An Arizona federal court has preliminarily approved a settlement in a lawsuit alleging that Bashas’ Inc. paid Hispanic workers less than comparable non-Hispanic workers from 1998 to 2007 in violation of Title VII of the Civil Rights Act of 1964. Parra v. Bashas’ Inc., No. 2-591 (D. Ariz., order entered October 21, 2014). The plaintiffs were employees at Bashas’ Inc.’s Food City stores, which cater mostly to Hispanic customers and whose staff was about 75 percent Hispanic. They alleged that they were paid on a lower pay scale than the mostly white employees at Bashas’ Inc.’s A.J. Fine Foods and Bashas’ stores. According to the plaintiffs, Bashas’ Inc.’s president personally set the pay scale each year, and an experienced Food City store clerk was allegedly paid $0.82 per hour less than a comparable Bashas’ store clerk in 1999—amounting to a loss of about $1,640 per year for a full-time employee. Under…
Category Archives Litigation
The U.S. Supreme Court (SCOTUS) has denied a petition seeking review of a Ninth Circuit Court of Appeals ruling upholding a California law prohibiting the sale of commodities, such as foie gras, produced by “force feeding a bird for the purpose of enlarging the bird’s liver beyond normal size.” Association des Éleveurs de Canards et d’Oies du Québec v. Harris, No. 13-1313 (U.S., certiorari denied October 14, 2014). Details about the Ninth Circuit decision appear in Issue 497 of this Update. Among other matters, the Ninth Circuit had found that a number of the issues presented by the plaintiffs were premature because they had appealed the denial of a motion for preliminary injunction. The question that out-of-state fois gras producers presented to SCOTUS was “[w]hether the Commerce Clause allows California to impose a complete ban on the sale of wholesome, USDA-approved poultry products from other States and countries—in this case, foie…
Adopting a magistrate judge’s recommendation, a Texas federal court has ruled that Texas can intervene in a lawsuit brought by brewer Alamo Beer Co. alleging that Old 300 Brewing infringed Alamo Beer’s trademark for using the silhouette of the Alamo building on its labels. Alamo Beer Co. LLC v. Old 300 Brewing LLC, No. 14-285 (W.D. Tex., order entered October 14, 2014). The state of Texas filed a motion to intervene in April 2014, asserting that its interests in the Alamo trademark were not adequately represented by either party. A magistrate judge issued a report on the matter in May recommending that Texas be allowed to join the lawsuit, and Alamo Beer argued to the court that the magistrate judge had failed to properly analyze two factors of mandatory intervention and that the state lacked the right to intervene under trademark law. Reviewing Alamo Beer’s concerns, the court rejected its arguments and…
A California federal court has granted in part and denied in part a motion for summary judgment in a lawsuit alleging that Mott’s violated the U.S. Food and Drug Administration’s (FDA’s) and California’s Sherman Law standards on the use of “no sugar added” on food packaging. Rahman v. Mott’s LLP, No. 13-3482 (N.D. Cal., order entered October 14, 2014). The plaintiff alleged that Mott’s 100% Apple Juice included a “no sugar added” label but failed to follow the additional FDA regulations requiring “a statement that the food is not ‘low calorie’ or ‘calorie reduced’ (unless the food meets the requirement for a ‘low’ or ‘reduced calorie’ food) and that directs consumers’ attention to the nutrition panel for further information on sugar and calorie content.” Mott’s moved for summary judgment on four grounds: the plaintiff (i) did not suffer damages as a result of purchasing the apple juice, (ii) lacked standing…
A New Jersey federal court has refused to dismiss a lawsuit alleging that Gerber falsely advertises some of its products as providing immune system boosts and as being nearly equal to breast milk. In re Gerber Probiotics Sales Practices Litig., No. 12-835 (D.N.J., order entered October 6, 2014). The plaintiffs alleged that Gerber misleadingly advertised three products—Good Start Protect Infant Formula, Good Start 2 Protect Formula for 9 through 24 months and DHA & Probiotic Cereal—as boosting immunity with an “Immuniprotect” formula that includes trademarked Bifidus BL probiotic bacteria. Gerber challenged the plaintiffs’ fourth amended complaint for lack of standing, arguing that the complaint did not allege that a named plaintiff purchased the infant formula product, but the court found that the basis for the claims was the same in that Gerber advertised each product as “scientifically advanced” and superior through the inclusion of Bifidus BL. The court agreed with Gerber’s…
A California federal court has preliminarily approved a settlement in a case alleging that Ghirardelli failed to include white chocolate, cocoa or cocoa butter in its white chocolate chips. Miller v. Ghirardelli Chocolate Co., No. 12-4936 (U.S. Dist. Ct., N.D. Cal., San Francisco Div., order entered October 2, 2014). Additional details about the settlement appear in Issue 535 of this Update, and further information about the litigation appears in Issues 465 and 479 of this Update. Under the agreement, Ghirardelli will pay $5.25 million to a common fund to distribute to class members. Notices to potential class members will appear in People magazine and the Oakland Tribune and on several popular websites, and any leftover balance in the settlement fund will be divided among several consumer and food organizations, including Consumers Union and Florida State University’s Food & Nutrition Science Department. A fairness hearing is scheduled for February 2015. …
Stewart Parnell, former CEO of Peanut Corp. of America (PCA), and his brother Michael Parnell, former vice president of sales, have filed a joint motion for a new trial following their recent convictions on charges stemming from a Salmonella outbreak traced to their peanut processing facilities. United States v. Parnell, 13-12 (M.D. Ga., motion filed October 7). In a separate motion, former quality control manager Mary Wilkerson asked the court to acquit her of obstruction-of-justice charges because, she argued, the government failed to provide “a recording, time log, video, affidavit, state or any time of record of the alleged interview” in which Wilkerson was apparently asked “if she was aware of any positives [for Salmonella] in any of the FDA Inspector’s notes.” In their motion, the Parnells claimed that jury members conducted their own research and discovered that the Salmonella outbreak had been linked to nine deaths, a fact that had been excluded…
A German appeals court has dismissed a lawsuit brought by consumer group Stiftung Warentest accusing candy manufacturer Ritter Sport of labeling its Whole Hazelnut bar as natural despite containing piperonal, which the group contends can only be obtained using unnatural chemicals. The ruling prevents Stiftung Warentest from claiming Ritter is misleading customers but does not yet allow claims for damages. A representative of Stiftung Warentest expressed disappointment with the decision, saying that they still did not know how Ritter produced the piperonal, but a Ritter representative said that the company, along with its piperonal supplier Symrise, had filed patents on how the substance could be obtained naturally. See Confectionery News, September 15, 2014. Issue 539
A California federal court has granted Duke University’s motion to dismiss in a lawsuit filed by John Wayne Enterprises seeking a declaratory judgment that its registration and use of Duke trademarks are not likely to cause consumer confusion and do not violate or dilute the school’s trademarks. John Wayne Enterprises, LLC v. Duke Univ., No. 14-1020 (C.D. Cal., order entered September 30, 2014). The case was dismissed on procedural grounds after the court found that it did not have jurisdiction over the North Carolina-based university. Additional information about the lawsuit appears in Issue 530 of this Update. Issue 539
A Michigan federal court has denied The International Group Inc.’s (IGI’s) motion for summary judgment in a case alleging that the waxmaker and FPC Flexible Packaging Corp. provided Kellogg with non-merchantable cereal bags. Kellogg Co. v. FPC Flexible Packaging Corp., No. 11-272 (W.D. Mich., order entered September 30, 2014). IGI supplied wax to FPC, which used it to construct cereal bags sold to Kellogg. The bags were then used as liners in boxes of Corn Pops, Froot Loops, Apple Jacks, and Honey Smacks, and after consumers complained of nausea and diarrhea, Kellogg destroyed its inventory of the cereals and issued vouchers to consumers who had already purchased boxes. After ruling that Canadian law applied, the court assessed the contract between FPC and IGI, determining when it began, what terms were implicit and what warranties existed as a result. “Questions of fact exist as to whether the wax was merchantable,” the…
