The Eighth Circuit Court of Appeals has affirmed a $1.6 million award of damages and attorney’s fees in a contract dispute between General Mills and the company that sold it beef obtained from the Westland Meat Co. and recalled in 2008 after “[v]ideo footage from the Humane Society allegedly showed Westland employees improperly handling cattle designated for slaughter.” General Mills Operations, LLC v. Five Star Custom Foods, Ltd., Nos. 12-1731 and 12-1826 (8th Cir., decided January 7, 2013). General Mills destroyed the Progresso soups in which the recalled beef had been used. The Eighth Circuit affirmed the district court’s grant of summary judgment to General Mills on its breach-of-contract claim and dismissed as moot the company’s cross-appeal of the lower court’s grant of summary judgment to Five Star on the breach-of-warranty claims. At issue was whether Five Star had materially breached its contract with General Mills. The contract required the…
Category Archives 8th Circuit
One of the 750 beef processing plant employees who lost his job in the wake of recent negative publicity involving “lean finely textured beef,” otherwise referred to in the media as “pink slime,” has reportedly filed a lawsuit in a Nebraska state court naming as defendants celebrity chef Jamie Oliver, ABC’s Diane Sawyer, a blogger, and 10 unnamed individuals. Bruce Smith, who worked as senior counsel and director of environmental, health and safety at Beef Products, Inc., is apparently seeking $70,000 in damages on the ground that the company “and its employees were unfairly and unnecessarily maligned and accused of producing a food product that did not exist, a product that critics unfairly labeled ‘pink slime.’” The publicity apparently led to the loss of numerous contracts for the product’s purchase. See The Daily Mail, December 12, 2012.
A federal court in Minnesota has dismissed without prejudice state law-based consumer-fraud claims filed against a company that makes Greek yogurt not by straining it, a process essential to the traditional production of this thickened dairy product, but by adding milk protein concentrate (MPC). Taradejna v. General Mills, Inc., No. 12-993 (D. Minn., decided December 10, 2012). So ruling, the court directed the parties to initiate proper proceedings before the Food and Drug Administration (FDA). The court recites FDA yogurt-related standard-of-identity initiatives since 1981, culminating in a pending 2009 proposal that would permit the use of “any safe and suitable milk-derived ingredient as an optional dairy ingredient in the manufacture of yogurt.” Finding that application of the primary jurisdiction doctrine was appropriate in the matter, the court states, “The underlying issue here is whether MPC is a proper, permitted ingredient in yogurt. The resolution of this question falls squarely within the…
After removing to federal court a defamation lawsuit brought by the company that makes lean finely textured beef (LFBT), ABC News has reportedly filed a motion to dismiss claiming that its news stories referring to the product as “pink slime” are protected speech under the First Amendment. Beef Products, Inc. v. Am. Broadcasting Cos., Inc., No. 12-04183 (D.S.D., filed October 24, 2012). Additional information about the lawsuit appears in Issue 453 of this Update. According to the news company’s motion, “Pink slime is exactly the sort of ‘loose, figurative, or hyperbolic language’ that courts recognize demands protection under the First Amendment.” ABC reportedly contends that the lawsuit challenges the rights of news organizations to “explore matters of obvious public interest—what is in the food we eat and how that food is labeled.” See Reuters, October 31, 2012.
New York and New Jersey residents have filed a putative nationwide class action with two statewide subclasses against General Mills, Inc. in a Minnesota federal court, alleging that the company has violated federal and state consumer fraud laws by marketing its Nature Valley snack bars as “100% Natural” when they contain high-fructose corn syrup and other non-natural ingredients. Chin v. General Mills, Inc., No. 12-2150 (D. Minn., filed August 31, 2012). The plaintiffs also allege that the products contain highly processed high-maltose corn syrup and the texturizer maltodextrin. They allege that they relied on the company’s marketing and advertising and purchased its products “believing them to be 100% natural,” but sustained “injury in fact and lost money as a result of General Mills having misrepresented the Nature Valley Products.” According to the complaint, General Mills incorporates the “100% Natural” claim into its primary branding of the Nature Valley products and…
The manager of an Iowa egg farm that recalled 550 million eggs in a 2010 Salmonella outbreak that may have sickened 2,000 people has reportedly entered a guilty plea to a charge of conspiring to bribe a public official to allow the sale of eggs that failed to meet federal standards. United States v. Wasmund, No. 12-3041 (N.D. Iowa, plea entered September 12, 2012). According to Tony Wasmund’s attorney, the former manager, who oversaw some of the enterprises owned by Jack DeCoster, is cooperating with government authorities. The indictment charged Wasmund with authorizing the use of $300 in petty cash to be used by a colleague to bribe a U.S. Department of Agriculture inspector assigned to DeCoster’s Wright County egg farm. The bribe was purportedly intended to persuade the inspector to approve the sale of shell eggs that had been withheld for falling short of applicable USDA standards. Prosecutors apparently refused…
A divided Eighth Circuit Court of Appeals panel has reversed the dismissal of claims filed under the Federal Tort Claims Act (FTCA) by cattle producers alleging that a government employee negligently decimated their cattle herd by requiring that they plant a toxic seed mixture on pasture land enrolled in a conservation program; the court found that the negligence allegations were not barred by the discretionary-function exception to the FTCA’s waiver of sovereign immunity. Herden v. United States, No. 11-3530 (8th Cir., decided August 20, 2012). That exception bars liability for any claim based on the “exercise or performance or the failure to exercise or perform a discretionary function or duty on the part of a federal agency or an employee of the Government.” It applies where the action “involves an element of judgment or choice” and “the requisite judgment or choice is the type of government action Congress intended to…
A New York resident has filed a putative class action against Diamond Pet Foods and Amazon.com, seeking medical monitoring for pets that consumed recalled Salmonella-tainted pet food. Cohen v. Schell & Kampeter, Inc., d/b/a Diamond Pet Foods, No. 12-3299 (E.D.N.Y., filed July 2, 2012). Plaintiff Steven Cohen alleges that he fed his dogs Taste of the Wild® brand pet food, purchased from Amazon.com, and that they became ill, vomiting frequently, “which caused damage to Plaintiff’s property.” Seeking to certify a nationwide class and statewide subclass of consumers, the plaintiff alleges breach of implied and express warranty, strict products liability, violations of state consumer fraud laws, negligence, and unjust enrichment. In addition to medical monitoring, the plaintiff seeks actual damages or restitution, attorney’s fees, costs, and interest. A Canadian non-profit representing the interests of foie gras producers, a New York-based foie gras producer and a company that operates restaurants in California have…
A federal court in Iowa has dismissed claims filed by a legal defense fund and a number of raw-milk producers challenging Food and Drug Administration (FDA) regulations prohibiting the shipment of raw milk for human consumption across state lines. Farm-to-Consumer Legal Defense Fund v. Sebelius, No. 10-4018 (N.D. Iowa, decided March 30, 2012). According to the court, none of the plaintiffs alleged that “the FDA has applied or sought to apply the challenged regulations to them, and Wagoner’s contentions are merely conclusory and based on speculation.” Raw milk producer Eric Wagoner had apparently alleged that a Georgia Department of Agriculture official “ordered an embargo of raw milk that he had transported from South Carolina, where it is legal to buy raw milk, to Georgia, where it is not” and claimed that “the embargo was ordered at the direction of the FDA.” There was no evidence of FDA involvement, and because…
A federal court in Minnesota has determined that General Mills Operations, LLC was entitled to an award of prejudgment interest of 10 percent per year from the date it provided a written notice of claim to the company that supplied it with contaminated beef products subject to a recall in 2008. Gen. Mills Operations, LLC v. Five Star Custom Foods, Ltd., No. 10-15 (D. Minn., decided February 24, 2012). According to the court, the only matters in dispute in this contract action were whether General Mills’ May 27, 2008, letter informing the defendant that it had incurred losses of at least $1.4 million constituted a “written notice of claim” under Minnesota’s prejudgment interest statute and the appropriate interest rate to apply. While the letter indicated that costs could continue to accrue and did not include evidentiary support, it did demand prompt payment of $1.4 million “in full settlement of this…
