Category Archives U.S. Circuit Courts

Bumble Bee Foods, LLC has filed a complaint in federal court against the company that made the food-sterilization system used to process Castleberry hot dog chili sauce that, in 2007, was contaminated with Clostridium botulinum and led to a nationwide recall of under-processed products. Bumble Bee Foods, LLC v. Malo, Inc., No. 09-042 (S.D. Ga., filed March 26, 2009). Alleging negligent design, failure to warn and negligence, Bumble Bee describes the factory-equipment defect that resulted in incomplete sterilization of its subsidiary’s canned foods. The food manufacturer claims that its 2007 product recall, a two-month plant shutdown and a number of claims filed by individuals who purportedly contracted botulism as a result of eating the tainted products cost the company in excess of $40 million. The complaint alleges that the defendant was aware of the defects “but took no steps either to correct these defects or to advise Bumble Bee or…

A California judge has reportedly ordered the parties to litigation over the exposure of banana-plantation workers to a pesticide that allegedly caused their sterility to explain why two lawsuits should not be dismissed as a sanction for the alleged misconduct of the plaintiffs and their lawyers. Mejia v. Dole, No. BC340049 (Cal. Super. Ct., Los Angeles Cty.). In 2008, a jury awarded six Nicaraguan workers $5.8 million in damages in the first of several such cases to be tried in the United States; the court reduced the verdict by half, and the case is on appeal. Thereafter, the defendant began filing the depositions of Nicaraguan witnesses who claimed that (i) some of the plaintiffs had never worked on banana farms, (ii) work certificates and lab reports had been falsified, and (iii) some of the plaintiffs have children, despite their sterility claims. The court reportedly stayed the personal-injury lawsuits and ordered…

A federal court in Missouri has determined that Texas plaintiffs alleging injury from the contamination of conventional rice crops with genetically modified (GM) rice had no reasonable basis to join non-diverse defendants and thus denied their motion to remand to state court. In re Genetically Modified Rice Litig., MDL No. 1811 (E.D. Mo., decided March 24, 2009). The 34 cases at issue were transferred from Texas to the Missouri court along with some 200 others from four other states as part of a multidistrict litigation proceeding. Rice farmers allege that the GM rice contamination adversely affected the global market for their products. The Texas plaintiffs sued the GM seed rice company and its affiliates, citizens of states other than Texas, and also sued a Texas rice grower and his affiliated companies alleging that he negligently grew the GM rice and contaminated neighboring fields or sold them GM seed rice. Plaintiffs…

The Seventh Circuit Court of Appeals has upheld a district court decision refusing to allow the sale of baby formula seized by the government in a civil forfeiture proceeding. U.S. v. Approx. 81,454 Cans of Baby Formula, No. 08-2637 (7th Cir., decided March 25, 2009). Federal agents seized more than 80,000 cans of powdered baby formula in February 2007 on suspicion that they had been stolen from retail stores. According to the court, many of the cans still had retail-store markings or evidence of altered labels, including the products’ “use by” dates. The court distinguished this case from one involving salad dressing, decided earlier in March, that had altered “best when purchased by” dates. Details about that case appear in issue 296 of this Update. Judge Richard Posner authored the opinions in both cases. A “use by” date on baby formula is mandatory under federal law; selling products after that…

A California appeals court has determined that canned tuna sold in the state does not need a mercury warning label under Proposition 65 (Prop. 65) for reproductive toxicity because the mercury is naturally occurring and thus falls within a Prop. 65 exemption. People ex rel. Brown v. Tri-Union Seafoods, LLC, No. A116792 (Cal. Ct. App., decided March 11, 2009). A trial court ruled in 2006 that the labels were not required because (i) federal law preempts state action on methylmercury in fish; (ii) the trace levels of mercury in canned tuna were too insignificant to require warnings; and (iii) the mercury is naturally occurring. Further information about that ruling appears in issue 170 of this Update. The appeals court specifically considered and based its ruling on the last basis for decision only, finding that substantial evidence supported the trial court’s determination as to the source of mercury contamination in fish.…

A federal court in the District of Columbia has dismissed a lawsuit filed by California almond growers, handlers and grower-handlers against the U.S. Department of Agriculture (USDA) challenging an agency regulation that requires handlers to treat raw almonds grown and sold in the United States to reduce the risk of Salmonella contamination. Koretoff v. Vilsack, No. 08-1558 (D.D.C., decided March 9, 2009). Without addressing the merits of the complaint, the court granted the USDA’s motion to dismiss, finding that the plaintiffs failed to exhaust their administrative remedies, which would have required petitioning the USDA secretary before bringing their action in court, as mandated by statute. Since September 2007, all domestic almonds intended for sale in the United States must be pasteurized by either proplylene-oxide fumigation or steam heat. Growers and handlers reportedly complain that unpasteurized raw almonds demand higher prices, up to 40 percent more, and that foreign suppliers, who are…

Judge Richard Posner, writing for a Seventh Circuit Court of Appeals panel, has determined that the government failed to prove that the defendant misbranded food by changing the “best when purchased by” date on bottled salad dressing that he then resold. U.S. v. Farinella, Nos. 08-1839, 08-1860 (7th Cir., decided March 12, 2009). A jury convicted the defendant of wire fraud and of introducing into interstate commerce a misbranded food with intent to defraud or mislead, and he was sentenced to five years of probation, including six months of home confinement, and to pay a $75,000 fine and forfeit his gains in excess of $400,000. According to the court, the defendant bought 1.6 million bottles of Henri’s Salad Dressing in May 2003, and they were labeled with “best when purchased by” dates ranging from January to June 2003. The defendant resold the dressing in discount stores, but pasted over the…

The Federal Circuit Court of Appeals has determined that a U.S. Department of Agriculture (USDA) Salmonella rule, which interfered with an egg producer’s sales for about two years, was not a compensable taking under the Fifth Amendment. Rose Acre Farms, Inc. v. U.S., No. 07-5169 (Fed. Cir., decided March 12, 2009). The case involved emergency regulations adopted in 1990 that restricted the sale of eggs from farms identified as infected with a type of Salmonella bacteria. The regulations diverted the eggs from three of Rose Acre’s farms from the table to other uses, such as in cake mixes, for 25 months and thus purportedly reduced the company’s profits. The company brought several lawsuits against the government, and the various issues raised were appealed several times. This appeal involved the “takings” issue only and was before the Federal Circuit for the second time. Under the Fifth Amendment, the government must compensate private…

A Florida resident has filed a putative class action lawsuit against General Mills, Inc., in federal court, alleging that its claims about Yo-Plus® yogurt violate the state’s deceptive and unfair trade practices law and constitute a breach of express warranty. Fitzpatrick v. General Mills, Inc., No. 09-60412 (S.D. Fla., filed March 17, 2009). Seeking to certify a class of Florida Yo-Plus® purchasers, the plaintiff alleges that the company cannot substantiate its claims that the yogurt’s trademarked “unique blend of live probiotic cultures and natural fiber,” referred to in marketing and on product labels as Optibalance™, “helps keep your digestive system right on track.” According to the complaint, the unaware consumer “is led to believe that General Mills’ blend of ‘probiotic’ bacterial strains and small amounts of fiber will, in fact, improve the digestive systems of healthy people. In fact, people’s bodies already maintain the proper balance of intestinal bacteria.” The…

The day after Ronald Kuiper died, a jury reportedly awarded the former popcorn factory worker and his wife $7.55 million in litigation against one of the companies that supplied the flavorings with diacetyl used by his employer. Kuiper v. Givaudan Flavors Corp., No. 06-4009 (N.D. Iowa, verdict rendered March 12, 2009). Kuiper apparently alleged that he contracted broncholitis obliterans from his workplace exposure to the butter-flavoring chemical, and he reportedly died from complications of the disease. According to a news source, the jury deliberated for six days following the month-long trial and declined to award punitive damages. The Kuipers, who previously settled claims against other flavorings manufacturers for undisclosed amounts, alleged design defect, failure to warn and failure to test. Givaudan reportedly argued, among other matters, that Kuiper’s claims were barred by a two-year statute of limitations. See Product Liability Law 360 and Mealey’s Emerging Toxic Torts, March 13, 2009.

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