If a D.C. federal court agrees to the unopposed litigation schedule filed in late July by the Styrene Information and Research Center, a decision about whether the Department of Health and Human Services (HHS) properly added styrene to its list of possible carcinogens could be reached early in 2012. Styrene Info. & Research Ctr., Inc. v. Sebelius, No. __ (D.D.C., filed June 10, 2011). The industry trade group contends that the HHS National Toxicology Program (NTP) process that concluded with a determination to add the substance, which is used in plastic and foam food service packaging, to the 12th Annual Report on Carcinogens (RoC) was flawed, arbitrary and capricious, an abuse of discretion, and not in accordance with the law. The center seeks the removal of styrene from the RoC. In its complaint for declaratory and injunctive relief, the center alleges that NTP’s scientific advisory panel members ignored studies showing…
Category Archives U.S. Circuit Courts
A 33-year-old man has filed a personal injury lawsuit in a Texas federal court against companies that made and sold the Four Loko® that allegedly caused the stroke he had in October 2010 immediately after consuming two cans of the caffeinated alcohol beverage. Villa v. Phusion Projects, LLC, No. __ (S.D. Texas, filed mid-July 2010). According to the complaint, the plaintiff continues to experience health problems, including slurred speech and lack of balance. Alleging negligence and products liability, the plaintiff seeks damages in excess of $75,000, punitive damages, attorney’s fees, and costs.
A California woman has filed a putative nationwide class action against the company that makes Muscle Milk® beverages and protein bars, alleging that promotions touting the products as “high performance” and “nutritious snacks” are false and misleading because they contain as much fat and calories as Krispy Kreme® doughnuts. Delacruz v. Cytosport, Inc., No. 11-3532 (N.D. Cal., filed July 18, 2011). The company apparently markets the products as “a ‘meal replacement’ to provide ‘healthy sustained energy’” and allegedly “suggests that these fat-filled Products will help people lose weight, telling consumers, among other things, that the Products will help people ‘Go from cover it up to take it off.’” According to the complaint, the named plaintiff purchased the products for six months and consumed them “before workouts, after workouts, in between meals as a snack, and sometimes as a meal replacement.” She contends that she did so in reliance on the…
A New Jersey appellate court has partially reinstated a lawsuit against an Indian restaurant that mistakenly served meat samosas to a group of Hindu vegetarians, who are now seeking compensation for emotional distress and to recover the cost of traveling to India for a purification rite. Gupta v. Asha Enterprises, L.L.C., A-3059-09T2 (N.J. Sup. Ct., decided July 18, 2011). According to the court opinion, plaintiffs notified Moghul Express & Catering Co. of their “strict vegetarian” status and were twice “assured of the vegetarian nature of the food,” which actually contained meat. The complaint alleges that this oversight caused the diners spiritual injury and involved them “in the sinful cycle of inflicting pain, injury and death on God’s [creations], and it affects the karma and the dharma, or purity of the soul.” Although the New Jersey Superior Court initially dismissed the claims of negligence, negligent infliction of emotional distress, consumer fraud, products…
The Ninth Circuit Court of Appeals, in a divided en banc ruling, has determined that while an agreement between competitors to share revenues during a labor dispute is not immune from antitrust laws, the district court properly denied a challenge to an agreement between California supermarkets as a per se violation of the Sherman Act or on the basis of a “quick look” antitrust analysis; the Ninth Circuit found that a truncated or abbreviated review process is insufficient to determine whether this type of agreement has affected competition in the relevant market. California v. Safeway, Inc., No. 08-55671 (9th Cir., decided July 12, 2011) (en banc). Details about the court’s previous ruling that the agreement was anticompetitive appear in Issue 361 of this Update. The court’s majority “expressed no opinion on the legality of the arrangement under the rule of reason” (the traditional test for violations of federal antitrust laws) because…
The parents of a 29-year-old who died after he fell into a vat of chocolate have filed a wrongful death action in a Pennsylvania state court against the company that owned the plant where he worked and a number of other defendants involved in manufacturing the allegedly faulty equipment that purportedly led to the accident. Smith v. Lyons & Sons, Inc., No. __ (Pa. Ct. Com. Pleas, Philadelphia Cty., filed July 1, 2011). The decedent allegedly slipped on a cardboard-covered platform made slippery with chocolate and other materials and fell into the vat through unguarded holes. The vat was “processing, mixing and melting chocolate at extremely high temperatures at the time.” Co-workers were allegedly unable to stop the vat from operating because the switch was not located on the platform. Alleging negligence, strict liability and breach of express and implied warranties, the plaintiffs seek damages in excess of $50,000. The…
A multidistrict litigation court in Missouri has denied motions for class certification in 24 transferred cases against companies that make baby bottles and sippy cups allegedly containing bisphenol A (BPA). In re: Bisphenol-A (BPA) Polycarbonate Plastic Prods. Liab. Litig., MDL No. 1967 (W.D. Mo., decided July 5, 2011). The plaintiffs sought to certify various classes, including individual state classes and multi state classes as to certain claims and defendants. The court focused on the commonality, predominance and superiority prongs of class certification to conclude that differences in state laws and facts unique to each putative class member rendered the claims unsuitable for class treatment. Still, the court dismissed the requests to certify individual statewide classes without prejudice, finding it appropriate to allow the transferor courts to determine whether these classes met the certification requirements when the cases are returned to their jurisdictions. The court also indicated that it would delay remand…
Insurance companies with policies covering Phusion Projects, Inc., which makes the caffeinated alcohol beverage Four Loko®, have filed a summary judgment motion in their declaratory judgment action against the company, claiming that a policy exclusion unambiguously frees them from defending or indemnifying the beverage maker. The Netherlands Ins. Co. v. Phusion Projects, Inc., No. 11-1253 (N.D. Ill., filed June 22, 2011). The companies contend that their commercial general liability and commercial umbrella policies have liquor liability exclusions that apply to actions pending in Florida, Illinois and New Jersey alleging that “Four Loko caused a particularly dangerous kind of intoxication” and seeking monetary damages for deaths and injuries. Details about a similar insurance coverage lawsuit involving other insurers appear in Issue 396 of this Update.
A federal court in California has approved a non-monetary settlement of a class action alleging that Unilever U.S., Inc.’s health-related claims for margarine products containing trans fats were false and misleading. Rosen/ Red v. Unilever U.S., Inc., Nos. 09-02563, 10-00387 (N.D. Cal, decided June 21, 2011). Additional information about the settlement appears in Issue 398 of this Update. Unilever denied any wrongdoing but agreed to reformulate its stick and spread products to remove partially hydrogenated vegetable oils. A number of excluded, individual claims against the company will not be affected by the settlement.
A federal court in Florida has dismissed without prejudice two putative class actions against Kraft Foods alleging that the packaging for its Oscar Mayer® deli meat products misleads consumers about their actual fat content. McDougal v. Kraft Foods, Inc., No. 11-61202; Rogel v. Kraft Foods, Inc., No. 11-61281 (S.D. Fla., decided June 23, 2011). The plaintiffs filed voluntary dismissal notices in the cases, one of which is discussed in Issue 396 of this Update. A company spokesperson reportedly indicated when the McDougal complaint was filed that the allegations were unfounded. See Law360, June 23, 2011.
