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Weske v. Samsung Electronics, America, Inc.

Citations: 42 F. Supp. 3d 599; 2014 WL 4265803Docket: Civ. No. 2:10-4811 (WJM)

Court: District Court, D. New Jersey; August 27, 2014; Federal District Court

Narrative Opinion Summary

In this class action, plaintiffs allege that Samsung refrigerators suffer from a defect in the circuit board causing cooling failures, which Samsung failed to disclose. The case involves multiple plaintiffs from different states asserting consumer fraud and breach of warranty claims under various state laws, including the New Jersey common law of fraudulent concealment, Illinois Consumer Fraud Act (ICFA), California's CLRA and UCL, Washington Consumer Protection Act (WCPA), Minnesota Uniform Deceptive Trade Practices Act (MUDTPA), and Ohio Consumer Sales Practices Act (OCSPA). Samsung moved to dismiss the Third Amended Complaint (TAC) under Rule 12(b)(6), challenging the sufficiency of the pleadings. The court partially granted and partially denied Samsung's motion, dismissing claims where plaintiffs failed to establish reliance or where the defect occurred post-warranty, such as under ICFA and CLRA/UCL. However, the court upheld claims under WCPA and OCSPA, acknowledging the sufficiency of allegations regarding Samsung's knowledge of the defect and the presumption of reliance in omission-based claims. The court dismissed breach of implied warranty claims under Minnesota and Ohio law due to lack of evidence of unfitness at the time of sale. This decision allows certain claims to proceed to discovery, focusing on Samsung's alleged knowledge and failure to disclose the defect.

Legal Issues Addressed

Breach of Implied Warranty under Minnesota and Ohio Law

Application: The court dismissed the claims, noting the expiration of the warranty period and the lack of evidence that the refrigerators were unfit for ordinary use at the time of purchase.

Reasoning: Defendant argues that products cannot be deemed unfit for their ordinary use if they remain functional beyond their warranty period.

Consumer Claims under California Legal Remedies Act (CLRA) and Unfair Competition Law (UCL)

Application: The court ruled against the plaintiff, finding no plausible safety issue related to the defect and clarifying the warranty period did not cover the alleged defect.

Reasoning: Kean asserts that a generalized deceptive practice claim can succeed without safety implications or post-warranty defects lacks supporting case law.

Consumer Fraud Claims under Illinois Consumer Fraud Act (ICFA)

Application: The court dismissed the claims due to lack of direct communication from Samsung to the plaintiffs, which is necessary to establish proximate cause under the ICFA.

Reasoning: Chermak and Polsean's claims under the Illinois Consumer Fraud Act (ICFA) were previously dismissed because they did not allege any communication from Samsung.

Fraudulent Concealment/Non-Disclosure under New Jersey Law

Application: The court found that the plaintiffs failed to demonstrate reliance, which is a necessary element for fraudulent concealment claims in New Jersey, as they did not allege receiving any communications from Samsung prior to their refrigerator purchases.

Reasoning: Plaintiffs must demonstrate that they directly received and considered the misrepresentation before completing a transaction to succeed in a common law fraud claim.

Ohio Consumer Sales Practices Act (OCSPA)

Application: The court denied the motion to dismiss the claims, noting that the plaintiff met the minimal proximate cause standard by alleging Whirlpool failed to disclose a defect.

Reasoning: Frager alleges that Whirlpool failed to disclose a defect, satisfying the minimal proximate cause standard for her OCSPA claim.

Washington Consumer Protection Act (WCPA) and Minnesota Uniform Deceptive Trade Practices Act (MUDTPA)

Application: The court allowed claims to proceed by recognizing a presumption of reliance in omission-based claims, which does not require individual reliance.

Reasoning: Causation can be shown through reliance, but Washington courts do not require individual reliance in cases of material non-disclosure.