A federal court in Illinois has determined that a plaintiff claiming that he would not have paid a premium for a product advertised as “heart healthy,” “0 grams trans fat” and “wholesome” had he known it actually contained trans fats, has standing to pursue his false advertising claims under state law. Askin v. The Quaker Oats Co., No. 11-111 (N.D. Ill., decided October 12, 2011). Citing a recent Seventh Circuit decision in which the court found standing under similar circumstances, that is, an affirmative product representation and allegations that consumers paid more for the product than they would have had they known of its purported risks, the court ruled that alleged economic harm alone is redressable and confers standing. The court deferred ruling on the defendant’s argument that the named plaintiff in this putative class action cannot file a lawsuit under Illinois law because he is a resident of and purchased the…
Category Archives U.S. Circuit Courts
The U.S. Judicial Panel on Multidistrict Litigation (JPML) has consolidated six actions questioning the “100% Natural” claims for Wesson oil products before a multidistrict litigation (MDL) court in California. In re: Wesson Oil Mktg. & Sales Practices Litig., MDL No. 2291 (JPML, transfer order filed October 13, 2011). The defendant requested the transfer, and while the California, Florida and New Jersey plaintiffs supported consolidation, they disagreed on the transferee district. According to the court, centralization “in the Central District of California will serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation.” The court found, “All actions contain similar allegations against ConAgra and share factual questions regarding the labeling and marketing of Wesson oils as ‘100% Natural’ when the oils purportedly contain genetically modified plants or organisms. Little litigation activity has occurred in the actions, which were all filed within the past…
An environmental and public-health advocacy organization has filed a Proposition 65 lawsuit against numerous food and beverage producers in a California state court, alleging failure to warn the public that their baby and toddler foods and fruit juices contain lead, a chemical known to the state to cause reproductive toxicity or cancer. Envtl. Law Found. v. Beech-Nut Nutrition Corp., No. 11597384 (Cal. Super. Ct., Alameda Cty., filed September 28, 2011). Alleging one count of violating Proposition 65, the plaintiff seeks injunctive relief and civil penalties of $2,500 per day for each violation of the law, as well as attorney’s fees and costs. According to the complaint, the plaintiff notified the companies about the alleged violation in 2010 and provided the required notice to the state attorney general, who is not apparently prosecuting an action involving this claim.
Arch Specialty Insurance Co. has filed a declaratory judgment action in a New York state court against a company identified as a distributor of food product ingredients, including the butter-flavoring chemical diacetyl. Arch Specialty Ins. Co. v. Citrus & Allied Essences, Ltd., No. 652670/2011 (N.Y. Sup. Ct., N.Y. County, filed September 29, 2011). The insurance company contends that it has no obligation to defend or indemnify the defendant in the personal injury actions “asserted by numerous claimants against Citrus & Allied in several jurisdictions around the country.” Among other matters, the insurer claims that the events giving rise to the underlying claims did not occur during the policy period; the claims involve “damages or injuries which were expected, intended or non-fortuitous from the standpoint of Citrus & Allied”; the claims fall within a pollution exclusion clause or arise from a recall as defined by the policy; and the insured failed…
A woman who allegedly created a design for Knee Deep Brewing Co. to use on its beer tap handles has sued the company for breach of contract and copyright infringement after they could not apparently come to terms over a price for her design and the company began using a similar design on its product labels. Sylvers v. Knee Deep Brewing Co., LLC, No. 11-714 (D. Nev., filed October 4, 2011). The disputed design is purportedly being used on the company’s “Beautiful Blonde” Ale; it features a woman posing before a panorama of downtown Reno, Nevada, with mountains in the background. The plaintiff, who allegedly registered the “Girl Over Reno” design with the U.S. Copyright Office, seeks preliminary and permanent injunctive relief, compensatory damages and restitution, interest, costs, and attorney’s fees.
Fage Dairy Processing Industry, S.A. has filed a lawsuit seeking to overturn the Trademark Trial and Appeal Board’s refusal to register the yogurt maker’s “Fage Total” trademark and a declaration that its use of the mark does not infringe any claimed right of General Mills, which makes Total® breakfast cereals. Fage Dairy Processing Indus., S.A. v. General Mills, Inc., No. 11-1174 (N.D.N.Y., filed September 30, 2011). According to the complaint, the board’s ruling is replete with factual errors. The complaint also asserts that Total® cereal and Fage Total yogurt co-existed in U.S. markets for 13 years “without a single instance of actual confusion arising from the parties’ use of their respective marks.” Fage alleges that the defendants, “suddenly and without warning” brought a federal trademark infringement lawsuit against it in mid-September, “seeking draconian damages.” That suit was apparently filed two days after the board refused to register Fage’s marks.
Alleging that a government contractor sprayed an herbicide on their property as part of transmission-line maintenance, the owners of a state-certified organic beef farm in Skagit County, Washington, have sued the U.S. government and the contractor for damages incurred by the contamination of their property. Benson v. United States, No. 11-1619 (W.D. Wash., filed September 28, 2011). According to the complaint, the plaintiffs have a contract with the government “with regards to all maintenance on the power lines and providing recovery of any resulting damages.” In 2008, the plaintiffs were allegedly notified that spraying would take place, and they spoke with a government representative explaining that their property could not be sprayed. They were allegedly assured that this would be noted in the paperwork and that no herbicide would be sprayed on their property. Despite the assurances and despite a “no spray” sign on the access gate to the plaintiffs’ property,…
California residents have filed a putative class action against Nonni’s Foods, LLC, alleging that the company falsely represents its “All Natural” biscotti products by failing to disclose that ingredients, such as cocoa processed with alkali, glycerin, monocalcium phosphate, and diglycerides, are synthetic. Larsen v. Nonni’s Foods, LLC, No. 11-4758 (N.D. Cal., filed September 23, 2011). Seeking to certify a nationwide class and statewide subclass, the plaintiffs allege common law fraud; unlawful, unfair and fraudulent business practices; false advertising; and violation of the state’s Consumers Legal Remedies Act. They request restitution; compensatory, statutory and punitive damages; declaratory and injunctive relief; attorney’s fees; costs; interest; and an accounting and imposition of a constructive trust on money the company received as a result of its conduct. The plaintiffs essentially contend that they did not receive the benefit of their bargain when purchasing the product and “lost money as a result in the form…
A federal court in Illinois has determined that the government did not allege facts sufficient to pierce the corporate veil of related U.S. and foreign corporations and thus could not bring the foreign corporations before the court on charges of avoiding $80 million in customs duties on honey imported into the United States between 2002 and 2009. United States v. Alfred L. Wolff GMBH, No. 08-417 (N.D. Ill., decided September 26, 2011). A federal grand jury indicted the foreign defendants and a U.S. corporate entity on 44 counts in August 2010. The U.S. entity’s attorneys voluntarily accepted service on its behalf and on behalf of its parent and then appointed, via a shareholder resolution, a limited-authority corporate representative to appear before the court and enter a not-guilty plea for the U.S. defendants. This representative did so, and, immediately after the arraignment, the government served the representative with summonses for each of…
A federal multidistrict litigation (MDL) court has granted several motions to dismiss in consolidated actions alleging a conspiracy by egg producers and trade associations to restrict the domestic supply of eggs. In re: Processed Egg Prods. Antitrust Litig., MDL No. 2002 (E.D. Pa., decided September 26, 2011). Among other allegations, the plaintiffs contend that the defendants agreed over a period of years to reduce the size of egg-laying flocks and require larger cages to reduce overall hen densities as part of an alleged collective plan to keep egg prices high. In their motions to dismiss, the defendants argued that while the second amended complaint alleged sufficient facts to support the antitrust conspiracy claim as to some of the defendants, “the pleading is deficient with respect to each of the movants by failing to allege facts that they specifically were parties to the conspiracy.” Examining each motion in turn, the court dismissed…
