New Ninth Circuit UCL/CLRA pleading decision: Kearns v. Ford Motor Co.

In Kearns v. Ford Motor Co., 567 F.3d 1120 (9th Cir. Jun. 8, 2009), the Ninth Circuit held that "the heightened pleadings standards of Rule 9(b)" applied to UCL and CLRA claims that were "grounded in fraud." 

In a recent post-Tobacco decision, a federal district court followed Kearns but determined that the complaint's allegations satisfied the heightened pleading standard because they "sufficiently identified 'the circumstances constituting fraud so that the defendant can prepare an adequate answer from the allegations.'" Germain v. J.C. Penney Co., 2009 WL 1971336, *3-*5 (C.D. Cal. Jul. 06, 2009) (quoting Walling v. Beverly Enterprises, 476 F.2d 393, 397 (9th Cir.1973)).

Comments

[Andrew Sussman]

Of particular interest is that Kearns affirmed the dismissal of UCL and CLRA claims that were "grounded in fraud" even though they also had pled alternative, non-fraud grounds (e.g. UCL unfairness) for relief.

What is now clear is that in federal court any fraud-based claim must be pled, separately and with FRCP 9(b) specificity, against each of multiple defendants -- regardless of the claim's formal cause of action or basis.