CATHERINE C. BLAKE, District Judge.
Steven and Ellen Palmer (the "Palmers") filed this putative class action against CVS Health and Nice-Pak Products, Inc. (the "defendants") alleging that they misleadingly labeled their wipes as "flushable" when they were not. Now pending are the defendants' motion for leave to file amended answers and the defendants' motion for judgment on the pleadings as to the Palmers' claims for injunctive relief, negligent misrepresentation (as to Nice-Pak), and breach of express warranty.
The Palmers began purchasing CVS Flushable Medicated Wipes in 2012. (Corrected Compl. ¶ 68, ECF 21). CVS Flushable Medicated Wipes, as well as CVS Flushable Cleansing Wipes and CVS Flushable Ultra Soft Cleansing Wipes, are manufactured by Nice-Pak. (Id. ¶¶ 2, 8). The wipes were advertised as safe to flush down toilets, but when the Palmers began flushing the wipes down their home toilets, they experienced plumbing issues. (Id. ¶¶ 69, 72). Around October 2014, their sewer system backed up, and they employed professional plumbers to snake their home plumbing. (Id. at ¶ 69). Upon snaking the plumbing, the plumbers found still-intact flushable wipes products and warned the Palmers that flushing these wipes "will destroy your system." (Id.). After being advised to search online, the Palmers saw several articles detailing the damage the flushable wipes could cause. (Id.). A plumber had to return at least one more time to clear the Palmers' pipes. (Id. ¶ 70). The Palmers allege that many others faced similar "horror stories" wherein the purportedly flushable wipes damaged their plumbing, (id. ¶¶ 21-27), and also allege that flushable wipes have caused problems in municipal sewer systems across the country, (id. ¶¶ 38-61).
The Federal Trade Commission ("FTC") began investigating Nice-Pak's flushable wipes, and entered into a consent agreement with Nice-Pak in 2015.
The Palmers initially filed in the Eastern District of New York. On April 10, 2017, the case was transferred to this court. Steven v. CVS Health & Nice-Pak Products, Inc., No. 15-CV-2928, 2017 WL 656767, at *2 (E.D.N.Y. Feb. 17, 2017); Order, ECF 121 (case to be transferred April 10, 2017). On May 9, 2018, the court granted the parties' motion to stay,
Leave to amend should be freely granted under Rule 15(a), and amendments are generally accepted absent futility, undue prejudice, or bad faith. See Foman v. Davis, 371 U.S. 178, 182 (1962); Matrix Capital Mgmt. Fund, LP v. BearingPoint, Inc., 576 F.3d 172, 193 (4th Cir. 2009) (explaining that leave to amend "should be denied only when the amendment would be prejudicial to the opposing party, there has been bad faith on the part of the moving party, or amendment would be futile.").
Motions for judgment on the pleadings under Fed. R. Civ. P. 12(c) are decided under the same standard as motions to dismiss under Rule 12(b)(6). Independence News, Inc. v. City of Charlotte, 568 F.3d 148, 154 (4th Cir. 2009). To survive a motion to dismiss, the factual allegations of a complaint "must be enough to raise a right to relief above the speculative level on the assumption that all the allegations in the complaint are true (even if doubtful in fact)." Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007) (citations omitted). "To satisfy this standard, a plaintiff need not `forecast' evidence sufficient to prove the elements of the claim. However, the complaint must allege sufficient facts to establish those elements." Walters v. McMahen, 684 F.3d 435, 439 (4th Cir. 2012) (citation omitted). "Thus, while a plaintiff does not need to demonstrate in a complaint that the right to relief is `probable,' the complaint must advance the plaintiff's claim `across the line from conceivable to plausible.'" Id. (quoting Twombly, 550 U.S. at 570). Additionally, although courts "must view the facts alleged in the light most favorable to the plaintiff," they "will not accept `legal conclusions couched as facts or unwarranted inferences, unreasonable conclusions, or arguments'" in deciding whether a case should survive a motion to dismiss. U.S. ex rel. Nathan v. Takeda Pharm. North Am., Inc., 707 F.3d 451, 455 (4th Cir. 2013) (quoting Wag More Dogs, LLC v. Cozart, 680 F.3d 359, 365 (4th Cir. 2012)).
CVS and Nice-Pak seek to amend their answers to add the additional defenses of: lack of class action standing, primary jurisdiction, statute of limitations, speculative damages, failure to plead punitive damages, injunctive relief is moot, spoliation of evidence, compliance with federal and industry standards and, for Nice-Pak only, lack of privity.
The court will grant the defendants' motion to amend. Although this case was filed in 2015 and transferred to this court in 2017, there has been no formal discovery because of the requested stays and the motion for judgment on the pleadings.
Plaintiffs seeking injunctive relief must show they are "in danger of being injured by the opposing party's conduct and that the danger is both `real' and `imminent.'"
The Palmers do not plausibly allege a likelihood of future injury. They do not allege that they want to or plan on purchasing the flushable wipes in the future. Rather, they allege that "after being advised by their plumbers not to flush anything down the toilet other than human waste and toilet paper, [they] stopped purchasing the CVS Flushable Medicated Wipes altogether." (Corrected Compl. ¶ 71). The complaint also alleges that the Palmers purchased the wipes because they were labeled as "flushable" and "would not have purchased the wipes had they not been labeled as such." (Id. ¶ 72). Therefore, the complaint does not contain any allegations of future injury, but instead implies that the Palmers do not plan on purchasing these wipes in the future.
The Palmers urge this court to follow the lead of other courts that have relaxed the future injury requirement in consumer protection cases.
Because the Palmers do not sufficiently allege a likelihood of future injury, the court will dismiss their request for injunctive relief. Accordingly, the court has no reason to consider the defendants' primary jurisdiction argument.
To establish a claim for negligent misrepresentation under Maryland law, a plaintiff must prove:
Swinson v. Lords Landing Village Condo., 360 Md. 462, 477 (2000).
As an initial matter, it is not clear from the complaint whether Nice-Pak was responsible for the labeling of the CVS flushable wipes. Assuming they were, Nice-Pak had no interactions with the Palmers, making it difficult to find "contractual privity or its equivalent." Further, finding an intimate nexus between Nice-Pak and consumers of its flushable wipes could subject Nice-Pak to damages "in an indeterminate amount for an indeterminate time to an indeterminate class," which is what the intimate nexus requirement was meant to avoid. The court, however, declines to decide the issue now, without additional information about Nice-Pak's role in labeling the wipes.
An express warranty is established by "[a]ny affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain," or "[a]ny description of the goods which is made part of the basis of the bargain." Md. Code. Ann., Com. Law. § 2-313(1). To prevail on a claim for breach of express warranty under Maryland law, "a plaintiff is required to establish that 1) a warranty existed; 2) the product did not conform to the warranty, and 3) the breach proximately caused the injury or damage." SpinCycle, Inc. v. Kalender, 186 F.Supp.2d 585, 589 (D. Md. 2002) (citation omitted).
"Privity of contract remains an essential ingredient ... in a breach of express warranty action not involving personal injury, because privity between the plaintiff and defendant is requisite to maintain a contract action unless the plaintiff is either a donee beneficiary or a creditor beneficiary." Addressograph-Multigraph Corp. v. Zink, 273 Md. 277, 280 (1974); see also Wood Prods., Inc. v. CMI Corp., 651 F.Supp. 641, 649 (D. Md. 1986) ("Privity is ... required in an action for breach of express warranty ... in which only economic loss is claimed."); H & M Co., Inc. v. Technical Heat Transfer Servs., Inc., No. TDC-14-1518, 2015 WL 1472000, at *4 (D. Md. March 30, 2015) ("H & M's claim for breach of express warranty will be dismissed because privity is a required element for such a claim.").
The Palmers do not allege they were in privity with Nice-Pak, as it appears they bought the wipes from CVS and not from Nice-Pak. Nor do they allege that they were a donee beneficiary or creditor beneficiary of any contract entered into by Nice-Pak. C.f. Lawley v. Northam, No. ELH-10-1074, 2011 WL 6013279, at *13 (D. Md. Dec. 1, 2011) (finding "a genuine dispute of material fact regarding the Lawleys' argument that they are third-party beneficiaries to the contract" with respect to their breach of warranty claim). Therefore, they have failed to allege privity, which is necessary for their breach of express warranty claim.
Under Md. Code, Com. Law, § 2-607(3)(a), a buyer "must within a reasonable time after he discovers or should have discovered any breach notify the seller of breach or be barred from any remedy." See Frericks v. Gen. Motors Corp., 278 Md. 304, 310 (1976); Doll v. Ford Motor Co., 814 F.Supp.2d 526, 542 (D. Md. 2011) (involving a claim for breach of implied warranty).
The Palmers appear to concede that they did not provide pre-suit notice to CVS; rather, they argue that the "pre-suit notice requirement is not served" here as the defendants had ample notice of the defect because of the "long history of consumer complaints and litigation on these issues." (Pls.' Opp'n to Defs.' Mot. for Judgment on the Pleadings at 22-23, ECF 186). "This kind of `notice,' however, is not what the law requires." Lloyd v. Gen. Motors Corp., 575 F.Supp.2d 714, 723 (D. Md. 2008). The Palmers provide no Maryland case to support their argument that a court may disregard the pre-suit notice requirement when it is not served in a particular situation.
For the reasons stated above, the court will grant the defendants' motion for judgment on the pleadings as to the Palmers' request for injunctive relief and their claim for breach of express warranty against CVS and Nice-Pak. The court will deny the motion without prejudice as to the Palmers' claim for negligent misrepresentation against Nice-Pak. The court also will grant the defendants' motion for leave to file amended answers. A separate order follows.