Telling counsel for Irwindale, California, that it was “asking for a very radical order on 24-hour notice,” a superior court has reportedly denied the city’s request that the maker of an Asian hot sauce cease production until purportedly aggressive odors can be reduced. Irwindale v. Huy Fong Foods, No. ___ (Cal. Super. Ct., Los Angeles Cty., filed October 28, 2013). A hearing on the city’s motion for preliminary injunction has been scheduled for November 22, 2013. According to news sources, Huy Fong Foods, which makes a popular Sriracha chili sauce, opened its Irwindale plant in 2012 when its Rosemead facility could not keep up with demand. Irwindale residents began complaining of pungent pepper and garlic fumes, burning eyes, irritated throats and headaches, especially when the company crushes the peppers. The city cited the company in October 2013 for violation of an ordinance forbidding noxious manufacturing emissions and filed suit after…
Category Archives Litigation
A federal court in California has given final approval to the settlement of a wage-and-hour class action against Starbucks Corp., including less than half of what plaintiffs’ counsel originally requested as attorney’s fees. York v. Starbucks Corp., No. 08-7919 (C.D. Cal., decided October 29, 2013). Starbucks apparently objected to the request for nearly $4.5 million, excluding nearly $250,000 in unreimbursed costs, characterizing it as “astonishing.” Thereafter, the parties agreed to attorney’s fees and costs of $1.9 million, and the court found the request reasonable. Under the agreement, 14,800 employees will receive payments of up to $900, for a total of $3 million, for alleged denial of statutorily mandated meal breaks and wage statements that failed to list the applicable overtime rate in violation of the California Labor Code. See Law360, October 28, 2013.
A federal court in California has significantly narrowed the consumer-fraud claims that may be asserted against Frito-Lay involving a number of its snack products labeled as “All Natural,” “0 Grams Trans Fat” and “No MSG.” Wilson v. Frito-Lay N. Am., Inc., No. 12-1586 (N.D. Cal., order entered October 24, 2013). All claims dismissed were with prejudice. The court dismissed claims based on products the plaintiffs did not purchase, because they failed to specify how or whether the 85 products added in their second amended complaint were substantially similar to the purchased products. The court also dismissed any claims based on statements the company made on its website. According to the court, the Food and Drug Administration (FDA) may have warned other companies about whether their Websites constituted labeling, but it had not done so as to the defendant’s products. The court also said, “The website address appears below Defendant’s physical address,…
Three days after the U.S. Food and Drug Administration (FDA) filed a motion for emergency stay pending appeal before the Ninth Circuit, the federal district court that had established November 30, 2013, as the deadline for the agency to publish notices of proposed rulemaking (NPRM) for specific food safety rules under the Food Safety Modernization Act denied the motion for stay pending appeal that FDA filed before it in September. Ctr. for Food Safety v. Hamburg, No. 12-4529 (N.D. Cal., order entered October 21, 2013). Details about the emergency stay request based on delays attributable to the federal government shutdown appear in Issue 501 of this Update. According to the district court, FDA failed to show that it would be irreparably injured absent a stay. The court recognized that the agency was unprepared to issue a final rule on the intentional adulteration of food by the November 2013 deadline, “But…
A California resident has filed a putative nationwide class action against Lifeway Foods, Inc., alleging that many of its kefir, lassi and frozen yogurt products are misbranded under federal law and the state’s Sherman Law because they list as ingredients “Evaporated Cane Juice” or “Organic Cane Juice,” terms that purportedly render the products illegal. Figy v. Lifeway Foods, Inc., No. 13-4828 (N.D. Cal., San Francisco Div., filed October 17, 2013). The plaintiff avers that he and the class purchased these illegal products at a premium price and have sustained economic damages under the unlawful business acts and practices law. According to the complaint, the “unlawful sale of an illegal product is the only element necessary for the UCL claim. No reliance is necessary.” The plaintiff requests restitution, injunctive relief, corrective action, attorney’s fees, costs, and interest.
New York and California residents have filed a putative nationwide class action against Hain Celestial Group, Inc., alleging that its fruit and vegetable juice products, labeled as “Unpasteurized” and “100% Raw” are false and misleading because the products undergo high pressure processing, “which neutralizes the benefits of the live enzymes, probiotics, vitamins, proteins, and nutrients that would otherwise be retained in a raw and unpasteurized juice.” Stark v. Hain Celestial Group, Inc., No. 13-7246 (S.D.N.Y., filed October 15, 2013). The plaintiffs claim that they purchased a variety of these juices—“Red Juice,” “Gold Juice,” “Green Juice,” “Yellow Juice,” and “White Juice”—at a price premium, relying on representations that the products were, as labeled, able to deliver the nutritional benefits associated with a raw-food diet. According to the plaintiffs, raw juice products have, at best, a 5-day shelf-life, while the defendants’ products have a 30-day shelf-life, which is possible only with processing…
According to a news source, Jack Daniel’s Properties, Inc. has filed a trademark infringement action against the companies that produce and sell Popcorn Sutton’s® Tennessee white whiskey. Jack Daniels Props., Inc. v. J&M Concepts, LLC, No. 13-1156 (M.D. Tenn., filed October 18, 2013). The whiskey is apparently named after an Appalachian moonshiner who killed himself rather than serve a federal sentence after he was convicted of offenses relating to moonshine production. The defendants purportedly sold their product first in mason jars, but then switched to bottles that allegedly copy Jack Daniel’s bottle—“a square-shaped bottle with angled shoulders that house a signature and beveled corners, and labeling with a white-on black color scheme, filigree designs, and font style reminiscent of that of the Jack Daniel’s trade dress,” the complaint said. Alleging willful trademark infringement, deceptive trade, fraudulent misrepresentation, and unfair competition, the company seeks injunctive relief, disgorgement of unjust profits and…
Jensen Farms has filed a lawsuit against the company that hired the food-safety auditor who gave the cantaloupe grower a “superior” rating during a 2011 audit not long before the grower shipped fruit allegedly contaminated with Listeria to a distributor that required the cantaloupe to be certified by the auditor, giving rise to a nationwide outbreak that killed 33 people and hospitalized many others. Jensen Farms v. Primus Group, Inc., No. ___ (Colo. Dist. Ct., filed October 15, 2013). The farm has since ceased operation, and the Jensen brothers have entered guilty pleas to charges of adulteration of food and aiding and abetting. According to the complaint, a Primus auditor indicated in 2010 that the cleaning technology used at the farm could potentially contaminate cantaloupe because it used re-circulating chlorinated water. The 2011 auditor, a different individual, was told about changes to the system made in response to the 2010 concerns,…
Eric and Ryan Jensen, who own the Colorado cantaloupe farm linked to a deadly 2011 Listeria outbreak have reportedly indicated to a federal court that they intend to plead guilty to the criminal misdemeanor charges brought against them. Additional information about the charges appears in Issue 498 of this Update. The six misdemeanor charges of adulteration of a food and aiding and abetting carry potential jail terms of one year and a fine per charge of $250,000. The Food and Drug Administration and Centers for Disease Control and Prevention reportedly found that the brothers failed to adequately clean their cantaloupes after changing their produce-cleaning system and that their actions were responsible for the deaths of 33 consumers. See NBCNews.com, October 16, 2013.
Keep Food Legal, a Washington, D.C.-based non-profit, has filed a petition under the New York Freedom of Information Law (FOIL), seeking an order compelling the office of New York City Mayor Michael Bloomberg to respond to its allegedly unaddressed requests for “records and documents on various, proposed, or enjoined food-related regulations or policies to which the Mayor’s Office had some relationship, influence, or administrative role.” Keep Food Legal v. Office of the Mayor, No. ___ (N.Y. Sup. Ct., N.Y. Cty., filed October 4, 2013). The petition outlines the requests that it made under FOIL since July 2012 and alleges that the city failed to respond within statutory deadlines. According to Keep Food Legal’s Website, the materials sought relate to “the development of New York City’s most restrictive food laws and regulations, including the city’s trans fat ban; mandatory menu labeling law; restaurant letter grade system; ban on providing food meant for…
