Category Archives U.S. Circuit Courts

A California egg producer has filed a lawsuit against the state and the Humane Society of the United States (HSUS) seeking a declaration that the improvements it has already made to its facilities, referred to as “the enriched colony housing system,” comply with the requirements of Proposition 2 (Prop. 2). JS West Milling Co., Inc. v. California, No. 10-04225 (Cal. Super. Ct., Fresno Cty., filed December 8, 2010). Prop. 2, approved in 2008, prohibits agricultural operations from confining farm animals, for all or the majority of any day, in a way that prevents the animal from “lying down, standing up, and fully extending his or her limbs; and turning around freely.” The plaintiff emphasizes that it does not seek to challenge the voter-approved proposition. Rather, because its requirements are “vague, and there is substantial disagreement among the agricultural community, animal rights groups, and other interested parties as to what they…

A Florida resident has filed a putative class action against Tropicana Products,Inc. and a retailer, alleging that promotions for Trop50 Pomegranate Blueberry Juice Beverage® are deceptive because the product consists primarily of“a mixture of cheap apple juice and grape juice concentrates.” Cruz v. Tropicana Prods., Inc., No. 10-62926CA08 (Fla. Cir. Ct., Miami-Dade Cty., filed December 14, 2010).Seeking to certify a statewide class of consumers, the plaintiff claims that Tropicana hoped to tap into the “enormous new market”of those seeking to benefit from the antioxidants in blueberries and pomegranates by creating a “deceptive and misleading label with many elements not required by state or federal regulations.” The complaint refers to a September 2010 jury verdict in California finding that Welch Foods, Inc. marketed its 100% Welch’s White Grape Pomegranate® beverage deceptively with labeling that was “literally true” but “had a tendency to deceive a substantial number of consumers.” The complaint also notes…

Alleging damages in excess of $50 million, a company that processes and sells baby carrots, along with its liability insurers, has sued the maker of a product that was promised to increase vegetable shelf-life, alleging that carrots treated with the sanitizer “suffered elevated yeast growth and severely premature spoilage as compared to [plaintiff’s] historical experience and carrots processed using chlorine dioxide at the same time.” Wm. Bolthouse Farms, Inc. v. Ecolab, Inc., No. 10-01005 (E.D. Cal., filed December 9, 2010). The product at issue is “Tsunami 100,” which the defendant apparently began marketing to the plaintiff in 2007 as a replacement sanitizer, claiming that its higher price was justified by superior performance. According to the complaint, the defendant “never warned Bolthouse that there was any risk that Tsunami 100 would actually decrease the shelf life of the carrots being processed.” Claiming that the scientific literature made it clear that the product’s peroxyacetic…

Seeking to represent a class of California children younger than age 8 and their parents, the mother of a 6-year-old girl has reportedly filed a putative class action against McDonald’s Corp., alleging that it baits children by advertising its “unhealthy Happy Meals” with toys and thus “has helped create, and continues to exacerbate, a super-sized health crisis in California.” Parham v. McDonald’s Corp., No. __ (Cal. Super. Ct., San Francisco Cty., filed December 15, 2010). Counsel for the plaintiff includes Stephen Gardner with the Center for Science in the Public Interest (CSPI), which announced several months ago that it would be filing such a lawsuit. According to the complaint, “Most Happy Meals are too high in calories, saturated fat, and sodium to be healthful for very young children,” and the company “is engaged in a highly sophisticated scheme to use the bait of toys to exploit children’s developmental immaturity and…

The same day that the Federal Trade Commission announced a settlement over alleged deceptive advertising claims for DanActive® beverage and Activia® yogurt, Ohio’s attorney general filed a lawsuit alleging that The Dannon Co. has violated the state’s Consumer Sales Practices Act (CSPA) by failing to substantiate the health-related claims it makes for the products. Ohio v. Dannon Co., Inc., No. 10-12-18225 (Ct. Com. Pl., Franklin Cty., filed December 15, 2010). The complaint takes issue with marketing claims that the products either promote digestive health or boost immunity. Under the authority of the CSPA, Attorney General Richard Cordray (D) brings the action “in the public interest” and seeks declaratory and injunctive relief, liability for “the reasonable costs and expenses of the investigation and prosecution of the Defendant’s actions, including attorneys’ fees,” as well as $25,000 “for each unfair or deceptive act or practice alleged herein.” According to the complaint, Activia® has…

A federal court in New York has entered an order approving the pre-trial discovery and motions scheduling order agreed to by the individual plaintiffs remaining in the litigation alleging that fast-food marketing caused adverse health effects related to obesity. Pelman v. McDonald’s Corp., No. 02-7821 (S.D.N.Y., order filed December 15, 2010). Under the terms of the agreement, fact discovery will close November 30, 2011; expert discovery will close April 30, 2012; and briefing on motions for summary judgment will end August 30, 2012. The court denied the plaintiff’s motion for class certification in October; additional details about the ruling appear in Issue 370 of this Update.

The Third Circuit Court of Appeals has agreed, for the most part, with the resolution of multidistrict litigation claims against pet food manufacturers involving the melamine contamination and recall of their products in 2007. In re: Pet Food Prods. Liab. Litig., Nos. 08-4741 & 08-4779 (3d Cir., decided December 16, 2010). Further details about the settlement agreement appear in Issue 283 of this Update. The court determined that certification of a settlement class was appropriate and that most of the settlement’s terms were fair and reasonable. Because the district court agreed with the settlement’s cap of “purchase claims,” that is, “claims solely for reimbursement of the costs associated with the purchase of a Recalled Pet Food Product by a Settlement Class Member who has not been reimbursed for such costs to date,” without “the information necessary to evaluate the value and allocation of the Purchase Claims,” the appeals court vacated and…

In a ruling left unchallenged when the appeal period expired, a federal court in California has determined that a plaintiff bringing state law claims about alleged misleading food labels involving trans fat were preempted by federal law and that he lacked standing as a consumer to bring a claim under the Lanham Act, which protects competitors’ interests. Peviani v. Hostess Brands, Inc., No. 10-2302 (C.D. Cal., decided November 3, 2010). The plaintiff alleged on behalf of two nationwide classes that the marketing for six 100-calorie pack Hostess Brands products violated various California consumer-fraud laws because the company represented that the products contain “0 Grams of Trans Fat” when they actually contain partially hydrogenated oils, or artificial trans fat. According to the court, federal food-labeling laws allow the use of the phrase “0 Grams of Trans Fat” for those products containing less than 0.5 gram per serving and forbid states from…

Hershey Company has reportedly sued Mars for trademark infringement in a Pennsylvania federal court, alleging that colors used in the packaging for Mars’s Dove peanut-butter milk-chocolate Promises® candy is too similar to what Hershey uses for its Reese’s Peanut Butter Cups®. Mars apparently filed a preemptive suit just days earlier in a Virginia federal court, asking to dismiss the Hershey complaint. Mars reportedly contends that Hershey admits it does not have exclusive rights to package peanut-butter candies in orange wrappers and that orange is commonly used in the industry as an indicator of peanut-butter flavor. According to a news source, Hershey sent a cease-and desist letter to Mars in November 2010, stating, “It can come as no surprise to Mars that Hershey, having objected to the color of the individual Dove peanut butter chocolate wrappers and filed a counterclaim to obtain a change of that color, would have a serious problem…

Two Missouri residents with arthritis and allergies have filed a putative class action on behalf of Missouri, Illinois and Kansas consumers who were allegedly deceived by false health-related claims made by a company that sells elderberry juice. Delling v. Wyldewood Cellars, Inc., No. 10-02287 (E.D. Mo., filed December 6, 2010). The complaint also names a retailer as a defendant. The plaintiffs contend that they read an advertisement stating that elderberry juice “prevents colds, flu, viruses, asthma, allergies, diabetes, arthritis & more!” When they went to the store to further evaluate the product, they allegedly read customer and “physician” testimonials about the curative properties of elderberry juice and decided to purchase the product. According to the plaintiffs, they used the product “but failed to realize any health benefits and certainly did not see any abatement in their allergy or arthritis problems.” The plaintiffs allege one count of consumer fraud and seek…

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