Category Archives 3rd Circuit

Three advocacy organizations have sued Department of the Interior Secretary Ken Salazar and the U.S. Fish & Wildlife Service (FWS), charging them with violations of the National Environmental Policy Act (NEPA) for failing to prepare an environmental impact statement (EIS) before entering into contracts that allow farmers to cultivate genetically engineered (GE) crops at the Bombay Hook refuge in Delaware. Delaware Audubon Soc’y v. Salazar, No. 99-9999 (D. Del., filed March 1, 2010). The refuge reportedly spans 16,000 acres of mainly tidal marshes that provide habitat for many waterfowl species that attract birdwatchers. Claiming that GE crops harm the environment by increasing the use of herbicides with adverse effects on soil, water, amphibians, and birds, and with the development of “superweeds” resistant to certain herbicide ingredients, the plaintiffs allege that defendants have repeatedly ignored legal obligations under NEPA to provide an environmental assessment or an EIS. The refuge has leased some…

The Third Circuit Court of Appeals has upheld a district court’s decision not to allow a flavoring company to file cross claims in litigation between an insurance carrier and the company that supplied vanilla beans tainted with mercury to the flavoring company. The Travelers Ins. Co. v. Dammann & Co., Inc., No. 09-1225 (3d Cir., decided February 5, 2010). The flavoring company sought to hold the vanilla bean supplier liable under contract, tort and indemnification theories, and the district court held that the proposed cross claims were time-barred or failed to state a claim. The Third Circuit agreed. The flavoring company’s request to file cross claims occurred more than four years after it received the vanilla beans, and its breach of warranty claims were thus untimely under the Uniform Commercial Code. Because New Jersey law applied to the case, the appeals court then discussed at length why it believed New…

A New Jersey resident has reportedly filed a putative class action against General Mills, Inc., alleging that the company’s claims about the beneficial digestive health benefits of its Yo-Plus® yogurt products are false and misleading. Amin v. General Mills, Inc., No. 10-305 (D.N.J., filed January 19, 2010). According to a news source, the plaintiff alleges that the company’s own studies refute many of its health claims; he also cites insufficient-evidence findings by the National Advertising Division of the Council of Better Business Bureaus. The plaintiff seeks certification of a class of New Jersey residents who purchased the product since they were first sold in the state and alleges violations of the New Jersey Consumer Fraud Act and breach of express warranty. See Mealey’s Food Liability, February 2, 2010. In issue 333 of this Update, we discussed the decision of a federal court in Florida to certify a class action raising the…

According to a news source, a New Jersey court has dismissed fraud-related claims filed against Denny’s Corp. alleging that the company failed to disclose the amount of sodium in its menu items. DeBenedetto v. Denny’s Corp., No. __ (N.J. Super. Ct., dismissed November 10, 2009). Additional details about the litigation appear in issue 312 of this Update. The company reportedly indicated in a statement that the suit was dismissed because the plaintiff failed to and could not establish a physical injury under state product liability law. The named plaintiff in this putative class action reportedly alleged that he had consumed Denny’s foods for more than 20 years and was shocked when he learned how much sodium was in his favorite menu items. While he did not allege any link between the company’s foods and his alleged high blood pressure, the plaintiff claimed that he would not have selected the high-sodium…

The Third Circuit Court of Appeals has determined that federal food labeling law does not preempt the state law-based claims filed by a consumer who challenged Snapple’s designation of beverages containing high fructose corn syrup (HFCS) as “natural.” Holk v. Snapple Beverage Corp., No. 08-3060 (3d Cir., decided August 12, 2009). The appeals court reversed a lower court ruling dismissing the claims on the basis of implied preemption. The complaint, originally filed in state court, but removed to federal court in 2007 under the Class Action Fairness Act, initially asserted that Snapple products were not “All Natural” because they contained HFCS; they were not “Made from the Best Stuff on Earth”; and Snapple falsely labeled some beverages, naming them after fruit-juice varieties that were not actually in the beverages. The plaintiff alleged unjust enrichment and common law restitution, breach of express and implied warranties and violations of the New Jersey…

The Cancer Project, a vegan advocacy group affiliated with the Physicians Committee for Responsible Medicine (PCRM), has reportedly filed a putative consumer fraud class action on behalf of three New Jersey residents that seeks to require cancer-risk labels on hot dogs and other processed meats. Filed July 22, 2009, in New Jersey Superior Court, the complaint names as defendants the parent companies of several hot dog manufacturers, including Kraft Foods Inc., Sara Lee Corp. and Nathan’s Famous Inc. The suit seeks damages for the named plaintiffs and declaratory relief under the Consumer Fraud Act for the proposed class. The Cancer Project has contended that processed meats contain human carcinogens like nitrites and N-nitrosodimethylamine (NDMA), basing its claim on a recent meta-analysis by the American Institute for Cancer Research that purportedly associates the daily consumption of processed meat with an increased risk of colorectal cancer. “Just as tobacco causes lung cancer,…

A consumer supported by the Center for Science in the Public Interest (CSPI) has reportedly filed a putative class action in New Jersey Superior Court, alleging that meals he purchased at Denny’s® restaurants contained “alarmingly large and undisclosed amounts of sodium.” DeBenedetto v. Denny’s Corp., No. ___ (N.J. Super. Ct., filed July 23, 2009). At issue are menu items such as Moons Over My Hammy, Spicy Buffalo Chicken Melt and Meat Lover’s Scramble, which purportedly contain sodium levels that exceed the daily recommended limit of 1,500 mg. According to the complaint, “Denny’s menu deceptively presents various items as single meals to be consumed by one individual without disclosing that they contain substantially more sodium (in some case two or three times more) than the maximum recommended amount for all meals consumed by an individual during the day.” The class action “seeks to compel Denny’s restaurants to disclose on menus the…

Acting on behalf of an apparently energized Food and Drug Administration (FDA), the Department of Justice (DOJ) has filed a complaint for injunction against a New Jersey company and its owner seeking to halt the manufacture and sale of their dietary supplement products, in part, for failure to comply with good manufacturing practice requirements. U.S. v. Quality Formulation Labs., Inc., No. 09-03211 (D.N.J., filed July 1, 2009). The complaint alleges that the defendants have caused their protein powders and other dietary supplements to be adulterated “in that they have been prepared, packed, or held under insanitary conditions whereby they may have become contaminated with filth (as a result of rodent activity) or may have been rendered injurious to health (as a result of cross-contamination with a major food allergen).” The allergen at issue is milk. The complaint also alleges that one of the defendants’ articles of food is adulterated “in…

A Texas resident has filed a putative class action in a New Jersey federal court against the manufacturer of a fruit blend, which he alleges is falsely advertised as a product that helps control blood pressure and flush sodium. Slaughter v. Unilever United States, Inc., No. 09-2072 (D.N.J., filed May 1, 2009). At issue is Unilever’s SuperShots®, a fruit blend in three flavors sold in small “shot”-sized bottles. Each contains 350 mg of potassium and is allegedly promoted as a functional food that “will enable consumers to help control blood pressure and flush sodium from their bodies.” According to the complaint, the product does not have this effect and has not been subjected to any clinical trials. The plaintiff seeks to certify a nationwide class of product purchasers and alleges violations of New Jersey’s Consumer Fraud Act, breach of implied and express warranties and unjust enrichment. He seeks restitution, disgorgement, monetary…

A federal court in New Jersey has reportedly refused to seal information about a proposed settlement involving putative class claims that the manufacturers of “Pirate’s Booty” and “Veggie Booty” food products misrepresented their nutritional labeling information. Schatz-Bernstein v. Keystone Food Prods., Inc., No. 08-3079 (D.N.J., order entered April 17, 2009). The snacks were allegedly marketed as containing only 2.5 grams of fat and 120 calories per serving, when they actually contained nearly four times the fat and were 25 percent higher in calories. The plaintiff alleges breach of express warranty, unjust enrichment and a violation of consumer protection laws. According to a news source, the defendants sought to seal settlement details that the plaintiff allegedly published improperly. The plaintiff has apparently maintained that the defendants reneged on the agreement. Denying the defendants’ motion to seal, the court reportedly ruled that the defendants wrongly classified their settlement discussions with the court…

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