthian Colls., 655 F.3d 984, 999 (9th Cir. 2011); see James 23 M. Wagstaffe et al., FEDERAL CIVIL PROCEDURE BEFORE TRIAL p. 9-126, ¶ 9:339.1 24 (The Rutter Group 2016) (“Similar to a Rule 12(b)(6) motion, in resolving a Rule 25 12(c) motion, the court can consider (without converting the motion to a summary 26 judgment)…any documents attached to or mentioned in the pleadings…[and] 27 documents not attached but integral to the claims”). 28 Here, the Court can and should consider Plaintiffs’ theory by reference to the -3DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 10 of 20 Page ID #:415 1 Relaxer’s exterior packaging, including the side panel of safety warnings appearing 2 on every carton, and not just the particular statements that the complaint highlights 3 in isolation. Even though the complaint does not include the packaging as an 4 exhibit, its allegations refer repeatedly and indispensably to the packaging’s 5 statements. Complaint, ¶ 13 (plaintiff Manier viewed “statements on Product 6 packaging”), ¶ 14 (plaintiff Riles, too), ¶ 30 (challenged representations “appear 7 directly on packaging for the Amla Relaxer hair relaxer kit”), ¶ 31, ¶ 32, ¶ 33 8 (“packaging for the Amla Relaxer contains the following representations…”), ¶ 40 9 (“representing on the front of the Product packaging…”), ¶ 41 (retailers’ websites 10 used “images of the Product packaging”), ¶ 52 (alleging no “adequate warning or 11 instruction on the Product packaging”). 12 Accordingly, the complaint incorporates the exterior packaging by reference, 13 rendering it appropriate material to consider in ruling on this motion. Defendants 14 therefore submit the Relaxer’s exterior packaging as exhibit A, and respectfully 15 request that the Court consider it in ruling on this motion. 16 17 18 B. Reasonable Consumers Do Not Take the Implausible Interpretation of the Product’s Packaging Upon Which All of Plaintiffs’ Claims Ultimately Rely. The gravamen of the complaint and each of its counts is that various 19 statements on the Relaxer’s packaging and elsewhere merged into an implied 20 misrepresentation that Amla extract was a predominant ingredient which, in place 21 of lye, eliminated or greatly lessened the product’s capacity to cause personal 22 injuries. However, the complaint cites no instances of Defendants actually making 23 such a representation, and the Relaxer’s safety warnings prevent reasonable 24 consumers from interpreting the statements cited in the complaint as Plaintiffs do. 25 26 27 28 1. All of Plaintiffs’ Claims Depend on Reasonable Consumers Adopting Plaintiffs’ Interpretation of the Packaging. Each of count of complaint ultimately depends upon whether reasonable consumers interpret the Relaxer’s packaging in the same way Plaintiffs do. -4DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 11 of 20 Page ID #:416 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 1 To state a claim under the CLRA, FAL, or UCL, the plaintiff must plausibly 2 allege that the defendant’s purported misrepresentations are likely to deceive a 3 reasonable consumer. See Williams v. Gerber Prods. Co., 552 F.3d 934, 938 (9th 4 Cir. 2008) (explaining that unless the advertisement at issue targets a particularly 5 vulnerable group, courts must evaluate claims for false or misleading advertising 6 from the perspective of a reasonable consumer); see also Reid v. Johnson & 7 Johnson, 780 F.3d 952, 958 (9th Cir. 2015) (“It is true that violations of the UCL, 8 FAL, and CLRA are evaluated from the vantage point of a ‘reasonable 9 consumer.’”) “A reasonable consumer is ‘the ordinary consumer acting reasonably 10 under the circumstances.’” Davis v. HSBC Bank Nevada, N.A., 691 F.3d 1152, 11 1161-1162 (9th Cir. 2012). 12 “Likely to deceive implies more than a mere possibility that the 13 advertisement might conceivably be misunderstood by some few consumers 14 viewing it in an unreasonable manner.” In re Sony Gaming Networks & Customer 15 Data Sec. Breach Litig., 903 F. Supp. 2d 942, 967 (S.D. Cal. 2012) (citing Lavie v. 16 Procter & Gamble Co., 105 Cal. App. 4th 496, 508 (2003)). Instead, “the phrase 17 indicates that the ad is such that it is probable that a significant portion of the 18 general consuming public or of targeted consumers, acting reasonably in the 19 circumstances, could be mislead [sic].” Id. In determining whether a statement is 20 misleading under the statute, the primary evidence in a false advertising case is the 21 advertising itself. Colgan v. Leatherman Tool Grp., Inc., 135 Cal. App. 4th 663, 22 679 (2006). “[W]here a court can conclude as a matter of law that members of the 23 public are not likely to be deceived by the product packaging, dismissal is 24 appropriate.” Werbel v. Pepsico, Inc., No. C-09-04456-SBA, 2010 U.S. Dist. 25 LEXIS 76289 at *8-*9 (N.D. Cal. Jul. 1, 2010). 26 Thus, the complaint’s CLRA, FAL, and UCL claims all rely on Plaintiffs’ 27 theory that reasonable consumers interpreted the Relaxer’s advertising to mean that 28 its ingredients eliminated or greatly lessened its capacity to cause injury. So, too, -5DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 12 of 20 Page ID #:417 1 do the claim under the Illinois Consumer Fraud and Deceptive Business Practices 2 Act, the two warranty claims, the unjust enrichment claim, and the fraud claim, 3 each of which the complaint expressly bases on Defendants’ alleged 4 misrepresentations or concealments of the Relaxer’s injurious capacities. 5 Complaint, ¶¶ 110-111, ¶ 119, ¶ 121, ¶ 132, ¶ 134, ¶ 140, ¶¶ 146-147; Freeman v. 6 Time, Inc., 68 F.3d 285, 289 (9th Cir. 1995) (common law fraud claim requires 7 showing that the advertisement would mislead a reasonable person); Temple v. 8 Velcro U.S., 148 Cal. App. 3d 1090, 1094 (1983) (adequate warning bars 9 negligence and express and implied warranty claims); 50A CA. JUR. 3D Products 10 Liability § 95 (“adequate warning is a proper disclaimer to any express or implied 11 warranties”). 12 Similarly, the negligence claim also distills to an allegation that Defendants 13 negligently misrepresented or failed to warn of the Relaxer’s capacity to injure its 14 users. Complaint, ¶ 160 (alleging Defendants “failed to disclose…the risks and 15 adverse effects associated with the Product”); id. at ¶ 162 (“Defendants’ false 16 representations were recklessly and/or negligently made”); Girard v. Toyota Motor 17 Sales, U.S.A., Inc., 316 F.App'x 561, 562 (9th Cir. 2008) (equating “justifiable 18 reliance” element of negligent misrepresentation to the “reasonable consumer” 19 standard). 20 21 22 2. Reasonable Consumers Do Not Take Plaintiffs’ Interpretation of the Packaging’s Statements. Plaintiffs did not include the packaging with their complaint because it 23 refutes the fundamental basis of each of their claims: that Defendants somehow 24 led reasonable consumers to believe that the Relaxer’s Amla extract ingredient, in 25 place of lye, eliminated or greatly reduced the product’s supposedly concealed 26 capacity to cause personal injuries. Yet, not only does the complaint fail to allege 27 that Defendants ever made such a representation outright, but the packaging’s 28 repeated warnings of the Relaxer’s capacity to cause injury also foreclose the -6DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 13 of 20 Page ID #:418 1 possibility that reasonable consumers would interpret the collection of statements 2 cited in the complaint in the way that Plaintiffs urge. Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 3 In particular, on both the carton’s front and top panels appears this identical 4 advisement: “IMPORTANT – READ & FOLLOW THE SAFETY WARNINGS.” 5 That advisement features an arrow referring consumers to the packaging’s side 6 panel, which is occupied entirely by this table of detailed warnings about the 7 product’s dangers under the heading “IMPORTANT – READ BEFORE 8 PURCHASING”: 9 /// 10 /// 11 /// 12 /// 13 /// 14 /// 15 /// 16 /// 17 /// 18 /// 19 /// 20 /// 21 /// 22 /// 23 /// 24 /// 25 /// 26 /// 27 /// 28 /// -7DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 14 of 20 Page ID #:419 1 2 3 4 5 6 7 8 9 10 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Against Plaintiffs’ claim that Defendants represented the Relaxer as “safe” 26 and “gentler on…hair and skin as compared to a lye-based relaxer” (complaint, ¶¶ 27 13-14), in fact the exterior packaging unambiguously described the Relaxer’s 28 capacity to “cause serious injury to eyes and skin” and to “damage hair or result in -8DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 15 of 20 Page ID #:420 1 permanent hair loss.” Relaxer packaging, exhibit A. Far from concealing the 2 Relaxer’s caustic character, the packaging warns that the Relaxer “[c]ontains 3 alkali” such that users must “[w]ear gloves provided in the kit throughout the 4 relaxing process” and “[k]eep [the] relaxer off scalp and other skin areas,” or, 5 failing that, “rinse immediately” “[i]n case of contact with skin.” Id. The same 6 warning panel advises that the Relaxer is dangerous enough to “cause blindness” 7 “[i]n case of contact with eyes.” Id. 8 Yet, the complaint theorizes that reasonable consumers interpret the 9 packaging and its warnings of “blindness,” “serious injury to…skin,” “damage[d] 10 hair,” and “permanent hair loss” to somehow mean that the Relaxer is a “safe, 11 nourishing, and gentle” “alternative to lye-based relaxers,” less likely to “cause 12 irritation [or] to be harsh on hair and skin.” Complaint, ¶¶ 33-34. However, the 13 packaging contains no such representation that the Relaxer is any safer or less 14 injurious than other chemical hair-straightening products, and nowhere does the 15 complaint cite one. Moreover, the packaging’s repeated warnings of the Relaxer’s 16 capacity to cause injuries renders it unreasonable for Plaintiffs or others to give the 17 various representations challenged in the complaint the collective interpretation the 18 complaint suggests. See Gallagher v. Chipotle Mexican Grill, Inc., No. 15-cv- 19 03952-HSG, 2016 U.S. Dist. LEXIS 14479 at *11 (N.D. Cal. Feb. 5, 2016) 20 (“Defendant explicitly disclosed the facts that Plaintiff complains were 21 misrepresented”). 22 That is especially true because reasonable users of hair relaxer products 23 understand that they work by chemically weakening the structural bonds of hair in 24 order to straighten it. See complaint, ¶ 40 (implicitly admitting that consumers of 25 hair relaxers understand that such products are not “mild[]” or “gentle[]”); Ebner v. 26 Fresh, Inc., 818 F.3d 799, 807 (9th Cir. 2016) (lip balm's mechanism that only 27 allowed 75% of product to come out of tube was not deceiving because reasonable 28 consumers of lip balm “understand[] the general mechanics of [lip balm -9DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 16 of 20 Page ID #:421 1 2 Faced with the tension between their theory and the packaging’s multiple 3 disclosures of the Relaxer’s capacity to injure, Plaintiffs might steer the focus to 4 their allegations that it was false or misleading to label the product “NO-LYE” or 5 as “infused with…AMLA OIL.” Complaint, ¶ 33 (“The Amla Relaxer packaging 6 prominently displays the gold droplet of Amla Oil”), ¶ 45 (alleging that “NO- 7 LYE” representation is misleading). Those allegations are ineffective to save the 8 complaint. 9 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 dispensers]”). Plaintiffs’ theory is not that the relaxing agent actually contains lye, or 10 sodium hydroxide. The complaint contains no allegation that it does, but only an 11 insufficient allegation that the matter is “unclear.” Complaint, ¶ 46. Though they 12 contend that the relaxing agent’s ingredient, lithium hydroxide, is as “dangerous 13 and caustic” as lye (complaint, ¶ 39), they do not and cannot contend that 14 Defendants misrepresented or concealed the presence of that ingredient. Id. at ¶ 15 44 (admitting Defendants disclosed presence of lithium hydroxide); see Delacruz 16 v. Cytosport, Inc., No. 11-3532, 2012 U.S. Dist. LEXIS 51094, at *18-*19, *33 17 (N.D. Cal. Apr. 11, 2012) (dismissing claim that “0g Trans Fat” was rendered 18 misleading by product’s containing certain other fats and oils which plaintiff did 19 not allege to be transfats). No reasonable consumer would gather than the product 20 is not “caustic” when faced with exterior packaging containing warnings like 21 “[c]ontains alkali,” “[w]ear gloves,” “[c]an cause blindness,” “serious injury 22 to…skin,” and “permanent hair loss.” Relaxer packaging, exhibit A. 23 Nor is it Plaintiffs’ theory that the product does not contain Amla extract. 24 The complaint admits that it does. Complaint, ¶ 5. Still, the complaint protests 25 that “the Product contains hardly any Amla Oil” (id.), as though Plaintiffs might 26 resort to the theory that Defendants misled consumers about the product’s quantity 27 of Amla extract. See complaint, ¶ 31 (“packaging prominently displays the gold 28 droplet of Amla Oil”). Yet, the complaint does not allege that Defendants ever -10DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 17 of 20 Page ID #:422 1 misrepresented the quantity of Amla extract. The packaging does not contain any 2 representations regarding the quantity of Amla extract or what relative proportion 3 of it comprises the product. Relaxer packaging, exhibit A. 4 Instead, reasonable consumers would not conclude that the Relaxer contains 5 any particular quantum of Amla extract, but only that it contains some, as Plaintiffs 6 admit it does. Complaint, ¶ 5. Reasonable consumers know that the presence of 7 an ingredient on a product’s label does not signify that the ingredient predominates 8 the product’s composition. Workman v. Plum, Inc., 141 F. Supp. 3d 1032, 1036 9 (N.D. Cal. 2015) (“The products at issue do not display any affirmative 10 misrepresentations. They merely show pictures of featured ingredients contained in 11 the puree pouch and fruit bars. No reasonable consumer would expect the size of 12 the flavors pictured on the label to directly correlate with the predominance of the 13 pictured ingredient in the puree blend.”); Henderson v. Gruma Corp., No. 10-4173, 14 2011 U.S. Dist. LEXIS 41077 at *33-34 (C.D. Cal. Apr. 11, 2011) (dismissing 15 with prejudice “Plaintiffs’ claims associated with the phrase ‘With Garden 16 Vegetables’” because the product at issue there did “in fact contain vegetables that 17 can be grown in a garden…The labeling statement does not claim a specific 18 amount of vegetables in the product, but rather speaks to their presence in the 19 product, which is not misleading [as a matter of law].”); Red v. Kraft Foods, Inc., 20 No. CV 10-1028-GW, 2012 U.S. Dist. LEXIS 164461 at *2-*3 (C.D. Cal. Oct. 25, 21 2012) (no reasonable consumer would read “packaging [that] boasts that the 22 crackers are made with real vegetables and depicts vegetables” to mean that the 23 crackers are “contain[] a significant amount of vegetables.”) (emphasis in original). 24 In either event, the “NO-LYE” and “AMLA OIL” statements are not 25 separately viable theories of Plaintiffs’ case, but rather, they are inextricable 26 components of Plaintiffs’ overarching theory that, despite the packaging’s candid 27 safety warnings, Defendants somehow concealed or misrepresented the product’s 28 injurious capacities. In other words, Plaintiffs allege that they interpreted “NO-11DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 18 of 20 Page ID #:423 1 LYE” and the product’s use of Amla extract as an ingredient to mean that the 2 product was “safe, nourishing, and gentle.” Id. at ¶ 33. Yet, reasonable consumers 3 would not interpret “NO-LYE” or “infused with…AMLA OIL” that way in 4 context with the exterior packaging’s repeated disclosures of the product’s 5 capacities to injure. Relaxer packaging, exhibit A. 6 7 unreasonable interpretation of the collection of statements upon which they base 8 their complaint, judgment on the pleadings is warranted in Defendants’ favor. 9 10 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 In sum, because the packaging and its candid warnings preclude Plaintiffs’ C. There Is No Cause of Action for Unjust Enrichment Here. Plaintiffs assert a purported claim for unjust enrichment as their seventh 11 cause of action. Complaint, ¶¶ 137-141. Courts have held on multiple occasions 12 that, under California law, unjust enrichment does not exist as a separate cause of 13 action. See, e.g., Bruton v. Gerber Products Co., 961 F. Supp. 2d 1062, 1099 14 (N.D. Cal. 2013) (“there is no distinct cause of action for unjust enrichment under 15 California law.”); Arevalo v. Bank of Am. Corp., 850 F. Supp. 2d 1008, 1028 (N.D. 16 Cal. 2011); Hill v. Roll Internet. Corp., 195 Cal. App. 4th 1295, 1307 (2011) 17 (“Unjust enrichment is not a cause of action, just a restitution claim.”). 18 Defendants anticipate that Plaintiffs will urge the Court to construe the 19 unjust enrichment cause of action as a quasi-contract claim seeking restitution. See 20 Astiana v. Hain Celestial Grp., Inc. 783 F.3d 753, 762 (9th Cir. 2015). However, 21 “there cannot be a claim based on quasi-contract where there exists between the 22 parties a valid express contract covering the same subject matter.” Smith v. Allmax 23 Nutrition, Inc., No. 15-CV-0744-SAB, 2015 U.S. Dist. LEXIS 171897 at *9 (E.D. 24 Cal. Dec. 23, 2015) (dismissing cause of action for unjust enrichment where 25 plaintiff also claimed breach of express warranty); see also Phillips v. P.F. Chang's 26 China Bistro, Inc., No. 15-CV-0344-RMW, 2015 U.S. Dist. LEXIS 103481 at *9 27 (N.D. Cal. Aug. 6, 2015) (“It is well settled that an action based on an implied-in- 28 fact or quasi-contract cannot lie where there exists between the parties a valid -12DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 19 of 20 Page ID #:424 1 express contract covering the same subject matter.”); Gerlinger v. Amazon.com, 2 Inc., 311 F. Supp. 2d 838, 856 (N.D. Cal. 2004). 3 4 action for breach of an express warranty. Complaint, ¶¶ 116-125. Thus, no quasi- 5 contract claim may stand, and the unjust enrichment claim fails as a matter of law. 6 Strumlauf v. Starbucks Corp., No.16-cv-01306-TEH, 2016 U.S. Dist. LEXIS 7 79456 at *14 (N.D. Cal. Jun. 17, 2016) (no unjust enrichment claim, construed as 8 quasi-contract theory, available where complaint alleged express warranty). 9 IV. 10 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 Here, Plaintiffs allege an express contract by asserting their fifth cause of CONCLUSION For the foregoing reasons, Defendants respectfully request that the Court 11 grant this motion in its entirety. 12 Dated: December 15, 2016 13 14 15 16 17 GORDON & REES, L.L.P. By: /s/ Justin D. Lewis M.D. Scully Justin D. Lewis Attorneys for defendants L’ORÈAL USA, INC., and SOFT SHEEN-CARSON, L.L.C. 18 19 20 21 22 23 24 25 26 27 28 -13DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx Case 2:16-cv-06886-ODW-KS Document 43 Filed 12/15/16 Page 20 of 20 Page ID #:425 1 Gordon & Rees LLP 101 W. Broadway Suite 2000 San Diego, CA 92101 2 CERTIFICATE OF SERVICE I am a resident of the state of California, over the age of eighteen years, and 3 not a party to the within action. My business address is: Gordon & Rees, L.L.P., 4 101 W. Broadway, Suite 2000, San Diego, California 92101. On December 15, 5 2016, I served the foregoing document entitled: NOTICE OF DEFENDANTS’ 6 MOTION FOR JUDGMENT ON THE PLEADINGS; MEMORANDUM OF 7 POINTS AND AUTHORITIES IN SUPPORT THEREOF (F.R.C.P. 12(C)) by 8 electronic service through the CM/ECF System which automatically generates of 9 Notice of Electronic Filing (“NEF”) and is sent by e-mail to all CM/ECF Users 10 who have appeared in the case in this Court. Service with this NEF will constitute 11 service pursuant to Federal Rules of Civil Procedure. 12 13 14 I declare under penalty of perjury under the laws of the United States of America that the above is true and correct. Executed on December 15, 2016 at San Diego, California. 15 /s/ Justin D. Lewis Justin D. Lewis 16 17 18 19 20 21 22 23 24 25 26 27 28 1126593/30820403v.1 -14DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS Case No. 16-cv-6886-ODW-KSx