Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_16-cv-03804/USCOURTS-cand-4_16-cv-03804-0/pdf.json

Nature of Suit Code: 370
Nature of Suit: Other Fraud
Cause of Action: 28:1332 Diversity-Fraud

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United States District Court

Northern District of California

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UNITED STATES DISTRICT COURT 

NORTHERN DISTRICT OF CALIFORNIA 

LAURIE MUNNING,

Plaintiff,

v.

THE GAP, INC., et al.,

Defendants.

Case No. 16-cv-03804-TEH 

ORDER RE: OCTOBER 17, 2016 

HEARING

Counsel shall come prepared to address the following questions at the October 17, 

2016 hearing on Defendants’ Motion to Dismiss (“Mot.”): 

Both Parties

1. Which state’s laws should this Court apply when analyzing whether the 

arbitration provision in the credit card agreement applies to this case?

2. Assuming this Court finds Plaintiff’s claims are subject to the arbitration 

provision in her credit card agreement, how should this Court reconcile the 

arbitration provision with the forum selection provision on the Defendants’ 

factory website(s)? See Decl. of Todd M. Friedman, ¶ 2 (EFC No. 19-1). 

For Plaintiff

1. You failed to reply to Defendants’ arguments regarding Count 1 (violation of 

state consumer statute), Count 10 (unjust enrichment), injunctive relief, 

equitable relief, and restitution. See Reply at 2-3. Do you agree these claims 

should be dismissed? If not, why should the Court not dismiss these claims, 

with prejudice, for failure to respond? 

2. Defendants allege you have not sufficiently pleaded an ascertainable loss. 

Mot. at 20:3-9. What exactly was your loss? Can you show your loss is 

quantifiable or measurable, rather than merely theoretical?

3. You state that the discount on the three items you purchased from 

Defendants was a “specific and material term of the contract” between the 

parties. Opp’n at 22:2-3. Can you cite any legal authority supporting your 

claim? 

4. You state that a description of discounted prices was an express warranty 

because it “was a part of the basis of the bargain, as it induced Plaintiff to 

Case 4:16-cv-03804-HSG Document 25 Filed 10/13/16 Page 1 of 2
United States District Court

Northern District of California

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purchase the items.” Opp’n at 22:24-26. Can you cite any legal authority 

supporting your claim? 

5. Defendants allege the economic loss rule bars your negligent 

misrepresentation claim because you allege purely economic losses and have 

not suffered a personal injury or property damage. Reply at 10:14-17. Do 

you concede that you have only suffered an economic harm as a result of 

your alleged claims? 

For Defendants

1. You argue extensively that Plaintiff has failed to allege sufficient facts to 

demonstrate a reasonable consumer is likely to be misled into thinking that 

the strikethrough amount was the original price of the item. See e.g., Mot. at 

2:20-26; Reply at 5:26-27. How do you believe a reasonable consumer 

would interpret the strikethrough amount advertised on your websites?

2. You argue that Plaintiff’s claims should be dismissed because they “lump” 

multiple defendants together and because Plaintiff “fails to state any facts 

illustrating each defendant’s involvement in the allegedly false advertising 

practices.” Reply at 3-4. How exactly could the Plaintiff or an average 

consumer obtain knowledge of the each defendant’s involvement in the 

alleged practices? 

3. You argue “Plaintiff’s claim should be dismissed because they are subject to 

the arbitration provision in her Banana Republic Visa card agreement.” Mot. 

at 22:15-16. Are you asking the Court to dismiss Plaintiff’s claims or to 

compel arbitration? Does your burden vary depending on whether you seek 

dismissal or arbitration? 

4. Assuming the Court finds Defendants can enforce the arbitration agreement, 

why exactly are Plaintiff’s claims “related to” the Plaintiff’s account? 

Doesn’t the fact that Plaintiff’s allegations against Defendants are not 

dependent on her method of payment show that her claims against Defendant 

are unrelated to her credit card account? 

IT IS SO ORDERED.

Dated: 10/13/16 _____________________________________ 

THELTON E. HENDERSON 

United States District Judge

Case 4:16-cv-03804-HSG Document 25 Filed 10/13/16 Page 2 of 2