Johnson v. Glock, Inc., 2021 WL 6804234, No. 3:20-cv-08807-WHO (N.D. Cal. Sept. 22, 2021)
Johnson brought a claim on behalf of a putative class that
Glock sold defective firearms. He alleged that specific Glock guns’ chambers
are “unsupported,” which can cause damage to brass casings and, sometimes,
cause the guns to dangerously blow apart. He adequately pled his claims (CLRA,
UCL, FAL, common-law fraudulent omission; I have been made aware that I should
write an explainer on the “usual California claims” and I will but not today),
except for a few specific statements that weren’t actionable under California’s
False Advertising Law, and the claims were not barred by the statute of
limitations on the face of the complaint.
The defect allegedly could damage brass casings, rendering
them useless when they are usually reusable. In the worst cases, a piece of the
casing could dislodge, causing severe injury. Johnson alleged that Glock
knowingly failed to disclose the existence of the defect (or its consequences),
and that Glock made statements that would lead reasonable consumers to believe
the guns were not unreasonably safe.
Statute of limitaions: On the pleadings, Johnson
sufficiently alleged that the delayed discovery rule applied. He alleges that
he only learned about the defect from a lawyer’s ad, despite previous research
into the gun.
None of the materials from Glock,
including the materials that came with the gun or the statements on Glock’s
website, revealed or even mentioned the possibility of the Defect. The
authorized Glock dealer from which Mr. Johnson purchased his gun said nothing
to hint at such a Defect. He claims that Glock entered into settlements with
confidentiality provisions with those who sued over the defect, to prevent the
public from learning about it. And he alleges that the defect is latent, making
it easier to avoid discovery.
That was good enough. Glock argued that Johnson must have
been aware of the defect due to the damage to casings, but Johnson alleged that
the damage would not always be plain to the naked eye. This was an issue best
left for discovery. While it was plausible that Glock was on notice of
the defect before, “just because a company whose business likely requires it to
monitor online chatter would be on notice does not mean that a reasonable
consumer with no incentive to perform the same level of monitoring would be on
notice. Glock’s pre-sale knowledge, moreover, is alleged to partially depend in
part on things like lawsuits that would not be as plausibly within the
knowledge of a reasonable consumer.”
As indicated, Johnson also adequately alleged that Glock
knew of the alleged defect and had a duty to disclose. “Omissions may be the
basis of claims under California consumer protections laws, but to be
actionable the omission must be contrary to a representation actually made by
the defendant, or an omission of a fact the defendant was obliged to disclose.”
This duty can arise when the undisclosed information “cause[s] an unreasonable
safety hazard” or when (1) the omission is material, (2) the defect is central
to the product’s function, and (3) one of the following is the case: (a) the
defendant is the plaintiff’s fiduciary; (b) the defendant has exclusive
knowledge of material facts not known or reasonably accessible to the
plaintiff; (c) the defendant actively conceals a material fact from the
plaintiff; or (d) the defendant makes partial representations that are
misleading because some other material fact has not been disclosed. At least,
Johnson adequately alleged a safety-hazard theory.
FAL falsity: The court agreed that, unlike the CLRA or
fraudulent omission, the FAL requires an affirmative statement because it
requires an “advertisement.”
The FAL provides in pertinent part that it’s unlawful to “make
or disseminate or cause to be made or disseminated … any statement, concerning
... [the business’s] services ... or concerning any circumstance or matter of
fact connected with the proposed performance or disposition thereof, which is
untrue or misleading, and which is known, or which by the exercise of
reasonable care should be known, to be untrue or misleading.” Thus, “[t]here
can be no FAL claim where there is no ‘statement’ at all.” There can be FAL
liability for omissions, though, as long as the claim is based on omission of
information from the challenged advertisement.
Glock argued that the challenged statements were all
puffery. The court agreed that these statements about the guns were vague and
standardless puffery: a “profound series of engineering feats,”
“revolutionary,” “perfection in every facet of design, engineering, and
manufacturing,” “the standard by which all others are compared,” “revolutionary
design,” and “Glock Perfection.” Likewise, statements about Glock’s culture
were puffery: “culture of continuous improvement,” “continuous pursuit of
perfection,” and “[w]e will continue to invest tremendous resources in the
technology and talent necessary to improve our products wherever possible; and
we will always strive to deliver maximum customer satisfaction.”
But matters were different with statements about safety, as
applied to guns: “Safe Action®,” “Safe. Simple. Fast. = Confidence,” and that the
gun “delivers on our promise of safety, reliability, and simplicity.” Whether
this was puffery was for a factfinder. True, other cases have held that specific
uses describing a product as “safe” or operating “safely” were puffery.
But none of those cases … examined
a product like a gun. In that particular context, a representation that a gun
is “safe” may well have a specific and measurable meaning to a reasonable
consumer. No one disputes that, when made incorrectly, guns can be
dangerous—indeed, it is a staple of Glock’s briefing that igniting gun powder
is dangerous. When a seller represents that a gun is “safe,” a reasonable
consumer may understand that to be a concrete representation that, at the very
least, the gun will not erratically explode when used correctly.
Other “safety” cases involved far different products, such
as a car’s door closure and a cruise line’s services, where safety would be
harder to define/measure.
Also, the economic loss rule didn’t bar the fraudulent omission
claim.
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