In re Light Cigarettes Mktg. Sales Practices Litig..
Decision Date | 26 July 2010 |
Docket Number | MDL Docket No. 1–09–MD–2068. |
Parties | In re: LIGHT CIGARETTES MARKETING SALES PRACTICES LITIGATION. |
Court | U.S. District Court — District of Maine |
OPINION TEXT STARTS HERE
Harold M. Hewell, Hewell Law Firm, Alan M. Mansfield, Consumer Law Group, San Diego, CA, Joe R. Whatley, Jr., Whatley Drake Kallas, New York, NY, Nicholas B. Roth, Eyster, Key, Tubb, Roth, Middleton & Adams, LLP, Decatur, AL, Howard Weil Rubinstein, Law Office of Howard Weil Rubinstein, Aspen, CO, Samuel W. Lanham, Jr., Lanham Blackwell, P.A., Bangor, ME, Sara D. Avila, Wayne S. Kreger, Milstein Adelman & Kreger LLP, Santa Monica, CA, Ben Barnow, Blake A. Strautins, Erich P. Schork, Sharon Harris, Barnow & Associates, P.C., James R. Rowe, Larry D. Drury, Larry D. Drury, Ltd., Chicago, IL, Andres F. Alonso, David Bruce Krangle, Jerrold S. Parker, Great Neck, NY, Michael A. London, Douglas & London, P.C., Stuart E. Nahas, Zraick, Nahas & Rich, New York, NY, Scott W. Weinstein, Morgan & Morgan, P.A., Fort Meyers, FL, Peter J. Cambs, Bonita Springs, FL, Gerard V. Mantese, Mark C. Rossman, Mantese and Associates, P.C., Troy, MI, John Eddie Williams, Williams, Kherkher, Hart, Boundas, LLP, Grant Kaiser, Kaiser Firm LLP, Houston, TX, Thomas P. Thrash, Thrash Law Firm, Little Rock, AR, Walter Umphrey, Provost Umphrey Law Firm, LLP, Beaumont, TX, John W. Barrett, Don Barrett, P.A., Brian Kelly Herrington, Barrett Law Group PA, Lexington, MS, William S. Ferguson, Deena B. Beard, Will Ferguson & Associates, Albuquerque, NM, Elizabeth J. Cabraser, Lieff, Cabraser, Heimann & Bernstein, LLP, San Fransisco, CA, David J. Syrios, Ademi & O'Reilly LLP, Cudahy, WI, Charles F. Barrett, Barrett & Associates, P.A., Nashville, TN, Karen J. Marcus, Stan M. Doerrer, Finkelstein Thompson LLP, Washington, DC, Dianne M. Nast, Roda Nast, P.C., Lancaster, PA, Leonard V. Fodera, Michael P. Lalli, Silverman & Fodera, Philadelphia, PA, Reed Gillmor Bowman, Morris Bart LLC, New Orleans, LA, A. Russell Smith, Law Office of A. Russell Smith, Akron, OH, R. Bryan Nace, Law Office of R. Bryan Nace, Fairlawn, OH, for Plaintiffs.Angel L. Tang, Arnold & Porter, LLP, Los Angeles, CA, David E. Kouba, James M. Rosenthal, Judith Bernstein–Gaeta, Michael S. Tye, Arnold & Porter, LLP, John H. Beisner, Skadden, Arps, Slate, Meagher & Flom LLP, Washington, DC, David Friederich Maron, Baker, Donelson, Bearman, Caldwell & Berkowitz, P.C., Jackson, MS, George Carter Lombardi, Jeffrey Mark Wagner, Kevin Anthony Banasik, Winston & Strawn, LLP, Chicago, IL, H. Peter Del Bianco, Jr., John F. Lambert, Jr., Lambert Coffin, Portland, ME, Kenneth J. Parsigian, Goodwin Proctor LLP, Boston, MA, Nancy Gordon Milburn, Philip H. Curtis, Arnold & Porter LLP, Frances E. Bivens, Guy Miller Struve, Ross B. Galin, Davis Polk & Wardwell, New York, NY, Rick T. Beard, Mitchell, Williams, Selig, Gates & Woodyard, PLLC, Little Rock, AR, Robert Dale Grimes, Bass Berry Sims PLC, Nashville, TN, Steven B. Weisburd, Dechert LLP, Austin, TX, Will W. Sachse, Dechert LLP, Philadelphia, PA, David C. King, Rudman & Winchell, Bangor, ME, David J. Noonan, Kirby Noonan Lance and Hoge LLP, San Diego, CA, Richard E. Olson, Stuart D. Shanor, Hinkle, Hensley, Shanor & Martin, LLP, Roswell, NM, for Defendants.
ORDER ON PHILIP MORRIS USA INC.' MOTION FOR JUDGMENT ON THE PLEADINGS ON PLAINTIFFS' UNJUST ENRICHMENT CLAIMS AND OTHER REQUESTS FOR EQUITABLE RELIEF
In this multi-district litigation, Philip Morris USA Inc. (PM) moves for judgment on the pleadings against the Plaintiffs' unjust enrichment claims on the ground that unjust enrichment sounds in equity and the Plaintiffs have adequate remedies at law, and as regards the Mississippi claim, PM says it is entitled to judgment because the state of Mississippi does not recognize a stand-alone cause of action for unjust enrichment. The Court denies PM's primary motion because it is premature and its Mississippi motion because it is wrong.
I. STATEMENT OF FACTS
On March 29, 2010, Philip Morris (PM) moved for judgment on the pleadings on the Plaintiffs' claims for unjust enrichment and requests for restitution, disgorgement, and injunctions, contending that they are barred because the Plaintiffs have adequate remedies at law. PM's Mot. for J. on the Pleadings on Plaintiffs' Unjust Enrichment Claims and Other Requests for Equitable Relief (Docket # 185) ( PM's Mot.).1 PM separately seeks judgment on the pleadings on Mirick, a Mississippi case that asserts a single count of unjust enrichment, arguing that Mississippi does not recognize unjust enrichment as an independent cause of action. Id. On May 3, 2010, the Plaintiffs' responded. Plaintiffs' Opp'n to PM's Mot. for J. on the Pleadings on Plaintiffs' Unjust Enrichment Claims and Other Requests for Equitable Relief (Docket # 205) . PM replied on June 17, 2010. PM's Reply in Support of Mot. for J. on the Pleadings on Plaintiffs' Unjust Enrichment Claims and Other Requests for Equitable Relief (Docket # 220) ( PM's Reply ). The Court held oral argument on July 21, 2010.
II. DISCUSSIONA. Judgment on the Pleadings
A party may move for judgment on the pleadings “[a]fter the pleadings are closed—but early enough not to delay trial.” Fed. R. Civ. P. 12(c). 2 “The standard for evaluating a Rule 12(c) motion for judgment on the pleadings is essentially the same as that for deciding a Rule 12(b)(6) motion.” Pasdon v. City of Peabody, 417 F.3d 225, 226 (1st Cir.2005). Courts must accept “all of the nonmovant's well-pleaded factual averments as true, and draw all reasonable inferences in his favor.” Id. (quoting Rivera–Gomez v. de Castro, 843 F.2d 631, 635 (1st Cir.1988)). To survive a Rule 12(b)(6) motion to dismiss, “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, ––– U.S. ––––, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)).
B. Unjust Enrichment, Restitution, Disgorgement, and Injunctions
PM makes a three-part argument for why the Plaintiffs can neither assert unjust enrichment claims nor seek restitution, disgorgement, and injunctive relief. PM's Reply at 1. First, PM argues that under the state law of the jurisdictions at issue, equitable claims and remedies are “barred where Plaintiffs have adequate remedies at law.” PM's Mot. at 4–10 ( ). PM contends this limitation on equitable relief is necessary to “prevent the circumvention of an applicable legal claim through the use of a more general unjust enrichment claim.” Id. (quoting Wahlcometroflex, Inc. v. Baldwin, 2010 ME 26, ¶ 21, 991 A.2d 44).
Second, PM contends this bar applies to the Plaintiffs because their “own pleadings reflect that they have adequate remedies at law.” Id. at 10 ( ). At oral argument, PM pressed how the Plaintiffs had “not identified anything that makes the remedy [at law] incomplete.” Tr. 23:9–10 (Docket # 231). Although the Plaintiffs have given “an amorphous statement that they didn't like recent Maine decisions [statute],” the Maine consumer protection PM contends that the adequacy of legal remedies turns on their existence, id. 23:7–9; mere lack of success is not “a basis for equitable intervention.” PM's Mot. at 10 (quoting Zeigler v. Zeigler, 365 Pa.Super. 545, 530 A.2d 445, 448 (Pa.Super.Ct.1987)). Similarly, PM argues that the failure of some of the Plaintiffs to assert legal remedies does not render the remedies inadequate, only unasserted: for the three cases that assert only unjust enrichment, PM says the Court must assess the adequacy of the legal remedies the Plaintiffs could have brought. Id. at 11.
Third, PM argues that under state law, the Plaintiffs' claims for relief “are considered equitable.” PM's Reply at 5 n.6 ( ). PM contends that federal, not state law governs because whether a claimant may bring an unjust enrichment claim is a matter of substantive law. Id. at 3 ( ). Although acknowledging that Simler v. Conner, 372 U.S. 221, 83 S.Ct. 609, 9 L.Ed.2d 691 (1963) held that federal law determines whether an action is legal or equitable for purposes of deciding jury trial rights, PM argues that this exception is limited to the Seventh Amendment context. Id. ( )(quoting Simler, 372 U.S. at 222, 83 S.Ct. 609) (emphasis added by PM). PM states that the United States District Court erred in Dastgheib v. Genentech, Inc., 457 F.Supp.2d 536, 542 (E.D.Pa.2006) when it applied Simler to a motion to dismiss a claim of unjust enrichment. Id. at 4. Finally, PM rejects the Plaintiffs' argument that equitable remedies become legal in nature when authorized by state statute. Id. at 5. PM argues that not only have the Plaintiffs failed to support their theory with case law but cases “repeatedly describe these statutory remedies as equitable.” ' Id. ( ).
In support of its conclusion, PM relies heavily on Curtis v. Philip Morris Cos., Inc., No–27–CV–01–18042 (Minn.Dist.Ct. Dec. 4, 2009) (order granting motion for judgment on the pleadings), in which a state court granted a similar motion by PM and dismissed the smokers' claim for unjust enrichment. PM's Mot. at 3. As in Curtis, PM concludes that the ...
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