A New York federal court has allowed Lanham Act claims for the Stolichnaya trademark to proceed in a long-running case between a Russian state-chartered company and several international beverage companies. Fed. Treasury Enter. Sojuzplodoimport v. SPI Spirits Ltd., No. 14-712 (U.S. Dist. Ct., S.D.N.Y., order entered August 25, 2014). Federal Treasury Enterprise Sojuzplodoimport (FTE), owned by the Russian Federation, alleges that it owns the Stolichnaya trademarks, but SPI Spirits purports to be the private successor to the state-owned company that owned the trademarks before the Soviet Union dissolved and several public entities became private companies. The Second Circuit previously held that FTE lacked standing because it was neither an assign nor legal representative under the Lanham Act. Since that ruling, the Russian Federation assigned its rights to the Stolichnaya trademark to FTE, and the New York federal court has found that the assignment cures FTE’s previous lack of standing issue.…
Category Archives U.S. Circuit Courts
The Ninth Circuit Court of Appeals has denied a request for interlocutory review of a class certification ruling in an action alleging that Blue Diamond Growers’ almond milk is mislabeled as “All Natural” and the company hides its added sugar content by listing “evaporated cane juice” (ECJ) on its label instead. Blue Diamond Growers v. Werdebaugh, No. 14-80084 (9th Cir., order entered August 22, 2014). Additional details about the suit appear in Issue 525 of this Update. Blue Diamond challenged the district court’s ruling that the class was ascertainable, arguing that the decision “exacerbates a split of authority amongst district courts in this Circuit over the threshold showing that putative class representatives must make to demonstrate an ascertainable class in food mislabeling cases. The Third Circuit Court of Appeals—the only circuit to squarely resolve the issue—holds that sales records or other reliable evidence of product purchases must be available for a…
A district court erred in denying class certification and granting summary judgment to Sturm Foods and its parent company Treehouse Foods in a putative class action accusing the coffee manufacturer of misleading consumers to believe its Keurig-compatible coffee pods contained high-quality coffee rather than low-quality instant coffee, the Seventh Circuit Court of Appeals has decided. Suchanek v. Sturm Foods, Inc., No. 13-3843 (7th Cir., order entered August 22, 2014). The court found that the district court’s reasoning for denying class certification would make consumer class actions nearly impossible. Combined from four separate consumer protection lawsuits, the case centers on Sturm’s Grove Square Coffee (GSC) pods. The Keurig K-Cup typically contains ground coffee beans and a filter system, but the filter technology was protected by a patent until 2012. In 2010, Sturm began manufacturing pods that could be used in Keurig brewers, but to avoid infringing the patent, the company apparently…
Attorneys representing the former Peanut Corp. of America owner and employees charged with conspiracy, mail and wire fraud, obstruction of justice and other counts involving the distribution of adulterated or misbranded food that allegedly led to a deadly Salmonella outbreak, had their opportunity on August 19, 2014, to cross-examine the company’s Blakely, Georgia, plant manager, Samuel Lightsey, who has been testifying as a government witness. United States v. Parnell, No. 13-cr-12 (M.D. Ga., Albany Div., filed February 15, 2013). Among other matters, the attorneys reportedly focused on the plea deal Lightsey struck with prosecutors; he was facing more than 30 years in prison, but could serve no more than six or go free if he substantially helps prosecute others. They also sought to show that (i) former owner Stewart Parnell was concerned about safety, (ii) Lightsey was responsible for plant safety, (iii) extensive retesting of samples positive for Salmonella came…
The parties to a putative class action against Merisant Co. and Whole Earth Sweetener Co. have agreed on settlement terms, including changes to the Pure Via sweetener’s website and packaging, class certification and a $1.65- million payment to a settlement fund. Aguiar v. Merisant Co., No. 14-670 (C.D. Cal., motion filed August 18, 2014). The plaintiff had alleged that Merisant and Whole Earth label, advertise and market Pure Via products as natural, which she argued was false and deceptive. Under the terms of the proposed settlement, Merisant and Whole Earth agreed to add an asterisk to Pure Via packaging with a statement that directs consumers to the product website, which will explain the process of producing Pure Via from stevia to provide consumers with “significant information to make their own determination as to whether they deem Pure Via to be ‘natural.’” In addition, Merisant and Whole Earth have agreed to…
The parties to litigation alleging that Ghirardelli Chocolate Co. white chocolate products do not contain the requisite white chocolate ingredients to be labeled and promoted as such have agreed to settle the putative nationwide class action for $5.25 million and labeling changes. Miller v. Ghirardelli Chocolate Co., No. 12-4936 (N.D. Cal., motion filed August 20, 2014). Additional information about the case appears in Issues 465 and 479 of this Update. The settlement would also resolve claims to be alleged in a second lawsuit by an intervening named plaintiff regarding the use of “all natural” on product labels. Under the agreement, class members who purchased the company’s Classic White Chips would be able to receive $1.50 per purchase, while those purchasing 72 other “all natural” products would receive $0.75 per purchase. The claims of those with proofs of purchase would not be capped, while claimants without proof of purchase would receive a maximum…
Prichard’s Distillery Inc., maker of Benjamin Prichard’s Double Barreled Bourbon, has filed a lawsuit against Sazerac Co. alleging that the liquor manufacturer has violated its trademark in “double barreled” by selling A. Smith Bowman Limited Edition Double Barrel Bourbon Whiskey and Buffalo Trace Experimental Collection Double Barreled, a bourbon. Prichard’s Distillery Inc. v. Sazerac Co., No. 14-1646 (U.S. Dist. Ct., M.D. Tenn., filed August 11, 2014). Prichard’s claims that it has owned a trademark on the use of “double barreled” in liquor sales since 2002, and the term comes from Prichard’s distilling process, which involves aging the bourbon in one barrel, diluting it to a lower proof, then aging it in a second barrel to reinforce the flavor. The company seeks an injunction preventing Sazerac from using “double barreled” on its products as well as damages multiplied due to Sazerac’s “willful and wrongful conduct.” Issue 535
The Equal Employment Opportunity Commission (EEOC) has filed a lawsuit in North Carolina federal court against Food Lion alleging that the grocery retailer fired an employee because he was unavailable to work on Thursday evenings and Sundays, when he attended Jehovah’s Witness services as a minister and elder. EEOC v. Food Lion LLC, No. 14-708 (U.S. Dist. Ct., M.D.N.C., filed August 20, 2014). According to the complaint, a Food Lion manager hired the employee with knowledge and acceptance of his scheduling restrictions, but after the employee was assigned to a different store location, a second manager insisted on scheduling him on days that he attended religious services. When the employee chose to attend services over working his scheduled shift, he was fired. EEOC alleged that Food Lion’s employment practices violate Title VII of the Civil Rights Act of 1964 and Title I of the Civil Rights Act of 1991, and…
Federal charges have been brought against two owners and two employees of Rancho Feeding Operations, a Petaluma, California-based livestock slaughterhouse, for distributing condemned and diseased cattle in violation of the Federal Meat Inspection Act. United States v. Amaral, No. 14-cr-437 (N.D. Cal., filed August 14, 2014); United States v. Singleton, No. 14-cr-441 (N.D. Cal., filed August 18, 2014). As a result of the investigation giving rise to the charges, Rancho voluntarily recalled some 8.7 million pounds of beef products in February 2014. According to the criminal indictment and information, Jesse Amaral and Robert Singleton, who owned the operation, allegedly directed Eugene Corda, Rancho’s primary yardperson, and Felix Cabrera, the facility’s foreperson, to either (i) remove “USDA Condemned” stamps from cattle carcasses and to process them for transport and distribution, or (ii) place the heads of healthy cows, swapped for diseased heads—from “cancer eye cows”—next to the carcasses of diseased animals while…
A jury in an Iowa federal court has reportedly determined that International Flavors and Fragrances Inc. (IFF) was not liable for the lung condition a man allegedly developed from microwaving popcorn containing diacetyl, a butter flavoring ingredient used in the product. Stults v. Int’l Flavors & Fragrances Inc., No. 11-4077 (U.S. Dist. Ct., N.D. Iowa, verdict entered August 19, 2014). The plaintiff claimed that the company had breached the implied warranty of fitness for its butter flavoring, which had a foreseeable use in microwave popcorn packages. IFF was the only remaining defendant during the seven-day trial out of some half-dozen companies originally sued for $27 million in compensatory damages. See Law360, August 20, 2014. Issue 535
