MAUREEN P. KELLY, Magistrate Judge.
Plaintiff Lisa Mazur ("Plaintiff") initiated this action on July 19, 2012, by filing a class action Complaint on behalf of all customers who purchased chicken jerky dog treats manufactured, marketed, distributed and/or sold by Defendants Milo's Kitchen, LLC ("Milo's") and Del Monte Corporation d/b/a Del Monte Foods ("Del Monte") (collectively, "Defendants"). Plaintiff alleges that the treats were unsafe, defective, dangerous, culpably misrepresented as safe and healthy, did not conform to applicable implied and express warranties, and that, shortly after Plaintiff fed the treats to her dog, he became ill and had to be euthanized four days later.
Presently before the Court is a Motion to Dismiss Plaintiff's Putative Class Action Complaint ("the Motion") submitted on behalf of Defendants. ECF No. 20. For the reasons that follow, it is respectfully recommended that the Motion be granted as to Plaintiff's claim for unjust enrichment and denied in all other respects.
Plaintiff contends that on or about December 12, 2011, she purchased a package of Milo's chicken jerky dog treats from a Giant Eagle store in New Kensington, Pennsylvania, which she fed to her dog "on occasion" during the month of January, 2012. ECF No. 1, ¶¶ 39, 41. Plaintiff alleged that as of January 31, 2012, her dog was seven years old and in good health, but on February 1, 2012, became ill and had to be taken to the veterinarian.
Plaintiff avers that Defendants' products containing chicken jerky are neither wholesome nor nutritious but, rather, are unhealthy and unsafe and that contrary representations made by Defendants on the packaging of the chicken jerky treats and other dog treats marketed under the Milo's Kitchen brand, as well as on Milo's and Del Monte's web sites, are false.
Plaintiff also avers that, although the FDA had issued warning as early as November 18, 2011, about dog illnesses after consuming chicken jerky dog treats that were made in China, where Defendants' treats are allegedly manufactured, Defendants' packaging does not warn of any danger of feeding its contents to dogs.
Plaintiff alleges that Defendants marketed their products, in particular, chicken jerky dog treats, without first determining that they are safe and will not have a deleterious effect on dogs; that they knew there was a substantial risk of death or harm associated with their dog treats; that Defendants placed no warnings on their products or packaging; and that they intentionally concealed known facts concerning the safety of their dog treats in order to increase or maintain sales.
Plaintiff filed the instant Class Action Complaint ("the Complaint"), ECF No. 1, on July 19, 2012, bringing claims against Defendants for: breach of implied warranty under the Uniform Commercial Code ("UCC"), 13 Pa. C.S. § 2314, and the Magnuson-Moss Act (Count I); breach of express warranty under the UCC (Count II); violations of Pennsylvania Unfair Trade Practices and Consumer Protection Law ("UTPCPL"), 73 Pa. Stat. § 201-1, et seq. (Count III); common law fraud (Count IV); unjust enrichment (Count V); negligence (Count VI); strict products liability — defective design or manufacture (Count VII); and strict products liability — failure to warn (Count VIII).
Defendants filed the instant Motion on September 24, 2012, to which Plaintiff responded on November 16, 2012. ECF Nos. 20, 33. Defendants filed a Reply in Further Support of Their Joint Motion to Dismiss Plaintiff's Putative Class Action Complaint on December 5, 2012, and Plaintiff's filed a Sur-Reply to Motion to Dismiss on December 13, 2012. ECF Nos. 34, 35-1. Categorizing Plaintiff's Sur-Reply as merely an "attempt to have the last word," Defendants filed a Sur-Sur-Reply on December 19, 2012. ECF No. 38. As such, the Motion is now ripe for review.
In assessing the sufficiency of the complaint pursuant to a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the Court must accept as true all material allegations in the complaint and all reasonable factual inferences must be viewed in the light most favorable to the plaintiff.
Defendants first argue that the Complaint should be dismissed in its entirety because Plaintiff has failed to allege sufficient facts to plausibly establish that their product is defective in the first instance or that there is a causal connection between Plaintiff's dog becoming ill and its consumption of the chicken jerky treats.
Further, "a defect, like any other fact, may be proven entirely by circumstantial evidence."
In the instant case, Plaintiff has alleged in the Complaint that she fed her dog Milo's chicken jerky dog treats on occasion during the month of January, 2012; that there were no other material changes in his diet; that as of January 31, 2012, her dog was seven years old and in good health, but on February 1, 2012, became ill; that the dog was diagnosed with kidney failure; and, after only four days, had to be euthanized. ECF No. 1, ¶¶ 39-44. Plaintiff has also alleged that the FDA had issued warning as early as November 18, 2011, about dog illnesses after consuming chicken jerky dog treats that were made in China, where Defendants' treats are allegedly manufactured, and that Milo acknowledges as much on its web site. Plaintiff also contends that prior to February 1, 2012, Defendants had received numerous complaints, relating to more than 100 incidents, regarding dogs that became ill or died as the result of consuming dog treats manufactured in China that contained chicken jerky.
These factual allegations, viewed in the light most favorable to Plaintiff, appear sufficient to permit the inference that a defect exists in Milo's chicken jerky treats and that the defect is the most likely explanation for the illness suffered by Plaintiff's dog by eliminating other reasonable causes.
At Count II of the Complaint, Plaintiff brings a claim for breach of express warranty under the Pennsylvania Uniform Commercial Code. Defendants alternatively argue that this claim should be dismissed because Plaintiff has failed to plead the requisite element of reliance.
Under the UCC, "[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 creates an express warranty that the goods shall conform to the affirmation or promise." 13 Pa. C.S. § 2313(a)(1). Thus, to show a breach, the plaintiff must show that there was an express warranty and that the warranty became "part of the `basis of the bargain.'"
Review of the Complaint in this case shows that Plaintiff has alleged that Defendants have made representations on the packaging of their dog treats and on their web sites indicating that: the contents of their dog treats are "wholesome & delicious;" they started making Milo's Kitchen dog treats because they believed dogs deserve treats made with the same quality of ingredients and care that their owners want in their food; the ingredients were chicken breast, glycerin, sugar, salt, natural flavors, and mixed tocopherals (a preservative and natural source of Vitamin E); "Milo's Kitchen® Home-Style Dog Treats are 100% real jerky, sausage slices, and meatballs;" our dogs aren't just the four-legged members of our family but are family and deserve a treat that lives up to the high standards we set for the rest of our loved ones; our dogs deserve only the best with your food and deserve to enjoy snacks that not only look like jerky, sausage slices and meatballs, but actually are 100% real jerky, sausage slices and meatballs; and each piece of Milo's Kitchen® chicken Jerky is made with the quality and care your dog deserves without any artificial chicken flavors or filler ingredients. RCF No. 1, ¶¶ 18-20. Plaintiff has also alleged that "[n]o reasonable person would feed dog treats to their dogs knowing that there was a substantial risk of death or illness from doing so," and that she, in fact, purchased a package of Milo's Kitchen chicken jerky dog treats on or about December 12, 2011, which she subsequently fed to her dog.
This Court finds that these allegations are sufficient, at least at this juncture, to raise Plaintiff's right to relief on a breach of warranty claim above the speculative level. Plaintiff has identified the statements made by Defendants regarding their product that constitutes the express warranty and alleged that she purchased the product. Absent a good reason showing otherwise, Defendants statements became part of the basis of the bargain. Indeed, Plaintiff has not only specifically alleged that the statements became part of the basis of the bargain but has also alleged that the fact that the dog treats might cause serious injury is material to pet owners and that no reasonable person would buy what Defendants themselves have categorized as "treats," without believing that they were of a certain quality and/or healthy for his or her animal. Defendants have not provided any reason for finding that their representations did not become a basis for the bargain and, hence, it can be inferred that Plaintiff believed the treats were healthy and safe as represented by Defendants.
Defendants argue that Plaintiff's claims for violations of the UTPCPL and common law fraud brought at Counts III and IV of the Complaint should be dismissed because Plaintiff has not alleged fraud with the requisite specificity and that these claims are nevertheless barred under the economic loss doctrine. Plaintiff's counter-argument is not entirely clear. Plaintiff initially argues that she need not plead the elements of common law fraud to state a claim under the UTPCPL because the statute was amended to include deceptive conduct as well as fraudulent conduct, but then concludes that because she has adequately pled that Defendants engaged in deceptive or misleading conduct that she has stated a claim under the UTPCL and for common law fraud. ECF No. 33, pp. 11-12. This notwithstanding, it appears that Plaintiff should be permitted to proceed with both of these claims.
The UTPCPL is Pennsylvania's consumer protection law which was enacted to prevent "[u]nfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce."
In order to maintain a private right of action under the UTPCPL, a plaintiff must show that he: 1) purchased or leased goods or services primarily for a personal, family, or household purpose; 2) suffered an ascertainable loss of money or property; and 3) the loss occurred as a result of the use or employment by a person of a method, act, or practice declared unlawful by the UTPCPL.
Defendants do not appear to dispute that Plaintiff has alleged deceptive conduct. Rather, Defendants take issue with Plaintiff's Complaint to the extent she seeks to hold Defendants liable for engaging in fraudulent conduct which requires Plaintiff to plead and prove the elements of common law fraud. To state a claim for common law fraud, the plaintiff must show: (1) a representation; (2) material to the transaction at issue; (3) made falsely, with either knowledge or reckless disregard of its falsity; (4) with the intent to misleading another person or inducing justifiable reliance; and (5) an injury caused by the reliance.
As previously discussed, Plaintiff has alleged in the Complaint that Defendants have made representations on the packaging of their dog treats and on their web sites indicating that: the contents of their dog treats are "wholesome & delicious;" they started making Milo's Kitchen dog treats because they believed dogs deserve treats made with the same quality of ingredients and care that their owners want in their food; the ingredients were chicken breast, glycerin, sugar, salt, natural flavors, and mixed tocopherals (a preservative and natural source of Vitamin E); "Milo's Kitchen® Home-Style Dog Treats are 100% real jerky, sausage slices, and meatballs;" our dogs aren't just the four-legged members of our family but are family and deserve a treat that lives up to the high standards we set for the rest of our loved ones; our dogs deserve only the best with your food and deserve to enjoy snacks that not only look like jerky, sausage slices and meatballs, but actually are 100% real jerky, sausage slices and meatballs; and each piece of Milo's Kitchen® chicken Jerky is made with the quality and care your dog deserves without any artificial chicken flavors or filler ingredients. RCF No. 1, ¶¶ 18-20. Plaintiff has also alleged that "[n]o reasonable person would feed dog treats to their dogs knowing that there was a substantial risk of death or illness from doing so," and that she, in fact, purchased a package of Milo's Kitchen chicken jerky dog treats on or about December 12, 2011, which she subsequently fed to her dog. Id. at ¶¶ 34, 36, 39, 41. Plaintiff has also alleged that "Defendants' representations became a part of the basis of the bargain." Id. at ¶ 62.
Based on these assertions, the Court has already found that Plaintiff has sufficiently identified the representations at issue and that she relied upon them in making her purchase. To be sure, these allegations are more than sufficient to place Defendants on notice of the precise misconduct with which they are charged. Plaintiff therefore has properly stated a claim under the UTPCPL and for common law fraud.
Defendants alternatively argue that regardless of whether Plaintiff seeks to hold Defendants liable for engaging in fraudulent conduct or deceptive conduct, which sounds in negligence, her UTPCPL claim is barred under the economic loss doctrine.
"The economic loss doctrine `prohibits plaintiffs from recovering in tort economic losses to which their entitlement flows only from a contract.'"
Here, contrary to Defendants' assertion, Plaintiff and the putative class members have not simply alleged economic damages. Although not always explicitly stated in terms of "damages," Plaintiff has alleged in the Complaint that as a result of consuming Milo's chicken jerky treats, her dog had to be euthanized; that damages in the form of illnesses and deaths were suffered by consumers as a result of Defendants' actions; that, as a direct an proximate cause of Defendants' conduct, Plaintiff and the class members suffered property damage, including the sickness and death of their pets; that as a direct and proximate cause of the unreasonably dangerous condition of the dog treats and Defendants failure to warn of the health risks involved, Plaintiff and others like her suffered property damage as well as economic loss. ECF No. 1, ¶¶ 39-44, 76, 89, 115, 126, 138. In addition, with respect to the class, it is alleged in the Complaint that the subclass consists of class members whose dogs have suffered harm or death due to the consumption of Defendants' products and that there are thousands of persons who purchased the dog treats at issue and hundreds of dogs that died as a result; that as a direct and proximate result of Defendants' conduct, Plaintiff and the class members suffered properly damage, including the sickness and death of their pets; and that as a direct and proximate cause of the unreasonably dangerous condition of the dog treats and Defendants failure to warn of the health risks involved, Plaintiff and others like her suffered property damage as well as economic loss.
These allegations more than adequately set forth losses suffered by Plaintiff and the putative class members that are distinct from the disappointed expectations evolving solely from the purchase of Defendants' products; they clearly articulate property damage in the form of harm to their pets. Accordingly, the economic loss doctrine does not apply and does not provide the basis for barring Plaintiff's UTPCPL claims.
Plaintiff also brings a claim for unjust enrichment against Defendants at Count V of the Complaint alleging that, because Defendants profited from the sale of unsafe and unhealthy chicken jerky treats which caused Plaintiff economic and property damage, Defendants have been unjustly enriched. Defendant contend that this claim should be dismissed because it is clear from the Complaint that Plaintiff has an adequate remedy at law and, thus is not entitled to an equitable remedy, and because she has nevertheless failed to allege the elements necessary to state a claim for unjust enrichment.
Citing to
Here, it is apparent from Plaintiff's allegations in the Complaint that, while she is dissatisfied with the chicken jerky treats, she nevertheless purchased, received and used the product. It therefore cannot be said that the benefit bestowed on Defendants in the form of a profit from the sale was "wrongly secured."
Lastly, Defendants, without argument, state that Plaintiff's claims for negligence and strict liability should be dismissed because they too are barred by the economic loss doctrine. The Court has already found, however, that Plaintiff has alleged damages in addition to economic damages flowing from purchasing Defendants' product itself and that, consequently, the economic doctrine does not apply to the facts of this case. As such, Defendants' Motion in this regard is properly denied.
For the foregoing reasons, is respectfully recommended that Defendants' Motion to Dismiss Plaintiff's Putative Class Action Complaint, ECF No. 20, be granted as to Plaintiff's claim for unjust enrichment brought at Count V of the Complaint and denied in all other respects.
In accordance with the Magistrate Judges Act, 28 U.S.C. § 636(b)(1), and Local Rule 72.D.2, the parties are permitted to file written objections in accordance with the schedule established in the docket entry reflecting the filing of this Report and Recommendation. Failure to timely file objections will waive the right to appeal.