The European Union’s (EU’s) Court of Justice has determined that the law requires fresh poultry meat to satisfy the microbiological criteria for foodstuffs and that national law may impose a penalty on “a food business operator which is active only at the distribution stage” for placing a contaminated food product on the market. Reindl v. Bezirkshauptmannschaft Innsbruck, No. C-443/13 (E.C.J., decided November 13, 2014). The issue arose from an Austrian proceeding involving a fine imposed on a food retail manager after a sample from her store of vacuum-packed fresh turkey breast produced and packed by another company was found to be contaminated with Salmonella Typhimurium. The Unabhāngiger Verwaltungssenat in Tirol stayed the proceeding and referred to the EU court the questions whether (i) food business operators “active at the food distribution stage” are subject to the full regime under Regulation (EC) No 2073/2005, and (ii) the microbiological criterion in the…
Category Archives Litigation
A consumer has filed a putative class action in California state court alleging that Anheuser-Busch’s “Lime-A-Rita” malt beverages have too many calories and carbohydrates to be sold under the Bud Light Lime® label. Cruz v. Anheuser-Busch, LLC, No. BC563150 (Cal. Super. Ct., Los Angeles Cty., filed November 12, 2014). The plaintiff alleges that she purchased Bud Light Lime Lime-A-Rita® believing it to be low in calories and carbohydrates, but later learned that a serving of 8 fluid ounces contains between 192 and 220 calories and 22.8 to 23.6 g of carbohydrates compared to Bud Light’s 110 calories and 6.6 g of carbohydrates. “In general, ‘light’ may generally describe a zero calorie or a reduced calorie food, and consumers such as Plaintiff and the Class understand the ‘light’ label on a product that has a reduced or low number of calories,” the complaint asserts. The plaintiff attributes the level of calories…
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…
A Kentucky Court of Appeals panel has reversed a trial court determinationthat trespass and nuisance claims filed by residents alleging damage from the ethanol emissions of nearby distilleries are preempted under the Clean Air Act (CAA). Merrick v. Brown-Forman Corp., No. 2013-CA-002048-MR (Ky. Ct. App., decided November 14, 2014). A federal court considering similar issues has also found that state law-based claims are not preempted. That ruling is summarized in Issue 519 of this Update. In the Kentucky state court proceeding, the circuit court dismissed the action, ruling that the “federal Clean Air Act preempts source state air quality tort claims of the type asserted by” the plaintiffs. They allege that the atmospheric ethanol the distilleries emit promotes the growth of “whiskey fungus” that causes a “pervasive black film covering virtually every outdoor surface,” which requires cleaning and power washing to remove. Plaintiff Bruce Merrick owns a company that makes…
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…
