A California court of appeal has determined that a trial court erred in allowing a spinach seller to recover $12 million under the accidental contamination portion of its insurance policy. Fresh Express Inc. v. Beazley Syndicate 2623/623 at Lloyd’s, No. H035246 (Cal. Ct. App., decided September 8, 2011) (unpublished). According to the court, the produce company’s product was not the source of the E. coli outbreak linked to spinach in 2006 and led to a nationwide recall, although when it filed its insurance claim, the company had made several sourcing errors that led it to believe it could have been implicated in the outbreak. Those errors would have brought it under the terms of the insurance agreement, if the company had been the source of the E. coli contamination. Because it was not, the appeals court concluded that “the policy’s plain language refutes the trial court’s finding that ‘the E.…
Category Archives U.S. Circuit Courts
According to news sources, a man who weighs nearly 300 pounds has filed an Americans with Disabilities Act lawsuit against White Castle in a federal court in New York, claiming that the stationary booth seating in a Nanuet restaurant is made for smaller people and that he hurt a knee trying to wedge into one in 2009. When he complained in writing, he purportedly received three “very condescending letters,” with offers for free hamburgers, although added cheese would have cost extra. He has since used take-out to purchase his food from White Castle or asked his wife to go into the facility to pick up his meals, while waiting almost three years for promised renovations that would have enlarged the seating spaces. Stockbroker and plaintiff Martin Kessman reportedly said, “I just want to sit down like a normal person.” See New York Post, September 11, 2011; The Wall Street Journal,…
A putative class action has been filed in a federal court in California against Beam Global Spirits & Wine, Inc., alleging that the company’s Skinnygirl™ Margarita beverage, purportedly created by a natural foods chef, contains sodium benzoate and other preservatives and should not be advertised and sold as a “natural” product. Bonar v. Beam Global Spirits & Wine, Inc., No. ___ (S.D. Cal., filed September 6, 2011). Alleging purely economic damages, the plaintiff seeks to certify a nationwide class of purchasers and claims that the company has violated California’s Consumers Legal Remedies Act and Business & Professions Code Section 17200 et seq., and breached express warranties. She requests compensatory and punitive damages, restitution, disgorgement, corrective advertising, injunctive relief, attorney’s fees, and costs.
Brandeis University has filed suit against a number of cookie and biscuit manufacturers, including Keebler Co., Famous Amos Chocolate Chip and The Pillsbury Co., alleging that they have infringed patents that adjust the LDL/HDL ratio in human serum by balancing saturated and polyunsaturated dietary fatty acids. Brandeis Univ. v. East Side Ovens, Inc., No. 11-619 (W.D. Wis., filed September 7, 2011). According to the complaint, the patents (‘497 and ‘192) were issued in 1998 and 2003 and “are directed to fats and fat blends that decrease low-density lipoprotein cholesterol (LDL) and increase high-density lipoprotein cholesterol (HDL) in human serum,” resulting “in significant health benefits.” The university alleges that the defendants’ cookie, cookie dough, and reduced fat biscuit and crescent roll products infringe its patents. The plaintiff seeks injunctive relief, damages, costs, and a “declaration that this is an exceptional case and an award of attorneys’ fees.
After Kona coffee growers called for Safeway, Inc. to comply with Hawaiian regulations on labeling Kona coffee, a California resident filed a putative class action against the company in federal court, alleging that its Safeway Select™ “Kona Blend” coffee contains “very little Kona coffee bean content.” Thurston v. Safeway, Inc., No. 11-04285 (N.D. Cal., filed August 30, 2011). Seeking to certify nationwide or statewide classes, the plaintiff calls the company’s labeling false and misleading and contends that she “did not receive the ‘Kona Blend’ she bargained for when she purchased Safeway’s Kona Blend Coffee, and has lost money as a result in the form of paying a premium for Kona Blend coffee” instead of paying less for a non-Kona or low-Kona coffee alternative. The plaintiff alleges common law fraud, violations of various consumer fraud statutes and restitution based on quasi contract or unjust enrichment. She requests restitution, compensatory and punitive…
A California woman who alleges that certain J.M. Smucker’s products contain partially hydrogenated vegetable oil (PHVO), or trans fat, while the company falsely promotes them as healthy for consumers, has requested an October 10, 2011, hearing on her motion to certify a nationwide class. Henderson v. The J.M. Smucker Co., No. 10-04525 (C.D. Cal., first amended complaint filed August 12, 2010). According to the complaint, the plaintiff purchased the company’s Crisco Original Shortening®, Crisco Butter Flavor Shortening® and Smucker’s Uncrustables Sandwiches® relying on representations that the shortening had “50% Less Saturated Fat Than Butter” and was “All Vegetable,” and that the Uncrustables were “Wholesome,” made from “whole wheat” and “homemade goodness.” Characterizing PHVO as an “unwholesome manufactured additive,” most of the complaint focuses on the purported health effects of consuming trans fat. The plaintiff alleges violations of various consumer fraud laws and seeks injunctive relief, corrective advertising, disgorgement, the destruction of “all misleading…
A federal court in Florida has dismissed with prejudice most of the claims asserted in a putative class action alleging that “percent fat free” labels on the packages of deli meats are misleading and deceptive. Kuenzig v. Kraft Foods, Inc., No. 11-838 (Tampa Div., decided September 12, 2011). Additional information about the case appears in Issue 391 of this Update. The court found all but one of the plaintiff’s claims preempted by federal food-labeling law and also found that all but one of his claims failed to state a claim because they were frivolous or disingenuous. As to defendant Hormel Foods Corp., the plaintiff had alleged that while the company’s labels do not indicate the number of calories per serving next to the “percent fat free” claim on the front of its product packaging, the labels are “somehow misleading by association, since Hormel’s products are on grocery shelves next to Kraft’s products.”…
Two putative class actions alleging that companies making and selling extra virgin olive oil (EVOO) sell their products at a premium despite their failure to meet certain EVOO standards have been dismissed by a federal court in Florida because the plaintiffs did not adequately plead their claims under Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007), and Ashcroft v. Iqbal, 129 S. Ct. 1937 (2009). Meyer v. Colavita USA, Inc., No. 10-61781, Nachio v. Am. Rice Inc., No. 10-61793 (S.D. Fla., decided September 13, 2011). The defendants claimed in their motions to dismiss that the complaints were based on a flawed UC Davis study that analyzed a small sample of olive oil purchased in California and that the plaintiffs failed to either allege that the products they purchased were not EVOO as the companies claimed or that they had been harmed. The court agreed that the UC Davis results were…
A Texas resident has filed a putative class action against the Kashi Co. and its parent, the Kellogg Co., in a California federal court, alleging that the company falsely labels and markets its products as “all natural” when they actually contain processed and synthetic ingredients, some of which are not generally recognized as safe by the Food and Drug Administration (FDA). Bates v. Kashi Co., No. 11-1967 (S.D. Cal., filed August 24, 2011). Seeking to certify a nationwide class of consumers, the plaintiff names in the complaint dozens of ingredients used in Kashi snack, cereal, pizza, fruit bar, waffle, shake, trail mix, cookie, and cracker products, explains how they are produced and indicates whether they or the processes that create them are hazardous or toxic. For example, the plaintiff claims that sodium selenite is a hazardous substance. “The FDA has not declared it generally recognized as safe as a food…
A federal court in California has denied the defendant’s motion to dismiss the plaintiffs’ first amended consolidated complaint in a case involving claims that “Ferrero misleadingly promotes Nutella® spread as healthy and beneficial to children when in fact it contains dangerous levels of fat and sugar.” In re: Ferrero Litig., No. 11-205 (S.D. Cal., decided August 29, 2011). According to the court, the plaintiffs sufficiently pleaded exposure to a long-term advertising campaign and reliance on the campaign in making their purchasing decisions to confer standing on them to bring their claims under California’s Unfair Competition Law, False Advertising Law and Consumers Legal Remedies Act.
