A federal court in New York has dismissed an amended complaint filed against high-fructose corn syrup (HFCS) manufacturers, alleging that the HFCS in foods and beverages, such as McDonald’s hamburger buns and Pepsi, was a substantial factor in causing a 14-year-old girl to develop Type 2 diabetes. S.F. v. Archer-Daniels-Midland Co., No. 13-634, decided April 21, 2014). The plaintiff alleged market-share liability under the tort doctrines of strict liability, negligence and failure to warn. The court agreed with the defendants that Type 2 diabetes is a multifactorial disease, stating “[n]o expert opinion is required to arrive at this conclusion.” And even accepting the allegations as true, the court said, “[T]here is little in it to suggest that Plaintiff could prove that her consumption of some foods containing HFCS over the course of her life was a substantial factor in causing Type 2 diabetes. . . . [A]side from idly listing various…
Category Archives Litigation
The former wife of billionaire Chobani, Inc. CEO Hamdi Ulukaya has alleged that he “boasted on occasions that he had obtained the formula for the Chobani brand of yogurt from [competitor] Fage by bribing a former employee of Fage. He traveled to Europe and bribed this individual with 30,000 Euros.” Giray v. Ulukaya, No. 652838-2012 (N.Y. Sup. Ct., N.Y. Cty., memorandum filed April 3, 2014). She made the allegation in a memorandum of law filed in support of her motion for injunctive relief in litigation seeking a determination that she is a 53 percent shareholder in defendant Euphrates, Inc., the assets of which, she claims, were used to create Chobani. Plaintiff Ayse Giray, a New York physician, also claims that she financed the formation of Euphrates “and is merely claiming what was acknowledged by defendants in writing. The yogurt was based upon a recipe he stole from a competitor, Fage.…
A federal court in California has determined that a consumer case alleging that Safeway was negligent for failing to notify customers of food recalls may proceed. Hensley-MacLean v. Safeway, Inc., No. 11-01230 (N.D. Cal., order entered April 7, 2014). According to the court, Safeway failed to justify a post-sale exception to California’s negligence law, which imposes a general duty of care. The plaintiffs claim that Safeway should—and could easily—notify customers of food recalls after they have purchased the recalled products because Safeway collects contact information from its loyalty card customers. Safeway argued that it had no duty to warn customers after they have taken the products out of the store. Rejecting the company’s argument, the court observed that Safeway could clearly foresee that its customers would consume the products purchased at its stores. The court also identified a number of previous decisions holding that the manufacturer’s duty extends beyond the…
A federal court in California has denied the motion to dismiss putative class claims that Mott’s LLP deceives consumers by placing “No Sugar Added” on its 100% Apple Juice label. Rahman v. Mott’s LLP, No. 13-3482 (N.D. Cal., order entered April 8, 2014). Information about the court’s prior decision dismissing without prejudice most of the claims in the plaintiff’s first amended complaint appears in Issue 511 of this Update. As to the plaintiff’s second amended complaint, the court disagreed with the defendant’s argument that an ongoing U.S. Food and Drug Administration (FDA) rulemaking pertaining to Nutrition Facts label disclosures about the presence or absence of added sugars required dismissal of the action under the primary jurisdiction doctrine. While the court agreed that food regulation is within FDA’s purview, it stated, “plaintiff’s claims do not concern statements made on the apple juice’s Nutrition Facts label; rather, plaintiff’s claims relate to nutrient…
A federal court in California has granted beverage manufacturer Santa Cruz’s motion to dismiss a putative class action alleging that the “evaporated cane juice” (ECJ) listed on its beverage labels is merely sugar, thus violating the Food and Drug Administration’s (FDA’s) required use of an ingredient’s “common or usual name.” Swearingen et al. v. Santa Cruz Natural Inc., No. 13-4291 (N.D. Cal., order entered April 2, 2014). Finding that FDA had primary jurisdiction over the matter, the court cited a March 5, 2014, notice that the agency has reopened the comment period on its draft industry guidance pertaining to the use of the term ECJ on food labels. Details about FDA’s action appear in Issue 516 of this Update. According to the court, this notice clearly indicates that FDA is currently engaged in “active rulemaking on the issue” and intends to resolve the matter. Citing FDA’s superior resources to determine…
A South Dakota court has determined that most of the claims filed by the makers of lean finely textured beef (LFTB) against ABC News, certain news correspondents, including Diane Sawyer, and former U.S. Department of Agriculture (USDA) employees may proceed. Beef Prods., Inc. v. Am. Broadcasting Cos., Inc., No. 12-292 (Union Cty. Cir. Ct., S.D., order entered March 28, 2014). Information about the lawsuit appears in Issue 453 of this Update. While the court found the plaintiffs’ claims for common law disparagement preempted by a state statute addressing the elements of a disparagement cause of action, available relief and statute of limitations, it limited its dismissal with prejudice to those alleged tortious statements expressly stating or implying that the product is not safe for human consumption. As to the defamation claims, the court found that the three plaintiffs were appropriate parties because the complaint sufficiently alleged that people who heard the…
Diageo Americas Supply, Inc. has filed a declaratory judgment action against the Tennessee Alcoholic Beverage Commission director challenging the constitutionality of a 1937 law that requires licensed alcohol beverage makers in the state to store their products “only within the county authorizing the operation or in a county adjacent to the county authorizing the manufacturing operation, and such possession shall be limited to storage facilities of such manufacturer” (Storage Law). Diageo Americas Supply, Inc. d/b/a George A. Dickel & Co. v. Bell, No. 14-0873 (M.D. Tenn., filed March 28, 2014). Alleging that the law has never been enforced, the complaint includes the defendant’s March 20 letter warning the company that it was in violation of the Storage Law because it “is storing product (manufactured/distilled alcoholic beverages) produced at its Tullahoma, Tennessee, distillery in warehouses located in Louisville, Kentucky.” According to the company, most of its distilled alcohol beverages are stored on-site…
A federal court in California has dismissed the claims of one named plaintiff in a putative class action alleging that certain Costco Kirkland branded products are misbranded and deceptive, and narrowed the claims of the other named plaintiff. Thomas v. Costco Wholesale Corp., No. 1202908 (N.D. Cal., order entered March 31, 2014). The plaintiff whose claims were dismissed for lack of standing had alleged that the “0 grams trans fat” labeling on Kirkland Signature Kettle Chips was untruthful or misleading. The court agreed with the defendant that she had not cured the standing defects in her second amended complaint (SAC) and thus dismissed her claims with prejudice. Among other matters, she failed to (i) allege that the chips she purchased included any amount of trans fat or that she received a product different from the one as labeled, (ii) demonstrate that the label violated 21 C.F.R. § 101.13(h)(1), or (iii)…
A federal court in California has granted in part and denied in part the motion to dismiss filed in a putative class action against Whole Foods Market. Pratt v. Whole Foods Mkt. Cal., Inc., No. 12-5652 (N.D. Cal., order entered March 31, 2014). The claims relate to a number of 365 Everyday Value® products that the plaintiff purchased and involve the following allegedly unlawful or misleading label representations: “evaporated cane juice” (ECJ), “natural” and “no sugar added.” Because the plaintiff abandoned in his amended complaint all claims regarding the defendants’ whipped topping product, the court dismissed all claims based on this product with prejudice as to the plaintiff and without prejudice as to any putative class member. The “no sugar added” claims were thus dismissed, “as the only product alleged to have such a misleading claim was the whipped topping.” The court also emphasized that, per its August 2013 order, any claims…
A federal court in Kentucky has determined that distillery neighbors may proceed with state law-based tort claims alleging that the facility’s emissions cause “whiskey fungus” to accumulate on their real and personal property. Merrick v. Diageo Americas Supply, Inc., No. 12-0334 (W.D. Ky., Louisville Div., order entered March 19, 2014). Additional details about the lawsuit appear in Issue 444 of this Update. Finding conflicting authority on whether the Clean Air Act (CAA) preempts the plaintiffs’ claims for negligence and gross negligence, temporary and permanent nuisance and trespass, the court carefully analyzed related U.S. Supreme Court, federal court and state court rulings. It concluded that the Third Circuit’s analysis in Bell v. Cheswick Generating Station, 734 F.3d 188 (3d Cir. 2013), and the Sixth Circuit’s in Her Majesty the Queen in Right of the Province of Ontario v. City of Detroit, 874 F.2d (6th Cir. 1989), “capture the prevailing law for…
