Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 1 of 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 RACHELE R. RICKERT (190634) MARISA C. LIVESAY (223247) BRITTANY N. DEJONG (258766) WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP 750 B Street, Suite 2770 San Diego, CA 92101 Telephone: 619/239-4599 Facsimile: 619/234-4599 rickert@whafh.com livesay@whafh.com dejong@whafh.com JANINE POLLACK MICHAEL M. LISKOW (243889) CORREY A. KAMIN WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP 270 Madison Avenue New York, New York 10016 Tel : (212) 545-4600 Fax : (212) 686-0114 pollack@whafh.com liskow@whafh.com kamin@whafh.com BARNOW AND ASSOCIATES, P.C. BEN BARNOW ERICH P. SCHORK JEFFREY D. BLAKE ANTHONY L. PARKHILL One North LaSalle Street, Suite 4600 Chicago, IL 60602 Tel: (312) 621-2000 Fax: (312) 641-5504 b.barnow@barnowlaw.com e.schork@barnowlaw.com j.blake@barnowlaw.com aparkhill@barnowlaw.com Attorneys for Plaintiff 16 17 UNITED STATES DISTRICT COURT 18 FOR THE NORTHERN DISTRICT OF CALIFORNIA 19 20 21 22 WILLIAM A. SHIRLEY, individually and on behalf of all others similarly situated, 23 24 25 26 Plaintiff, Case No.: CLASS ACTION COMPLAINT v. L.L. BEAN, INC., a Maine corporation, JURY TRIAL DEMANDED Defendant. 27 28 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 2 of 29 1 Plaintiff William A. Shirley (“Plaintiff”), individually and on behalf of all others similarly 2 situated, upon personal knowledge as to facts pertaining to himself and on information and belief 3 as to all other matters, by and through his undersigned counsel, brings this class action complaint 4 against defendant L.L. Bean, Inc. (“L.L. Bean” or “Defendant”). 5 NATURE OF THE ACTION 1. 6 Since 1912, L.L. Bean has sought and earned the trust and respect of its customers 7 by providing a “100% Satisfaction Guarantee,” pursuant to which it has promised to exchange or 8 replace items if a customer determined that the item was not “completely satisfactory” (the 9 “Guarantee”). This highly publicized and widely known Guarantee has, for decades, been part 10 of the benefit of the bargain for purchasers of L.L. Bean products. L.L. Bean’s Guarantee has 11 become almost entirely intertwined with the L.L. Bean brand. 2. 12 13 On February 9, 2018, L.L. Bean rescinded the Guarantee and announced significant limitations. 3. 14 In a February 9, 2018 letter from L.L. Bean Executive Chairman Shawn O. 15 Gorman, posted on L.L. Bean’s Facebook page (and e-mailed to some previous customers 16 including Plaintiff), L.L. Bean announced it had “updated” its Guarantee. In a marked shift from 17 the decades-old Guarantee, the new terms require proof of purchase for all returns, in addition to 18 excluding from coverage completely returns where L.L. Bean determines certain “Special 19 Conditions” apply, including products damaged by “misuse,” “improper care,” and “excessive 20 wear and tear.” The Guarantee of “complete satisfaction,” bargained and paid for by loyal 21 customers for years, has been suddenly and unilaterally withdrawn by L.L. Bean. 4. 22 As a result of L.L. Bean’s deceptive and unfair repudiation of its Guarantee and 23 violation of the Magnuson-Moss Warranty Act and other laws, Plaintiff and all other L.L. Bean 24 customers who bought products before February 9, 2018, did not receive what they bargained 25 for. 26 5. Plaintiff brings this action on behalf of himself and all others similarly situated to 27 recover the lost benefit of the bargain attributable to L.L. Bean’s repudiation of its warranty, or 28 in the alternative, to require L.L. Bean to honor the terms of its warranty that was the basis of the -1CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 3 of 29 1 bargain, and a declaration that: (1) L.L. Bean’s February 9, 2018 announcement that it would no 2 longer honor the Guarantee with no end date or questions asked constitutes a violation of the law 3 and a breach of warranty; (2) L.L. Bean must continue to honor the warranty with no end date 4 and no questions asked as to goods purchased prior to February 9, 2018; and (3) L.L. Bean must 5 provide the best notice practicable under the circumstances designed to reach past and future 6 L.L. Bean customers and corrective advertising regarding the changes to its warranty. 7 JURISDICTION AND VENUE 8 6. This Court has original subject matter jurisdiction over the case under 28 U.S.C. 9 § 1332(d) because the case is brought as a class action under Federal Rule of Civil Procedure 10 (“Fed. R. Civ. P.”) 23, at least one member of the proposed Classes (defined below) is of diverse 11 citizenship from L.L. Bean, the proposed Classes include more than 100 members, and the 12 aggregate amount in controversy exceeds five million dollars, excluding interest and costs. 13 7. Venue is proper in this District under 28 U.S.C. § 1391 because L.L. Bean 14 engaged in substantial conduct relevant to Plaintiff’s claims within this District and has caused 15 harm to members of the proposed Classes residing within this District. 16 PARTIES 17 8. Plaintiff William A. Shirley is a resident of Berkeley, California. Plaintiff has 18 purchased numerous items from L.L. Bean’s website, as recently as November of 2017. The L.L. 19 Bean Guarantee, which would allow him to return his purchases at any time if he was not 20 completely satisfied, was part of the basis of Plaintiff’s bargain with L.L. Bean. Given the 21 Company’s sudden reversal of its long-standing Guarantee, however, Plaintiff has been injured 22 and has been deprived of the benefit that formed a basis of the bargain between him and L.L. 23 Bean 24 9. 25 26 Defendant L.L. Bean is a Maine corporation headquartered in Freeport, Maine. FACTUAL ALLEGATIONS 10. L.L. Bean was founded in 1912 by Leon Leonwood (L.L.) Bean and, under the 27 leadership of his grandson, Leon Gorman, was eventually transformed into a globally recognized 28 brand of outdoor clothing and equipment. L.L. Bean opened its first retail store in Freeport, -2CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 4 of 29 1 Maine in 1917 and now operates at least 30 domestic retail stores outside of Maine—as far south 2 as Virginia and as far west as Colorado—as well as 10 outlets. L.L. Bean opened its first 3 international retail store in Tokyo in 1992, and currently operates approximately 25 stores and 4 outlets in Japan. In 1995, L.L. Bean launched its website, which serves over 200 countries and 5 territories. L.L. Bean also mails catalogs to customers in every state and over 150 countries. 6 11. L.L. Bean has long maintained a reputation for outstanding customer service, both 7 among its customers and throughout the retail industry. This positive reputation (and consequent 8 revenue) was largely founded on L.L. Bean’s comprehensive Guarantee that, until recently, read 9 as follows: 10 Easy Returns & Exchanges 11 We make pieces that last, and if they don’t, we want to know about it. L.L. himself always said that he “didn’t consider a sale complete until goods are worn out and the customer still satisfied.” Our guarantee is a handshake – a promise that we’ll be fair to each other. So if something’s not working or fitting or standing up to its task or lasting as long as you think it should, we’ll take it back. We want to make sure we keep our guarantee the way it’s always been for over a century. 1 12 13 14 15 16 12. 17 Commenting on the Guarantee in August 2016, an L.L. Bean spokesperson told 18 Business Insider that the “vast majority” of customers adhere to the original intent of the 19 Guarantee: 20 Our guarantee is not a liability, but rather a customer service asset – an unacknowledged agreement between us and the customer, that always puts the customer first and relies on the goodwill of our customers to honor the original intent of the guarantee.2 21 22 23 24 25 26 27 28 1 This quote has been copied from an Internet archive of L.L. Bean’s website as it appeared in November 2016. See Easy Returns & Exchanges, L.L. BEAN, https://web.archive.org/web/20161128235134/https://www.llbean.com/llb/shop/510624?page=re turns-and-exchanges (last visited May 4, 2018). 2 Dennis Green, L.L. Bean is considering dropping its legendary return policy because of ‘fraudulent returns,’ BUSINESS INSIDER (Feb. 10, 2017), http://www.businessinsider.com/ll-beanis-considering-dropping-its-return-policy-2017-2 (last visited May 4, 2018). -3CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 5 of 29 1 2 13. In addition to serving as a “customer service asset,” the Guarantee provided L.L. Bean with a tremendous amount of marketing material, both in-store3 and on its website.4 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 3 See, e.g., Anna Maconachy, Photos: L.L. Bean Opens in Columbus, COLUMBUS UNDERGROUND (Nov. 20, 2015), http://www.columbusunderground.com/l-l-bean-columbus-am1 (last visited May 4, 2018). 4 See, e.g., screenshot of L.L. Bean return policy, as of December 2017, available at https://web.archive.org/web/20130516210231/http://www.llbean.com:80/customerService/about LLBean/guaranteed_popup.html (last visited May 4, 2018). -4CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 6 of 29 1 2 14. For years, L.L. Bean catalogs also proudly touted L.L. Bean’s purportedly “rock- solid” 100% Satisfaction Guarantee: 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -5CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 7 of 29 1 2 15. The cover of the Christmas 2013 catalog, for example, promised that the 100% satisfaction Guarantee had “No Conditions” and “No End Date.” 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -6CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 8 of 29 1 2 16. The Guarantee also implicitly and explicitly represented to customers that L.L. Bean’s products were well-made and remarkably long-lasting. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -7CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 9 of 29 1 2 17. The Spring 2015 issue of L.L. Bean Fishing promised: “At L.L. Bean, your satisfaction doesn’t have a time limit.” 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -8CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 10 of 29 1 18. On February 9, 2018, however, time suddenly ran out on L.L. Bean’s promise of 2 100% satisfaction. In a statement posted on the L.L. Bean Facebook page (and e-mailed to some 3 customers including Plaintiff), L.L. Bean’s Executive Chairman announced that, effective 4 immediately, “[c]ustomers will have one year after purchasing an item to return it, accompanied 5 by proof of purchase.” 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -9CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 11 of 29 1 19. 2 If you are not 100% satisfied with one of our products, you may return it within one year of purchase for a refund. After one year, we will consider any items for return that are defective due to materials or craftsmanship. 3 4 We require proof of purchase to honor a refund or exchange. If you provide us your information when you check out, we will typically have a record of your purchase. Otherwise, we require a physical receipt. 5 6 7 Please include your proof of purchase with the products you wish to return or exchange and bring it with you to any of our stores, or include it in your package of returned item(s). We will reimburse the original purchase price to either your original method of payment or as a merchandise credit. 8 9 10 Special Conditions To protect all our customers and make sure that we handle every return or exchange with reasonable fairness, we cannot accept a return or exchange (even within one year of purchase) in certain situations, including: 11 12 13  Products damaged by misuse, abuse, improper care or negligence, or accidents (including pet damage)  Products showing excessive wear and tear  Products lost or damaged due to fire, flood, or natural disaster  Products with a missing label or label that has been defaced  Products returned for personal reasons unrelated to product performance or satisfaction  Products that have been soiled or contaminated, until they have been properly cleaned  Returns on ammunition either in our stores or through the mail  On rare occasions, past habitual abuse of our Return Policy5 14 15 16 17 18 19 20 20. 21 22 23 The dramatic change in the Guarantee has caused an outcry among L.L. Bean’s customers, with many angrily arguing that the changes are too restrictive and others declaring that they will no longer shop at L.L. Bean. 21. 24 25 The return policy on the L.L. Bean’s website was then changed to read: Customers who have had warranty returns of purchases made prior to February 9, 2018, improperly denied by L.L. Bean have taken to social media to express their displeasure: 26 5 27 28 L.L. Bean Returns and Exchanges webpage as of February 10, 2018, available at https://web.archive.org/web/20180210234829/ https://www.llbean.com/llb/shop/510624?page=returns-and-exchanges (last visited May 4, 2018). - 10 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 12 of 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 11 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 13 of 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 12 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 14 of 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 13 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 15 of 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 14 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 16 of 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 15 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 17 of 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 - 16 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 18 of 29 1 22. On April 5, 2018, nearly two months after L.L. Bean rescinded its 100% 2 Guarantee and one day before L.L. Bean was required to respond to a lawsuit filed against it in 3 the Northern District of Illinois for the repudiation of its 100% Satisfaction Guarantee, L.L. Bean 4 modified its website to state, for the first time, “Please note that products purchased before 5 February 9, 2018, are not subject to this one-year time limit.” L.L. Bean then attached a printout 6 of its newly modified website to the motion to dismiss it filed in that case,6 but (1) failed to 7 disclose that the modification was made just the preceding day; and (2) concealed the portion of 8 the web page pertaining to the new “Special Conditions,” which clearly still apply to purchases 9 made before February 9, 2018. In other words, while L.L. Bean may now, in response to the 10 Bondi litigation, be permitting returns for purchases made more than a year ago (a fact yet to be 11 determined), such purchases still must meet various other new conditions that were not originally 12 part of the bargain, including proof of purchase, no “excessive wear and tear” or “damage[] by 13 misuse, abuse, improper care or negligence, or accidents (including pet damage).” 14 23. L.L. Bean rescinded its 100% Satisfaction Guarantee for purchases made prior to 15 February 9, 2018, has denied proper returns in retail outlets across the country on that basis, as 16 with Plaintiff and many others, and has done all it can to attempt to obscure this conduct from 17 the public. 18 24. Plaintiff and the members of the Classes did not receive that which was promised 19 and represented to them. Unbeknownst to Plaintiff and the other Class members, rather than 20 purchasing products accompanied by a 100% Satisfaction Guarantee, they were purchasing 21 products that would become subject to an exceptionally limited warranty, for which proof of 22 purchase was required. Accordingly, because Plaintiff and the other Class members did not 23 receive the benefit of the bargain, Plaintiff and the Class members overpaid for the products they 24 purchased. 25 /// 26 /// 27 /// 28 6 See Bondi v. L.L. Bean, Inc., No. 18-CV-1101 (N.D. Ill.), ECF No. 18. - 17 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 19 of 29 1 CLASS ALLEGATIONS 2 3 25. Plaintiff brings this case as a class action pursuant to Fed. R. Civ. P. 23(b)(2) and (b)(3), on behalf of a class defined as follows (sometimes referred to as the “Nationwide Class”): 4 All persons in the United States and its territories who purchased, other than for resale, products from L.L. Bean prior to February 9, 2018. 5 6 Excluded from the Nationwide Class are: (i) L.L. Bean and its officers and directors, agents, 7 affiliates, subsidiaries, and authorized distributors and dealers; (ii) all Nationwide Class members 8 that timely and validly request exclusion from the Nationwide Class; and (iii) the Judge presiding 9 over this action. 10 26. Alternatively, Plaintiff brings this case as a class action pursuant to Fed. R. Civ. 11 P. 23(b)(2) and (b)(3) on behalf of the following subclass (sometimes referred to as the 12 “California Subclass”): 13 All persons in the State of California who purchased, other than for resale, products from L.L. Bean prior to February 9, 2018. 14 15 16 Excluded from the California Subclass are: (i) L.L. Bean and its officers and directors, agents, 17 affiliates, subsidiaries, and authorized distributors and dealers; (ii) all California Subclass 18 members that timely and validly request exclusion from the California Subclass; and (iii) the 19 Judge presiding over this action. The Nationwide Class and the California Subclass are 20 sometimes collectively referred to herein as the “Classes.” 27. 21 Certification of Plaintiff’s claims for class-wide treatment is appropriate because 22 Plaintiff can prove the elements of his claims on a class-wide basis using the same evidence as 23 would be used to prove those elements in individual actions alleging the same claims. 28. 24 The members of the Classes are so numerous that joinder of the members of the 25 Classes would be impracticable. On information and belief, the Nationwide Class numbers in the 26 tens of thousands while the California Subclass numbers in the thousands. 27 /// 28 /// - 18 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 20 of 29 1 29. Common questions of law and fact exist as to all members of the Classes and 2 predominate over questions affecting only individuals. Such common questions of law or fact 3 include, inter alia: 4 A. Whether L.L. Bean engaged in the conduct alleged; 5 B. Whether L.L. Bean breached its contracts with Plaintiff and members of the 6 7 Classes; C. 8 9 Act (“CLRA”), Cal. Civ. Code § 1750; D. 10 11 Whether L.L. Bean’s conduct violated the California Unfair Competition Law (“UCL”), Business and Professions Code § 17200; E. 12 13 Whether L.L. Bean’s conduct violated the California Consumer Legal Remedies Whether Plaintiff and members of the Classes have been damaged and, if so, the measure of such damages; F. 14 Whether L.L. Bean unjustly retained a benefit conferred by Plaintiff and the members of the Classes; 15 G. Whether Defendant’s conduct violated the Magnuson-Moss Warranty Act; and 16 H. Whether Plaintiff and members of the Classes are entitled to equitable relief, 17 including, but not limited to, a constructive trust, restitution, declaratory, and 18 injunctive relief. 19 30. Plaintiff’s claims are typical of the claims of the Classes because, among other 20 things, Plaintiff and the Classes were injured through the substantially uniform misconduct 21 described above. Plaintiff is advancing the same claims and legal theories on behalf of himself 22 and all members of the Classes. 23 31. Plaintiff is an adequate representative of the Classes because his interests do not 24 conflict with the interests of the members of the Classes he seeks to represent, he has retained 25 counsel competent and experienced in complex commercial and class action litigation, and 26 Plaintiff intends to prosecute this action vigorously. The interests of the Classes will be fairly and 27 adequately protected by Plaintiff and his counsel. 28 - 19 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 21 of 29 1 32. A class action is also warranted under Fed. R. Civ. P. 23(b)(2), because L.L. Bean 2 has acted or refused to act on grounds that apply generally to the Classes, so that final injunctive 3 relief or corresponding declaratory relief is appropriate as to the Classes as a whole. L.L. Bean 4 has directed and continues to direct its conduct to all consumers in a uniform manner. Therefore, 5 injunctive relief on a class-wide basis is necessary to remedy continuing harms to Plaintiff and 6 the members of the Classes caused by L.L. Bean’s continuing misconduct. 7 33. A class action is superior to any other available means for the fair and efficient 8 adjudication of this controversy, and no unusual difficulties are likely to be encountered in the 9 management of this class action. The damages or other detriment suffered by Plaintiff and the 10 members of the Classes are relatively small compared to the burden and expense that would be 11 required to individually litigate their claims against L.L. Bean, so it would be impracticable for 12 members of the Classes to individually seek redress for L.L. Bean’s wrongful conduct. Even if 13 members of the Classes could afford individual litigation, the court system should not be 14 required to undertake such an unnecessary burden. Individualized litigation would also create a 15 potential for inconsistent or contradictory judgments and increase the delay and expense to all 16 parties and the court system. By contrast, the class action device presents far fewer management 17 difficulties and provides the benefits of a single adjudication, economies of scale, and 18 comprehensive supervision by a single court. 19 CLAIMS FOR RELIEF 20 COUNT I Breach of Contract (On Behalf of the Nationwide Class) 21 22 23 24 25 26 27 34. Plaintiff repeats and realleges the allegations set forth in paragraphs 1 through 33 as if fully set forth herein. 35. Each and every sale of an L.L. Bean product, until February 9, 2018, included the Guarantee and created a contract between L.L. Bean and the purchaser of the product, including Plaintiff. 28 - 20 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 22 of 29 1 36. L.L. Bean breached these contracts by unilaterally rescinding the Guarantee 2 promised to and bargained for by Plaintiff and its customers in exchange for money paid to L.L. 3 Bean for each and every product purchased. 4 5 37. As a direct and proximate result of L.L. Bean’s breach of contract, Plaintiff and the Nationwide Class have been damaged in an amount to be proven at trial. 6 COUNT II Unjust Enrichment (On Behalf of the Nationwide Class) 7 8 38. Plaintiff repeats and realleges the allegations set forth in paragraphs 1 through 33 9 as if fully set forth herein. 10 39. L.L. Bean has been unjustly enriched to Plaintiff’s and the Nationwide Class 11 members’ detriment as a result of L.L. Bean’s unlawful and wrongful retention of money 12 conferred by Plaintiff and the Nationwide Class members who were unaware that L.L. Bean 13 would soon refuse to honor its longstanding Guarantee, such that L.L. Bean’s retention of their 14 money would be inequitable. 15 40. L.L. Bean’s unlawful and wrongful acts, including breaching its written and 16 express warranties, as alleged above, enabled L.L. Bean to unlawfully receive monies it would 17 not have otherwise obtained. 18 41. Plaintiff and the Nationwide Class members have conferred benefits on L.L. 19 Bean, which L.L. Bean has knowingly accepted and retained. 20 42. L.L. Bean’s retention of the benefits conferred by Plaintiff and the Nationwide 21 Class members would be against fundamental principles of justice, equity, and good conscience. 22 43. Plaintiff and the Nationwide Class members seek to disgorge L.L. Bean’s 23 unlawfully retained profits and other benefits resulting from its unlawful conduct, and seek 24 restitution and rescission for the benefit of Plaintiff and the Nationwide Class members. 25 44. Plaintiff and the Nationwide Class members are entitled to the imposition of a 26 constructive trust upon L.L. Bean, such that its unjustly retained profits and other benefits are 27 distributed equitably by the Court to and for the benefit of Plaintiff and the Nationwide Class 28 members. - 21 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 23 of 29 1 2 3 4 5 6 7 COUNT III Violation of California Consumer Legal Remedies Act (“CLRA”), Cal. Civ. Code § 1750 (On Behalf of the California Subclass) 45. Plaintiff repeats and realleges the allegations set forth in paragraphs 1 through 33 as if fully set forth herein. 46. L.L. Bean’s products are goods within the meaning of California Civil Code section 1761(a). 47. In the course of L.L. Bean’s business, it deceived consumers by suddenly 8 eliminating its Guarantee. L.L. Bean compounded the deception by continuing to tout its “100% 9 Satisfaction Guarantee,” and by continuously claiming that its products are “guaranteed to last.” 10 48. Defendant violated and continues to violate the CLRA by engaging in the 11 following prohibited practices in transactions with Plaintiff and the other Class members which 12 Defendant intended to result in, and did result in, the sale of L.L. Bean’s products: 13 A. or quantities which they do not have (Cal. Civ. Code § 1770(a)(5)); 14 15 B. C. Advertising their goods with intent not to sell them as advertised (Cal. Civ. Code § 1770(a)(9)); 18 19 Representing that their products are of a particular standard, quality, or grade when they are of another (Cal. Civ. Code § 1770(a)(7)); 16 17 Representing that their products have characteristics, ingredients, uses, benefits, D. Representing that a transaction confers or involves rights, remedies, or obligations 20 that it does not have or involve or that are prohibited by law (Cal. Civ. Code § 21 1770(a)(14)); and 22 E. representation when they have not (Cal. Civ. Code § 1770(a)(16)). 23 24 Representing that their products have been supplied in accordance with a previous 49. Defendant violated the CLRA by representing and failing to disclose material 25 facts on its products’ labeling and associated advertising, as described above, when it knew that 26 the representations were false and misleading and that the omissions were of material facts it was 27 obligated to disclose. 28 - 22 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 24 of 29 1 50. Pursuant to California Civil Code section 1782(d), Plaintiff, individually and on 2 behalf of the other Class members, seeks a Court order enjoining the above-described wrongful 3 acts and practices of Defendant and for restitution and disgorgement. 4 51. Pursuant to California Civil Code section 1782, Plaintiff notified Defendant in 5 writing by certified mail of the particular violations of California Civil Code section 1770 and 6 demanded that Defendant rectify the problems associated with the actions detailed above and 7 give notice to all affected consumers of Defendant’s intent to so act. 8 52. Defendant has failed to rectify or agree to rectify the problems associated with the 9 actions detailed above and to give notice to all affected consumers within 30 days of the date of 10 written notice. Plaintiff therefore is entitled to, and hereby does seek, actual, punitive, and 11 statutory damages for Defendant’s violations of the CLRA. Defendant’s conduct was knowing, 12 fraudulent, wanton and malicious, thereby entitling Plaintiff and the members of the Class to 13 whom this claim applies to punitive damages. 14 15 16 17 18 19 COUNT IV Violation of California Consumer Unfair Competition Law (“UCL”), Business & Professions Code §§ 17200, et seq. (On Behalf of the California Subclass) 53. Plaintiff repeats and realleges the allegations set forth in paragraphs 1 through 33 as if fully set forth herein. 54. The Unfair Competition Law, Business & Professions (“Bus. & Prof.”) Code §§ 20 17200, et seq., prohibits any unlawful, fraudulent, or unfair business act or practice and any false 21 or misleading advertising. 22 55. In the course of conducting business, Defendant committed unlawful business 23 practices by, among other things, making misrepresentations (which also constitute advertising 24 within the meaning of Bus. & Prof. Code sections 17200 and 17500) and omissions of material 25 facts regarding its Guarantee in its advertising, marketing, and sale of its products, as set forth 26 more fully herein. Defendant’s deceptive conduct constitutes a violation of the Magnuson-Moss 27 Warranty Act, 15 U.S.C. § 2301. Defendant has also violated the Federal Trade Commission 28 Act, 15 U.S.C. § 45. - 23 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 25 of 29 1 2 3 56. This conduct constitutes violations of the unlawful prong of Bus. & Prof. Code section 17200. 57. In the course of conducting business, Defendant committed unfair business 4 practices by, among other things, making the representations (which also constitute advertising 5 within the meaning of Bus. & Prof. Code sections 17200 and 17500) and omissions of material 6 facts regarding the Guarantee, as detailed above. There is no societal benefit from false 7 advertising, only harm. Plaintiff and the other Class members paid for lower value products that 8 were not what they purported to be. While Plaintiff and the other Class members were harmed, 9 Defendant was unjustly enriched by its false representations and omissions. As a result, 10 Defendant’s conduct is unfair, as it offended an established public policy. Further, Defendant 11 engaged in immoral, unethical, oppressive, and unscrupulous activities that are substantially 12 injurious to consumers. 13 58. Defendant’s conduct violated consumer protection, unfair competition, and truth 14 in advertising laws in California and other states, resulting in harm to consumers. Defendant’s 15 acts and omissions also violate and offend the public policy against engaging in false and 16 misleading advertising, unfair competition, and deceptive conduct towards consumers. This 17 conduct violates the unlawful prong of Bus. & Prof. Code section 17200. 18 19 20 59. There were reasonably available alternatives to further Defendant’s legitimate business interests, other than the conduct described herein. 60. In the course of conducting business, Defendant committed fraudulent business 21 acts or practices by, among other things, making the representations (which also constitute 22 advertising within the meaning of Bus. & Prof. Code sections 17200 and 17500) and omissions 23 of material facts regarding the Guarantee in its marketing and advertisements, as detailed above. 24 25 26 61. Plaintiff suffered injury in fact and lost money or property as a result of Defendant’s conduct. 62. Plaintiff relied on Defendant’s material misrepresentations and omissions, which 27 are described above. Plaintiff suffered injury in fact and lost money as a result of Defendant’s 28 unlawful, unfair, and fraudulent practices. - 24 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 26 of 29 1 63. Unless restrained and enjoined, Defendant will continue to engage in the above- 2 described conduct in violation of Bus. & Prof. Code section 17200, entitling Plaintiff and the 3 other Class members to injunctive relief. If Defendant continues to engage in the violations of 4 Bus. & Prof. Code section 17200 described above, Plaintiff will likely be deceived in the future. 5 COUNT V Violation of Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301, et seq. (On behalf of the Nationwide Class) 6 7 64. Plaintiff realleges and incorporates by reference paragraphs 1 through 33 as if 8 fully set forth herein. 9 65. Plaintiff is a “consumer” within the meaning of the Magnuson-Moss Warranty 10 Act, 15 U.S.C. § 2301(3). 11 66. Defendant is a “supplier” and “warrantor” within the meaning of the Magnuson- 12 Moss Warranty Act, 15 U.S.C. § 2301(4)–(5). 13 67. L.L. Bean sells “consumer products” within the meaning of the Magnuson-Moss 14 Warranty Act, 15 U.S.C. § 2301(1). 15 68. 15 U.S.C. § 2310(d)(1) provides a cause of action for any consumer that is 16 damaged by the failure of a warrantor to comply with a written warranty. 17 69. Defendant’s representations as described herein that Plaintiff and other Class 18 members would be able to return merchandise for any reason at any time is a written warranty 19 within the meaning of the Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(6). 20 70. The Guarantee formed a basis of the bargain. 71. Defendant failed to comply with the Guarantee as described herein. On February 21 22 9, 2018, L.L. Bean announced that it would refuse to honor the Guarantee. 23 72. Defendant knew, or should have known, that its misrepresentations regarding the 24 Guarantee were material and formed the basis of the bargain between Plaintiff and the Class and 25 Defendant, yet it proceeded with its decision to renounce the Guarantee. 26 73. Plaintiff and Class members were damaged as a result of Defendant’s breach of 27 its written warranty, and they were deprived of their benefit of the bargain. 28 - 25 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 27 of 29 COUNT VI Declaratory Relief (On behalf of the Nationwide Class) 1 2 74. 3 4 Plaintiff realleges and incorporates by reference paragraphs 1 through 33 as if fully set forth herein. 75. 5 Pursuant to 28 U.S.C. § 2201, the Court may “declare the rights and legal 6 relations of any interested party seeking such declaration, whether or not further relief is or could 7 be sought.” 8 76. Defendant marketed, distributed, and sold its products with the Guarantee, as 9 described herein. 10 77. On February 9, 2018, L.L. Bean publicly announced that it was no longer 11 honoring the Guarantee and was instead imposing a new limited warranty subject to numerous 12 exceptions and qualifications. 78. 13 As a result of L.L. Bean’s conduct, Plaintiff and the other Class members who 14 purchased L.L. Bean products and the Guarantee are deprived of the benefit of the bargain. 15 Accordingly, Plaintiff seeks entry of the following declarations: (1) L.L. Bean’s February 9, 16 2018 announcement that it would no longer honor the Guarantee with no end date or questions 17 asked constitutes a violation of the law and a breach of warranty; (2) L.L. Bean must continue to 18 honor the warranty with no end date and no questions asked as to goods purchased prior to 19 February 9, 2018; and (3) L.L. Bean must provide the best notice practicable under the 20 circumstances designed to reach past and future L.L. Bean customers, and corrective advertising 21 regarding the changes to its warranty, including a prominent one-page notification in its catalog 22 for each edition distributed prior to February 9, 2019, and notification to each customer at the 23 point of sale that products may be returned within one year for a refund, subject to special 24 conditions, and, after one year, the item may be returned only if it is defective due to materials or 25 craftsmanship, and that proof of purchase to honor the refund is required for any return. 26 /// 27 /// 28 /// - 26 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 28 of 29 1 REQUEST FOR RELIEF 2 WHEREFORE, Plaintiff, individually and on behalf of all others similarly situated, 3 respectfully requests that the Court enter judgment in his favor and against defendant L.L. Bean 4 as follows: 5 A. Certifying the Classes under Fed. R. Civ. P. 23; 6 B. Appointing Plaintiff as Class Representative and Plaintiff’s Counsel as Class 7 8 Counsel; C. 9 Awarding Plaintiff and the members of the Classes damages and/or equitable relief as appropriate; 10 D. Awarding Plaintiff and the Classes declaratory and injunctive relief; 11 E. Awarding Plaintiff and the members of the Classes restitution and disgorgement; 12 F. Imposing a constructive trust for the benefit of Plaintiff and the members of the 13 Classes on the unjustly retained benefits conferred by Plaintiff and the other 14 members of the Classes upon L.L. Bean; 15 G. 16 17 Awarding Plaintiff and the Classes reasonable attorneys’ fees, costs, and expenses; and H. Granting such other relief as the Court deems just and appropriate. 18 19 20 21 JURY TRIAL DEMAND Plaintiff, individually and on behalf of all others similarly situated, hereby requests a trial by jury on all claims so triable. Dated: May 4, 2018 Respectfully submitted, 22 WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP 23 24 By: 25 /s/ Rachele R. Rickert RACHELE R. RICKERT RACHELE R. RICKERT MARISA C. LIVESAY BRITTANY N. DEJONG 750 B Street, Suite 2770 San Diego, CA 92101 Telephone: 619/239-4599 26 27 28 - 27 CLASS ACTION COMPLAINT Case 3:18-cv-02641-EDL Document 1 Filed 05/04/18 Page 29 of 29 Facsimile: 619/234-4599 rickert@whafh.com livesay@whafh.com dejong@whafh.com 1 2 3 JANINE POLLACK MICHAEL M. LISKOW CORREY A. KAMIN WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP 270 Madison Avenue New York, New York 10016 (212) 545-4600 (p) (212) 686-0114 (f) pollack@whafh.com liskow@whafh.com kamin@whafh.com 4 5 6 7 8 9 10 11 BEN BARNOW ERICH P. SCHORK JEFFREY BLAKE ANTHONY PARKHILL BARNOW AND ASSOCIATES, P.C. 1 North LaSalle Street, Suite 4600 Chicago, Illinois 60602 (312) 621-2000 (p) (312) 641-5504 (f) b.barnow@barnowlaw.com e.schork@barnowlaw.com j.blake@barnowlaw.com aparkhill@barnowlaw.com 12 13 14 15 16 17 18 19 Attorneys for Plaintiff 20 21 22 23 24 25 26 27 28 LLBEAN: 24614 - 28 CLASS ACTION COMPLAINT