Category Archives U.S. Circuit Courts

According to a news source, a prosecutor in Florida appears willing to accept an insanity defense in the case of a man who murdered his father while depressed, sleep-deprived and under the purported influence of an energy drink. A psychiatrist reportedly testified during a bond reduction hearing that defendant Stephen Coffeen, who allegedly smothered his father in 2009, suffered a “psychotic break” that was “accelerated by his use of Red Bull.” The defendant’s brother, Thomas Coffeen, is apparently skeptical about the defense, writing to the court, “since when is being tired, and high on an energy drink, an excuse for cold blooded murder, anyway?” The court has denied bond and set another hearing in the case for February 17, 2011. See St. Petersburg Times, February 7, 2011.

The parties litigating whether Welch Foods, Inc. falsely labeled its “100% Juice White Grape Pomegranate flavored 3 juice blend” beverage have filed a stipulation of settlement in a California federal court. Burcham v. Welch Foods, Inc., Nos. 09-05946 and 10-01427 (C.D. Cal., filed February 7, 2011). Under the agreement, a nationwide class of consumers would release their claims in return for refunds and coupons for replacement products, depending on whether they can prove that they purchased the product. The company would place coupons for free juice products in Sunday newspapers throughout the United States at a total value of $30 million. While Welch’s continues to maintain that the labeling claims are preempted by federal law and that the company has complied in all respects with federal law, it also claims that it lost money selling the white grape pomegranate juice. Acknowledging the difficulties in locating class members, Welch’s has also…

Adams Extract & Spice has sued Van de Vries Spice Corp. in a New Jersey federal court alleging damages in excess of $75,000 due to a 2009 spice recall involving ground red pepper allegedly contaminated with Salmonella. Adams Extract & Spice, LLC v. Van de Vries Spice Corp., No. 11-00720 (D.N.J., filed February 8, 2011). Apparently, Van de Vries sold 11,000 pounds of the spice to Adams Extract which then incorporated it into various products sold under its brand name. After learning about the contamination risk, Adams Extract issued a product recall that allegedly “resulted in significant damages to Adams Extract.” Alleging negligence by failure to comply with Food and Drug Administration standards, breach of contract, breach of warranty, and strict product liability, Adams Extract seeks compensatory damages, interest, costs, and delay damages.

Montana and California residents have sued Safeway, Inc. in a California state court on behalf of a putative nationwide class of customers that the company allegedly failed to notify about tainted food recalls despite the ability to contact purchasers of contaminated products through its “club card” loyal customer program. Hensley-Maclean v. Safeway, Inc., No. __ (Cal. Super. Ct., Alameda Cty., filed February 2, 2011). Backed by the Center for Science in the Public Interest (CSPI), the plaintiffs allege that they purchased Salmonella-tainted peanut butter and egg products from the grocery and learned only by chance on the news or from neighbors that the products were subject to a recall. According to the complaint, the company’s club card program gives the grocery contact information for participating customers and a history of the purchases they have made. The plaintiffs allege, “Many of Safeway’s competitors already use their own customer data to notify their…

A California resident who purportedly bought the hazelnut spread Nutella® to provide a nutritious snack or breakfast for her 4-year-old daughter has filed a putative class action against its manufacturer alleging violations of consumer protection laws. Hohenberg v. Ferrero U.S.A., Inc., No. 11-0205 (S.D. Cal., filed February 1, 2011). Seeking to represent a nationwide class of consumers who purchased the product since 2000, Athena Hohenberg claims that she relied on the company’s product advertisements and representations that Nutella® is a “healthy breakfast” and “nutritious.” According to the complaint, she did not learn until December 2010 “through friends what ingredients were in the Nutella® that she was feeding her family. She was shocked to learn that Nutella® was in fact not a ‘healthy’ ‘nutritious’ food but instead was the next best thing to a candy bar,” containing “about 70% saturated fat and processed sugar by weight.” Characterizing herself as a “reasonably…

A federal court in Missouri has denied in part and granted in part the summary judgment motions filed by Texas and Louisiana rice farmers as well as the company they sued in the first group of cases in this multidistrict litigation (MDL) to be remanded to their transferor courts for trial. In re: Genetically Modified Rice Litig., MDL No. 1811 (E.D. Mo., decided February 1, 2011). The litigation involves claims that conventional U.S. rice farmers sustained market losses when other countries learned that the U.S. rice supply had been contaminated with a genetically modified (GM) rice variety and then prohibited all U.S. imports. To date, the company has lost a number of bellwether trials and has entered settlements with some purportedly affected farmers. Relying on previous dispositive rulings, the court dismissed the Louisiana plaintiffs’ claims under the North Carolina Unfair Trade Practices Act and their claims for punitive damages. The court allowed…

A California resident has filed a putative class action against Taco Bell Corp., alleging that the company violates consumer protection laws by mislabeling some of its beef products as containing seasoned beef “when in fact a substantial amount of the filling contains substances other than beef.” Obney v. Taco Bell Corp., No. 11-00101 (C.D. Cal., filed January 19, 2011). Seeking to certify a nationwide class of consumers and claiming that damages exceed $5 million, the plaintiff alleges violations of California’s Consumer Legal Remedies Act and unlawful business acts and practices, including misbranded food in violation of federal law. She also asks for declaratory and injunctive relief, a corrective advertising campaign, attorney’s fees, and costs. According to plaintiff’s counsel, testing has shown that “the taco meat filling is about 35 percent meat.” The complaint asserts that the company’s use of the term “seasoned beef” in the labeling and advertising of its beef…

A federal district court in New York has granted the motion for summary judgment filed by Snapple Beverage Corp. in a case alleging that the company misled consumers by labeling its teas and juice drinks as “All Natural” because the company’s beverages contain high-fructose corn syrup (HFCS). Weiner v. Snapple Beverage Corp., No. 07-8742 (S.D.N.Y., decided January 21, 2011). The court had previously denied plaintiffs’ motion for class certification but determined, despite that denial, that it could decide the merits of the summary judgment motion even though the lawsuit now failed to satisfy the requirements of original diversity jurisdiction. The defendant argued that the plaintiffs did not offer any evidence showing injury from Snapple’s “All Natural” labeling, and the court agreed. Analyzing each claim—violation of a state deceptive practices law, unjust enrichment, and breach of express and implied warranty—the court found that the plaintiffs failed to present reliable evidence that they…

According to a news source, a co-defendant in litigation alleging a price-fixing conspiracy in the northeastern U.S. milk market has filed objections to the tentative deal reached by Dean Foods Co. and the dairy farmers who filed the lawsuit. Allen v. Dairy Farmers of Am., No. __ (D. Vt., settlement reached December 24, 2010). More information about the settlement, which must be approved by a court, appears in Issue 376 of this Update. Dairy Marketing Services, LLC and a number of individual dairy farmers have also apparently opposed the settlement. The objectors contend that the settlement will result in price erosion for all dairy farmers and creates “both winners and losers in the class of dairy farmers represented by a single law firm by taking market access from one group of dairy farmers at the expense of another within the same class.” They also claim that the small settlement of…

The American Civil Liberties Union (ACLU) and National Association of Criminal Defense Lawyers (NACDL) have reportedly filed amicus briefs with the Eighth Circuit Court of Appeals, supporting the efforts of counsel for Sholom Rubashkin to overturn his conviction and sentence for financial fraud at his Iowa meat processing facility. The kosher plant was raided in 2008, 389 undocumented workers were arrested, and Rubashkin was initially charged with violating immigration laws. These charges were ultimately dropped, and a jury acquitted him of hiring underage workers. Prosecutors then aggressively pursued charges that he falsified bank records to inflate sales and diverted customer payments for personal use, and he was found guilty on 86 counts in November 2009. The court sentenced Rubashkin to 27 years in prison, a term longer than recommended by prosecutors. While the ACLU and NACDL reportedly focus their briefs on accusations that the sentencing court improperly cooperated with prosecutors…

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