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Reid v. Unilever United States, Inc.

Citations: 964 F. Supp. 2d 893; 81 U.C.C. Rep. Serv. 2d (West) 305; 2013 U.S. Dist. LEXIS 112507; 2013 WL 4050194Docket: No. 12 C 06058

Court: District Court, N.D. Illinois; August 7, 2013; Federal District Court

Narrative Opinion Summary

In this class action lawsuit, plaintiffs, representing similarly situated individuals, sued Unilever United States, Inc. over alleged adverse effects of its Suave Professionals Keratin Infusion 30 Day Smoothing Kit. The plaintiffs claimed the product caused hair loss and damage, alleging breaches of express and implied warranties, violations of the Magnuson-Moss Warranty Act, consumer fraud, and unjust enrichment. Unilever filed a motion to dismiss, arguing insufficient factual support and lack of privity for warranty claims. The court partially granted and partially denied the motion, allowing claims related to express warranties and some consumer fraud allegations to proceed, while dismissing others, including implied warranty claims under the Magnuson-Moss Act for lack of privity. The court also addressed procedural matters, denying plaintiffs' motion to limit Unilever’s communications with potential class members due to insufficient evidence of coercion. Discovery was bifurcated into class certification and merits phases to enhance judicial efficiency. The case highlights critical issues regarding consumer protection, warranty law, and the procedural dynamics of class actions.

Legal Issues Addressed

Breach of Warranty under Magnuson-Moss Warranty Act

Application: Plaintiffs claim breaches of express and implied warranties under the Magnuson-Moss Act, though some claims are dismissed due to lack of privity.

Reasoning: Count V alleges that Unilever’s breaches, as detailed in earlier counts, violate the Magnuson-Moss Act, which protects consumers from deceptive warranty practices.

Class Action Communications under Rule 23(d)

Application: The court can restrict communications between parties and potential class members to prevent abuses and protect the integrity of the class action process.

Reasoning: The Supreme Court in Gulf Oil Co. v. Bernard, 452 U.S. 89 (1981), affirmed that district courts possess the authority to restrict such communications under Federal Rule of Civil Procedure 23(d).

Consumer Fraud and Deceptive Business Practices

Application: Plaintiffs allege violations under state consumer protection acts, claiming deceptive marketing practices by Unilever.

Reasoning: Regarding Count III, plaintiffs assert violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA) and the Alabama Deceptive Trade Practices Act (ADTPA).

Express Warranty under Uniform Commercial Code

Application: Plaintiffs allege that Unilever's marketing created express warranties which were breached by the actual product effects.

Reasoning: Plaintiffs assert claims for breach of express warranty against Unilever under Illinois and Alabama law, alleging that their purchase of the Hair Treatment constituted a contract that included Unilever's promises as conveyed through packaging and advertising.

Implied Warranty of Merchantability

Application: Plaintiffs claim the product was defective, causing personal injury, which allows for a breach of implied warranty claim despite lack of privity.

Reasoning: In Count II, Plaintiffs allege a breach of implied warranty of merchantability under Illinois and Alabama law, arguing that the Hair Treatment was defective and caused hair loss.

Unjust Enrichment

Application: Plaintiffs claim Unilever was unjustly enriched through sales of the defective product, though the claim for one plaintiff was dismissed due to a refund.

Reasoning: In Count VI, Plaintiffs allege unjust enrichment against Unilever under Illinois and Alabama law, asserting that Unilever retained unjust profits from Class members' purchases of the Hair Treatment.