Court Denies Motion To Dismiss In Safeway Litigation

SFMS is lead counsel in the action captioned, Michael Rodman v. Safeway, Inc., Civil Action No. 11-03003, pending in the United States District Court for the Northern District of California. On November 1, 2011, Defendant’s Motion to Dismiss was denied by the Court. The decision on the Motion to Dismiss was issued by the Honorable Jeffrey S. White. In this litigation, Plaintiff alleges that Safeway charges additional monies for groceries it sells and delivers through its web-based services, while advertising that customers utilizing the online services will be charged the same prices for the products as those charged in the local store. Plaintiff alleges causes of action for breach of contract, as well as for violations of various California consumer protection laws.

In denying Safeway’s Motion to Dismiss with respect to Plaintiff’s breach of contract claim, the Court found that Plaintiff adequately alleged the existence of a contract that is susceptible to Plaintiff’s reasonable construction. In sustaining Plaintiff’s consumer protection claims, the Court held that Plaintiff’s allegations that Safeway misled or failed to disclose material information in their representations about the online purchasing program were adequate. Further, the Court held that Plaintiff adequately alleged reliance and injury to support his claims.

If you have any questions regarding this case, please email James C. Shah (