Category Archives Litigation

A woman who allegedly created a design for Knee Deep Brewing Co. to use on its beer tap handles has sued the company for breach of contract and copyright infringement after they could not apparently come to terms over a price for her design and the company began using a similar design on its product labels. Sylvers v. Knee Deep Brewing Co., LLC, No. 11-714 (D. Nev., filed October 4, 2011). The disputed design is purportedly being used on the company’s “Beautiful Blonde” Ale; it features a woman posing before a panorama of downtown Reno, Nevada, with mountains in the background. The plaintiff, who allegedly registered the “Girl Over Reno” design with the U.S. Copyright Office, seeks preliminary and permanent injunctive relief, compensatory damages and restitution, interest, costs, and attorney’s fees.

Fage Dairy Processing Industry, S.A. has filed a lawsuit seeking to overturn the Trademark Trial and Appeal Board’s refusal to register the yogurt maker’s “Fage Total” trademark and a declaration that its use of the mark does not infringe any claimed right of General Mills, which makes Total® breakfast cereals. Fage Dairy Processing Indus., S.A. v. General Mills, Inc., No. 11-1174 (N.D.N.Y., filed September 30, 2011). According to the complaint, the board’s ruling is replete with factual errors. The complaint also asserts that Total® cereal and Fage Total yogurt co-existed in U.S. markets for 13 years “without a single instance of actual confusion arising from the parties’ use of their respective marks.” Fage alleges that the defendants, “suddenly and without warning” brought a federal trademark infringement lawsuit against it in mid-September, “seeking draconian damages.” That suit was apparently filed two days after the board refused to register Fage’s marks.

Alleging that a government contractor sprayed an herbicide on their property as part of transmission-line maintenance, the owners of a state-certified organic beef farm in Skagit County, Washington, have sued the U.S. government and the contractor for damages incurred by the contamination of their property. Benson v. United States, No. 11-1619 (W.D. Wash., filed September 28, 2011). According to the complaint, the plaintiffs have a contract with the government “with regards to all maintenance on the power lines and providing recovery of any resulting damages.” In 2008, the plaintiffs were allegedly notified that spraying would take place, and they spoke with a government representative explaining that their property could not be sprayed. They were allegedly assured that this would be noted in the paperwork and that no herbicide would be sprayed on their property. Despite the assurances and despite a “no spray” sign on the access gate to the plaintiffs’ property,…

California residents have filed a putative class action against Nonni’s Foods, LLC, alleging that the company falsely represents its “All Natural” biscotti products by failing to disclose that ingredients, such as cocoa processed with alkali, glycerin, monocalcium phosphate, and diglycerides, are synthetic. Larsen v. Nonni’s Foods, LLC, No. 11-4758 (N.D. Cal., filed September 23, 2011). Seeking to certify a nationwide class and statewide subclass, the plaintiffs allege common law fraud; unlawful, unfair and fraudulent business practices; false advertising; and violation of the state’s Consumers Legal Remedies Act. They request restitution; compensatory, statutory and punitive damages; declaratory and injunctive relief; attorney’s fees; costs; interest; and an accounting and imposition of a constructive trust on money the company received as a result of its conduct. The plaintiffs essentially contend that they did not receive the benefit of their bargain when purchasing the product and “lost money as a result in the form…

A federal court in Illinois has determined that the government did not allege facts sufficient to pierce the corporate veil of related U.S. and foreign corporations and thus could not bring the foreign corporations before the court on charges of avoiding $80 million in customs duties on honey imported into the United States between 2002 and 2009. United States v. Alfred L. Wolff GMBH, No. 08-417 (N.D. Ill., decided September 26, 2011). A federal grand jury indicted the foreign defendants and a U.S. corporate entity on 44 counts in August 2010. The U.S. entity’s attorneys voluntarily accepted service on its behalf and on behalf of its parent and then appointed, via a shareholder resolution, a limited-authority corporate representative to appear before the court and enter a not-guilty plea for the U.S. defendants. This representative did so, and, immediately after the arraignment, the government served the representative with summonses for each of…

A federal multidistrict litigation (MDL) court has granted several motions to dismiss in consolidated actions alleging a conspiracy by egg producers and trade associations to restrict the domestic supply of eggs. In re: Processed Egg Prods. Antitrust Litig., MDL No. 2002 (E.D. Pa., decided September 26, 2011). Among other allegations, the plaintiffs contend that the defendants agreed over a period of years to reduce the size of egg-laying flocks and require larger cages to reduce overall hen densities as part of an alleged collective plan to keep egg prices high. In their motions to dismiss, the defendants argued that while the second amended complaint alleged sufficient facts to support the antitrust conspiracy claim as to some of the defendants, “the pleading is deficient with respect to each of the movants by failing to allege facts that they specifically were parties to the conspiracy.” Examining each motion in turn, the court dismissed…

The European Union Court of Justice has determined that Anheuser-Busch and Czech competitor Budejovicky Budvar may both use the Budweiser trademark in the United Kingdom. Budejovicky Budvar v. Anheuser-Busch Inc., No. C-482/09 (ECJ Sept. 22, 2011). Emphasizing the exceptional circumstances of the case, the court found that because the companies used the marks in good faith for nearly 30 years and because U.K. consumers “are well aware of the difference between the beers of Budvar and those of Anheuser-Busch, since their tastes, prices and get-ups have always been different,” the company that owns the earlier trademark cannot “obtain the cancellation of an identical later trade mark designating identical goods.” The court relied on European law to decide the case and in so doing rejected an advocate general opinion that indicated the issue must be decided as a matter of national law. Information about a related decision appears in Issue 388 of…

Del Monte Fresh Produce N.A. has filed a notice of dismissal in a Maryland federal court after the Food and Drug Administration (FDA) agreed to lift the import alert it imposed on cantaloupes from Guatemala that had purportedly been linked to a Salmonella outbreak. Del Monte Fresh Produce N.A., Inc. v. United States, No. 11-2338 (D. Md., dismissed September 27, 2011). Additional details about the case appear in Issue 407 of this Update. According to an FDA spokesperson, the agency lifted the restrictions on the basis of a company submission that included an independent audit showing that the Guatemalan farm was following good agricultural practices and tests indicating that none of the farm’s cantaloupes were positive for Salmonella. Public health advocates had reportedly called the lawsuit a bullying tactic, and Center for Science in the Public Interest’s Caroline Smith DeWaal said, “We would certainly hope that FDA has proof that…

According to a news source, two antitrust lawsuits were filed in a California federal court this week alleging that dairy trade groups and coops manipulated dairy prices between 2003 and 2010 under a program that slaughtered more than 500,000 cows. The suits reportedly allege that the National Milk Producers Federation and major dairy farmer cooperatives, under a “dairy herd retirement program,” cost consumers in excess of $9.5 billion. Plaintiff’s counsel Steve Berman released a statement claiming that the lawsuits, brought on behalf of individual consumers in California, New York and Wisconsin, as well as Compassion Over Killing, “will protect consumers from artificially inflated milk prices and also will prevent the unnecessary and shameful killing of tens of thousands of cows each year.” One of the lawsuits, Edwards v. National Milk Producers Federation, seeks to certify 27 state classes and a District of Columbia class, alleging violation of state antitrust and…

A Texas resident has filed a putative nationwide class action against the Naked Juice Co., alleging that its “100% Juice,” “100% Fruit,” “All Natural,” and “non-GMO” beverage products are falsely labeled because they contain synthetic and genetically modified (GM) ingredients. Sandys v. Naked Juice Co., No. 11-8007 (C.D. Cal., filed September 27, 2011). The complaint claims that the defendants concealed the nature, identity and source of their products’ added ingredients, such as vitamins and “natural flavors,” and that the plaintiff paid a premium price for falsely labeled products and ingested substances she did not expect and did not consent to. The plaintiff also contends that some of the product ingredients are harmful to human health and the environment as well as to the workers who produce them. Alleging numerous violations of state and federal consumer fraud and product warranty laws, negligence and negligent misrepresentation, strict liability, assault and battery, and conspiracy,…

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