A federal court in Washington, D.C., has reportedly refused to reconsider its denial of hundreds of claims by African-American farmers who alleged that they were owed a share of the $1.25-billion settlement fund established to compensate a class of farmers allegedly discriminated against by the U.S. Department of Agriculture’s (USDA’s) loan application process. In re Black Farmers Discrimination Litig., No. 08-0511 (D.D.C., order entered March 5, 2014). Information about the lawsuit and a dispute over attorney’s fees appears in Issue 490 of this Update. According to a news source, the court determined that it lacked authority to alter the terms of the settlement agreement, which provided that claims determinations would be considered final and not subject to court review. “This may be cold comfort to claimants who feel that their claims were denied in error; but without the Settlement Agreement, the amount of relief attainable by members of the plaintiff…
Category Archives Litigation
A three-attorney, Pasadena, California-based law firm has filed numerous 60-day notice letters since March 2013 to companies that make alcoholic beverages, warning that they have failed to comply with a section of the Safe Drinking Water and Toxic Enforcement Act of 1986 (Prop. 65) by selling without the required warnings (i) “alcoholic beverages, when associated with alcohol abuse,” (ii) “ethyl alcohol in alcoholic beverages,” and (iii) “ethanol in alcoholic beverages.” The letters, filed on behalf of John Bonilla, Rafael Delgado, Jesse Garrett, and Rachel Padilla, assert that the companies have sold their products in the state without first indicating to consumers under “Title 27, CCR § 25603(e)(1): ‘WARNING: Drinking Distilled Spirits, Beer, Coolers, Wine and Other Alcoholic Beverages May Increase Cancer Risk, and, During Pregnancy, Can Cause Birth Defects.’” According to a news source, four individuals have filed Prop. 65 violation lawsuits in the Los Angeles County Superior Court, alleging…
A California appeals court has affirmed the dismissal of Proposition 65 (Prop. 65) lawsuits filed against fast-food restaurants by the vegetarian and animal-rights advocacy organization Physicians Committee for Responsible Medicine (PCRM), finding that the organization failed to conduct the requisite investigation into the warning signs posted in the defendants’ restaurants before certifying the merit of its 60-day notices to the companies, attorney general and local prosecuting entities. PCRM v. Applebee’s Int’l, Inc., No. B243908 (Cal. Ct. App., decided February 27, 2014). At issue were warnings about the chemical PhIP, known to the state to cause cancer, created during the chicken grilling process. Details about the lower court’s ruling appear in Issue 450 of this Update. Reciting the lengthy litigation history, which involved a number of amended complaints, the court emphasized the statements that the plaintiff’s counsel made during hearings on demurrers to the pleadings and deemed them binding admissions that…
According to a news source, the plaintiffs and defendants in litigation over a respiratory condition allegedly caused by the daily consumption of microwave popcorn containing the butter-flavoring compound diacetyl have settled the claims following a court’s reduction of the jury’s $7-million verdict to $5.78 million, including fees and costs. Watson v. Dillon Cos., Inc., No. 08-91 (D. Colo.). Additional details about the litigation appear in Issue 497 of this Update. Plaintiffs’ counsel Ken McClain reportedly indicated that the settlement terms were confidential. See Law360, February 24, 2014. Issue 515
A federal court in New York has refused to dismiss claims alleging that Bumble Bee Foods is strictly liable for and was negligent in failing to warn about the mercury in its products in a lawsuit alleging personal injury from excessive consumption of the company’s tuna products, which contain methylmercury. Porrazzo v. Bumble Bee Foods, LLC, No. 10-4367 (S.D.N.Y., order entered February 27, 2014). An earlier ruling in the case is summarized in Issue 413 of this Update. The plaintiff, who apparently consumed one to two cans of tuna daily for more than two years and was diagnosed with dangerously high levels of mercury in his body, also brought claims for breach of implied warranty of merchantability and violations of certain state statutory provisions involving agricultural and business law. The court found that the issues argued in Bumble Bee’s motion for summary judgment involved genuine issues of material fact that…
A federal court in New York has denied the motion for summary judgment filed by the defendant in litigation alleging that it mislabeled its industrially processed olive-pomace oil as “100% Pure Olive Oil.” Ebin v. Kangadis Food Inc. d/b/a The Gourmet Factory, No. 13-2311 (S.D.N.Y., order entered February 25, 2014). Details about the court’s grant of the plaintiffs’ motion to certify a class appear in Issue 507 of this Update. The court rejected, again, the defendant’s argument that its Capatriti olive-pomace oil is, as a matter of law, olive oil. According to the court, “there exists more than sufficient evidence for a trier of fact to determine that Capatriti is not 100% pure olive oil. Capatriti has more trans-fat and fewer antioxidants than virgin olive oil, is tasteless, is made from the seed and skin rather than the flesh of the olive, and undergoes chemical treatment with solvents, rather than a…
A federal court in California has granted a motion for sanctions filed by Jackson Family Wines, which brought an infringement action against Diageo North America; an adverse inference instruction will be given to the jury during trial, and the plaintiff will be able to recover the costs of its efforts to secure a Diageo marketing department employee’s documents, destroyed while the lawsuit was pending. Jackson Family Wines v. Diageo N. Am., Inc., No. 11-5639 (N.D. Cal., order entered February 14, 2014). At issue in the litigation is the alleged infringement of Jackson’s La Crema wine by Diageo’s Crème de Lys wine brand. The employee whose laptop was “imaged” outside the firm after she temporarily left Diageo’s employ was, in Diageo’s words, “the conduit between Diageo’s marketing team and Northstar [Research Partners, LLC], the third-party market research company” that conducted focus groups for the selection of the Crème de Lys brand.…
A federal multidistrict litigation (MDL) court in Pennsylvania has determined that individual-purchaser plaintiffs and a direct-purchaser class failed to discover evidence that U.S. chocolate companies conspired to increase prices for immediate-consumption products between 2002 and 2007, and, with “nothing more than speculation as to the who, what, when, where, and how of communications that allegedly facilitated the parallel price increases,” the court was compelled to grant the defendants’ motions for summary judgment on the plaintiffs’ Section 1 antitrust claims under the Sherman Act. See In re Chocolate Confectionery Antitrust Litig., MDL No. 1935 (M.D. Pa., decided February 26, 2014). The litigation involves some 91 lawsuits transferred to the MDL court for pre-trial proceedings. Defendants Nestlé U.S.A., Inc., The Hershey Co., and Mars, Inc. and Mars Snackfood U.S. LLC control about 75 percent of the U.S. chocolate-products market, and during the relevant time period, which saw prices for cocoa increase 53…
A federal court in California has preliminarily approved the settlement of class claims that Quaker Oats violated consumer protection laws by labeling its snack bars and instant cereal products as “wholesome” with “0g Trans Fat” when they actually contain “unhealthy” ingredients, such as partially hydrogenated vegetable oils (PHOs). In re Quaker Oats Labeling Litig., No. 10-0502 (N.D. Cal., San Francisco Div., order entered February 12, 2014). Under the proposed settlement, Quaker Oats, which admits no wrongdoing, has agreed to remove PHOs from products that contain them by December 31, 2015, and will not reintroduce PHOs into these products for 10 years. The company has also agreed to not introduce PHOs into products such as Quaker Chewy bars or Instant Quaker Oatmeal products that do not contain them for 10 years, and, by December 31, 2014, will cease stating on product labels “contains a dietarily insignificant amount of trans fat” for…
A federal court in California has denied the plaintiff’s request to certify a class of those who purchased ZonePerfect Nutrition bars relying on allegedly deceptive labels representing the products as “All Natural.” Sethavanish v. ZonePerfect Nutrition Co., No. 12-2907 (N.D. Cal., order entered February 13, 2014). The court found that the plaintiff set forth sufficient evidence to establish that she had standing for the purpose of class certification, despite paying more for other nutrition bars and sometimes purchasing non-natural products. Because the defendant “overwhelmingly sells to retailers, not directly to consumers, and . . . there are no records identifying any but a small fraction of consumers who have purchased ZonePerfect bars in the last several years,” the court, however, agreed with the defendant that neither the class nor the quantity of nutrition bars each member purchased were ascertainable other than by affidavit. As to ascertainability, the court noted a…
