Green v. Clean Rite Centers LLC

MEMORANDUM & ORDER Plaintiff Bertha Greene (“Plaintiff”) brings this action on behalf of herself and similarly situated individuals who possess reloadable cash cards (“Laundry Cards”) provided by Defendants Clean Rite Centers, LLC and LaundroMax New England, LLC (collectively, “Defendants”) for use in laundry machines in laundromats operated by Defendants. Plaintiff alleges that Defendants’ policies concerning the Laundry Cards are deceptive and asserts claims against Defendants for violations of Massachusetts’s and New York’s respective consumer deception statutes, as well as for unjust enrichment. Defendants move to dismiss Plaintiff’s First Amended Complaint (“FAC”) under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted. For the reasons set forth below, Defendants’ motion is granted as to Plaintiff’s New York law and unjust enrichment claims; however, Plaintiff’s unfairness claim under Massachusetts law may proceed, provided that Plaintiff sufficiently alleges subject matter jurisdiction under the Class Action Fairness Act (“CAFA”), 28 U.S.C. §1332(d), in her Second Amended Complaint. BACKGROUND I. Factual Allegations¹ A. The Parties Defendant Clean Rite Centers, LLC (“Clean Rite”) is a New York limited liability company with its principal place of business in New York that operates laundromats throughout the United States. (FAC, Dkt. 11, 33.) Clean Rite is the parent company of Defendant LaundroMax New England, LLC (“LaundroMax New England”), a Massachusetts limited liability company with its principal place of business in New York. (Id. 34.) Defendants sell Laundry Cards that are designed to be used in laundry machines that are provided and serviced by Defendants at Defendants’ laundromats. (Id. 1.) Plaintiff Bertha Greene is a citizen of Massachusetts. (Id. 32.) Plaintiff has an unusable Laundry Card that contains a balance of less than $5 that is inaccessible and not refundable due to Defendants’ policies. (Id.) Plaintiff seeks to represent a class defined as all persons in the United States who possess Laundry Cards provided by Defendants (the “Class”). (Id. 39.) Plaintiff also seeks to represent a subclass of all Class members who reside in Massachusetts (the “Massachusetts Subclass”). (Id. 40.) B. The Alleged Deceptive Scheme Defendants operate laundromats around the country. (Id.

1, 33.) Customers must pay to use Defendants’ washers and dryers in amounts that vary depending on the size of the machine. (Id. 9.) Prices are currently set at $5.59, $7.59, $11.49, and $16.99 per load, but “are subject to change at Defendants’ whim.” (Id.) Customers must purchase a refillable Laundry Card in order to use Defendants’ laundry machines. (Id. 1). A new Laundry Card can be purchased for $3 at LaundroMax Card Stations (“Card Stations”), and customers can refill their Laundry Card thereafter using either cash or credit, but not coins. (Id.