Summary
The United States District Court for the Middle District of Tennessee grants in part a motion to dismiss claims arising from the alleged sale of a counterfeit K-Laser therapy device. The court dismisses the breach-of-contract, unjust enrichment, and Tennessee Consumer Protection Act claims, while allowing the fraud claim to proceed. The court denies the motion to strike the class allegations.
Holdings
- Flowers Mill failed to plausibly allege that it was an intended third-party beneficiary and therefore could not enforce the contract.
- Flowers Mill's unjust-enrichment claim failed because it did not plead that it exhausted its remedies against Patterson or that exhaustion would be futile.
- The TCPA claim was barred because Flowers Mill sued more than five years after the November 2018 consumer transaction.
- The motion to strike the class allegations was denied.
- The fraud claim survived because Summus did not challenge it in the motion to dismiss.
Questions Presented
- Whether Flowers Mill plausibly alleged that it was an intended third-party beneficiary of the distribution contract between Summus and Patterson.
- Whether Flowers Mill was required to plead exhaustion of remedies against Patterson or futility before asserting unjust enrichment against Summus.
- Whether the Tennessee Consumer Protection Act's five-year statute of repose barred the claim arising from the November 2018 transaction.
- Whether the class allegations should be stricken because the underlying claims were subject to dismissal and Flowers Mill lacked standing.
Disposition
other
Cases Cited (11)
- Erickson v. Pardus, 551 U.S. 89, 94 (2007)(followed)
- Venema v. West, 133 F.4th 625, 632 (6th Cir. 2025)(followed)
- Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)(followed)
- Doe v. Baum, 903 F.3d 575, 581 (6th Cir. 2018)(followed)
- Wallis v. Brainerd Baptist Church, 509 S.W.3d 886, 899-900 (Tenn. 2016)(followed)
- Freeman Indus., LLC v. Eastman Chem. Co., 172 S.W.3d 512, 525-26 (Tenn. 2005)(followed)
- Bennett v. Visa U.S.A. Inc., 198 S.W.3d 747, 756-57 (Tenn. Ct. App. 2006)(distinguished)
- Kalos, LLC v. Twin Springs at White House, LLC, No. 21-5352, 2022 WL 59617, at *2 (6th Cir. Jan. 6, 2022)(followed)
- French v. First Union Securities, Inc., 209 F. Supp. 2d 818, 826 (M.D. Tenn. 2002)(rejected)
- Cates v. Stryker Corp., No. 3:10-CV-546, 2012 WL 256199, at *5 (E.D. Tenn. Jan. 27, 2012)(followed)
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Court Document
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