Category Archives 6th Circuit

According to a news source, a Michigan state court has approved a settlement of claims that a McDonald’s franchisee falsely advertised some of its chicken products as halal, or prepared in accordance with Muslim dietary restrictions. Ahmed v. Finley’s Mgmt. Co., No. 11-014559-CZ (Mich. Cir. Ct., Wayne Cty., settlement approved April 17, 2013). The settlement was approved despite objections that the $700,000 settlement fund would be unfairly distributed, for the most part, to two charities without compensating those harmed by the purported fraud. Additional information about the litigation appears in issues 468, 471, 473, and 475 of this Update. The attorney who was a member of the class, posted objections to the settlement on his Facebook® page and successfully defeated a gag order imposed by the court has reportedly indicated that he does not plan to appeal after plaintiffs’ counsel assured him that some of their $233,000 in fees would…

According to a news source, a Michigan judge has lifted a gag order imposed on an attorney who posted information on his Facebook page critical of a proposed settlement of claims that a McDonald’s Corp. franchisee sold as halal certain chicken products without complying with Islamic standards; the court has also granted his request to reopen the class period thus extending the time for class members to object, intervene or opt out. Ahmed v. McDonald’s Corp., No. 11-014559 (Mich. Cir. Ct., Wayne Cty., order entered March 12, 2013). Additional information about the case and attorney Majed Moughni’s claims of unlawful prior restraint appears in issues 468, 471 and 473 of this Update. In her supplemental notice, Judge Kathleen Macdonald notes, “[a]s you probably know, there was a great deal of attention given to this proposed settlement from the news media (newspapers, television, radio and internet sources) and in social media. For…

The Dearborn, Michigan-based attorney who was ordered to remove statements from his Facebook® page opposing a proposed class-action settlement in a case raising allegations that a McDonald’s Corp. franchisee purported to sell halal chicken when some of the products were not prepared according to Islamic law has filed a motion to vacate the order and to extend the period for filing objections or opting-out. Ahmed v. McDonald’s Corp., No. 11-014559 (Mich. Cir. Ct., Wayne Cty., motion filed February 22, 2013). Represented by advocacy group Public Citizen, Majed Moughni claims that the court’s order “was a prior restraint forbidden by the First Amendment.” Additional information about the proposed settlement and Moughni’s criticism of it appear in issues 468 and 471 of this Update. According to the brief accompanying the motion, Moughni, his wife and children have eaten at McDonald’s and are thus members of the class. The brief further contends, “Giving Moughni only…

A Michigan court has reportedly entered an order specifying what will appear on the Facebook® page of the attorney who filed a complaint seeking to set aside a settlement resolving claims that a McDonald’s Corp. franchisee purported to sell halal chicken when some of the products were not prepared according to Islamic law. Additional details about the settlement appear in Issue 468 of this Update. The court ordered Dearborn-based attorney Majed Moughi to remove any criticism of the proposed settlement from the site, which is apparently popular as a source of news in the Muslim community—drawing 20,000 views each month, prominently post the settlement agreement itself, provide the names of anyone who “liked” or supported the original post, and refrain from discussing the settlement with anyone who might be affected or the media. According to a news source, the Facebook® page has effectively become static because any new posts or…

Several Louisville, Kentucky, residents and a business owner have filed a putative class action against Diageo Americas Supply, Inc., alleging that one of its distilling operations has caused an accumulation of “the fungus Baudoinia compniacensis, colloquially referred to as ‘whiskey fungus,’” on their real and personal property. Merrick v. Diageo Americas Supply, Inc., No. 12-334 (W.D. Ky., filed Jun 15, 2012). They allege that the ethanol emissions which occur during the “aging/ warehousing stage of alcoholic beverage production” catalyze and promote the growth of whiskey fungus, a black, sooty substance that purportedly accumulates on metal, vinyl, concrete, and wood and requires “extreme cleaning measures such as a high-pressure washing or the application of caustic chemicals such as chlorine bleach.” These measures allegedly “cause early weathering of surfaces affected by the fungus,” such as gutters, siding, roofing, fencing, and vehicles. Seeking to certify a class of all persons and entities owning or…

A Cuyahoga County, Ohio, court has reportedly determined that a state law prohibiting municipalities from regulating the ingredients used in prepared foods, such as restaurant meals and grocery or bakery takeout items, does not preempt Cleveland’s ordinance prohibiting retail food establishments from selling foods containing trans fats. Cleveland announced the ban in April 2011, and several months later, Ohio’s General Assembly amended the state’s budget with a provision prohibiting municipalities from restricting the food at food service establishments “based on the food nutrition information.” Cleveland sued the legislature in January 2012, contending that it had encroached on its home rule authority. City of Cleveland v. Ohio, No. cv-12- 772529 (Ohio Ct. Com. Pl., Cuyahoga Cty., decided June 11, 2012). Additional information about the lawsuit appears in Issue 422 of this Update. The court apparently agreed, noting in the case docket that the amendment was unconstitutional and that the city’s enactment…

The Sixth Circuit Court of Appeals has determined that the Roskam Baking Co. did not infringe a trademark by using the term “Texas Toast” in selling its packaged croutons. T. Marzetti Co. v. Roskam Baking Co., No. 10-3784 (6th Cir., decided May 25, 2012). Marzetti apparently began using the Texas Toast mark for its frozen garlic bread in 1995 and then adopted the term for use with a crouton product sold in 2007. The company attempted to register the mark in 2009, but the applications were initially denied “because of the potential likelihood of confusion with the mark Texas toast for bakery goods.” Thereafter, they were approved for publication as, “at a minimum, suggestive.” The defendant filed an opposition to the trademarks in 2010, and Marzetti, learning about the company’s Texas Toast croutons, filed this trademark infringement action. The Sixth Circuit agreed with the district court that the mark is not…

A federal court in Kentucky has determined that the Equal Employment Opportunity Commission (EEOC) is not entitled to information about the medical examinations of Nestlé Prepared Foods employees in relation to a claim by one former employee that he was fired due to “genetic information” discrimination. EEOC v. Nestlé Prepared Foods, No. 11-359 (E.D. Ky., decided May 23, 2012). So ruling, the court rejected in part a magistrate judge’s recommended disposition and denied EEOC’s motion for enforcement of a subpoena. According to the court, the information sought was irrelevant because there was no evidence that any other employee had alleged violations of the Genetic Information Non-Discrimination Act (GINA), 42 U.S.C. § 2000 0ff-1. While acknowledging that EEOC ordinarily “has broad access to evidence that is relevant to a charge being investigated,” the court was “not persuaded that it has free reign to conduct a broad, company-wide investigation based upon a single…

The Sixth Circuit Court of Appeals has determined that the red dripping wax seal that Maker’s Mark Distillery has registered as a trade dress element used on its Kentucky bourbon bottles is protected under trademark law due to its strength and distinctiveness in the marketplace, thus upholding a lower court ruling that Jose Cuervo infringed the mark by using a similar element on its tequila bottles. Maker’s Mark Distillery, Inc. v. Diageo N. Am., Inc., Nos. 10-5508/5586/5819 (6th Cir., decided May 9, 2012). With the apparent care of a connoisseur, the opinion’s author opens with a detailed history, part legend, of the birth of bourbon and explains how Maker’s Mark came to use the red dripping wax seal on its bottles. According to the court, the evidence fully supported the district court’s evaluation of the strength of the mark and its balancing of the factors regarding consumer confusion over Jose Cuervo’s…

A federal court in Tennessee has dismissed the two remaining claims in antitrust litigation filed by certain retail processed milk sellers against Dean Foods Co. and the Dairy Farmers of America, Inc. In re: Se. Milk Antitrust Litig., No. 08-1000 (E.D. Tenn., decided March 27, 2012) (ruling applies to Food Lion, LLC v. Dean Foods Co., No. 07-188). At issue were claims for violation of sections 1 and 2 of the Sherman Act (agreement not to compete and conspiracy to monopolize). The court found that the plaintiffs’ expert failed to “create a material issue of fact on the question of whether the price increases were ‘by reason of’ an illegal conspiracy in violation of the antitrust laws and Plaintiffs do not allege an injury of the kind which the antitrust laws are designed to prevent.” Because the plaintiffs were unable to establish antitrust injury, the court determined that the defendants…

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