An Illinois federal court has dismissed a franchisee’s lawsuit alleging KFC wrongfully prevented him from advertising halal chicken, finding the franchise contract gave KFC control over advertising and promotional material. Lokhandwala v. KFC Corp., No. 17-5394 (N.D. Ill., entered January 23, 2018). Although the plaintiff alleged that KFC's prohibition on advertising dietary claims contradicted the earlier representations KFC had made to him, the court found that the franchise agreement gave KFC express power to change its advertising policies. In particular, the contract stated that “[n]o failure, forbearance, neglect or delay of any kind or extent on the part of KFC in connection” with enforcing and exercising its rights “shall affect or diminish KFC’s right to strictly enforce . . . this Agreement at any time.” The court ruled that given the contract’s “unambiguous language on advertising” as well as its integration clause, it would not consider extrinsic evidence of KFC’s…
Category Archives 7th Circuit
An Indiana federal court has granted summary judgment to Givaudan Flavors Corp. on the issue of design defect, ending a lawsuit by 27 popcorn factory workers who alleged they suffered respiratory injuries after being exposed to the company's diacetyl butter flavoring. Aregood v. Givaudan Flavors Corp., No. 14-0274 (S.D. Ind., entered October 18, 2017). Givaudan had filed a motion in limine directed to the absence of evidence or opinions regarding the alleged defective design or unreasonably dangerous condition of diacetyl, and the court asked for summary judgment briefing on the potentially dispositive issue. The court said that to show defective design under the Indiana Products Liability Act, a plaintiff “’must compare the costs and benefits of alternative designs and show that another design not only could have prevented the injury but also [is] cost-effective.’” Although the plaintiffs had obtained causation expert testimony and the court said it was “presuming without…
An Illinois federal court has dismissed part of a putative class action against Lenny & Larry's Inc., holding that the plaintiffs lack standing and that the application of 50 differing state laws is “unmanageable on a class-wide basis because those states’ laws conflict in material ways.” Cowen v. Lenny & Larry’s Inc., No. 17-1530 (N.D. Ill., entered October 12, 2017). The complaint alleged that Lenny & Larry’s advertises “The Complete Cookie” as “Plant-Based Protein to Build Lean Muscle,” labeling the cookies as vegan, non-GMO, kosher, dairy-free and soy-free without artificial sweeteners or sugar alcohols. The four-ounce cookie is advertised as containing 16 grams of protein, but the plaintiffs allege that independent testing showed the actual protein content of each cookie can vary from four to nine grams. The court held that the named plaintiffs could not establish they had sustained an injury from cookie flavors they had not purchased. “[T]he…
An Illinois federal court has dismissed with prejudice a lawsuit alleging that Mondelez International falsely advertises Belvita breakfast biscuits and cookies as providing “four hours of nutritious steady energy.” Spector v. Mondelez Int’l, No. 15-4298 (E.D. Ill., entered September 27, 2017). The court held that the plaintiff failed to allege plausible facts to support her claim of false advertising and could not “rely on mere allegation of falsity, which is conclusory and thus not entitled to the assumption of truth.” The plaintiff "appears to draw her own conclusions” about daily calorie requirements, the court noted, and her arguments about variability of metabolism that would cause a consumer to receive fewer than four hours of energy “proceed as if the inherent inconsistency is self-evident.”
The U.S. Court of Appeals for the Seventh Circuit has rejected class certification and a settlement agreement in a lawsuit alleging Subway sells "Footlong" sandwiches that are sometimes shorter than 12 inches. In re: Subway Footlong Sandwich Mktg. & Sales Practices Litig., No. 16-1652 (7th Cir., entered August 25, 2017). “In their haste to file suit," the court noted, "the lawyers neglected to consider whether the claims had any merit. They did not.” Additional details about this case appear in Issues 468 and 487 of this Update. The court found that the parties established in early discovery that the raw dough sticks the chain uses for baked bread portions were uniform in weight and that variations in final length were “wholly attributable to the natural variability in the baking process.” In addition, meat and cheese toppings are standardized, “so the length of the bread has no effect on the quantity of food each…
A federal court has dismissed multidistrict litigation alleging that several brands' “100% Grated Parmesan Cheese” misled consumers because the products contained as much as 8.8 percent cellulose, finding that the claims were “doomed by the readily accessible ingredient panels on the products that disclose the presence of non-cheese ingredients.” In Re: 100% Grated Parmesan Cheese Mktg. & Sales Practices Litig., No. 16-5802 (N.D. Ill., entered August 24, 2017). Additional details about the litigation appear in Issues 595 and 606 of this Update. The court found the cheese's label was ambiguous, noting, “Although 100% Grated Parmesan Cheese might be interpreted as saying the product is 100% cheese and nothing else, it also might be an assertion that 100% of the cheese is parmesan cheese, or that the parmesan cheese is 100% grated. Reasonable consumers would thus need more information before concluding that the labels promised only cheese and nothing more, and…
A federal court has dismissed with prejudice a putative class action alleging that Quaker Oats’ use of “100% Natural” on its products misleads consumers, holding that the plaintiffs’ claims are expressly preempted by the Food, Drug and Cosmetic Act (FDCA). Gibson v. Quaker Oats Co., No. 16-4853 (N.D. Ill., entered August 14, 2017). The plaintiffs alleged that Quaker’s use of “natural” was misleading under several state statutes because the products contained residues of the herbicide glyphosate. The court held that nutritional and food labeling is governed by the FDCA, preempting the plaintiffs' state law claims, which were “attempting to challenge how food stuffs are marketed." In addition, the court held that the FDCA expressly governs the presence of pesticide and herbicide residues in food, “establishing a clear and manifest purpose that preempts state regulation of food labeling.” The court also found the plaintiffs had no standing to pursue claims related…
A Wisconsin creamery selling "Irishgold" butter and the distributor of Kerrygold butter have agreed to a consent decree that will end a trademark dispute. Ornua Foods N. Am. v. Eurogold USA, No. 17-0510 (E.D. Wis., motion filed July 25, 2017). After Wisconsin began enforcing a 1950s law requiring all butter sold in the state to bear a state or federal grade mark, effectively banning all imports and out-of-state artisanal products, Wisconsin dairy Old World Creamery began selling its own butter in packaging similar to Kerrygold. Additional details about the ban and trademark suit appear in Issue 631 of this Update. Under the consent decree, the dairy will (i) continue to sell its Irish-style butter but will amend the mark to “Euro Gold” or “Euro-Gold"; (ii) withdraw its trademark application for “Irishgold” butter; (iii) refrain from using “substantially similar” packaging; (iv) not sell any Irish-themed dairy products under a mark that…
A KFC Corp. franchisee that sells halal chicken has filed a lawsuit against the company, alleging the franchise agreements did not disclose a purported company policy preventing franchisees from making religious claims about their food. Lokhandwala v. KFC Corp., No. 17-5394 (N.D. Ill., filed July 24, 2017). The plaintiff, who owns and operates eight franchises, began advertising and selling halal chicken in 2003, and KFC allegedly assisted with locating approved poultry suppliers and distributors of halal-certified chicken. In 2016, the plaintiff asserts, the company informed him that it had a policy dating back to 2009 prohibiting religious claims about KFC products, “citing a risk of lawsuits and consumer confusion.” The plaintiff alleges the policy was not disclosed in any of his franchise agreements, violating the Illinois Franchise Disclosure Act; he further alleges that his “customer base and business revenue is heavily dependent on the sale of Halal chicken to the Muslim community”…
Candy maker Fannie May faces a proposed class action alleging the confectioner underfilled some of its 7-ounce chocolate boxes by as much as 50 percent. Benson v. Fannie May, No. 17-3519 (N.D. Ill., filed May 10, 2017). The allegations involve boxes of Hot Fudge Truffles, Mint Meltaways , Peanut Butter Buckeyes, milk and dark Sea Salt Caramels, regular and bite-sized Pixies , milk and dark Carmarsh and Trinidads sold at the company’s retail stores and on its website as well as other retail and online outlets nationwide. The plaintiffs allege that nonfunctional slack-fill in the company’s nontransparent boxes violates the federal Food, Drug and Cosmetic Act as well as Illinois consumer protection statutes and seek class certification, equitable relief, monetary damages and attorney's fees. Issue 634
