Fazio v. Apple, Inc
Filing
68
ORDER by Judge Claudia Wilken GRANTING 32 MOTION TO DISMISS. (ndr, COURT STAFF) (Filed on 7/23/2013)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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IN RE IPHONE 4S CONSUMER
LITIGATION,
No. C 12-1127 CW
________________________________/
ORDER GRANTING
MOTION TO DISMISS
(Docket No. 32)
Defendant Apple, Inc. moves to dismiss the consolidated class
8
action complaint (CCAC) filed by Plaintiffs Frank M. Fazio,
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Carlisa S. Hamagaki, Daniel M. Balassone and Benjamin Swartzmann.
United States District Court
For the Northern District of California
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Plaintiffs oppose Apple’s motion.
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filed a supplemental opposition to Apple’s motion.
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considered the arguments presented by the parties in their papers
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and at the hearing, the Court GRANTS Apple’s motion to dismiss and
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grants leave to amend.
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Plaintiff David Jones has also
Having
BACKGROUND
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The following facts are taken from Plaintiffs’ consolidated
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class action complaint and certain documents submitted by Apple,
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of which the Court takes judicial notice as discussed below.
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Apple manufactures, designs, produces and sells several types of
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electronic products, including, among others, personal computers,
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portable music players, cellular phones and other communication
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devices.
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iPhone 4S, launched in October 2011.
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latest version of Apple’s iPhone, which functions as a mobile
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phone, an music player and an Internet communications device all
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in one and features desktop-class email, web browsing, searching,
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and maps.
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distinguished by Apple from the previous iPhone devices, including
CCAC ¶ 32.
Among these products is the well-known
Id. at ¶¶ 3-4.
Id.
The iPhone 4S was the
Plaintiffs claim that the iPhone 4S is
1
the iPhone 4, predominantly based on the inclusion of a feature
2
called “Siri.”
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Id. at ¶ 4.
According to Apple’s October 4, 2011 press release
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introducing the feature, Siri is “an intelligent assistant that
5
helps you get things done just by asking.”
6
press release, Apple described the feature in the following way:
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In the
Siri understands context allowing you to speak naturally
when you ask it questions, for example, if you ask “Will
I need an umbrella this weekend?” it understands you are
looking for a weather forecast. Siri is also smart
about using the personal information you allow it to
access, for example, if you tell Siri “Remind me to call
Mom when I get home” it can find “Mom” in your address
book, or ask Siri “What’s the traffic like around here?”
and it can figure out where “here” is based on your
current location. Siri helps you make calls, send text
messages or email, schedule meetings and reminders, make
notes, search the Internet, find local businesses, get
directions and more. You can also get answers, find
facts and even perform complex calculations just by
asking.
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9
10
United States District Court
For the Northern District of California
Id. at ¶ 34.
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12
13
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Id.
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on iPhone 4S in English (localized for US, UK and Australia),
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French and German.”
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The press release noted that “Siri will be available in beta
Request for Judicial Notice (RJN), Ex. 1.
In the press release, Apple also advertised that the iPhone
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4S had other “incredible new features” in addition to Siri,
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including a “dual-core A5 chip for blazing fast performance and
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stunning graphics; an all new camera with advanced optics;” and
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“full 1080p HD resolution video recording.”
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Id.
On the same day that the press release was issued, Apple had
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a press conference in which it introduced Siri as a “digital
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assistant” and “the coolest feature of the new iPhone 4S.”
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¶ 24; see also RJN ¶ 3, Ex. 3 & “Apple Special Event: October 4,
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2011,” http://www.apple.com/apple-events/october-2011 (last
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accessed July 8, 2013).
CCAC
During the interactive demonstration,
2
1
Siri was asked live “do I need a raincoat today” and promptly
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replied “it sure looks like rain today” and displayed the weather
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forecast.
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CCAC ¶ 24.
The presenter asked Siri many other questions and requests as
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well and got prompt and appropriate responses.
6
Special Event: October 4, 2011,” http://www.apple.com/apple-
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events/october-2011.
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Paris?” and Siri responded that the “time in Paris, France is 8:16
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PM,” and showed a clock with that time.
RJN ¶ 3, “Apple
For example, he asked, “What time is it in
Id.
He asked Siri to
United States District Court
For the Northern District of California
10
“wake me up tomorrow at 6 a.m.” and Siri responded showing that an
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alarm was “on” and said, “OK, I set it for 6 am.”
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asked, “How is the NASDAQ doing today,” and Siri responded that
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“the NASDAQ Composite is down right now, at 2,321.70” and showed a
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graph.
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Palo Alto” and Siri displayed with a list of restaurants, sorted
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by rating.
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responded, “Let me think about that.
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displayed a definition of Mitosis on the screen.
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asked, “How many days are there until Christmas,” and Siri
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responded, “Let me check on that. . . One moment . . .
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this for you,” and displayed a screen showing the number of days
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until Christmas Day, along with other information.
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presenter also reiterated that it was “easy” to use Siri and that
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users do not need to use precise words to use Siri but rather that
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Siri understands general words and “conceptual questions” to
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determine what the user is requesting.
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Id.
Id.
He also
He told Siri, “Find me a great Greek restaurant in
Id.
He directed Siri, “Define Mitosis,” and it
I found this for you” and
Id.
He also
Id.
I found
The
Id.
During the presentation, various speakers mentioned that Siri
was “beta” software or “not perfect.”
3
Id.
At the start of the
1
segment on Siri, the Apple representative introduced the person
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who would do a demonstration of Siri and stated that “this demo
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is, of course, of beta software.”
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the demonstration, “You can’t ask it everything and it’s not
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perfect.”
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representative reiterated, “As we have said, it will be beta at
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the start, and you’ve seen how great it is already.
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mean that we will add more languages over time and more services
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over time as well.”
United States District Court
For the Northern District of California
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Id.
Id.
The presenter noted during
At the end of the segment, the Apple
By beta, we
Id.
Apple engaged in an extensive multi-million dollar,
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nationwide marketing campaign for the iPhone 4S that showcased the
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Siri feature.
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market the iPhone 4S nationally, Apple asked, “How do you improve
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on something so extraordinary?” and answered “now we’re
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introducing Siri.”
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four out of seven recent iPhone 4S television advertisements
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focused solely on Siri.
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out of Apple’s ten television advertisements displayed featured
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Siri).
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conveyed that Siri was able to perform various tasks that were
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depicted therein, including that Siri could be used to make
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appointments, find restaurants, send text messages, learn guitar
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chords to classic rock songs and learn how to tie a tie.
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¶¶ 6-7, 36.
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voice command given by someone who is running.
Id. at ¶¶ 6, 11.
Id. at ¶ 35.
In one video that Apple used to
According to Apple’s website,
Id. at ¶ 40.
See also RJN Ex. 6 (seven
Many of the video advertisements for the iPhone 4S
CCAC
Siri was also shown to understand and respond to a
CCAC ¶ 7.
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As another example, Apple made a television advertisement
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entitled “Road Trip” that showed a couple asking Siri numerous
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questions while traveling to Santa Cruz, California, including
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1
“Where is the best barbeque in Kansas City?” “Is there a rodeo in
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Amarillo today?” and “How big is the Grand Canyon?”
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In response to the question, “[Are there] any gas stations we can
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walk to?,” Siri immediately answered, “I found two gas stations
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fairly close to you,” and the name and review rating of two gas
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stations displayed on the user’s iPhone 4S screen.
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Similarly, when asked, “What does Orion look like?” Siri responded
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with a map of the Orion constellation and stated, “I found this
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for you.”
Id.
Id. at ¶ 37.
Id.
When asked, “What is the best way to Santa Cruz,
United States District Court
For the Northern District of California
10
California?” Siri promptly responded with a map showing a route to
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that city.
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ads-roadtrip (last accessed July 31, 2012).
“Road Trip,” http://www.apple.com/iphone/videos/#tv-
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In another television advertisement broadcast nationwide
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entitled “Rock God,” a guitar player asked Siri numerous questions
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including, “How do I play London Calling?” and “[How do I play]
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Whole Lotta Love?”
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do I play] a B Minor Ninth?” Siri displayed with the proper notes,
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chord and sheet music.
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our band is playing at the garage tonight,” Siri responded, “Here
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is your message to Julie and Kate,” and immediately showed on the
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user’s iPhone 4S screen a message to “Julie, Kate” that read “Our
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band is playing at the garage tonight.”
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CCAC ¶ 38.
Id.
In response to the question “[How
When directed, “Tell Julie and Kate
Id. at ¶ 39.
Apple’s website also touted Siri as a major selling point.
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Id. at ¶ 41.
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users to a welcome screen that stated, “Introducing Siri.
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intelligent assistant that’s there to help.
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to make calls, send texts, set reminders, and more.
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way you talk.
Selecting the “iPhone” tab on the website brought
Just ask.
The
Ask Siri
Just talk the
Siri understands what you say and knows what you
5
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mean.”
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iPhone 4S Video,” which directed to a video depicting multiple
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demonstrations involving Siri and its capabilities.
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For instance, in response to the request, “Find me an Italian
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restaurant in North Beach,” Siri answered, “Okay, these 25 Italian
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restaurants are in North Beach” and the iPhone 4S user screen
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showed the name and review ratings of twenty-five Italian
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restaurants located in North Beach.
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“Move my meeting with Kelly Altech to 12:00 p.m.”
Id.
That webpage also included a link labeled, “Watch the
Id.
Id. at ¶ 42.
A jogger told Siri,
Id.
Siri
United States District Court
For the Northern District of California
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responded, “Note that you already have a meeting about budgets at
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12 p.m.”
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President of iOS Software, further commented on Siri, stating,
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“It’s like this amazing assistant that listens to you, understands
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you, can answer your questions and can even accomplish tasks for
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you . . .
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the ability to understand what you mean and act on it, that’s the
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breakthrough with Siri.”
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Id.
During the video, Scott Forstall, Senior Vice
A lot of devices can recognize the words you say, but
Id.
Plaintiffs each purchased an iPhone 4S between October 2011
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and January 2012, because they saw and relied upon Apple’s
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representations regarding the Siri feature.
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27.
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Best Buy store in New York, “saw and relied upon Apple’s
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television advertisements and Apple’s representations made about
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Siri during various presentations and on Apple’s website.”
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¶ 20.
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on Apple’s website, “saw and relied upon Apple’s television
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advertisements and Apple’s representations related to Siri on its
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website.”
Id. at ¶¶ 20, 22, 24,
Fazio, a citizen of New York who purchased his iPhone at a
Id. at
Hamagaki, a citizen of California who purchased her iPhone
Id. at ¶ 22.
Balassone, a citizen of New Jersey who
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purchased his iPhone at an Apple store in New Jersey, “relied on
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the statements and interactive demonstrations performed at Apple’s
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October 4, 2011 press conference and other representations.”
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at ¶ 24.
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iPhone at an Apple store in California, saw and “relied on Apple’s
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advertisements showing that Siri would accurately provide
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information based on verbal commands, would permit accurate
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dictation of emails and would substantially shorten and simplify
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research time.”
United States District Court
For the Northern District of California
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Id.
Swartzmann, a citizen of California who purchased his
Id. at ¶ 27.
Plaintiffs allege that they found after purchasing the iPhone
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4S that Siri did not perform as advertised.
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According to Fazio, Siri was unable to answer specific questions.
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Id. at ¶ 21.
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to a certain place, or to locate a store, Siri either did not
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understand what Fazio was asking or, after a very long wait time,
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responded with the wrong answer.
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the fat content between two meals, the location of a children’s
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party venue, information related to the “guided reading” teaching
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method and directions to a doctor’s office located in Brooklyn,
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and Siri was unable to answer Fazio’s questions properly.
Id. at ¶ 20-29.
For instance, when Fazio asked Siri for directions
Id.
Fazio asked Siri to compare
Id.
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Balassone attempted to mirror the commands given to Siri in
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the Apple advertisements, including in the “Rock God” commercial
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described above, but Siri did not answer in the same manner as in
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the commercial.
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“how do you play an A chord?” and Siri answered, “OK, how about a
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web search for ‘how do you plan a quart?’”
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“how do you play a B minor chord?” and Siri responded, “looking
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for B minor chord,” followed by “still thinking,” and eventually
Id. at ¶ 25.
For example, Balassone asked Siri:
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Id.
Balassone asked
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responded, “Sorry, I couldn’t find B minor chord in your music.”
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Id.
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Swartzman also believed that Siri was not performing as
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advertised and that it frequently gave him wrong information or
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failed to respond.
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to use Siri to make phone calls or send emails, and Siri
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repeatedly gave the wrong names and numbers of people that he was
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trying to contact.
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Springs, Siri did not understand what he was asking for.
Id. at ¶ 28.
Id.
For example, Swartzman attempted
When he asked Siri the weather in Palm
Id.
United States District Court
For the Northern District of California
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When Swartzman asked Siri, “When is St Patrick’s Day?” Siri
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responded, “Sorry, I don’t understand ‘When is St Patrick’s Day.’”
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Id.
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Hamagaki had a similar experience.
Id. at ¶ 23.
For
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example, while Siri was able to respond to very general requests,
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such as “find me a gas station” or “find me Thai food,” when asked
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anything more complex, Siri could not come up with an answer.
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Id.
People other than Plaintiffs also found problems with Siri.
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Id. at ¶ 45.
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“Apple’s Siri ‘Rock God’ Commercial: How Accurate Is It, Really?”,
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which was accompanied by a video called, “A Scientific Ex-Siri-
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Ment.”
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Gilbert, repeating every voice command prompt in Apple’s “Rock
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God” commercial word for word.
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responded to only two of seven prompts in the “Rock God”
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commercial on the first try as it did in the advertisements,
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including one response that came after an extreme time lag.
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at ¶ 46.
Id.
The Huffington Post published an article entitled,
The video showed Huffington Post blogger, Jason
Id.
In Gilbert’s video, Siri
Id.
Further, in response to the direction, “Tell Julie and
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8
1
Kate our band is playing at the garage tonight,” Siri responded
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with “Are band is playing at the garage tonight.”
3
Id.
Most of Apple’s marketing and advertising campaign, including
4
its dominant and expansive television advertisements, did not
5
mention the word “beta” or the fact that Siri was, “at best, a
6
work-in-progress.”
7
website,” a page containing “Frequently Asked Questions” about
8
Siri, Apple stated “Siri is currently in beta and we’ll continue
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to improve it over time.”
Id. at ¶ 49.
On a webpage “buried in Apple’s
Id. at ¶ 48; RJN, Ex. 2.
Apple also
United States District Court
For the Northern District of California
10
noted on several other webpages that Siri is in “beta” without
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elaboration.
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series of links within Apple’s website, including a footnote at
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the bottom of a page, that one would learn that Siri is only a
14
work-in-progress.”
15
Siri transactions depicted in its television commercials are
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fiction and that actual consumers using actual iPhone 4Ss cannot
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reasonably expect Siri to perform the tasks performed in Apple’s
18
commercials.”
19
consumers advertisements where Siri acts without complications,
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rather than how Siri actually performs.”
RJN, Exs. 4, 5.
CCAC ¶ 50.
Id. at ¶ 51.
“[I]t is only through following a
“Apple never disclosed that the
“Instead, Apple chose to show
Id.
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Plaintiffs also allege that “recent reports have shown that
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continuous Siri usage dramatically increases an iPhone 4S users’
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monthly data usage and can easily push users over their data
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plans.”
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Id. at ¶ 48.
Plaintiffs seek to represent a class of all persons in the
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United States who purchased an Apple iPhone 4S for use and not for
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resale.
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class members were damaged by Apple’s purported misrepresentation
Id. at ¶ 54.
They allege that they and the putative
9
1
of Siri as “a consistent intelligent verbal assistant” in the
2
amount of the purchase price of the iPhone 4S.
3
116.
4
that they spent purchasing the iPhone 4S while being misled about
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the utility of the iPhone 4S’s Siri feature and would not have
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paid the price they did for the devices if they had not seen and
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relied upon these representations.
8
Id. at ¶¶ 109,
Fazio, Balassone and Hamagaki allege that they lost money
Id. at ¶¶ 21, 23, 26.
Plaintiffs allege that “Apple is a California corporation
with its headquarters and principal place of business in
10
United States District Court
For the Northern District of California
9
Cupertino, California,” and that all critical decisions,
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“including all decisions concerning the marketing and advertising
12
of the iPhone 4S’s Siri feature, were made by Apple employees
13
located in California.”
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Id. at ¶¶ 29-30.
Plaintiffs assert claims against Apple on behalf of the class
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for (1) violation of California’s Consumer Legal Remedies Act
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(CLRA), Cal. Civil Code. § 1750 et seq., (2) violation of
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California’s False Advertising Law (FAL), Cal. Bus. & Prof. Code
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§ 17500, et seq., (3) violation of California’s Unfair Competition
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Law (UCL), Cal. Bus. & Prof. Code § 17200, et seq., (4) violation
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of the Magnusson-Moss Warranty Act (MMWA), 15 U.S.C. § 2301, et
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seq., (5) breach of express warranty; (6) breach of implied
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warranty of merchantability; (7) intentional misrepresentation;
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(8) negligent misrepresentation; and (9) unjust enrichment.
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Fazio filed his complaint on March 6, 2012 in this district.
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Docket No. 1.
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initiated a separate action in this district.
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On March 26, 2012, Fazio, Balassone and Swartzmann filed a
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stipulation to consolidate the two actions and appoint their
On March 20, 2012, Balassone and Swartzmann
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Case No. 12-1384.
1
attorneys as co-lead interim class counsel.
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Court granted their stipulation on March 29, 2012.
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Docket No. 11.
The
On March 27, 2012, Jones initiated his action against Apple
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in the Central District of California.
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subsequently transferred to this district and related to the
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consolidated cases.
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8
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The Jones action was
LEGAL STANDARD
A complaint must contain a “short and plain statement of the
claim showing that the pleader is entitled to relief.”
Fed. R.
United States District Court
For the Northern District of California
10
Civ. P. 8(a).
11
state a claim, dismissal is appropriate only when the complaint
12
does not give the defendant fair notice of a legally cognizable
13
claim and the grounds on which it rests.
14
Twombly, 550 U.S. 544, 555 (2007).
15
complaint is sufficient to state a claim, the court will take all
16
material allegations as true and construe them in the light most
17
favorable to the plaintiff.
18
896, 898 (9th Cir. 1986).
19
to legal conclusions; “threadbare recitals of the elements of a
20
cause of action, supported by mere conclusory statements,” are not
21
taken as true.
22
(citing Twombly, 550 U.S. at 555).
On a motion under Rule 12(b)(6) for failure to
Bell Atl. Corp. v.
In considering whether the
NL Indus., Inc. v. Kaplan, 792 F.2d
However, this principle is inapplicable
Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)
23
When granting a motion to dismiss, the court is generally
24
required to grant the plaintiff leave to amend, even if no request
25
to amend the pleading was made, unless amendment would be futile.
26
Cook, Perkiss & Liehe, Inc. v. N. Cal. Collection Serv. Inc., 911
27
F.2d 242, 246-47 (9th Cir. 1990).
28
amendment would be futile, the court examines whether the
11
In determining whether
1
complaint could be amended to cure the defect requiring dismissal
2
“without contradicting any of the allegations of [the] original
3
complaint.”
4
Cir. 1990).
Reddy v. Litton Indus., Inc., 912 F.2d 291, 296 (9th
5
6
DISCUSSION
I. Apple’s Request for Judicial Notice (RJN)
7
Although courts generally cannot consider documentary
8
evidence on a motion to dismiss, doing so is appropriate when the
9
pleadings refer to the documents, their authenticity is not in
United States District Court
For the Northern District of California
10
question and there are no disputes over their relevance.
11
Settlement v. Eisenberg, 593 F.3d 1031, 1038 (9th Cir. 2010);
12
Branch v. Tunnell, 14 F.3d 449, 454 (9th Cir. 1994) (holding that
13
courts may properly consider documents “whose contents are alleged
14
in a complaint and whose authenticity no party questions, but
15
which are not physically attached to the [plaintiff’s] pleading”).
16
This includes “internet pages as it does . . . printed material.”
17
Knievel v. ESPN, 393 F.3d 1068, 1076 (9th Cir. 2005).
Coto
18
Apple asks the Court to take judicial notice of nine webpages
19
or documents from its website, because “the Complaint specifically
20
refers to and relies upon alleged representations on Apple’s
21
website (www.apple.com).”
22
Plaintiffs dispute that contents of the website are alleged in the
23
CCAC or the authenticity of the documents submitted by Apple.
24
Only Plaintiff Jones opposes the request for judicial notice; the
25
remaining Plaintiffs do not oppose it.
26
Mot. at 4 n.1; see RJN ¶¶ 1-9.
No
Most of the webpages or documents of which Apple asks the
27
Court to take judicial notice are specifically referred to in the
28
CACC.
See RJN ¶¶ 1-4, 6-8, Exs. 1 (CCAC ¶ 34 & n.2), 2 (CCAC
12
1
¶¶ 48, 50 & n.14, 16), 3 (CCAC ¶ 24), 4 (CCAC ¶ 50 & n.15), 6
2
(CCAC ¶¶ 37-40 & n.3-6), 7 (CCAC ¶ 62(h) & n.18) and 8 (CCAC
3
¶ 72).
4
these documents.
5
The Court grants the request for judicial notice as to
Apple also requests that the Court take judicial notice of
Exhibit 5 to the declaration of Scott Maier, which contains
7
printouts from the “Siri Features Webpage.”
8
does not directly refer to this webpage.
9
CCAC “refers to or relies on webpages on Apple’s website that
10
United States District Court
For the Northern District of California
6
contain information about the features of the iPhone 4s or its
11
Siri software” in particular paragraphs.
12
paragraphs that Apple cites refer to other specific webpages on
13
its website and do not refer to the “Siri Features Webpage.”
14
e.g., CCAC ¶¶ 41, 48, 50.
15
RJN ¶ 5.
The CCAC
Apple argues that the
Id.
However, the
See,
Apple contends that the Court should nevertheless take
16
judicial notice of this page because it is “necessary to provide a
17
complete picture of the representations challenged in the
18
Complaint.”
19
doctrine “seeks to prevent . . . the situation in which a
20
plaintiff is able to maintain a claim of fraud by extracting an
21
isolated statement from a document and placing it in the
22
complaint, even though if the statement were examined in the full
23
context of the document, it would be clear that the statement was
24
not fraudulent.”
25
Sec. Litig., 114 F.3d 1410, 1426 (3d Cir. 1997)).
26
Reply at 9.
It argues that the judicial notice
RJN at 3 (quoting In re Burlington Coat Factory
In Knievel, the Ninth Circuit considered whether, on a motion
27
to dismiss, a court could properly consider portions of a website
28
other than those specifically alleged in the complaint.
13
393 F.3d
1
at 1076.
2
complaint a particular picture and caption from the defendant’s
3
website that they alleged was defamatory.
4
found that the court could properly consider the content of web
5
pages that a user would have had to view in order to access the
6
photograph.
7
reader must absorb a printed statement in the context of the media
8
in which it appears, a computer user necessarily views web pages
9
in the context of the links through which the user accessed those
United States District Court
For the Northern District of California
10
11
pages.”
In that case, the plaintiffs had attached to their
Id.
Id.
The Ninth Circuit
In so holding, the court noted that, like “a
Id.
Apple makes no showing that the Siri Features Webpage is a
12
page that must be accessed in order to reach those pages whose
13
contents are specifically alleged in the CCAC or that a user who
14
went to those pages would necessarily see the Siri Features
15
Webpage.
16
allegations “is flatly contradicted by multiple other statements
17
available on Apple’s website” including the Siri Features Webpage,
18
this is not a proper reason to take judicial notice of a document
19
at the motion to dismiss stage.
20
to take judicial notice of the Siri Features Webpage.
21
Although Apple argues that one of Plaintiffs’
Accordingly, the Court declines
Finally, Apple also requests that the Court take judicial
22
notice of Exhibit 9 to the declaration of Scott Maier, which
23
contains the one-year hardware warranty for the iPhone 4S.
24
contends that the Court should take judicial notice of this
25
warranty, because the CCAC “refers to or relies on alleged
26
breaches of express warranties.”
27
not allege that this particular express warranty was breached or
RJN ¶ 9.
28
14
Apple
However, the CCAC does
1
directly refer to it.
2
judicial notice of this document.
3
II. Standing of out-of-state Plaintiffs
4
Accordingly, the Court declines to take
Apple contends Fazio and Balassone lack standing to pursue
5
the claims under the UCL, FAL and CLRA, because they are not
6
California residents and did not purchase their devices in
7
California.
8
analysis compels the conclusion that California law should not be
9
applied to their claims.
United States District Court
For the Northern District of California
10
In its reply brief, Apple argues that choice-of-law
Apple “conflate[s] two issues: the extraterritorial
11
application of California consumer protection laws (or the ability
12
of a nonresident plaintiff to assert a claim under California
13
law), and choice-of-law analysis (or a determination that, based
14
on policy reasons, non-forum law should apply).”
15
Hyland’s, Inc., 2012 U.S. Dist. LEXIS 91393, at *9 (C.D. Cal.).
16
California courts have concluded that “state statutory remedies
17
may be invoked by out-of-state parties when they are harmed by
18
wrongful conduct occurring in California.”
19
v. Superior Ct., 72 Cal. App. 4th 214, 224-225 (1999).
20
have alleged that their injuries were caused by Apple’s wrongful
21
conduct in false advertising that originated in California.
22
Plaintiffs have alleged that Apple’s purportedly misleading
23
marketing, promotional activities and literature were coordinated
24
at, emanate from and are developed at its California headquarters,
25
and that all “critical decisions” regarding marketing and
26
advertising were made within the state.
27
California’s presumption against the extraterritorial application
28
of its statutes therefore does not bar the claims of the out-of15
Forcellati v.
Norwest Mortg., Inc.
Plaintiffs
Here,
CCAC ¶¶ 30, 62.
1
state Plaintiffs, because this principle is “one against an intent
2
to encompass conduct occurring in a foreign jurisdiction in the
3
prohibitions and remedies of a domestic statute.”
4
Multimedia Sys., Inc. v. Superior Ct., 19 Cal. 4th 1036, 1060 n.20
5
(1999) (emphasis in original).
6
Diamond
Other courts have found allegations such as those made here
7
to be sufficient to allow an out-of-state plaintiff to seek
8
recovery under California law.
9
Group, Inc., 76 F.R.D. 618 (N.D. Cal. 2011), the Washington
For example, in Wang v. OCZ Tech.
United States District Court
For the Northern District of California
10
plaintiff alleged that the “misleading marketing, advertising and
11
product information” was “conceived, reviewed or otherwise
12
controlled” from the defendant’s California headquarters, that its
13
executive offices are in California and that it had selected
14
California as its forum for “website-based complaints.”
15
630.
16
FAL and CLRA claims at the motion to dismiss stage.
17
Similarly, in In re Mattel, 588 F. Supp. 2d 1111 (C.D. Cal. 2008),
18
the court held that non-California plaintiffs could assert
19
California state law causes of action against the defendant,
20
Mattel, where plaintiffs complained of “misrepresentations made in
21
reports, company statements, and advertising that are reasonably
22
likely to have come from or been approved by Mattel corporate
23
headquarters in California.”
24
Random Access Memory (SRAM) Antitrust Litig., 580 F. Supp. 2d 896,
25
905 (N.D. Cal. 2008) (“If Plaintiffs can allege specific
26
California conduct underlying out-of-state [indirect purchaser]
27
Plaintiffs’ claims, they may continue to assert California state
28
law claims on behalf of those Plaintiffs. . . . Defendants will
Id. at
The court found these allegations sufficient to support UCL,
Id.
Id. at 1119; see also In re Static
16
1
have an opportunity to raise this issue again when Plaintiffs move
2
for class certification.”).
3
Apple’s citation of In re Apple & AT&T iPad Unlimited Data
4
Plan Litig., 802 F. Supp. 2d 1070, 1076 (N.D. Cal. 2011) does not
5
compel a contrary result.
6
California’s presumption against extra-territoriality and the fact
7
that AT&T’s “choice of law provision in its Terms of Service
8
selects the law of each consumer’s respective home state” barred
9
the claims of the non-California plaintiffs.
In that case, the court concluded that
Id. at 1076.
Here,
United States District Court
For the Northern District of California
10
the alleged harmful conduct took place at least partially within
11
California, and Apple does not argue that there is a choice of law
12
provision that selects another state in any agreement between
13
itself and consumers.
14
Apple relies heavily on the Ninth Circuit’s decision in Mazza
15
v. American Honda Motor Co., Inc., 666 F.3d 581 (9th Cir. 2012),
16
to argue that the non-California Plaintiffs lack standing.
17
Mazza, the Ninth Circuit reviewed the district court’s decision to
18
grant class certification to a nationwide class to prosecute
19
claims under the FAL, UCL and CLRA and for unjust enrichment.
20
at 587-88.
21
“misrepresented and concealed material information in connection
22
with the marketing and sale” of certain vehicles.
23
After applying a detailed choice-of-law analysis, the Ninth
24
Circuit vacated the certification order because, under the facts
25
of that case, “each class member’s consumer protection claim
26
should be governed by the consumer protection laws of the
27
jurisdiction in which the transaction took place.”
28
The court expressed no opinion whether, on remand, it would be
In
Id.
The plaintiffs alleged that the defendant
17
Id. at 587.
Id. at 594.
1
appropriate to “certify a smaller class containing only those who
2
purchased or leased” their vehicles “in California, or to certify
3
a class with members more broadly but with subclasses for class
4
members in different states.”
5
not find the out-of-state class members lacked standing.
6
Id.
Notably, the Ninth Circuit did
For several reasons, Mazza does not support a finding that
7
the out-of-state Plaintiffs lack standing.
8
decision, the court did not discuss whether the individual named
9
plaintiffs may assert a claim against a defendant under California
First, in that
United States District Court
For the Northern District of California
10
law.
11
California consumer protection laws and the consumer protection
12
laws of other states preclude class certification.”
13
2012 U.S. Dist. LEXIS 91393, at *12.
14
currently at the pleading stage and “[w]hether or not
15
certification on a nationwide basis is appropriate in this case is
16
not an issue that is currently before this Court.”
17
Hylands, Inc., 2012 WL 1656750, at *2 (C.D. Cal.) (emphasis in
18
original); see also Donohue v. Apple, Inc., 2012 WL 1657119, at *7
19
(N.D. Cal.) (“Although Mazza may influence the decision whether to
20
certify the proposed class and subclass, such a determination is
21
premature” at the pleading stage.); Forcellati, 2012 U.S. Dist.
22
LEXIS 91393, at *6 (“Mazza (and nearly every other case cited by
23
Defendants) undertook a class-wide choice-of-law analysis at the
24
class certification stage, rather than the pleading stage at which
25
we find ourselves.”).
26
not the same thing as standing.”
27
1656750, at *2 (C.D. Cal.).
28
plaintiff suffered an injury in fact . . . (2) the injury is
Instead, it addressed whether “differences between
Forcellati,
However, this case is
Allen v.
As Plaintiffs point out, “choice of law is
Allen v. Hylands, Inc., 2012 WL
Standing “requires that (1) the
18
1
fairly traceable to the challenged conduct, and (3) the injury is
2
likely to be redressed by a favorable decision.”
3
at 594 (internal quotations omitted).
4
the out-of-state Plaintiffs have plead these elements.
5
Mazza, 666 F.3d
Apple does not dispute that
Second, Mazza did not “explicitly foreclose[] any argument
6
that California’s consumer protection statutes . . . can be
7
applied to a nationwide class,” as Apple contends.
8
Apple argues that the Ninth Circuit found material differences
9
between New York, New Jersey and California consumer protection
Mot. at 10.
United States District Court
For the Northern District of California
10
laws and that this precludes application of California law to the
11
claims of out-of-state plaintiffs in all consumer cases.
12
the “California Supreme Court has expressly held that California’s
13
choice-of-law analysis must be conducted on a case-by-case basis
14
because it requires analyzing various states’ laws ‘under the
15
circumstances of the particular case’ and given ‘the particular
16
[legal] issue in question.’”
17
540, 545 (C.D. Cal. 2012) (quoting Kearney v. Salomon Smith
18
Barney, 39 Cal. 4th 95, 107–08 (2006)).
19
Circuit “acknowledged that California law requires the defendant
20
to show that differences in state law are ‘material,’ that is,
21
they ‘make a difference in this litigation,’” and expressly stated
22
that its holding applied to the “facts and circumstances” of the
23
case before it.
24
at 590-94).
25
rejected the argument that Apple makes here, concluding that Mazza
26
did not allow the defendants to substitute “Mazza’s holding in
27
lieu of [their] own careful analysis of choice-of-law rules as
28
applied to this particular case.”
However,
Bruno v. Eckhart Corp., 280 F.R.D.
In Mazza, the Ninth
Bruno, 280 F.R.D at 547 (quoting Mazza, 666 F.3d
Following this ruling, various district courts have
19
Id. at 547 (nationwide class);
1
see also Forcellati, 2012 U.S. Dist. LEXIS 91393, at *5-7.
2
have done so in cases that included states at issue in Mazza.
3
Forcellati, 2012 U.S. Dist. LEXIS 91393, at *5-7 (“Until the
4
Parties have explored the facts in this case, it would be
5
premature to speculate about whether the differences in various
6
states’ consumer protection laws are material in this case.”)
7
(nationwide class, New Jersey named plaintiff).
8
that the Ninth Circuit found differences between the consumer
9
protection laws of the relevant states to be material in Mazza and
They
See
Apple argues only
United States District Court
For the Northern District of California
10
fails to address how any such differences would also be material
11
to the facts of the instant litigation.
12
Accordingly, the Court declines to find that Fazio and
13
Balassone lack standing to prosecute the state law claims at the
14
pleading stage.
15
III. Allegations of false and misleading statements
16
17
A. Rule 9(b)
Apple contends that Plaintiffs have not sufficiently plead
18
any specific false and misleading statements, including what about
19
the statements was false or misleading.
20
specific statements that Plaintiffs have identified are not
21
actionable.
22
CLRA, FAL and misrepresentation claims be dismissed for failure to
23
comply with Rule 9(b).
24
applies to these claims, but do argue that they have sufficiently
25
alleged their fraud claims.
26
It also argues that all
On this basis, Apple requests that Plaintiffs’ UCL,
Plaintiffs do not dispute that Rule 9(b)
Claims of deceptive labeling under these California statutes
27
are evaluated by whether a “reasonable consumer” would be likely
28
to be deceived.
Williams v. Gerber Prods. Co., 552 F.3d 934, 938
20
1
(9th Cir. 2008) (citing Freeman v. Time, Inc., 68 F.3d 285, 289
2
(9th Cir. 1995)).
3
misrepresentation similarly require that the consumer justifiably
4
rely on a representation that is false or subject to a misleading
5
omission.
6
4th 979, 990 (2004) (common law fraud); Century Sur. Co. v. Crosby
7
Ins., Inc., 124 Cal. App. 4th 116, 129 (2004) (negligent
8
misrepresentation).
Common law claims for fraud and negligent
Robinson Helicopter Co., Inc. v. Dana Corp., 34 Cal.
“In all averments of fraud or mistake, the circumstances
10
United States District Court
For the Northern District of California
9
constituting fraud or mistake shall be stated with particularity.”
11
Fed. R. Civ. P. 9(b).
12
of Civil Procedure apply in federal court, ‘irrespective of the
13
source of the subject matter jurisdiction, and irrespective of
14
whether the substantive law at issue is state or federal.’”
15
Kearns v. Ford Motor Co., 567 F.3d 1120, 1125 (9th Cir. 2009)
16
(citing Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1102 (9th
17
Cir. 2003)).
18
defendants notice of the particular misconduct which is alleged to
19
constitute the fraud charged so that they can defend against the
20
charge and not just deny that they have done anything wrong.”
21
Semegen v. Weidner, 780 F.2d 727, 731 (9th Cir. 1985).
22
of the time, place and nature of the alleged fraudulent activities
23
are sufficient, id. at 735, provided the plaintiff sets forth
24
“what is false or misleading about a statement, and why it is
25
false.”
26
Litig.), 42 F.3d 1541, 1548 (9th Cir. 1994).
27
28
“It is well-settled that the Federal Rules
The allegations must be “specific enough to give
Statements
Decker v. GlenFed, Inc. (In re GlenFed, Inc. Sec.
In Kearns, the Ninth Circuit concluded that the plaintiff,
who claimed that Ford engaged in a fraudulent course of conduct in
21
1
making false and misleading statements in its national commercials
2
regarding its “Certified Pre–Owned” vehicles to induce purchasers
3
to pay extra for such vehicles, printed sales materials and
4
statements of sales personnel, failed to meet the Rule 9(b)
5
standard for alleging fraud with specificity.
6
1126.
7
In so holding, the court stated,
Kearns fails to allege in any of his complaints the
particular circumstances surrounding such
representations. Nowhere in the TAC does Kearns specify
what the television advertisements or other sales
material specifically stated. Nor did Kearns specify
when he was exposed to them or which ones he found
material. Kearns also failed to specify which sales
material he relied upon in making his decision to buy a
CPO vehicle. Kearns does allege that he was
specifically told “CPO vehicles were the best used
vehicles available as they were individually hand-picked
and rigorously inspected used vehicles with a Fordbacked extended warranty.” Kearns does not, however,
specify who made this statement or when this statement
was made. Kearns failed to articulate the who, what,
when, where, and how of the misconduct alleged. The
pleading of these neutral facts fails to give Ford the
opportunity to respond to the alleged misconduct.
8
9
10
United States District Court
For the Northern District of California
567 F.3d at 1122,
11
12
13
14
15
16
Id. at 1126.
17
Plaintiffs’ claims here are also based on a fraudulent course
18
of conduct.
Unlike in Kearns, Plaintiffs allege the contents of
19
some specific pieces of advertising that Apple created,
20
particularly the contents of certain television commercials
21
released between October 4, 2011 and the time that the complaint
22
was filed, the press release and statements on the website since
23
then.
Plaintiffs also allege that these advertisements were
24
“fundamentally and designedly false and misleading,” and that Siri
25
“does not perform as advertised.”
CCAC ¶ 11.
They state that the
26
commercials show tasks “done with ease with the assistance of the
27
iPhone 4S’s Siri feature; a represented functionality contrary to
28
22
1
the actual operating results and performance of Siri.”
2
¶ 7.
3
Id. at
However, Apple is correct that Plaintiffs have not alleged
4
sufficiently how these statements were misrepresentative or
5
fraudulent, and how Siri failed to perform as advertised.
6
example, Plaintiffs do not make clear in the CCAC whether their
7
theory is that the advertisements were misleading, because Siri
8
never responds to questions or is always inaccurate, does so more
9
slowly than shown in the ads, uses more data than advertised or is
For
United States District Court
For the Northern District of California
10
less consistent than shown in the ads.
11
represented that their theory was “that it does answer some
12
questions some of the time, but it doesn’t perform in the manner
13
in which Apple represents in the commercial that it will perform.”
14
Docket No. 63, 8:1-4.
15
allege sufficiently the “how” of the purported misrepresentations.
16
They have not explained what exactly Apple led consumers to
17
believe in the commercials about Siri’s performance, through what
18
particular statements, nor have they stated what about these
19
representations was in fact false.
20
precisely how Siri failed to meet the representations that they
21
claim Apple made, what the truth about Siri’s performance actually
22
was and how Apple knew or should have known that these
23
representations were false.
24
the opportunity to respond to the allegations of misconduct that
25
Plaintiffs make.
26
At the hearing, they
In summary, Plaintiffs have failed to
They have not specified
These deficiencies deprive Apple of
Accordingly, the Court GRANTS Apple’s motion to dismiss the
27
UCL, CLRA, FAL and misrepresentation claims for failure to comply
28
with Rule 9(b).
Plaintiffs are granted leave to remedy the
23
1
deficiencies identified herein, provided they are able to do so
2
truthfully.
3
B. Selective reading
4
Apple also alleges that Plaintiffs base their claims of
5
deception on a selective reading of the advertising and that, when
6
read in context, it has adequately disclosed Siri’s beta status.
7
Plaintiffs respond that the disclosures do not appear in any
8
television commercial, are in hard-to-find locations on only some
9
webpages and press releases, are in small font and disclose simply
United States District Court
For the Northern District of California
10
11
that Siri is in “beta” without defining the term.
Apple relies on Freeman v. Time, Inc., 68 F.3d 285 (9th Cir.
12
1995), in which the Ninth Circuit upheld the district court’s
13
dismissal of UCL and FAL claims, rejecting as unpersuasive the
14
plaintiff’s argument that readers will read only the large print
15
on a promotion document and “ignore the qualifying language in
16
small print.”
17
18
19
20
21
22
Id. at 289.
In so holding, the court explained,
The promotions expressly and repeatedly state the
conditions which must be met in order to win. None of
the qualifying language is hidden or unreadably small.
The qualifying language appears immediately next to the
representations it qualifies and no reasonable reader
could ignore it. Any persons who thought that they had
won the sweepstakes would be put on notice that this was
not guaranteed simply by doing sufficient reading to
comply with the instructions for entering the
sweepstakes.
Id. at 289-90.
Therefore, the court concluded, “Any ambiguity
23
that [the plaintiff] would read into any particular statement is
24
dispelled by the promotion as a whole.”
Id. at 290.
25
Here, however, the commercials themselves do not disclose
26
that Siri was in beta or otherwise unfinished.
Some of the pages
27
on the website, but not all, do disclose that Siri is in beta.
28
24
1
Further, although Apple did sometimes put an orange label with the
2
word next to Siri on the website, frequently the disclosure that
3
Siri is in beta is at the bottom of the page in much smaller font,
4
separated from the primary discussion of Siri’s features.
5
not “immediately next to the representations it qualifies,” as in
6
the Freeman case.
7
qualifications as a defense on the facts, these qualifications are
8
not sufficient to make the finding that it seeks as a matter of
9
law upon a motion to dismiss.
United States District Court
For the Northern District of California
10
11
This is
Although Apple may be able to offer these
C. Puffery
Apple argues that many of the statements cited in the CCAC
12
are non-actionable puffery.
13
Plaintiffs’ allegations that Siri was described as “the best
14
iPhone yet,” that Apple marketed Siri in a video stating, “How do
15
you improve on something so extraordinary? Now we’re introducing
16
Siri,” and that Siri is described as an “amazing assistant,”
17
“amazing,” and “impressive.”
18
Apple specifically points to
Mot. at 17.
Plaintiffs respond that they are not basing their claims on
19
Apple’s statements that Siri was “amazing,” “impressive” or an
20
improvement to the previous iPhone.
21
their claims are based on specific representations of how Siri was
22
supposed to function and that Siri did not in fact work as shown.
23
Instead, they argue that
“Advertising which merely states in general terms that one
24
product is superior is not actionable.”
25
Inc. v. N. Cal. Collection Serv., Inc., 911 F.2d 242, 246 (9th
26
Cir. 1990) (internal quotations omitted).
27
misdescriptions of specific or absolute characteristics of a
28
product are actionable.”
Cook, Perkiss & Liehe,
“However,
Id. (internal quotations omitted).
25
1
Apple is correct that words like “amazing” and “impressive”
2
are “generalized, vague and unspecific assertions, constituting
3
mere ‘puffery’ upon which a reasonable consumer could not rely.”
4
Glen Holly Entm’t, Inc. v. Tektronix Inc., 352 F.3d 367, 379 (9th
5
Cir. 2003).
6
Plaintiffs’ claims or be considered when determining if they have,
7
for example, met Rule 9(b)’s specificity requirement or properly
8
alleged reliance.
9
which Siri operated can be used to show “misdescriptions of
These representations thus cannot form the basis of
However, Apple’s portrayals of the ways in
United States District Court
For the Northern District of California
10
specific or absolute characteristics” of the claimed features and
11
thus can be the basis of these claims.
12
III. Reliance
13
A plaintiff seeking to prosecute a UCL and FAL claim is
14
required to plead actual reliance on the allegedly deceptive or
15
misleading statements.
16
310, 326 (2011).
17
“caus[e] or result[] in some sort of damage.”
Meyer v. Sprint
18
Spectrum, L.P., 45 Cal. 4th 634, 641 (2009).
Common law fraud
19
requires that the victim show reasonable reliance on the allegedly
20
deceptive representation.
21
298, 312 (2009).
22
Kwikset v. Superior Court, 51 Cal. 4th
The CLRA imposes a requirement that a violation
In re Tobacco II Cases, 46 Cal. 4th
Apple argues that Plaintiffs did not specify which particular
23
advertisements or representations each was exposed to and relied
24
upon.
25
not for any Plaintiff, except Balassone in part.
26
allege that Balassone relied on “the statements and interactive
27
demonstrations performed at Apple’s October 4, 2011 press
28
conference,” but they also say that he relied upon “other
Although Plaintiffs state that they did do this, they did
26
Plaintiffs
1
representations,” without saying which others.
2
Plaintiffs allege that Fazio relied upon “Apple’s television
3
advertisements and Apple’s representations made about Siri during
4
various presentations and on Apple’s website,” Hamagaki relied
5
upon “Apple’s television advertisements and Apple’s
6
representations related to Siri on its website,” and that
7
Swartzman relied upon “Apple’s advertisements showing that Siri
8
would accurately provide information based on verbal commands,
9
would permit accurate dictation of emails and would substantially
CCAC ¶ 24.1
United States District Court
For the Northern District of California
10
shorten and simplify research time.”
11
However, they do not specify particular commercials, presentations
12
or portions of the website.
13
ones that Plaintiffs saw and relied upon were those whose contents
14
were alleged elsewhere in the CCAC.
15
Id. at ¶¶ 20, 22, 27.
They also do not state whether the
Plaintiffs also respond that, because the misrepresentations
16
“were part of a consistent, broad marketing campaign by Apple over
17
time,” they were “not required to specify each and every time they
18
were exposed to one of Apple’s misrepresentations.”
19
In support of their argument, Plaintiffs rely on Morgan v. AT&T
20
Wireless Services, Inc., 177 Cal. App. 4th 1235, 1256 (2009),
21
which in turn follows the California Supreme Court’s decision in
22
In re Tobacco II.
Opp. at 12.
This Court has previously found that Morgan and
23
24
25
26
27
28
1
The Court notes that, although Plaintiffs plead that
“Balassone attempted to mirror the command[s] given to Siri in the
Apple advertisements” and that he “asked Siri to show him guitar
chords as shown in Apple’s ‘Rock God’ television advertisements,”
CCAC ¶ 25, they did not allege that he had relied on any
particular advertisement, including the Rock God commercial when
he purchased the iPhone 4S.
27
1
In re Tobacco II do not support relaxing of the pleading
2
requirements under Rule 9(b).
3
Consumer Companies, Inc., 2010 WL 3448531 (N.D. Cal.), the Court
4
stated that, in In re Tobacco II, in “addressing the allegations
5
necessary to plead reliance to establish standing to bring a UCL
6
claim, the California Supreme Court stated that ‘where . . . a
7
plaintiff alleges exposure to a long-term advertising campaign,
8
the plaintiff is not required to plead with an unrealistic degree
9
of specificity that the plaintiff relied on particular
In Herrington v. Johnson & Johnson
United States District Court
For the Northern District of California
10
advertisements or statements.’”
11
finding that the plaintiffs in that case did not allege exposure
12
to the advertising campaign itself, the Court explained that “In
13
re Tobacco II merely provides that to establish UCL standing,
14
reliance need not be proved through exposure to particular
15
advertisements; the case does not stand for, nor could it, a
16
general relaxation of the pleading requirements under Rule 9(b).”
17
Id. (citing In re Actimmune Mktg. Litig., 2009 WL 3740648, at *13
18
(N.D. Cal.)).
19
U.S. Dist. LEXIS 51094 (N.D. Cal.), the Court rejected the
20
plaintiff’s reliance on In re Tobacco II, because she “failed to
21
allege that Defendant’s advertising campaign approached the
22
longevity and pervasiveness of the marketing at issue in Tobacco
23
II,” which lasted for decades.
24
allegation was of a press release and conference that took place
25
on October 4, 2011.
26
when the CCAC was filed.
27
alleged that the campaign here was comparable to that at issue in
28
Tobacco II.
Id. at *8.
In addition to
In addition, in Delacruz v. Cytosport, Inc., 2012
Id. at *9.
Here, the earliest
The campaign was only about six months old
As in Delacruz, Plaintiffs have not
28
1
Plaintiffs’ reliance on Ticketmaster LLC v. RMG Technologies,
2
2007 WL 2989504 (C.D. Cal.), is also misplaced.
3
plaintiff alleged that the defendant used “automated devices to
4
unlawfully enter into and navigate through Plaintiff’s website,
5
ticketmaster.com, and improperly purchase large quantities of
6
tickets, circumventing security measures intended to prevent
7
automated purchases and violating the website’s Terms of Use.”
8
Id. at *1.
9
defendant made a false promise to abide by the plaintiff’s terms
In that case, the
The plaintiff brought suit alleging that “the
United States District Court
For the Northern District of California
10
of use every time it used the plaintiff’s website.”
11
The court found that the plaintiff did not have to separately set
12
out each of these thousands of individual, identical instances of
13
fraud over the multi-year time period covered by the complaint,
14
when it had sufficiently identified which statements were
15
misleading, why, who was involved and the time period of the
16
repeated misrepresentations.
17
all materially identical.
18
Id.
Id. at *3.
Here, the transactions were not
Accordingly, the Court grants Apple’s motion to dismiss the
19
UCL, FAL, CLRA and common law fraud claims.
20
granted leave to amend to allege with specificity which
21
commercials or other misleading advertisements they each relied
22
upon in purchasing their devices.
23
IV. CLRA claim
Plaintiffs are
24
The CLRA imposes liability for “unfair methods of competition
25
and unfair or deceptive acts or practices undertaken by any person
26
in a transaction intended to result or which results in the sale
27
or lease of goods or services to any consumer.”
28
§ 1770(a).
Cal. Civ. Code
Such unlawful conduct includes “representing that
29
1
goods or services have . . . characteristics[,] . . . uses,
2
benefits, or qualities which they do not have,” “representing that
3
goods or services are of a particular standard, quality, or grade
4
. . . if they are of another,” “advertising goods or services with
5
intent not to sell them as advertised,” and “representing that the
6
subject of a transaction has been supplied in accordance with a
7
previous representation when it has not.”
8
(9) and (16).
9
Id. §§ 1170(a)(5), (7),
Apple does not dispute that the iPhone 4S is a good within
United States District Court
For the Northern District of California
10
the meaning of the CLRA.
11
CLRA claim fails as a matter of law because Siri itself is not a
12
good or service.
13
claims is the iPhone 4S itself and that Siri is a nonseverable
14
component thereof.
15
to be analyzed by itself, it should be considered a service.
16
Instead, Apple contends that Plaintiffs’
Plaintiffs respond that the subject of their
Plaintiffs also argue that, even if Siri were
Apple contends that the CCAC “describes and attacks only
17
Apple’s purported representations regarding the iPhone 4S’s Siri
18
software, and that Plaintiffs’ claims relate exclusively to the
19
Siri software--not to the iPhone 4S.”
20
arguments, however, misconstrue Plaintiffs’ CLRA claim.
Reply at 20.
Apple’s
21
Plaintiffs alleged throughout the CCAC that Siri was a
22
“feature” of the iPhone 4S, that it was in fact the primary
23
distinction between the iPhone 4S and the earlier iPhone 4 and
24
that they would not paid the price that they did for the iPhone 4S
25
had it not been for Apple’s portrayals of how that feature worked.
26
See, e.g., CCAC ¶¶ 4-16.
27
CLRA claim that, among other things, Apple represented that the
28
iPhone 4S--not Siri--had characteristics and features that it did
Plaintiffs specifically plead in the
30
1
not, that the iPhone 4S--not Siri--was of a particular standard,
2
quality or grade, although it was not, and that Apple advertised
3
the iPhone 4S--not Siri--with intent not to sell it as advertised.
4
Id. at ¶ 68.
5
Apple primarily relies upon three cases in which district
6
courts in the Ninth Circuit have found that software was not a
7
good or service within the meaning of the CLRA.
8
McAfee, 2010 U.S. Dist. LEXIS 106600, at *19 (N.D. Cal.); In re
9
iPhone Application Litig., 2011 U.S. Dist. LEXIS 106865, at *33
See Ferrington v.
United States District Court
For the Northern District of California
10
(N.D. Cal.); Wofford v. Apple Inc., 2011 U.S. Dist. LEXIS 129852,
11
at *6-7 (S.D. Cal.).
12
However, these cases are distinguishable.
Plaintiffs’ CLRA
13
claim is premised on the purchase of the iPhone 4S itself, of
14
which Siri is alleged to be a feature.
15
cases, the CLRA claim is not based on the downloading or purchase
16
of software.
17
re iPhone Application Litig., 844 F. Supp. 2d 1040 (N.D. Cal.
18
2012), in discussing a claim related to a different feature of the
19
iPhone, “the gravamen of the CLRA claim . . . is not that free
20
apps downloaded by Plaintiffs were deficient, but rather that the
21
iPhones (a ‘good’ covered by the CLRA) purchased by the class
22
members did not perform as promised based on a specific
23
functionality of the device.”
24
thus arises out of the sale of a good, and not the downloading of
25
free software.”
26
Unlike Apple’s cited
As explained by another court in this district in In
Id. at 1071.
“Plaintiffs’ claim
Id.
Similarly, in the present case, Plaintiffs’ CLRA claim is
27
based on the theory that a specific function of the iPhone 4S did
28
not perform as advertised.
Accordingly, because Plaintiffs have
31
1
plead that the good at issue here was the iPhone 4S, the Court
2
denies Apple’s motion to dismiss this claim on this basis.
3
V. Breach of express warranty
4
To plead a claim for breach of express warranty under
5
California law, Plaintiffs must allege “that the seller: ‘(1) made
6
an affirmation of fact or promise or provided a description of its
7
goods; (2) the promise or description formed the basis of the
8
bargain; (3) the express warranty was breached; and (4) the breach
9
caused injury to the plaintiff.’”
Bilodeau v. McAfee, Inc., 2013
United States District Court
For the Northern District of California
10
U.S. Dist. LEXIS 89226, at *38 (N.D. Cal.) (citation omitted).
11
addition, they must plead that, “within a reasonable time after he
12
or she discovers or should have discovered any breach,” they
13
notified Apple of the breach.
14
buyer’s failure to comply with the notice requirement results
15
being “barred from any remedy.”
Cal. Com. Code § 2607(3)(A).
In
A
Id.
16
A. Notice
17
“To avoid dismissal of a breach of contract or breach of
18
warranty claim in California, ‘[a] buyer must plead that notice of
19
the alleged breach was provided to the seller within a reasonable
20
time after discovery of the breach.’”
21
656 F.3d 925, 932 (9th Cir. 2011) (quoting Stearns v. Select
22
Comfort Retail Corp., 763 F. Supp. 2d 1128, 1142 (N.D. Cal. 2010))
23
(formatting in original).
24
is to allow the breaching party to cure the breach and thereby
25
avoid the necessity of litigating the matter in court.”
26
(citing Cardinal Health 301, Inc. v. Tyco Elecs. Corp., 169 Cal.
27
App. 4th 116, 135 (2008)).
Alvarez v. Chevron Corp.,
“The purpose of giving notice of breach
Id.
To comport with the objectives of the
28
32
1
notice requirement, the notice must be served prior to service of
2
the complaint and not simultaneously with it.
3
Id. at 932-33.
In their express warranty claim in the CCAC, Plaintiffs
4
allege that “all conditions precedent to Defendant’s liability
5
under this express contract, including notice, as described above,
6
have been performed by Plaintiffs and the Class.”
7
Elsewhere in the CCAC, Plaintiffs allege that, on March 6, 2012,
8
the same date on which he filed his original complaint, Fazio sent
9
a letter to Apple detailing purported breaches of the CLRA.
CCAC ¶ 110.
Id.
United States District Court
For the Northern District of California
10
at ¶ 72.
11
same time Fazio’s case was initiated, the letter cannot serve as
12
notice of the breach of the express warranty, pursuant to the
13
Ninth Circuit’s holding in Alvarez.
14
As Apple argues, because this letter was served at the
Plaintiffs respond that Swartzman and Balassone sent Apple a
15
letter pursuant to section 2607 on March 16, 2012, four days
16
before their complaint was filed on March 20, 2012, Germershausen
17
Decl., Ex. A, and that Jones sent Apple a similar letter on March
18
23, 2012, four days before his complaint was filed on March 27,
19
2012, Bower Decl., Ex. A.
20
these letters were not alleged in the CCAC or incorporated therein
21
by reference, and Plaintiffs have not requested that the Court
22
take judicial notice of these letters.
However, as Apple has pointed out,
23
Plaintiffs argue that the notice requirement was satisfied
24
nonetheless because they alleged in the CCAC that “Apple was on
25
notice of the defects in Siri from numerous media outlets
26
reporting on Siri’s failures.”
27
However, Plaintiffs do not offer any cases in which notice from
28
media outlets was held to meet the statutory notice requirement.
Opp. at 20 (citing CCAC ¶¶ 45-47).
33
1
Plaintiffs rely only on Metowski v. Traid Corp. 28 Cal. App. 3d
2
332 (1972), in which the California Court of Appeal held the
3
plaintiffs could maintain a class action on their breach of
4
express warranty claims.
5
was not appropriate because timely notice of the breach of
6
warranty could “be proved only by testimony from the individual
7
purchasers.”
8
court noted that, where “merchandise was sold under circumstances
9
which indicate that the seller acted in bad faith and was aware of
Id. at 340.
The defendants claimed a class action
In its discussion of this argument, the
United States District Court
For the Northern District of California
10
the breach at the time of the sale, demand for notice of the
11
breach from each and every member of the class may be a
12
meaningless ritual,” but that the statutory requirement still
13
applies.
14
for notice might be satisfied by proof of complaints from some but
15
not all the buyers of the product.
16
particularly appropriate where the failure of the merchandise to
17
conform to express warranties was known to or reasonably
18
discoverable by the seller at the time of the sales.”
19
However, the court did not conclude that this approach could be
20
used, and instead rejected the defendants’ argument because, once
21
liability was established on a class-wide basis, the “element of
22
timely notice by each plaintiff could be shown in order to assess
23
his own individual collectible damages.”
24
Metowski court made that statement in dicta and still required
25
that notice be provided by some purchasers, not by general media
26
report.
27
950 (C.D. Cal. 2012) (rejecting a plaintiff’s reliance on Metowski
28
because the “statement was dicta . . . and plaintiffs cite no
The court stated, “Conceivably, the statutory demand
Such an approach might be
Id. at 341.
Id. at 339.
Thus, the
See Keegan v. Am. Honda Motor Co., 838 F. Supp. 2d 929,
34
1
authority specifically endorsing the concept of collective
2
notice”); see also Daugherty v. Am. Honda Motor Co., Inc., 144
3
Cal. App. 4th 824, 832 (2006) (rejecting reliance on Metowski when
4
no named plaintiffs had alleged that they provided the requisite
5
notice).
6
Accordingly, the Court finds that Plaintiffs have not plead
7
compliance with the notice requirement.
8
leave to amend to remedy this deficiency, provided that they are
9
able to do so truthfully.
Plaintiffs are granted
United States District Court
For the Northern District of California
10
B. Claim elements
11
Under California law, “[a]ny affirmation of fact or promise
12
made by the seller to the buyer which relates to the goods and
13
becomes part of the basis of the bargain creates an express
14
warranty that the goods shall conform to the affirmation or
15
promise.”
16
goods which is made part of the basis of the bargain creates an
17
express warranty that the goods shall conform to the description.”
18
Id. at § 2313(1)(b).
19
‘warrant’ or ‘guarantee’” or “have a specific intention to make a
20
warranty.”
21
“exact terms” of the express warranty.
22
Whirlpool Corp., 2013 U.S. Dist. LEXIS 46167, at *7-11 (E.D. Cal.)
23
(failure to plead exact terms of the alleged express warranty
24
warrants dismissal).
25
Cal. Comm. Code § 2313(1)(a).
“Any description of the
A seller need not “use formal words such as
Id. at § 2313(2).
However, Plaintiffs must plead the
See, e.g., Rossi v.
In the CCAC, Plaintiffs allege that the “terms of the
26
contract include the promises and affirmations of fact and express
27
warranties made by Defendant on its website and through its
28
35
1
marketing and advertising campaign that the iPhone 4S’s Siri
2
feature performs as advertised, as described above.”
3
CCAC ¶ 104.
As Apple argues, Plaintiffs have failed to allege the exact
terms of any warranty.
5
on ‘a commercial’ or ‘the commercial’ or ‘advertisements online’
6
are not equivalent to a recitation of the exact terms of the
7
underlying warranty.”
8
LEXIS 13187, at *6 (N.D. Cal.).
9
which particular commercials and webpages they each relied upon,
10
United States District Court
For the Northern District of California
4
must describe the content of those advertisements and pages with
11
particularity and must allege with specificity their reasonable
12
reliance thereon.
13
Dist. LEXIS 97924, at *10-11 (N.D. Cal.).
14
at this time are not sufficiently detailed to provide Apple with
15
meaningful notice of which particular advertisements and webpages
16
form the basis of their claim, or of what warranty terms
17
Plaintiffs maintain were created by those commercials and pages.
18
“General assertions that Plaintiffs relied
Baltazar v. Apple, Inc., 2011 U.S. Dist.
Plaintiffs must at least allege
Id.; see also Nabors v. Google, Inc., 2011 U.S.
Plaintiffs’ allegations
Accordingly, the Court grants Apple’s motion to dismiss this
19
claim.
20
deficiencies.
21
VI. Breach of implied warranty of merchantability
22
Plaintiffs are granted leave to amend to remedy these
Under California law, “every sale of consumer goods that are
23
sold at retail in this state shall be accompanied by the
24
manufacturer’s and the retail seller’s implied warranty that the
25
goods are merchantable.”
26
warranty of merchantability provides, in part, that the goods must
27
be “fit for the ordinary purposes for which such goods are used.”
28
Cal. Civ. Code § 1791.1(a); Cal. Com. Code § 2134(2)(c).
Cal. Civ. Code § 1792.
36
The implied
1
Apple argues that this claim is barred because it disclaimed
2
the implied warranty of merchantability in the iPhone 4S’s one-
3
year hardware warranty and in the iPhone software license
4
agreement.
5
defense upon which Apple bears the burden of proof.
6
v. Pangborn Corp., 2004 U.S. Dist. LEXIS 22704, at *64 (N.D.
7
Cal.).
8
dismiss if it raises no disputed issues of fact.
9
Kuhlmann, 746 F.2d 1377, 1378 (9th Cir. 1984).
Disclaimer of implied warranties is an affirmative
See Andrade
An affirmative defense may only be raised on a motion to
Scott v.
“The statutory
United States District Court
For the Northern District of California
10
implied warranties of quality can, of course, be disclaimed by the
11
seller, provided the buyer has knowledge or is chargeable with
12
notice of the disclaimer before the bargain is complete.”
13
Sherwin Williams Co., 42 Cal. 2d 682, 693 (1954).
14
of warranties must be specifically bargained for so that a
15
disclaimer in a warranty given to the buyer after he signs the
16
contract is not binding.”
17
App. 3d 11, 19-20 (1975).
18
Burr v.
“A disclaimer
Dorman v. Int’l Harvester Co., 46 Cal.
Apple argues that a disclaimer was provided to customers
19
within the packaging of the iPhone 4S and that Plaintiffs could
20
have returned their iPhones within its thirty day return period
21
after they had discovered and reviewed the warranty, if they did
22
not want to consent to its limitations.
23
within this district that supports that the disclaimer need not be
24
provided prior to purchase, if the purchasers “were able to review
25
the warranty upon purchase and to return the product if they were
26
dissatisfied with the warranty’s limitations.”
27
Apple, Inc., 2010 WL 1460297, at *4 (N.D. Cal.) (Fogel, J.); see
28
also Kowalsky v. Hewlett-Packard Co., 771 F. Supp. 2d 1138, 1156
37
There is some authority
Berenblat v.
1
(N.D. Cal. 2010) (Fogel, J.), vacated in part on other grounds,
2
771 F. Supp. 2d 1156 (N.D. Cal. 2011); Tietsworth v. Sears,
3
Roebuck & Co., 2009 WL 3320486, at *10 (N.D. Cal.).
4
Plaintiffs have not plead the existence of an unqualified return
5
period and Apple has provided no evidence of such a period of
6
which the Court can properly take judicial notice.
7
However,
However, as Apple also argues, Plaintiffs have not plead
“sufficient facts to make it plausible” that the iPhone 4S’s
9
“ordinary and intended purpose” is to use “the Siri intelligent
10
United States District Court
For the Northern District of California
8
assistant feature to send messages, schedule appointments, seek
11
information and directions and to learn new tasks,” instead of
12
being a cell phone.
13
Indeed, in arguing about their CLRA claim, Plaintiffs admitted
14
that the iPhone 4S is at bottom a phone.
15
Plaintiffs’ argument here, that the ordinary purpose of the iPhone
16
4S is to use the Siri feature to send messages and complete other
17
tasks is not consistent with that argument.
18
Mot. at 23 (quoting CCAC ¶¶ 112, 113, 116).
See Opp. at 18.
The iPhone 4S’s intended and ordinary use is as a smartphone,
19
“which the court safely presumes includes functions like making
20
and receiving calls, sending and receiving text messages, or
21
allowing for the use of mobile applications.”
22
Apple, Inc., 2012 U.S. Dist. LEXIS 125368, at *24 (N.D. Cal.).
23
Plaintiffs have not alleged that the iPhone 4S is deficient in any
24
of these functions, but rather merely in providing the Siri
25
feature to access these functions.
26
Williamson v.
Finally, even if the ability to use Siri was part of the
27
ordinary purpose of the iPhone 4S, Plaintiffs have not plead
28
sufficiently that the implied warranty of merchantability was
38
1
breached.
2
usable to some extent but was not “a consistent intelligent
3
assistant.”
4
(alleging that, for Hamagaki, “Siri was able to respond to very
5
general requests, such as ‘find me a gas station’ or ‘find me Thai
6
food’”).
7
contractual in nature, the implied warranty of merchantability
8
arises by operation of law. . . . [I]t provides for a minimum
9
level of quality.”
Plaintiffs have alleged that the Siri feature was
CACC ¶ 116 (emphasis added); see also id. at ¶ 23
“Unlike express warranties, which are basically
American Suzuki Motor Corp. v. Superior Court,
United States District Court
For the Northern District of California
10
37 Cal. App. 4th 1291, 1295-96 (1995).
11
demonstrate that the product “did not possess even the most basic
12
degree of fitness for ordinary use.”
13
114 Cal. App. 4th 402, 406 (2003) (citing Cal. Com. Code
14
§ 2314(2)).
15
the alleged defect was ‘inconvenient’” but rather that the
16
products were unfit for their ordinary purpose.
17
U.S. Dist. LEXIS 96140, at *10 (citing Kent v. Hewlett-Packard
18
Co., 2010 U.S. Dist. LEXIS 76818, at *11-12 (N.D. Cal.).
19
the acknowledgment that Siri could be used as an assistant for at
20
least basic purposes, Plaintiffs have not alleged sufficiently
21
that the function was unusable or that it did not have the most
22
basic degree of fitness.
23
A plaintiff must
Mocek v. Alfa Leisure, Inc.,
This means that Plaintiffs must show “more than that
Baltazar, 2011
Given
Accordingly, Apple’s motion to dismiss the implied warranty
24
of merchantability claim is granted and Plaintiffs are granted
25
leave to amend.
26
VII. Magnuson-Moss Warranty Act claim
27
28
“Violations of the Magnuson-Moss Warranty Act (MMWA) can rest
on breaches of warranties created under state law.”
39
Herrington v.
Johnson & Johnson Consumer Cos., 2010 U.S. Dist. LEXIS 90505, at
2
*40-41 (N.D. Cal.) (citing Birdsong v. Apple, Inc., 590 F.3d 955,
3
958 n.2 (9th Cir. 2009); Clemens v. DaimlerChrysler Corp., 534
4
F.3d 1017, 1022 (9th Cir. 2008). Plaintiffs do not argue that
5
their MMWA claims rest on bases other than their state law
6
warranty claims.
7
warranty claims should not be dismissed, their MMWA claim also
8
should not be dismissed.
9
breach of express warranties, notice and an opportunity to cure
10
United States District Court
For the Northern District of California
1
prior to filing a class action is not required for a MMWA claim.
They argue primarily that, because their other
They also point out that, unlike for
11
Because the Court dismisses Plaintiffs’ state law warranty
12
claims for a number of reasons in addition to failure to allege
13
pre-filing notice, the Court also grants Apple’s motion to dismiss
14
Plaintiffs’ MMWA claim.
15
VIII. Unfair competition claim
16
Plaintiffs are granted leave to amend.
The California Unfair Competition Law (UCL), Cal. Bus. &
17
Prof. Code § 17200 et seq., prohibits “any unlawful, unfair or
18
fraudulent business act or practice and unfair, deceptive, untrue
19
or misleading advertising.”
20
the disjunctive, it establishes three types of unfair competition.
21
Davis v. Ford Motor Credit Co., 179 Cal. App. 4th 581, 593 (2009).
22
Therefore, a practice may be prohibited as unfair or deceptive
23
even if it is not unlawful and vice versa.
24
Healthcare Corp., 50 Cal. App. 4th 632, 647 (1996).
25
Because section 17200 is written in
Podolsky v. First
Apple contends that Plaintiffs have failed to allege that it
26
engaged in any “unlawful, unfair or fraudulent business act or
27
practice” in violation of the UCL.
28
argues that Plaintiffs have failed to state a claim for fraudulent
40
To the extent that Apple
1
business acts and practices, the Court grants the motion for the
2
same reasons that the common law fraud claim was dismissed above.
3
A “violation of another law is a predicate for stating a
4
cause of action under the UCL’s unlawful prong.”
5
Merit Prop. Mgmt., 152 Cal. App. 4th 1544, 1554 (2007).
6
the Court dismisses Plaintiffs’ other claims, the Court also finds
7
that Plaintiffs have failed properly to allege a claim under the
8
unlawful prong of the UCL.
Berryman v.
Because
Further, “[t]o have standing under California’s UCL, as
10
United States District Court
For the Northern District of California
9
amended by California’s Proposition 64, plaintiffs must establish
11
that they (1) suffered an injury in fact and (2) lost money or
12
property as a result of the unfair competition.”
13
F.3d at 960 (citing Cal. Bus. & Prof. Code § 17204; Walker v.
14
Geico Gen. Ins. Co., 558 F.3d 1025, 1027 (9th Cir. 2009)).
15
Plaintiffs have failed to allege adequately that they were injured
16
as a result of any particular deceptive or misleading statements
17
made by Apple.
18
they have UCL standing to prosecute this claim.
19
Birdsong, 590
Here,
Accordingly, they have not properly alleged that
Accordingly, the Court grants Apple’s motion to dismiss the
20
UCL claim in its entirety.
21
to remedy the deficiencies identified above.
22
IX. Unjust enrichment claim
23
Plaintiffs are granted leave to amend
Plaintiffs assert a claim for unjust enrichment based on the
24
same conduct that underlies their other causes of action.
25
parties both acknowledge, as the Court has observed on previous
26
occasions, that California courts are split on whether there is an
27
independent cause of action for unjust enrichment.
28
Delacruz, 2012 U.S. Dist. LEXIS 51094, at *28-29; Lyons v.
41
The
See, e.g.,
1
JPMorgan Chase Bank, N.A., 2011 U.S. Dist. LEXIS 74808, at *15-16
2
(N.D. Cal. 2011).
3
One view is that unjust enrichment is not a cause of action,
4
or even a remedy, but rather a general principle underlying
5
various legal doctrines and remedies.
6
Cal. App. 4th 379, 387 (2004); see also Smith v. Ford Motor Co.,
7
462 Fed. App’x. 660, 665 (9th Cir. 2011) (denying as unmeritorious
8
plaintiffs’ appeal from “the district court’s ruling that unjust
9
enrichment is not an independent cause of action in California”).
McBride v. Boughton, 123
United States District Court
For the Northern District of California
10
In McBride, the court construed a “purported” unjust enrichment
11
claim as a cause of action seeking restitution.
12
at 387.
13
action seeking restitution: (1) an alternative to breach of
14
contract damages when the parties had a contract which was
15
procured by fraud or is unenforceable for some reason; and
16
(2) where the defendant obtained a benefit from the plaintiff by
17
fraud, duress, conversion, or similar conduct and the plaintiff
18
chooses not to sue in tort but to seek restitution on a quasi-
19
contract theory.
20
a contract, or quasi-contract, without regard to the parties’
21
intent, to avoid unjust enrichment.
22
Inc. v. GE Capital Corp., 96 F.3d 1151, 1167 (9th Cir. 1996)
23
(“Under both California and New York law, unjust enrichment is an
24
action in quasi-contract . . .”).
25
123 Cal. App. 4th
There are at least two potential bases for a cause of
Id. at 388.
In the latter case, the law implies
Id.; see also Paracor Fin.,
A minority view is that there is a cause of action for unjust
26
enrichment and its elements are receipt of a benefit and unjust
27
retention of the benefit at the expense of another.
28
42
Lectrodryer
1
v. SeoulBank, 77 Cal. App. 4th 723, 726 (2000); First Nationwide
2
Sav. v. Perry, 11 Cal. App. 4th 1657, 1662-63 (1992).
3
The Court finds persuasive the cases which conclude that a
4
stand-alone claim for unjust enrichment cannot be maintained and
5
that, where the plaintiffs have failed properly to allege any
6
cognizable claim for relief upon which they may base their claim
7
for unjust enrichment or restitution, the unjust enrichment claim
8
must also be dismissed.
9
U.S. Dist. LEXIS 80734, at *18-19 (N.D. Cal.) (stating that “a
See, e.g., Berenblat v. Apple, Inc., 2009
United States District Court
For the Northern District of California
10
claim for unjust enrichment cannot stand alone without a
11
cognizable claim under a quasi-contractual theory or some other
12
form of misconduct” and dismissing claim where other claims have
13
already been dismissed); Oestreicher v. Alienware Corp., 544 F.
14
Supp. 2d 964, 975 (N.D. Cal. 2008) (“since plaintiff’s fraud-based
15
claims have been dismissed, plaintiff has no basis for its unjust
16
enrichment claim.”).
17
theory of recovery for Plaintiffs have been dismissed, the Court
18
dismisses this claim as well.
19
amend.
Because all of the claims that could form a
Plaintiffs are granted leave to
20
CONCLUSION
21
For the reasons set forth above, the Court grants Apple’s
22
motion to dismiss (Docket No. 32).
23
to amend to remedy the deficiencies identified herein, within
24
fourteen days of the date of this Order.
25
consolidated complaint, Plaintiffs may incorporate the allegations
26
made by Plaintiff Jones in his separate complaint.
27
not add new claims.
28
43
Plaintiffs are granted leave
In any amended
Plaintiffs may
1
If Plaintiffs file an amended consolidated complaint, Apple
2
shall respond within fourteen days thereafter.
3
dismiss or strike the amended consolidated complaint, Plaintiffs
4
shall respond to the motion within fourteen days after it is
5
filed.
6
thereafter.
7
the papers.
8
9
If Apple moves to
Apple’s reply, if necessary, shall be due seven days
Any motion to dismiss or strike will be decided on
Within fourteen days of the date of this Order, the parties
shall file a stipulation or, if they are unable to reach a
United States District Court
For the Northern District of California
10
stipulation, a joint case management statement, setting forth a
11
proposed schedule resetting the case management dates that the
12
Court vacated on March 27, 2013.
13
See Docket No. 67.
IT IS SO ORDERED.
14
15
16
Dated: 7/23/2013
CLAUDIA WILKEN
United States District Judge
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18
19
20
21
22
23
24
25
26
27
28
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