The Fifth Circuit Court of Appeals has decided to rehear a case involving the interpretation of the Packers and Stockyards Act as applied to contracts between chicken growers and a processor. Wheeler v. Pilgrim’s Pride Corp., No. 07-40651 (5th Cir., decided July 27, 2009). In 2008, a three-judge circuit panel decided that the law does not require proof of an adverse effect on competition, creating a split with other circuit courts that had considered the question. The issue arose when chicken growers complained that the processor for whom they raised chickens gave preferential treatment and thus greater compensation to one grower. According to the earlier opinion, the other circuit courts have mistakenly looked to legislative history and policy issues to interpret the law, which the Fifth Circuit panel believed was clear and unambiguous. The case will be considered by the entire Fifth Circuit court on rehearing.
Category Archives U.S. Circuit Courts
A federal court in California has denied the motion to dismiss filed by Ocean Spray Cranberries, Inc. in litigation filed by Pom Wonderful LLC alleging that the company’s false advertising for a cranberry-pomegranate juice violates federal and state law and constitutes unfair competition. Pom Wonderful LLC v. Ocean Spray Cranberries, Inc., No. 09-00565 (C.D. Cal., decided July 16, 2009). Pom Wonderful alleges that Ocean Spray’s product contains little pomegranate juice, costs less to produce and thus unfairly competes with its own and other competitors’ pomegranate juices. The complaint also contends that marketing the Ocean Spray product as high in antioxidants misrepresents the product because “in fact the Beverage does not contain high levels of antioxidants.” The court rejected Ocean Spray’s assertions that (i) the false advertising claims brought under the Lanham Act are precluded or barred by the Federal Food, Drug, and Cosmetic Act and Food and Drug Administration (FDA) regulations;…
A federal court in California has denied the request for class certification filed by plaintiffs who allege that Van’s International Foods falsely advertised its frozen waffle products by listing incorrect nutritional information in their labels. Hodes v. Van’s Int’l Foods, No. 09-1530 (C.D. Cal, decided July 23, 2009). While the court found that the claims met the numerosity, commonality, typicality, and adequacy of representation requirements of Rule 23(a) of the Federal Rules of Civil Procedure, it found that the named plaintiffs failed to satisfy Rule 23(b)(3). According to the court, common questions of law and fact do not predominate over individualized issues, and the class action device is not superior to other methods for adjudicating the controversy. The named plaintiffs had sought to certify a nationwide class of consumers, and the court was concerned about the manageability of the class action, stating, “the Court has concerns about how Plaintiffs will identify each…
A federal court in the District of Columbia has dismissed claims that the National Animal Identification System (NAIS) violates a number of federal and state laws, including a religious freedom statute and constitutional protections. Farm-to-Consumer Legal Defense Fund v. Vilsack, No. 08-1546 (D.D.C., decided July 23, 2009). Dubbed in the press as the “mark of the beast” lawsuit, the complaint, brought by farmers “who raise livestock in a sustainable manner,” contends that the U.S. Department of Agriculture (USDA) coerced Michigan’s Department of Agriculture to adopt uniform NAIS requirements that threaten their way of life by gathering information into a national database against their wills and in violation of their religious beliefs. Among the complainants are Amish farmers who apparently believe (i) they have been given dominion and control over animals, and that control has now been given to state and federal agencies; (ii) they are not permitted to take the NAIS…
The Cancer Project, a vegan advocacy group affiliated with the Physicians Committee for Responsible Medicine (PCRM), has reportedly filed a putative consumer fraud class action on behalf of three New Jersey residents that seeks to require cancer-risk labels on hot dogs and other processed meats. Filed July 22, 2009, in New Jersey Superior Court, the complaint names as defendants the parent companies of several hot dog manufacturers, including Kraft Foods Inc., Sara Lee Corp. and Nathan’s Famous Inc. The suit seeks damages for the named plaintiffs and declaratory relief under the Consumer Fraud Act for the proposed class. The Cancer Project has contended that processed meats contain human carcinogens like nitrites and N-nitrosodimethylamine (NDMA), basing its claim on a recent meta-analysis by the American Institute for Cancer Research that purportedly associates the daily consumption of processed meat with an increased risk of colorectal cancer. “Just as tobacco causes lung cancer,…
A consumer supported by the Center for Science in the Public Interest (CSPI) has reportedly filed a putative class action in New Jersey Superior Court, alleging that meals he purchased at Denny’s® restaurants contained “alarmingly large and undisclosed amounts of sodium.” DeBenedetto v. Denny’s Corp., No. ___ (N.J. Super. Ct., filed July 23, 2009). At issue are menu items such as Moons Over My Hammy, Spicy Buffalo Chicken Melt and Meat Lover’s Scramble, which purportedly contain sodium levels that exceed the daily recommended limit of 1,500 mg. According to the complaint, “Denny’s menu deceptively presents various items as single meals to be consumed by one individual without disclosing that they contain substantially more sodium (in some case two or three times more) than the maximum recommended amount for all meals consumed by an individual during the day.” The class action “seeks to compel Denny’s restaurants to disclose on menus the…
A trade group representing bottled water producers, distributors and suppliers has filed a lawsuit in federal court against Eco Canteen Inc., a stainless steel bottle manufacturer, “for engaging in a deliberate scare campaign to mislead and deceive the public” about the purported health and environmental risks associated with plastic bottle use. Int'l Bottled Water Ass'n v. Eco Canteen Inc., 09-299 (W.D.N.C., filed July 22, 2009). According to the International Bottled Water Association (IBWA), Eco Canteen has made several false and misleading claims about both single-serve and reusable plastic bottles that included likening these products to poison and linking them to breast and prostate cancer. This “viral” marketing campaign was allegedly designed “to be picked up and disseminated by third parties” despite IBWA’s repeated requests for corrective action. The complaint also notes that the defendant “purposefully matches images of single-serve recyclable plastic bottles with its claims relating to an organic compound…
The Iowa Supreme Court has awarded disability benefits to a former slaughterhouse worker who allegedly contracted brucellosis from butchering hogs. IBP, Inc. v. Burress, No. 07-1887 (Iowa, decided July 10, 2009). The court determined that the disease was caused by a traumatic event and thus was a compensable injury under state law. So ruling, the court affirmed an intermediate appellate court decision rejecting a district court’s determination that the claimant had an occupational disease and failed to timely file his workers’ compensation petition. The court discusses in some detail how the claimant came into contact with Brucella organisms through open cuts while exposed to hog blood during his 10-year tenure at IBP, Inc.’s meat-packing plant. He allegedly developed a chronic infection of the hips and bone as a result of his contact with blood products and tissue from slaughtered hogs, but was not apparently diagnosed with the disease until some six years…
Acting on behalf of an apparently energized Food and Drug Administration (FDA), the Department of Justice (DOJ) has filed a complaint for injunction against a New Jersey company and its owner seeking to halt the manufacture and sale of their dietary supplement products, in part, for failure to comply with good manufacturing practice requirements. U.S. v. Quality Formulation Labs., Inc., No. 09-03211 (D.N.J., filed July 1, 2009). The complaint alleges that the defendants have caused their protein powders and other dietary supplements to be adulterated “in that they have been prepared, packed, or held under insanitary conditions whereby they may have become contaminated with filth (as a result of rodent activity) or may have been rendered injurious to health (as a result of cross-contamination with a major food allergen).” The allergen at issue is milk. The complaint also alleges that one of the defendants’ articles of food is adulterated “in…
A federal court in the District of Columbia has ordered the Environmental Protection Agency (EPA) to produce certain records about the pesticide clothianidin and lists of potentially protected documents to the Natural Resources Defense Council, which sought the information under a Freedom of Information Act Request submitted in July 2008. Natural Resources Defense Council v. EPA, No. 08-1429 (D.D.C., decided June 23, 2009). According to the court, the information related to “the use of the pesticide clothianidin on crops in the United States, EPA’s evaluation of the safety of the pesticide on bees, studies submitted by chemical manufacturers relating to the toxicity of the pesticide to bees, and communications with other federal or foreign agencies regarding environmental risks posed by the pesticide.” The day before the court filed its ruling establishing a schedule for the document production, EPA announced that it had developed a “pollinator protection strategic plan.” The plan, created…
