A federal court has granted summary judgment for the U.S. Food and Drug Administration (FDA) in a lawsuit brought by the Center for Science in the Public Interest (CSPI) and Mercury Policy Project (MPP) alleging that the agency has egregiously delayed a response to the organizations’ 2011 petition urging FDA to require the labeling of mercury levels in seafood. CSPI v. FDA, No. 14-0375 (D.D.C., order entered November 21, 2014). Additional information about the complaint appears in Issue 517 of this Update. Assessing precedent, the court noted six considerations relevant in evaluating agency delay and found that three were in question here. CSPI and MPP argued that FDA’s delay was unreasonable because statutorily, the agency has six months to approve, deny or tentatively respond to citizen petitions; while FDA technically complied with this regulation, they argued, the deadline “provides a framework within which to gauge FDA’s delay in issuing a…
Category Archives U.S. Circuit Courts
A New York federal court has rejected Wolfgang’s Steakhouse and ZMF Restaurants LLC’s motion to dismiss a case alleging that the restaurant violated the Fair and Accurate Credit Transactions Act of 2003 (FACTA) by printing credit card expiration dates on receipts. Fullwood v. Wolfgang’s Steakhouse, Inc., No. 13-7174 (S.D.N.Y., order entered November 14, 2014). The court found that the plaintiff’s amended complaint insufficiently supported its allegation that Wolfgang’s knew of the ramifications of violating FACTA yet wilfully disregarded the law, but granted her leave to amend. The plaintiff brought her putative class action after receiving a receipt from Wolfgang’s that displayed her credit card’s expiration date. She did not, however, allege any actual damages from the disclosure. Under FACTA, actual damages can be awarded for both negligent and willful violations; only willful violations, however, can result in the statutory and punitive damages that the plaintiff seeks. Accordingly, the court devoted much of…
In a dispute over commercial liability insurance coverage, the Eighth Circuit Court of Appeals has ruled that a trial court erred in deciding, as a matter of law, that a recall of sausage breakfast sandwiches prompted by contamination with monosodium glutamate (MSG) was a covered incident. Hot Stuff Foods, LLC v. Houston Cas. Co., Nos. 14-1192, -1194 (8th Cir., decided November 17, 2014). When MSG is added to foods, it must be disclosed on the product label. Hot Stuff Foods makes sausage breakfast sandwiches with sausage that does not contain MSG and does not include it on package labels. The company also distributes sausage that contains MSG and learned in January 2011 that some of the MSG sausage was inadvertently used in the breakfast sandwiches. Because the product contained MSG not disclosed on the labels, it was misbranded under federal law. The company promptly reported the situation to Food and Drug…
An Arizona resident has filed a putative class action in an Illinois federal court claiming that Jimmy John’s Franchise, LLC failed to secure its customers’ personal and financial data, which were purportedly accessed through the company’s point-of-sale systems at some 216 restaurant locations, between June and September 2014. Irwin v. Jimmy John’s Franchise, LLC, No. 14-2275 (C.D. Ill., filed November 6, 2014). While the named plaintiff alleges that access to her credit card information led to “five fraudulent charges to the credit card that she used during the aforesaid transactions at Jimmy John’s,” she seeks to represent 39 separate statewide classes and a District of Columbia class of all those who used a debit or credit card at Jimmy John’s during the data breach regardless of whether they actually experienced a loss or identity theft. The plaintiff alleges that Jimmy John’s failed to promptly discover and block the data breach,…
According to a news source, New Jersey residents have filed a putative class action in state court against the Texas-based company that makes Tito’s Handmade Vodka®, the fourth such action filed within the past two months, alleging that promoting and labeling the product as “handmade” deceives consumers because the vodka is made in an industrial facility and the company sells more than 15 million bottles a year. McBrearty v. Fifth Generation, Inc. The first complaint was filed in California in September 2014 and subsequently removed to federal court, Hofmann v. Fifth Generation, Inc.; the second followed in early October in an Illinois state court, Aliano v. Fifth Dimension, Inc.; the third was filed in a Florida federal court, Pye v. Fifth Generation, Inc. The complaints variously refer to the company’s website and a Forbes article purportedly featuring images of old-time pot-still production (“i.e., in a shack containing a pot still…
A Florida resident has filed a putative statewide and nationwide class action against the Snack Factory, LLC, alleging that it deceptively represents that its Pretzel Crisps are “All Natural” despite including “unnatural, synthetic, and/or artificial ingredients, including but not limited to maltodextrin and soybean oil.” Seidman v. Snack Factory, LLC, No. 14-62547 (S.D. Fla., filed November 7, 2014). The plaintiff asserts claims as to a number of flavor varieties, some of which also contain the “unnatural” ingredients dextrose and caramel color. The plaintiff contends that he and class members paid a price premium for the product “over and above other comparable products that do not claim to be ‘All Natural,’” relying on the product labels to their economic detriment. The complaint specifies in what way the ingredients are not natural, including that some are derived from genetically modified organisms. Alleging violation of Florida’s Deceptive and Unfair Trade Practices Act, negligent misrepresentation, breach…
Whole Foods Market Inc. is the target of two new putative nationwide class actions, one filed in a Texas federal court regarding the amount of sugar in the company’s plain Greek yogurt and the other filed in a California state court over alleged false advertising and sales of Blue Diamond almond milk products with a “Non-GMO Project Verified” label. Kubick v. Whole Foods Mkt., Inc., No. 14-1013 (W.D. Tex., filed November 10, 2014); Richard v. Whole Foods Mkt. Cal., Inc., No. BC563304 (Cal. Super. Ct., Los Angeles Cty., filed November 7, 2014). The Texas complaint alleges that Whole Foods 365 Everyday Plain Greek Yogurt represents that it contains 2 grams of sugar per serving, when testing shows that it actually contains more than 11 grams of sugar per serving, or “more than five and a half times the labeled amount.” According to the plaintiff, a California resident, this is particularly significant because…
According to a news source, Iowa Gov. Terry Branstad (R) and the attorneys general (AGs) of Missouri, Nebraska, Oklahoma, Alabama, and Kentucky have filed a notice that they will appeal a district court dismissal of their challenge to a California law that allegedly forces egg producers in other states to comply with a voter-approved ballot measure that bans the sale of eggs which have been produced by hens in conventional cages. Missouri ex rel. Koster v. Harris, No. 14-17111 (9th Cir., notice of appeal filed October 24, 2014). Information about a related complaint appears in Issue 512 of this Update. The district court apparently dismissed the complaint in early October on the ground that the officials lack standing to bring the lawsuit because California’s law affects only a subset of farmers who plan not to comply with it. Missouri Attorney General Chris Koster claims that the state’s farmers, who export some…
A federal court in Missouri has denied the motion to dismiss filed by a food-safety company responsible for auditing conditions at the Jensen Farms cantaloupe facility some six weeks before the U.S. Food and Drug Administration inspected the farm and found the Listeria strains associated with a nationwide outbreak that allegedly sickened the plaintiff. West v. Frontera Produce Ltd., No. 13-0943 (W.D. Mo., decided November 7, 2014). Primus Group, Inc. had argued that it owed no duty to the plaintiff, but the court disagreed, citing Missouri case law, which is consistent with the Restatement (Second) of Torts, Section 324A, allowing liability for third persons who render services that should be recognized “as necessary for the protection of a third person or his things.” According to the court, the plaintiff sufficiently stated a cause of action against the defendant, “given that Primus assumed a duty pursuant to contract and the performance of that duty…
Bob Evans servers who were paid under the “tip credit” provisions of the Fair Labor Standards Act (FLSA) claim in a collective action filed in a Florida federal court that they “were not compensated at least the proper minimum wage for all hours worked as a result of being required to pay for uniforms.” McDaniel v. Bob Evans Farms, LLC, No. 14-2767 (M.D. Fla., filed November 3, 2014). Named plaintiff Emily McDaniel alleges that she was paid an hourly rate of $4.77 plus tips, which increased to $4.91 plus tips, and that she and other servers “were required to pay Defendant for uniforms, including but not limited to, Bob Evans T-shirts and aprons.” She claims that this resulted in an FLSA violation because servers “have not been paid the minimum wage for each hour worked during their employment.” She seeks certification of a class of servers, declaratory relief and awards of…
