Category Archives U.S. Circuit Courts

The Animal Legal Defense Fund (ALDF) has filed a lawsuit against the U.S. Department of Agriculture (USDA) alleging a violation of the Administrative Procedure Act (APA) based on USDA’s lack of response to ALDF’s 2011 rulemaking petition requesting mandatory labeling on foie gras produced through the forced feeding of ducks or geese. Animal Legal Def. Fund v. U.S. Dep’t of Agric., No. 15-5063 (N.D. Cal., San Francisco Div., filed November 5, 2015). ALDF argues that force-fed foie gras products are mislabeled because USDA certifies them as “[i]nspected for wholesomeness” despite the fact that force-feeding “induces a metabolic disease and commonly results in the onset of all of the conditions mentioned in [USDA’s Poultry Products Inspection Act].” The organization seeks a declaration that USDA has violated the APA and an injunction compelling the agency to substantively respond to the petition. “The USDA is responsible for ensuring that all poultry products that…

CJ America Inc., maker of Annie Chun’s soup and noodle products, and a plaintiff have reached a settlement in a lawsuit alleging the company misled consumers by selling products with monosodium glutamate (MSG) while labeling the foods with the claims “No MSG Added” or “100 percent all natural ingredients.” Petersen v. CJ America Inc., No. 14-2570 (S.D. Cal., settlement agreement filed October 30, 2015). Under the agreement, CJ America will pay $1.5 million to a settlement fund distributed in $1.50 increments to purchasers of each eligible product, with a limit of 10 claims for class members without proofs of purchase. Any remaining funds will be directed to the Mayo Clinic, Action for Healthy Kids and National Farm to School Network. CJ America will also remove “No MSG Added” from its product packaging for a minimum of three years. Attorneys for the plaintiff seek 25 percent of the settlement fund ($375,000)…

Jim Beam Brands Co. has filed a notice of opposition against an application filed by Brown-Forman Corp., maker of Jack Daniels®, to trademark Woodford Reserve Double Oaked, a bourbon product aged in two charred-oak barrels. Jim Beam Brands Co. v. Brown-Forman Corp., Serial No. 86/450,636 (T.T.A.B., notice of opposition filed October 19, 2015). Jim Beam argues that the “Double Oaked” portion of the proposed trademark is generic—or at least descriptive—because it “refers to a process of aging alcoholic beverages in a second oak barrel, which is common in the industry.” The notice cites descriptions on Brown-Forman’s website using the terms “double” and “double oaked” to describe the process of making the product. Jim Beam does not object to the registration of Woodford Reserve but requests that Brown-Forman disclaim trademark control of “Double Oaked.” Issue 583

Whole Foods Market, Inc. and video publisher The Criterion Collection have filed a notice of voluntary dismissal in a trademark dispute over Whole Foods' "Criterion Collection" line of wines. The Criterion Collection v. Whole Foods Mkt., Inc., No. 15-7132 (S.D.N.Y., notice filed October 28, 2015). The parties note that matters have been "amicably settled and adjusted between the parties" and voluntarily dismiss the case with prejudice and without costs to either party. Terms of the settlement were not disclosed. The September 2015 lawsuit alleged that Whole Foods infringed Criterion's trademarked name for a line of republished classic movies. Additional details appear in Issue 578 of this Update.   Issue 583

The Ninth Circuit Court of Appeals has rejected as moot an appeal for reconsideration brought by the Shaka Movement in an effort to reestablish a ban on genetically modified organisms (GMOs) approved by voters in Maui County, Hawaii. Robert Ito Farm v. Cty. Of Maui, No. 15-15641 (9th Cir., order entered October 23, 2015). A federal court invalidated the statute in June 2015, finding that the ban exceeded county authority to impose fines. The unsigned appeals court opinion offered no further discussion beyond that the “motion to dismiss this appeal as moot is granted.” Additional information about the lower court’s ruling appears in Issue 571 of this Update.   Issue 583

A Massachusetts consumer has filed a putative class action against ACH Food Companies, Inc., manufacturer of Weber® BBQ Sauces, alleging the company misleadingly markets its products as "All Natural" despite containing caramel coloring. Demmler v. ACH Food Cos., Inc., No. 15-13556 (D. Mass., filed October 13, 2015). The complaint asserts that under Massachusetts and federal regulations, the term "natural" cannot be used on products containing artificial ingredients such as added flavoring or coloring, so ACH's use of caramel coloring precludes it from labeling and marketing its products as natural. The plaintiff alleges he paid a premium for the sauce because he believed it to be natural, and he seeks to represent a class of consumers alleging unjust enrichment and a violation of state law.   Issue 582

A jury has awarded two Muslim men $240,000 after they were fired from Star Transport Inc. for refusing to transport beer because of their religious beliefs. EEOC v. Star Transport Inc., No. 13-1240 (C.D. Ill., jury verdict submitted October 21, 2015). Each man will receive $20,000 for mental or emotional pain and $100,000 in punitive damages. The court also awarded each $1,500 in back pay. "We are pleased that the jury recognized that these—and all—employees are entitled to observe and practice their faith, no matter what that might be," EEOC Supervisory Trial Attorney Diane Smason said in an October 22, 2015, press release.   Issue 582

Subway has reached a settlement agreement in a case alleging its "footlong" sandwiches were not 12 inches in length. In re Subway Footlong Sandwich Mktg. & Sales Practices Litig., MDL No. 2439 (E.D. Wis., settlement agreement filed September 29, 2015). Under the agreement, Subway will require its franchisees to "use a tool for measuring bread in each Subway® restaurant to help ensure that the bread sold to customers is either 6 or 12 inches long" and will check for compliance during its monthly franchise inspections, with an increase in penalties for failure to measure up. If the court approves the agreement, Subway will pay each class representative $1,000 and the class counsel's attorney fees of $525,000, but no monetary awards will be distributed to class members. Additional information about the lawsuit appears in Issues 468 and 487 of this Update.   Issue 582

Whole Foods Market Group and a consumer have reached a settlement agreement in a lawsuit alleging the company defrauded customers by calculating and adding sales tax to purchases before deducting any discounts from coupons. Wong v. Whole Foods Mkt. Grp., No. 15-0848 (N.D. Ill., stipulation filed October 12, 2015). The parties filed a joint stipulation of dismissal to the court but did not disclose the agreement's terms. The lawsuit is one of several alleging claims of consumer fraud, common law fraud and unjust enrichment against various retailers.   Issue 582

A Florida federal court has given final approval to the settlement agreement in a lawsuit alleging Anheuser-Busch falsely advertised its Beck's® beer as imported even though it was manufactured in St. Louis, Mo. Marty v. Anheuser-Busch Cos., LLC, No. 13-23656 (S.D. Fla., approval entered October 20, 2015). Under the agreement, Anheuser-Busch will offer refunds in several tiers, including $0.10 per individual bottle, $0.50 per six-pack and $1.75 per 20-pack, with a cap of $50 per household for those consumers with receipts and $12 for those without. The company will also add language to Beck's® packaging indicating the beer is a "Product of USA." Additional details about the settlement appear in Issue 570 of this Update.   Issue 582

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