Alleging trademark infringement and unfair competition, Vienna Beef Ltd. has sued a descendant of one of its founders and the competing hot dog company he established in 1986. Vienna Beef Ltd. v. Red Hot Chicago, Inc., No. 11-03825 (N.D. Ill., filed June 6, 2011). When Scott Ladany, whose grandfather started Vienna Beef, left that company in 1983, he purportedly signed a severance agreement promising not to share Vienna’s recipes and acknowledging their status as trade secrets. According to the complaint, Ladany made “few inroads into Vienna’s dominance in the marketplace” for the next 25 years and then launched a marketing campaign on behalf of Red Hot, referring to the family history of making “Chicago’s finest hot dogs for 118 years.” He also allegedly referred to “a tradition that’s been handed down through four generations of our family.” The plaintiff contends, “The only way that he can claim that he has…
Category Archives Issue 398
According to a news source, Dole Food Co. has tentatively agreed to settle the pesticide exposure claims of more than 5,000 former banana plantation workers in Nicaragua, Costa Rica and Honduras. They are represented by Provost Umphrey, whose lawyers apparently ensured that the workers had actually been employed on the plantations and experienced personal injuries from exposure to dibromochloropropane. Similar claims filed by other trial lawyers and involving hundreds of other plaintiffs have been dismissed due to alleged legal wrongdoing, including falsified medical records, client coaching and the intimidation of Dole investigators. The Eleventh Circuit Court of Appeals determined in March 2011 that a $97 million judgment reached in a Nicaraguan court against Dole and several other companies could not be recognized under Florida law. The terms of the preliminary settlement have not reportedly been disclosed. See The National Law Journal, June 14, 2011.
The parties to putative nationwide class actions alleging that Unilever U.S., Inc. falsely advertised that its margarine spreads, including Country Crock® and I Can’t Believe It’s Not Butter®, were good for cardiovascular health are seeking final court approval of a non-monetary settlement that will require the company to remove the trans fat from its products. Rosen/Red v. Unilever U.S., Inc., Nos. 09-02563, 10-00387 (N.D. Cal, joint motion filed June 6, 2011). Class counsel will receive up to $490,000 in fees if the settlement is approved, and the named plaintiffs will receive up to $4,500. Class members will give up their right to any other equitable or monetary relief. The joint motion contends that the product reformulation is a substantial benefit to class members because the company is “the world’s leading manufacturer of margarine” and that requiring the company to do this “will substantially benefit its customers and will encourage competitors to…
A federal court in Arkansas has determined that Liberty Mutual Insurance Co. has a duty to defend an agricultural cooperative in more than 170 civil lawsuits filed by rice farmers over the contamination of their conventional crops with a genetically engineered (GE) variety. Riceland Foods, Inc. v. Liberty Mut. Ins. Co., No. 10-00091 (E.D. Ark., decided June 8, 2011). The court found that while the relevant commercial general liability policies precluded coverage for cross-pollination, they were silent as to liability for the physical mixing of a contaminating crop “with conventional rice during harvest, processing, transportation, or storage,” which the plaintiffs alleged in addition to cross-pollination as an independent cause of their injury. The court held that “the duty to defend remains when cross-pollination is presented as one of several potentially independent causes of the damage.” The court also determined Liberty had no obligation to defend a European rice distributor that was sued in…
A federal court in California has denied Safeway, Inc.’s motion to dismiss or stay proceedings alleging that it has an obligation to use information in its loyalty card customer database to provide email notice about produce recalls ordered by the Food and Drug Administration (FDA) or U.S. Department of Agriculture. Hensley-Maclean v. Safeway, Inc., No. 11-1230 (N.D. Cal., order entered June 13, 2011). Additional details about the case, which was first filed in state court, appear in Issue 380 of this Update. The grocery company argued that the “primary jurisdiction doctrine” or “equitable abstention” required the court to dismiss or stay the litigation “until and unless regulatory agencies have had the opportunity to consider and adopt appropriate rules governing the obligations a grocery store has with respect to providing its customers notice of such recalls.” According to Safeway, the Food Safety Modernization Act requires FDA to develop notice guidelines by…
The Fourth Circuit Court of Appeals has determined that the time poultry workers spend donning and doffing protective gear at the beginning and end of their shifts must be compensated as an “integral and indispensable” part of the principal activity of employment. Perez v. Mountaire Farms, Inc., No. 09-1917 (4th Cir., decided June 7, 2011). Because the time the employees spent doffing and donning some of their gear during an uncompensated meal break was related to their meal break and took a minimal amount of time, the court ruled that time noncompensable. The court found that the employer did not willfully violate the law, thus a two-year statute of limitations was applied to the litigation. And the lack of willfulness was found to be evidence of its good faith, so the court denied the employees’ request for liquidated damages under the Fair Labor Standards Act.
The Los Angeles Unified School District has reportedly removed flavored milk from school menus in an effort to combat rising rates of childhood obesity. The school board approved a five-year, $100 million dairy contract excluding chocolate and strawberry milk in favor of low-fat and nonfat plain milk, and soy and Lactaid products. Beginning in the 2011-12 school year, the menu overhaul will also include more vegetarian and ethnic fare and eliminate corn dogs, chicken nuggets and other breaded items. See Los Angeles Times, June 15, 2011.
The European Food Safety Authority (EFSA) has issued a public call for data “on the artificial sweetener aspartame (E 951) for consideration in a full re-evaluation to be completed in 2012 as requested by the European Commission [EC].” EFSA has asked interested parties and stakeholders to submit “scientific or technical data—published, unpublished and newly generated—related to the use of aspartame in food and drinks and as a tabletop sweetener.” Originally scheduled for 2020, the aspartame review is “part of the systematic re-evaluation of all authorized food additives in the European Union.” EFSA apparently agreed to move up the proceedings after European Parliament members voiced concerns about the sweetener. “Due to EFSA’s scientific cooperation efforts, particularly with its partners in EU Member States, ongoing liaison with international partners and its stakeholder dialogue, EFSA can draw on a well-established network to ensure that all the relevant data are considered,” stated the agency, which…
The U.S. Department of Agriculture’s (USDA’s) Office of Inspector General (IG) has issued an audit report criticizing USDA agencies for lacking coordinated oversight of regulations behind research and development of genetically engineered (GE) animals and insects. The agencies conduct and fund research into how GE animals can enhance the productivity of food animals and how GE insects can reduce problems posed by agricultural pests, according to the report. Among its criticisms, the report faults the Animal and Plant Health Inspection Service (APHIS) for not developing regulations for GE animals and insects that pertain specifically to their introduction for “import, interstate movement, or field release.” Noting that “APHIS program units focusing on biotechnology and animal health, respectively, had not coordinated with one another to prioritize the development of a regulatory framework for GE animals and insects,” the report states that consequently “the requirements that apply to these organisms were not clear…
The World Trade Organization (WTO) has reportedly issued a preliminary ruling that U.S. country-of-origin labeling (COOL) laws violate the organization’s Agreement on Technical Barriers to Trade. According to Feedstuffs, a WTO panel found that COOL “constitutes an illegal, non-tariff trade barrier that treats U.S. livestock and perishable commodities more favorably than livestock, fruits and vegetables and other covered commodities from Canada and Mexico.” The preliminary ruling will remain confidential for 30 days with a final version slated for release in September 2011, when the United States will have two months to appeal. See Feedstuffs, May 25, 2011. News of the preliminary ruling has since elicited a favorable reaction from the National Cattlemen’s Beef Association (NCBA), which described the decision as “unfortunate for the U.S. government” but a positive development for industry. As NCBA President Bill Donald explained, “Proponents of COOL have always believed that restricting imports of Mexican and/or Canadian…
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