Minkler v. Apple Inc

Filing 31

REPLY (re 24 MOTION to Dismiss Complaint ) in Further Support of Motion to Dismiss Complaint filed byApple Inc. (Collins, Joseph) (Filed on 4/30/2014)

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1 2 3 4 5 6 7 8 9 10 11 PAUL J. HALL (SBN 066084) paul.hall@dlapiper.com ALEC CIERNY (SBN 275230) alec.cierny@dlapiper.com DLA PIPER LLP (US) 555 Mission Street, Suite 2400 San Francisco, CA 94105 Tel: (415) 836-2500 Fax: (415) 836-2501 JOSEPH COLLINS (Admitted Pro Hac Vice) joseph.collins@dlapiper.com DLA PIPER LLP (US) 203 North LaSalle Street, Suite 1900 Chicago, IL 60601-1293 Tel: (312) 368-4000 Fax: (312) 236-7516 Attorneys for Defendant Apple Inc. UNITED STATES DISTRICT COURT 12 NORTHERN DISTRICT OF CALIFORNIA 13 SAN JOSE DIVISION 14 15 16 17 18 19 20 21 NANCY ROMINE MINKLER, Individually and on Behalf of All Others Similarly Situated, Plaintiffs, v. CASE NO. 5:13-cv-05332-EJD DEFENDANT APPLE INC.’S REPLY IN FURTHER SUPPORT OF MOTION TO DISMISS COMPLAINT (FEDERAL RULES OF CIVIL PROCEDURE RULES 12(B)(6) AND 9(B)) APPLE INC., Defendant. DATE: JULY 18, 2014 TIME: 9:00 A.M. COURTROOM: 4 22 23 24 25 26 27 28 DLA P IPER LLP (US) SAN FRA NCI S CO DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD EAST\75120478.2 1 TABLE OF CONTENTS 2 Page 3 4 5 I. II. 6 7 8 III. INTRODUCTION .............................................................................................................. 1 ARGUMENT ...................................................................................................................... 5 A. Plaintiff Fails To Satisfy The “Reasonable Consumer” Standard .......................... 5 B. The Complaint Fails To Plead A UCL Violation.................................................... 9 C. Apple’s Statements Do Not Create An Express Warranty ................................... 10 D. Plaintiff Fails To Establish Pre-Suit Notice .......................................................... 12 CONCLUSION ................................................................................................................. 12 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DLA P IPER LLP (US) SAN FRA NCI S CO -iDEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD EAST\75120478.2 1 TABLE OF AUTHORITIES 2 Page(s) 3 CASES 4 Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) .................................................................................................................. 7 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DLA P IPER LLP (US) SAN FRA NCI S CO Davis v. HSBC Bank Nev., N.A., 691 F.3d 1152 (9th Cir. 2012)................................................................................................... 6 Eminence Capital, LLC v. Aspeon, Inc., 316 F.3d 1048 (9th Cir. 2003) (per curiam) ............................................................................ 12 Foman v. Davis, 371 U.S. 178 (1962) ................................................................................................................ 12 Garcia v. Sony Computer Entm’t Am., LLC, 859 F. Supp. 2d 1056 (N.D. Cal. 2012) .................................................................................. 10 In re American Apparel, Inc. Shareholder Litigation, 855 F. Supp. 2d 1043 (C.D. Cal. 2012)..................................................................................... 7 In re Cornerstone Propane Partners, L.P., 355 F. Supp.2d 1069 (N.D. Cal. 2005) ..................................................................................... 8 In re iPhone 4S Consumer Litig., No. C 12-1127-CW, 2014 WL 589388 (N.D. Cal. Feb. 14, 2014) ....................................... 8, 9 In re West Seal, Inc., Sec. Litig., 518 F. Supp. 2d 1148 (C.D. Cal. 2007)..................................................................................... 7 Maneely v. Gen. Motors Corp., 108 F.3d 1176 (9th Cir. 1997)................................................................................................. 11 Newdow v. Congress of the United States of America, 435 F. Supp. 2d 1066 (E.D. Cal. 2006) ..................................................................................... 3 Newdow v. Lefevre, 598 F.3d 638 (9th Cir. 2010)..................................................................................................... 3 Qureshi v. Countrywide Home Loans, Inc., No. C 09-4198-SBA, 2010 WL 841669 (N.D. Cal. Mar. 10, 2010) ................................................ 3 Stuart v. Cadbury Adams USA, LLC, 458 Fed. Appx. 689 (9th Cir. 2011) ........................................................................................ 10 Walker v. Countrywide Home Loans, Inc., 98 Cal. App. 4th 1158 (2002).................................................................................................. 10 -iiDEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD EAST\75120478.2 1 TABLE OF AUTHORITIES (continued) 2 Page(s) 3 STATUTES 4 California Commercial Code § 2607 ............................................................................................ 12 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 DLA P IPER LLP (US) SAN FRA NCI S CO -iiiDEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD EAST\75120478.2 1 2 I. INTRODUCTION Plaintiff’s Opposition [Dkt. No. 30] offers nothing but silence in response to the following 3 dispositive arguments made by Apple Inc. (“Apple”) in its Memorandum of Points and 4 Authorities in Support of its Motion to Dismiss Plaintiff’s Complaint (“MPA”) [Dkt. No. 24]: 5 Express and Implied Warranty Claims 6 7 8 9 10 11 12 13 14 15 16 Plaintiff’s claim for breach of express warranty fails because the one-year warranty (“Hardware Warranty”) that Plaintiff claims was breached does not cover Maps; MPA p. 9-10 Plaintiff’s claim for breach of express warranty fails because the Maps License Agreement that Plaintiff accepted when purchasing her iPhone 5 disclaims any and all warranties, and licenses Maps to Plaintiff “as-is,” “as available” and “without warranty of any kind;” Id. at 9-10 Plaintiff’s claim for breach of express warranty based on purported statements outside the Hardware Warranty fail because the parties agreed in the Maps License Agreement that “no oral or written information or advice given by Apple or an Apple representative shall create a warranty;” Id. at 11-12 Plaintiff’s claim for breach of implied warranty fails because both the Hardware Warranty and Maps License Agreement conspicuously and specifically disclaim any and all implied warranties, including the implied warranties of merchantability, fitness for a particular purpose and warranties against hidden or latent defects, as permitted under the California Commercial Code; Id. at 12-13 17 18 19 20 21 22 23 24 25 Plaintiff’s claim for breach of implied warranty fails because Plaintiff’s vague and nonspecific problems with Maps do not render the iPhone 5 unusable or unfit for its ordinary purpose; and Id. at 13-14 26 27 28 -1DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 2 3 4 Plaintiff fails to plead essential facts to support a plausible breach of express or implied warranty claim, including, inter alia, when and where she purchased her iPhone 5, when she discovered the alleged breach, and whether she submitted a warranty claim to Apple during the warranty period. 5 MMWA Claim 6 7 8 Id. at 10-11 Plaintiff’s MMWA claim fails absent a violation of the California Commercial Code, which is lacking here. 9 Id. at 14 Fraud Based Claims 10 11 12 13 Plaintiff’s CLRA, FAL, UCL and negligent misrepresentation claims (“Fraud-Based Claims”), which are governed by Rule 9(b), fail because Plaintiff fails to present a single oral or written statement by Apple representing that Maps was free of defects and error-free; Id. at 14-16 Plaintiff’s Fraud-Based Claims fail because Plaintiff fails to plead the circumstances surrounding any oral or written statement by Apple representing that Maps was free of defects and error-free, e.g., where and when any such statement was made (Id.); Id. 14 15 16 17 18 19 20 21 22 23 Plaintiff’s Fraud-Based Claims fail because contrary to Plaintiff’s assertions, Apple specifically represented in the Hardware Warranty and Maps License Agreement that  Apple does not warrant that Maps will be uninterrupted or error-free,  Apple does not guarantee the availability, accuracy, completeness, reliability or timeliness of location data or any other data provided by Maps, and  Apple does not guarantee that any defects in Maps will be corrected. 24 25 Id. at 14-20 26 27 28 -2DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 2 Plaintiff’s negligent misrepresentation claim is barred by California’s economic loss doctrine. Id. at 21 3 CLRA Claim 4 5 6 7 Plaintiff’s CLRA claim fails because the statute covers only goods and services, and does not cover software such as Maps. 8 Id. at 17-18 FAL Claim 9 10 11 Plaintiff’s FAL claim fails because she cites no statements by Apple “in any newspaper or publication, or any advertising device,” as required under the statute. 12 Id. at 18 UCL Claims 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Plaintiff’s UCL claim for a fraudulent practice fails because she fails to cite any statement by Apple representing that Maps would protect her personal safety, and the Privacy Policy relied on by Plaintiff makes no such representation; Id. at 18-19 Plaintiff’s UCL claim for an unfair practice fails because she cannot rewrite the terms of the parties’ contracts, which disclaim any and all warranties regarding Maps; and Id. at 19-20 Plaintiff’s UCL claim for an unlawful practice fails because she does not plead a violation of any other law. Id. at 20 The Court may deem Plaintiff’s silence as an “abandonment of those claims.” Qureshi v. Countrywide Home Loans, Inc., No. C 09-4198-SBA, 2010 WL 841669, at *6 n. 2 (N.D. Cal. Mar. 10, 2010); see also Newdow v. Congress of the United States of America, 435 F. Supp. 2d 1066, 1070 n. 5 (E.D. Cal. 2006) (“The court interprets plaintiff's silence as a non-opposition to defendants' motions [to dismiss] on these claims.”), aff'd. sub nom., Newdow v. Lefevre, 598 F.3d 27 28 -3DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 638 (9th Cir. 2010). Plaintiff similarly abandoned her product defect and personal safety 2 allegations, tacitly conceding that those allegations lack merit. 3 The Court is left to address Plaintiff’s sole remaining theory, i.e., that Apple 4 misrepresented “the accuracy and improvements of Maps.”1 As set forth more fully below, her 5 “accuracy / improvements” theory is without factual and legal support. The only statement made 6 by Apple containing the word “accuracy” is in the Maps License Agreement, and in that 7 statement Apple refuses to “guarantee[] the availability, accuracy, completeness, reliability or 8 timeliness of [] location data or any other data provided by any Services.” (See Maier Decl., Ex. 9 2 at ¶ 5(e) [Dkt. No. 26]; RJN [Dkt. No. 25].) As a matter of law, no reasonable consumer could 10 possibly construe this explicit disclaimer as a guarantee of accuracy. Regarding Apple’s 11 representation that it is “continuously improving” Maps, Plaintiff fails to cite a single fact 12 suggesting that Apple did not make any improvements to Maps between the time of the statement 13 and the time that Plaintiff purchased her iPhone 5. Plaintiff’s attempt to substitute speculation 14 and conjecture for well-pleaded facts is woefully insufficient under both Rules 8(a) and 9(b). 15 Moreover, any aspirational statement by Apple that it was “ improving” Maps is too vague to be 16 actionable. 17 It is undisputed that Apple provided Maps to Plaintiff “as-is” and without any warranties, 18 express or implied. It is also undisputed that, before her purchase, Plaintiff viewed statements by 19 Apple apologizing to consumers for the shortcomings of Maps and the frustrations they 20 experienced, and suggesting that consumers download other navigation apps while Apple worked 21 to improve Maps. Based on these undisputed facts, there is simply no basis for Plaintiff to 22 believe that Maps would operate consistently and without fail. The Complaint should be 23 dismissed in its entirety without leave to amend. 24 25 26 27 1 See, e.g., Opp. at p. 4 (“Despite the failures of Maps, Apple continued its marketing campaign which touted the accuracy and improvements of Maps. The truth is that Maps was horribly inaccurate and not improving.”) (emphasis added); Id. at p. 8 (“Apple made specific representations that Maps would be accurate and improve over time”) (“Apple knew or should have known that Maps would not perform as advertised, yet it advertised Maps as an accurate and improving navigational tool to consumers nationwide.”) (emphasis added). 28 -4DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 II. ARGUMENT 2 Apple’s reply addresses the four arguments made by Plaintiff in opposition to Apple’s 3 motion to dismiss. In Part (IV)(A) of her Opposition, Plaintiff asserts that Apple’s purported 4 representations regarding Maps could deceive a reasonable consumer. (See Opp. at p. 8-9.) In 5 Part (IV)(B), Plaintiff asserts that she stated a claim for “fraudulent” and “unfair” practices under 6 the UCL. (See Id. at p. 9-10.) In Part (IV)(3) (sic), Plaintiff asserts that she properly alleged a 7 breach of express warranty. (See Id. at p. 11.) Finally, in Part (IV)(B), Plaintiff asserts that she 8 satisfied the California Commercial Code’s pre-suit notice requirement for breach of express 9 warranty claims. (See Id. at p. 10-11.) As set forth below, none of these arguments spare her 10 Complaint from dismissal. 11 A. Plaintiff Fails To Satisfy The “Reasonable Consumer” Standard. 12 In support of her Fraud-Based Claims, Plaintiff contends that Apple misled consumers 13 into believing that Maps “would be accurate and improve over time.” (Id. at p. 8.) Plaintiff, 14 however, fails to cite a single statement attributed to Apple that advertised the performance of 15 Maps. The only statement made by Apple containing the word “accuracy” is in the Maps License 16 Agreement, whereby Apple expressly refuses to guarantee the “accuracy” of Maps: 17 18 19 20 21 Neither Apple nor any of its content providers guarantees the availability, accuracy, completeness, reliability, or timeliness of stock information, location data or any other data displayed by any Services…. Location data provided by any Services, including the Apple Maps service, is provided for basic navigational and/or planning purposes only and is not intended to be relied upon in situations where precise location information is needed or where erroneous, inaccurate, time-delayed or incomplete location data may lead to death, personal injury, property or environmental damage. 22 (See Maier Decl., Ex. 2 at ¶ 5(e); RJN.) As a matter of law, no reasonable consumer could 23 construe this explicit disclaimer as a guarantee of accuracy. 24 Plaintiff suggests to the Court that whether a statement is likely to deceive a reasonable 25 consumer is a question of fact that is inappropriate to decide at the pleading stage. The Ninth 26 Circuit disagrees: 27 28 -5DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 4 Of course, it is possible that some consumers might hazard such an assumption. But “[a] representation does not become ‘false and deceptive’ merely because it will be unreasonably misunderstood by an insignificant and unrepresentative segment of the class of persons to whom the representation is addressed.” We therefore hold that Best Buy's advertising was not likely to deceive a reasonable consumer; the district court's dismissal…was proper. 5 Davis v. HSBC Bank Nev., N.A., 691 F.3d 1152, 1162 (9th Cir. 2012) (internal citation omitted); 6 see also Stuart v. Cadbury Adams USA, LLC, 458 Fed. Appx. 689, 691 (9th Cir. 2011) (“[o]nly an 7 unreasonable consumer would be confused or deceived by Cadbury's failure to clarify that 8 Trident White gum works only if consumers continue to brush and floss regularly”); Garcia v. 9 Sony Computer Entm’t Am., LLC, 859 F. Supp. 2d 1056, 1064 (N.D. Cal. 2012). (“Contrary to 2 3 10 plaintiff's suggestion, the logos simply do not rise to the level of an express, affirmative 11 representation to that effect. Garcia cannot maintain, without more, that reasonable consumers are 12 likely to adopt his specific, and fairly extreme, understanding of the logos.”) Contrary to 13 Plaintiff’s suggestion, the Court may dismiss a complaint where, as here, it is unlikely that a 14 reasonable consumer would have been deceived by the alleged representations. 15 In support of her theory that Apple touted the “improvements” of Maps, Plaintiff cites two 16 statements made in September 2012 by Apple representatives. On September 20, 2012, Trudy 17 Muller, an Apple spokeswoman, stated that “we are continuously improving [Maps]” in response 18 to widely-publicized criticism of the navigational software. (Compl. ¶ 4.) That same month, 19 Apple’s CEO published an apology letter to its consumers for their frustrations with Maps. The 20 September 28, 2012 letter, quoted in full at paragraph 33 of the Complaint, states as follows: 21 To our customers, 22 At Apple, we strive to make world-class products that deliver the best experience possible to our customers. With the launch of our new Maps last week, we fell short on this commitment. We are extremely sorry for the frustration this has caused our customers and we are doing everything we can to make Maps better. We launched Maps initially with the first version of iOS. As time progressed, we wanted to provide our customers with even better Maps including features such as turn-by-turn directions, voice integration, Flyover and vector-based maps. In order to do this, we had to create a new version of Maps from the ground up. 23 24 25 26 27 28 -6DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 There are already more than 100 million iOS devices using the new Apple Maps, with more and more joining us every day. In just over a week, iOS users with the new Maps have already searched for nearly half a billion locations. The more our customers use our Maps the better it will get and we greatly appreciate all of the feedback we have received from you. While we’re improving Maps, you can try alternatives by downloading map apps from the App Store like Bing, MapQuest and Waze, or use Google or Nokia maps by going to their websites and creating an icon on your home screen to their web app. Everything we do at Apple is aimed at making our products the best in the world. We know that you expect that from us, and we will keep working nonstop until Maps lives up to the same incredibly high standard. Tim Cook Apple’s CEO (Id. ¶ 33.) Plaintiff asserts that these statements are fraudulent because she believes that Apple did not make any improvements to Maps after September 2012, but fails to plead any particularized facts supporting her belief. For example, Plaintiff does not allege that the widelypublicized “screw-ups” and “fails” that preceded these statements were not remedied in subsequent versions of Maps. Nor does she present any specific facts to suggest that the version of Maps on her iPhone 5 is exactly the same as the version of Maps that existed in September 2012. Instead of presenting particularized facts, as Rule 9(b) requires, Plaintiff offers rank speculation and conjecture, which does not even satisfy the more liberal pleading standards of Rule 8(a). Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 570 (2007) (factual allegations “must be enough to raise a right to relief above the speculative level” such that the claim “is plausible on its face”). Plaintiff has failed to present any facts to plausibly suggest that Apple did not make any improvements to Maps. Moreover, the aspirational statements made by Apple’s representatives regarding efforts to “improve” Maps are simply too vague to be actionable. In re American Apparel, Inc. Shareholder Litigation, 855 F. Supp. 2d 1043, 1072-1073 (C.D. Cal. 2012) (defendants' repeated assertions that they were making efforts to improve financial systems and internal controls were “couched in aspirational terms,” and ‘were simply too vague to be actionable”); In re West Seal, Inc., Sec. Litig., 518 F. Supp. 2d 1148, 1168 (C.D. Cal. 2007) (citing “continuing improvements” 27 28 -7DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 as an example of non-actionable “run-of-the-mill corporate optimism”); In re Cornerstone 2 Propane Partners, L.P., 355 F. Supp.2d 1069, 1087 (N.D. Cal. 2005) (holding that the term 3 “continuing improvements” was non-actionable because it constituted “vague, unspecific 4 assertions of corporate optimism”); see also In re iPhone 4S Consumer Litig., No. C 12-1127- 5 CW, 2014 WL 589388 (N.D. Cal. Feb. 14, 2014) (rejecting several statements by Apple as non- 6 actionable puffery). Thus, the Court should deem any statements by Apple that it was working to 7 “improve” Maps as run-of-the-mill statements of corporate optimism that are non-actionable as a 8 matter of law. 9 Finally, Plaintiff’s criticisms of the “accuracy and improvements of Maps” are too 10 ambiguous for Apple to defend. She alleges that “Maps was unable to consistently perform as 11 shown and represented,” without specifying a level of “consistency” or level of “accuracy” and 12 “improvements” that she expected. (See Opp. at pp. 9-10.) Chief Judge Wilken of this Court 13 recently dismissed without leave to amend a similar claim against Apple regarding the Siri 14 function on the iPhone 4S. In In re iPhone 4S, the plaintiffs alleged that Apple misrepresented 15 that Siri would perform “on a consistent basis” in understanding user questions. In re iPhone 4S, 16 2014 WL 589388 at *6. The Court recognized that the alleged representation was “unacceptably 17 ambiguous” and too vague to be actionable: “Plaintiffs do not elaborate on the meaning of the 18 term ‘on a consistent basis’ anywhere in their complaint or their argument. Apple and the Court 19 are left to guess whether Plaintiffs expected Siri to operate without fail, or more often than not, or 20 at any other level below perfection.” Id. 21 The same rationale applies here. Plaintiff does not elaborate on the level of accuracy or 22 improvements that she expected from Maps. Plaintiff, like the plaintiffs in In re iPhone 4, simply 23 alleges that “Maps was unable to consistently perform as shown and represented,” without 24 specifying a level of “consistency,” leaving Apple and the Court to guess whether Plaintiff 25 expected Maps to operate without fail, or more often than not, or at any other level below 26 perfection. (See Opp. at pp. 9-10.) Thus, as Judge Wilken recognized: 27 28 -8DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 The Court cannot determine whether Plaintiff[] [has] properly plead that a misrepresentation occurred, including the questions of whether Plaintiff[] [was] justified in inferring such a standard from the advertisements, whether a reasonable consumer would perceive the same standard, and whether [Maps] failed to meet such a standard, and how Apple would be shown to have known [Maps] did not meet the expected standard. Including this information is necessary to give Apple notice of what level of performance it must defend, framing the dispute for summary judgment and trial. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 In re iPhone 4S, 2014 WL 589388 at *6. Absent such well-pleaded allegations, Plaintiff fails to state a claim, and her Complaint must be dismissed without leave to amend. B. The Complaint Fails To Plead A UCL Violation. In Part (IV)(B) of her Opposition, Plaintiff contends that her Complaint establishes fraudulent and unfair practices under the UCL. She first contends that the Complaint states a fraudulent practice under the UCL by alleging “the specific content of Apple’s advertisements and promotional demonstrations regarding Maps functionality and capabilities.” (Opp. at p. 9 (emphasis added).) According to Plaintiff, the Complaint further alleges “that Maps was unable to consistently perform as shown and represented in these advertisements and promotions.” (Id. at p. 9-10 (emphasis added).) Nowhere in the Complaint, however, does Plaintiff cite a single “advertisement” or “promotional demonstration” regarding Maps.2 Plaintiff should not be allowed to defend the veracity of her UCL fraud claim by resorting to vague and generalized references to phantom advertisements and promotions that are not specifically referenced or quoted anywhere in her pleading. See In re iPhone 4S, 2014 WL 589388 at * 5 (“Apple would be hard-pressed to defend against an allegation that the overall impact of these commercials and advertisements misled Plaintiffs. That does not meet the level of specificity required by Rule 23 2 24 25 26 27 Plaintiff also contends in her Opposition that “[t]through numerous press releases, press conferences, website representations and direct email solicitations, Apple solicited consumers to purchase its devices by representing that the Maps feature was an innovative, accurate and versatile navigational tool.” (Opp. at p. 4.) The Complaint, however, fails to quote a single press release, press conference, website representation or direct email solicitation, let alone one that describes Maps as “innovative,” “accurate,” or “versatile.” Without specifics, including who made the statement, what the statement said, and where and when the statement was made, it is impossible for Apple to properly defend such allegations. 28 -9DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 9(b).”). Indeed, the term “promotional demonstration” is not even used in her Complaint. Apple 2 should not be forced to defend a moving target. 3 Regarding the UCL’s unfairness prong, Plaintiff recites the standards for an unfair policy 4 under California law, but fails to explain to the Court why her pleading satisfies these standards. 5 Nor can she provide a sufficient explanation. It is undisputed that Plaintiff accepted the terms of 6 the Maps License Agreement, which disclaimed any and all representations and warranties 7 regarding the functionality of Maps and provided the software “as-is.” There is nothing “unfair” 8 about these terms, and the Plaintiff cannot ask the Court to invoke the UCL to rewrite them. See, 9 e.g., Walker v. Countrywide Home Loans, Inc., 98 Cal. App. 4th 1158, 1176-1177 (2002) (“The 10 ‘unfairness’ element of the unfair competition law does not give the courts a general license to 11 review the fairness of contracts.”) (internal citations and quotations omitted). Her UCL claims 12 fail as a matter of law. 13 C. 14 As set forth above, Plaintiff concedes that she has no claim for breach of express or Apple’s Statements Do Not Create An Express Warranty. 15 implied warranty under both the Hardware Warranty and Software License Agreement, and it is 16 undisputed that the terms are valid and enforceable. Attempting to create a separate express 17 warranty where none exists, Plaintiff asserts that she saw and relied on purported “advertisements 18 and promotions” that warranted the accuracy and improvements of Maps. Plaintiff’s breach of 19 express warranty claim in Count I, however, does not allege that Plaintiff saw any 20 “advertisements or promotions” regarding Maps. Instead, Count I alleges that she saw two 21 statements by Apple representatives. The first statement was made by Scott Forstall at the World 22 Wide Developers Conference in June of 2012 “touting the new iOS 6 as a ‘major initiative,’” and 23 the second statement was made by Apple’s CEO in a September 28, 2012 letter to its customers 24 “providing ‘persistent encouragement’ by Apple to stick with its products because ‘the more our 25 customers use our Maps the better it will get.’” (Compl., Count I (Breach of Express Warranty) at 26 ¶ 61; see also Compl. at ¶¶ 16, 33.) These two statements, which are neither advertisements or 27 promotions, are non-actionable in warranty for two independent reasons. 28 -10DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 First, the Hardware Warranty clearly and conspicuously states that it is the exclusive 2 express warranty, and disclaims all other express warranties. (See Maier Decl., Ex. 1 (a-b); RJN 3 (“…THIS WARRANTY AND THE REMEDIES SET FORTH ARE EXCLUSIVE AND IN 4 LIEU OF ALL OTHER WARRANTIES, REMEDIES AND CONDITIONS, WHETHER ORAL, 5 WRITTEN, STATUTORY, EXPRESS OR IMPLIED.”).) In addition, the Maps License 6 Agreement clearly and conspicuously states that Maps is provided “as is,” “as available,” and 7 “without warranty of any kind.” (Id., Ex. 2 at ¶ 7.3.) (“TO THE MAXIMUM EXTENT 8 PERMITTED BY APPLICABLE LAW, THE iOS SOFTWARE AND SERVICES ARE 9 PROVIDED "AS IS" AND "AS AVAILABLE", WITH ALL FAULTS AND WITHOUT 10 WARRANTY OF ANY KIND, AND APPLE … HEREBY DISCLAIM[S] ALL WARRANTIES 11 AND CONDITIONS WITH RESPECT TO THE iOS SOFTWARE AND SERVICES, EITHER 12 EXPRESS, IMPLIED OR STATUTORY …” .) By agreeing to its terms, Plaintiff further 13 acknowledged that “NO ORAL OR WRITTEN INFORMATION OR ADVICE GIVEN BY 14 APPLE OR AN APPLE AUTHORIZED REPRESENTATIVE SHALL CREATE A 15 WARRANTY. “ (Id. at ¶ 7.6.) Thus, the Hardware Warranty and Software License Agreements 16 govern Plaintiff’s claim and warrant the dismissal of Count I. 17 Second, neither of these statements satisfies the common law elements of an express 18 warranty. Under California law a breach of express warranty claim requires that the plaintiff 19 identify a “specific and unequivocal written statement” about the product that constitutes an 20 “explicit guarantee[].” Maneely v. Gen. Motors Corp., 108 F.3d 1176, 1181 (9th Cir. 1997). 21 Neither statement constitutes an “explicit guarantee” regarding Maps. The first statement merely 22 describes iOS 6 – not Maps – as a “major initiative,” and the second statement, using Plaintiff’s 23 own words, was “encouragement” to purchase Apple products. Simply put, these statements do 24 not “guarantee” anything. For any and all of these reasons, Plaintiff’s express warranty claims 25 fail as a matter of law. 26 27 28 -11DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 D. 2 Under § 2607 of the California Commercial Code a “buyer must, within a reasonable time Plaintiff Fails To Establish Pre-Suit Notice. 3 after he discovers or should have discovered any breach, notify the seller of breach or be barred 4 from any remedy.” Cal. Com. Code § 2607. As demonstrated in Apple’s Motion to Dismiss, 5 Plaintiff fails to allege anywhere in the Complaint that she provided pre-suit notice to Apple 6 regarding an alleged breach of an express warranty within a reasonable time after she discovered 7 the breach. Plaintiff dedicates one sentence to this argument in her Opposition, asserting that 8 “Plaintiff’s counsel sent Apple a letter as set forth in the [Complaint].” (Opp. at p. 10.) Plaintiff 9 is presumably referring to paragraph 88 of the Complaint, where she alleges that her counsel sent 10 to Apple “notice in writing by certified mail of the particular violations of §1770 of the CLRA.” 11 (Compl. at ¶ 88.) The Complaint does not allege, however, that the purported notice of CLRA 12 violations alleged in paragraph 88 also notified Apple of an alleged breach of warranty. The 13 Complaint’s alleged notice of CLRA violations, standing alone, does not satisfy pre-suit notice 14 under the express requirements of the California Commercial Code. Plaintiff also contends that the pre-suit notice requirement “does not apply” to her express 15 16 warranty claims because “[t]he pre-suit notice requirement only applies when products are 17 purchased directly from a manufacturer.” (Opp. at p. 10.) Putting aside Plaintiff’s insistence that 18 she in fact provided pre-suit notice to Apple, her Complaint alleges that she had “direct dealings” 19 with Apple and that “Plaintiff and the Class purchased Apple Devices from Apple and/or Apple- 20 authorized retailers.” (Compl. at ¶ 67.) Thus, Plaintiff’s contention is a red herring and the Court 21 should ignore it. 22 III. 23 CONCLUSION For the reasons set forth above, the Court should dismiss Plaintiff’s Complaint. Dismissal 24 should be without leave to amend because no conceivable amendment could save her claims. 25 Eminence Capital, LLC v. Aspeon, Inc., 316 F.3d 1048, 1052 (9th Cir. 2003) (per curiam) 26 (dismissal without leave to amend is appropriate where amendment would be futile) (quoting 27 Foman v. Davis, 371 U.S. 178, 182 (1962)). 28 -12DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2 1 2 3 Respectfully submitted, Dated: April 30, 2014 4 DLA PIPER LLP (US) By: /s/ Joseph Collins JOSEPH COLLINS Attorneys for Defendant APPLE INC. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -13DEFENDANT’S REPLY ISO MOTION TO DISMISS COMPLAINT -- CASE NO. 5:13-cv-05332-EJD DLA P IPER LLP (US) SAN FRA NCI S CO EAST\75120478.2

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