HUNT, J.
¶ 1 James L. Brummett appeals the superior court's CR 12(b)(6) dismissal of his claims against Cole & Weber, Inc. doing business as Cole & Weber United (Cole & Weber) and its summary judgment dismissal of his claims against the Washington's Lottery, et al. (collectively Washington's Lottery). Brummett argues that Cole & Weber's advertisement that raffle tickets were "going fast" and the Washington's Lottery's advertisements and intervals at which "early bird" promotional prizes were awarded (1) were fraudulent; (2) violated the Consumer Protection Act
¶ 2 James L. Brummett has been an "avid" player of Washington's Lottery games since 1982. Clerk's Papers (CP) at 12. On August 19, 2010, Washington's Lottery Commission, approved the "Thanksgiving Raffle" of 250,000 tickets to be sold at $10 per ticket. Raffle tickets were to be sold for 39 days, from October 17 through November 25. Washington's Lottery scheduled 2,720 prizes to be awarded from the monies the raffle generated;
¶ 3 Stephen Wade, a research and development manager with Washington's Lottery, calculated the initial "nth" ticket interval for the Thanksgiving Raffle "early bird" prizes. Working from the assumption that the raffle's 250,000 tickets would sell out in 3 weeks, Wade initially set the "nth" ticket interval at 8,000. Wade believed that the "nth" ticket interval should remain at 8,000 so that all "early bird" prizes would be given out within 3 weeks of the raffle tickets' going on sale.
¶ 4 Washington's Lottery staff created all "early bird" advertising in-house. CP at 198. "Early bird" prize advertising was limited to the Washington's Lottery web site, point of sale materials, and bar-coded purchase slips for ticket vending machines. None of these "early bird" prize advertisements revealed the method used to select the instant winners or the "nth" ticket interval winner-selection process.
¶ 5 Cole & Weber was the advertising vendor for the Washington's Lottery Thanksgiving Raffle before and during the raffle; but it did not create any advertising for the "early bird" prizes. CP at 198. Cole & Weber worked with the Washington's Lottery staff to create an advertisement campaign focusing on the anticipated scarcity of raffle tickets and "the limited time offer of the game." CP at 198. Cole & Weber's 2 radio advertisements, which aired before the raffle tickets went on sale, (1) mentioned the $50,000 top scheduled raffle prize (2) contained statements about the sale of raffle tickets, such as, "Washington's Lottery Raffle tickets are going fast, so go, go, go," and, "People want those tickets for Washington's Lottery Raffle, and they're going fast"; but (3) did not mention the separate "early bird" promotional prizes.
¶ 6 Around October 10, a week before the first raffle tickets were to go on sale, Brummett saw point of sale advertising about the Thanksgiving Raffle, which noted the raffle's start date, October 17, and that "the chance to win $50,000 was going fast." CP at 340. On October 14, Brummett left home for a camping and deer hunting trip, also aware of the 30 "early bird" prizes. While away on his trip, he heard the Cole & Weber radio advertisements stating that the raffle tickets were "going fast," the day before they went on sale, October 16. CP at 232. Believing that the "early bird" prizes would be awarded within the first 30,000-50,000 tickets purchased,
¶ 7 By November 18, Brummett had purchased a total of nine raffle tickets. While purchasing the 9th ticket, Brummett saw on the "Lottery screen" that 11 "early bird" prizes still remained. CP at 337. The next day, he called Jana Jones, Director of Legal Services with Washington's Lottery, and informed her about his concern that, based on the number of "early bird" prizes left and the number of raffle tickets sold, all of the "early bird" prizes would not be given out.
¶ 8 Jones consulted with Wade, who reviewed the raffle ticket sales numbers and determined that, at the current pace, all of the "early bird" prizes would not be given
¶ 9 By the time the raffle ticket sales ended on November 25, 211,755 of the 250,000 available raffle tickets had been sold, and all "early bird" prizes had been awarded. The shortfall in raffle ticket sales meant that contestants had 1 in 77 odds of winning a scheduled raffle prize, which was better than the advertised 1 in 92 odds of winning.
¶ 10 Brummett made multiple public disclosure requests of Washington's Lottery. In response to his requests, he obtained an email dated November 29, 2010, sent by Lottery Deputy Director Julie Martin,
¶ 11 On February 8, 2011, Brummett sued Cole & Weber, Washington's Lottery, and some of the Lottery's directors, commission members, and employees individually. He asked the superior court to maintain the lawsuit as a class action and to certify him as class representative.
¶ 12 On May 20, the superior court dismissed with prejudice all of Brummett's claims against Cole & Weber under CR 12(b)(6). And it granted summary judgment to Washington's Lottery. Brummett appeals.
¶ 13 Brummett assigns error to the superior court's CR 12(b)(6) dismissal of his claims against Cole & Weber because their advertising campaign stating that raffle tickets were "going fast" constituted (1) fraud, (2) a violation of the Consumer Protection Act, (3) a breach of contract with Washington's Lottery by violating RCW 67.70.040(1), and (4) "unreasonableness," negligence, and negligent misrepresentation. Br. of Appellant at 11, 24. He also contends that the superior court "erred in not treating Cole & Weber's [m]otion to [d]ismiss as a[m]otion for [s]mmary [j]udgment" Br. of Appellant at 20. Brummett's arguments fail.
¶ 14 Brummett contends that summary judgment, not CR 12(b)(6), was the proper procedure for considering Cole & Weber's motion to dismiss because, at the hearing on its motion to dismiss, their counsel read transcripts of their advertisements, which transcripts were exhibits attached to Brummett's Declaration in Opposition to Cole & Weber's Motion To Dismiss. Although Brummett's complaint also refers to these advertisements, we agree that summary judgment was the more appropriate procedure for considering these matters outside the pleadings.
Brown v. MacPherson's, Inc., 86 Wn.2d 293, 297, 545 P.2d 13 (1975) (emphasis added) (citation omitted).
¶ 16 In its order granting Cole & Weber's motion to dismiss, the superior court noted that it had reviewed defendant Cole & Weber's Motion to Dismiss, plaintiff's Motion in Opposition to Cole & Weber's Motion To Dismiss, Declaration of James L. Brummett in Opposition to Cole & Weber's Motion to Dismiss (with exhibits), and defendant Cole & Weber's Reply in Support of Motion To Dismiss. Because the superior court considered Brummett's declaration, we treat Cole & Weber's CR 12(b)(6) motion as a motion for summary judgment. Brown, 86 Wash.2d at 297, 545 P.2d 13.
¶ 17 We review de novo the superior court's grant of summary judgment. Briggs v. Nova Services, 166 Wn.2d 794, 801, 213 P.3d 910 (2009). Summary judgment is proper when the record presents no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Briggs, 166 Wash.2d at 801, 213 P.3d 910. We view all facts and reasonable inferences in the light most favorable to the nonmoving party. Briggs, 166 Wash.2d at 801, 213 P.3d 910. The moving party bears the initial burden of showing an absence of material fact, which can be satisfied by pointing out to the court an absence of evidence in the plaintiff's case. Young v. Key Pharm. Inc., 112 Wn.2d 216, 225, 770 P.2d 182 (1989).
¶ 18 Once a moving party satisfies its initial showing, the nonmoving party must set forth specific facts disclosing a genuine issue of material fact that sufficiently rebuts the moving party's contentions. Atherton Condo. Apartment-Owners Ass'n Bd. Of Dirs. v. Blume Dev. Co., 115 Wn.2d 506, 516, 799 P.2d 250 (1990). A nonmoving party, however, cannot simply rely on speculation or argumentative assertions that unresolved factual issues remain. KS Tacoma Holdings, LLC v. Shorelines Hearings Bd., 166 Wn.App. 117, 126, 272 P.3d 876, review denied, 174 Wn.2d 1007, 278 P.3d 1112 (2012).
¶ 19 Brummett asserts that Cole & Weber's advertisements that raffle tickets were "going fast" was "[c]ommon law gambling
¶ 20 Even if we were to consider Brummett's common law "gambling fraud" claim as a common law fraud claim, it would still fail as a matter of law. The nine elements of fraud are: (1) representation of existing fact, (2) materiality of the representation, (3) falsity, (4) the speaker's knowledge of its falsity, (5) the intent of the speaker that representation be acted upon by the plaintiff, (6) plaintiff's ignorance of its falsity, (7) plaintiff's reliance on the truth of the representation, (8) plaintiff's right to rely on the representation, and (9) resulting damages. Poulsbo Group, LLC v. Talon Dev., LLC, 155 Wn.App. 339, 345-46, 229 P.3d 906 (2010). Brummett failed to meet all nine of these elements.
¶ 21 In his declaration, Brummett admitted that he had heard the raffle ticket sale advertisements before the tickets went on sale, when he would have known that these advertisements were not true. Thus, Brummett could not show a genuine issue of material fact about his ignorance of the falsity of the representations. Poulsbo Group, LLC, 155 Wash.App. at 346, 229 P.3d 906.
¶ 22 Nor could Brummett show a genuine issue of material fact about the materiality of the statements that raffle tickets were "selling fast." Br. of Appellant at 12; CP at 14. In his complaint, Brummett alleged that the advertisements "induce[d] the public to purchase tickets"
¶ 23 Similarly, in his declaration in opposition to Cole & Weber's motion to dismiss and in his appellate brief, Brummett claimed that these advertisements "affected [his] purchase timing" and caused him to make a 70-mile round trip in hopes of winning an "early bird" prize. Br. of Appellant at 12. But he did not attempt to show that these advertisements made any claims about either the scheduled raffle prizes or the "early bird" prizes or that these advertisements misled him about the total number of prizes, the odds of winning, or the amount of money at stake. Thus, Cole & Weber's possible representations about the speed of sale, even if false, were not material to the Thanksgiving Raffle under any set of facts that Brummett has offered. We hold, therefore, that summary judgment dismissal of Brummett's gambling fraud claim was proper.
¶ 24 Brummett next contends that the superior court erred in "not making a full decision against Cole & Weber ... as to violating the Consumer Protection Act." Br. of Appellant at 24. Again, Brummett's claim fails as a matter of law because, based on his own declaration, which we assume places the facts in the light most favorable to him, there were no genuine issues of material fact.
¶ 25 To prevail on a Consumer Protection Act claim, a plaintiff must show (1) an unfair or deceptive act or practice, (2) occurring in trade or commerce, (3) impacting the public interest, (4) injury to the plaintiff's business or property, and (5) causation. Hangman Ridge Training Stables, Inc. v. Safeco Title Ins. Co., 105 Wn.2d 778, 780, 719 P.2d 531 (1986); RCW 19.86.020. Implicit in whether an act is "deceptive" is "the understanding that the actor misrepresented something of material importance." Stephens v. Omni Ins. Co., 138 Wn.App. 151, 166, 159 P.3d 10 (2007) (internal quotations omitted), aff'd, Panag v. Farmers Ins. Co. of Washington, 166 Wn.2d 27, 204 P.3d 885 (2009). The first two elements of a Consumer
¶ 26 A per se unfair trade practice exists when a defendant violates a statute that the legislative body has declared "to constitute an unfair or deceptive act in trade or commerce." Hangman, 105 Wash.2d at 786, 719 P.2d 531. A per se violation requires (1) the existence of a pertinent statute that contains a specific declaration of public interest,
¶ 27 Furthermore, to the extent Brummett argues the advertisements were deceptive, his claim fails as a matter of law because he did not target the creator of this alleged deception. Even if we assume that the advertisements might have induced Brummett or other players to purchase raffle tickets in hopes of winning "early bird" prizes, these claims against Cole & Weber fail because all "early bird" advertising was created in-house by the Washington's Lottery staff, not by Cole & Weber. Simply stated, Cole & Weber's "going fast"
¶ 28 Brummett also failed to support his claim against Cole & Weber for violating the "Conformance and Precedence paragraphs in their advertising contract ... with Washington's Lottery[,] which states that they comply with RCW 67.70.040(1)." Br. of Appellant at 26. RCW 67.70.040(1) requires any state lottery to "produce the maximum amount of net revenues for the state consonant with the dignity of the state." (Emphasis added). Attempting to apply RCW 67.70.040(1) as a standard of conduct, Brummett asserts that Cole & Weber breached its contract with the State because "more dignified advertisements would have been ... based on excellence and honorability." Br. of Appellant at 26-27. But Brummett could not assert this statutory contract claim because he was neither a party to the contract nor an intended third party beneficiary of Cole & Weber's contract with the State.
¶ 29 Brummett next contends that the superior court "erred in not making a decision against Cole & Weber ... as to unreasonableness, negligence and brought up now, negligent misrepresentation of two ... of their radio 2010 raffle advertisements." Br. of Appellant at 22. A negligent misrepresentation occurs when,
ESCA Corp. v. KPMG Peat Marwick, 135 Wn.2d 820, 826, 959 P.2d 651 (1998) (internal quotation marks omitted) (quoting RESTATEMENT (SECOND) OF TORTS § 552(1) (1977)). Brummett's negligent misrepresentation claim failed because he was not justified in relying on the "going fast" information because, as he admitted, he heard and saw the advertisements before the tickets went on sale. CP at 231. Thus, by his own admission, there was no genuine issue of material fact that these advertisements induced him to buy lottery tickets that he would not otherwise have purchased.
¶ 30 Brummett also argues that the superior court erred in granting summary judgment dismissal of his claims against Washington's Lottery because its advertisements and decision to set, and later to change, the "nth" ticket interval at which "early bird" promotional prizes were awarded constituted (1) fraud, (2) a violation of RCW 67.70.040(1), and (3) negligence, negligent misrepresentation, and "unreasonableness." Br. of Appellant at 34. This argument also fails.
¶ 31 Brummett's fraud claims against Washington's Lottery rest on whether Washington's Lottery committed "gambling fraud," which Brummett asserts occurs when "play" is inequitable and unfair. Br. of Appellant at 36. But, again, Brummett fails to cite any law recognizing a common law cause of action for "gambling fraud." Br. of Appellant at 36. And again, his gambling fraud claim fails as a matter of law.
¶ 32 Brummett next contends that the superior court "erred in not deciding against Washington's Lottery ... for not complying with RCW 67.70.040(1)." Br. of Appellant at 32. Brummett contends that Washington's Lottery violated RCW 67.70.040(1) through Cole & Weber's advertisements stating that tickets are "selling fast," by setting the "nth" ticket interval at 8,000, and by later changing the "nth" ticket interval to 1,000.
¶ 33 Brummett relies solely on the following text to "justify" bringing a claim under RCW 67.70.040(1): "[I]n order that such [l]ottery produce the maximum amount of net revenues for the state consonant with the dignity of the state and the general welfare of the people." Br. of Appellant at 16 (quoting RCW 67.70.040(1)). But he fails to explain how RCW 67.70.040(1) satisfies the three-part test for establishing a statutorily implied cause of action. See Ducote v. Dep't of Soc. & Health Servs., 167 Wn.2d 697, 703, 222 P.3d 785 (2009). Because he fails to support his contention with developed argument and citations to case law establishing or implying his asserted cause of action, as RAP 10.3(a)(6) requires, we need not further consider it.
¶ 34 Brummett also asserts that the superior court "erred in not making a decision against Washington's Lottery ... as to unreasonableness, negligence and negligent misrepresentation," for raffle placard advertisements stating that tickets are "selling fast," the "early bird" prize structure, and Washington's Lottery's decision to subsequently change the "nth" ticket interval. Br. of Appellant at 34.
¶ 35 Brummett makes only bald assertions that Washington's Lottery's conduct constituted "unreasonableness," negligence, and negligent misrepresentations. Br. of Appellant at 34. Again, he cites no authority to support the claims of "unreasonableness" or negligence,
¶ 36 His negligent misrepresentation claim also fails because "selling fast" and "early bird" are not sufficiently definite to justify his reliance on those statements, especially where, as we have previously noted, he admitted knowing that the tickets were not even selling yet at the time he heard these advertisements. See ESCA Corp., 135 Wash.2d at 826, 959 P.2d 651. Furthermore, Brummett does not even attempt to show how any facts he asserted supported the elements of either negligence or negligent misrepresentation. Accordingly, these claims also fail as a matter of law.
¶ 37 Finally, Brummett assigns error to the superior court's dismissal of all his claims with prejudice. He argues that the dismissals should have been without prejudice so that he can freely amend his claims against Cole & Weber and Washington's Lottery. Again, he cites no authority to support this assertion, contrary to RAP 10.3(a)(6).
¶ 38 We affirm.
¶ 39 A majority of the panel having determined that this opinion will not be printed in the Washington Appellate Reports, but will be filed for public record pursuant to RCW 2.06.040, it is so ordered.
We concur: WORSWICK, C.J., and JOHANSON, J.
We again note, however, that no Washington appellate court has allowed an action under RCW 67.70.040(1); and, on its face, the provisions of the statute do not create a protected class or any private right of action. Nor can we envision how Brummett might satisfy even the first prong of the test because (1) lotteries must be run to produce maximum revenues "consonant with the dignity of the state and the general welfare of the people," RCW 67.70.040(1); and (2) on its face, RCW 67.70.040(1) does not create a special class of people the legislature intended the statute to benefit, instead specifically promulgating it for "the general welfare of the people." RCW 67.70.040(1).
Br. of Appellant at 28 (citing FRIEDENTHAL, KANE & MILLER, CIVIL PROCEDURE 14.8 (West Handbook, 2nd ed.)).