Category Archives Litigation

Monsanto Co. and farmers who grow genetically modified (GM) alfalfa have reportedly filed a petition seeking U.S. Supreme Court review of a Ninth Circuit Court of Appeals decision barring them from selling or using Roundup Ready® alfalfa seed until the U.S. Department of Agriculture (USDA) completes an environmental impact statement (EIS). Monsanto v. Geertson Seed Farms, No. 09-475 (U.S., petition for writ of certiorari filed October 22, 2009). The petitioners apparently argue that the lower court ruling “threatens to make blanket injunctions all but automatic in [National Environmental Policy Act] cases arising in that circuit.” Additional details about the litigation appear in issues 274 and 309 of this Update. Environmental groups, farmers and consumers filed the litigation against the USDA in 2006 challenging its decision to approve the Monsanto seed. The Ninth Circuit determined that the agency erred by not completing an EIS, given evidence that GM crops could contaminate…

The European Union has reportedly blocked a U.S. request that the World Trade Organization (WTO) settle a dispute over a ban on American poultry imports. The Office of the U.S. Trade Representative apparently asked for the ruling after industry groups criticized the scientific evidence behind an EU regulation prohibiting the pathogen-reduction treatments used in U.S. poultry processing. According to the National Chicken Council, U.S. poultry exports could exceed $300 million if EU regulators permitted the in-plant use of chlorine dioxide, trisodium phosphate, acidified sodium chlorite and peracetic acid in products destined for the European market. The European Union cannot block a second request, which is apparently expected in November. See Bloomberg.com, October 23, 2009; Meatingplace.com, October 26, 2009.

The United States has reportedly blocked Canadian and Mexican efforts to convene a World Trade Organization (WTO) panel that would determine whether the new U.S. country-of-origin (COOL) labeling requirements for meat products are fair. Under WTO procedures, a country can block the creation of a dispute settlement panel once. If, as expected, Canada and Mexico renew their calls for a panel at the WTO dispute settlement body’s November 19, 2009, meeting, the United States will be unable to block it again unless the body consents. U.S. officials reportedly told the WTO, “The U.S. urges Canada and Mexico to reconsider their decisions to request a panel in these disputes, and we are not in a position to agree to the establishment of a panel at this time.” See Meatingplace.com and Law 360, October 26, 2009.

Plaintiffs who brought personal and economic injury claims against Topps Meat Co. for an E. coli outbreak that led to the recall of more than 20 million pounds of ground beef in 2007 have filed a motion for class certification. Patton v. Topps Meat Co., No. 07-654 (W.D.N.Y., motion filed October 15, 2009). While the proposed classes, a “consumer class” of persons who purchased ground beef subject to the recall and allege economic losses and an “injury class” of persons who consumed the ground beef and allege personal injury, are national in scope, the plaintiffs contend that New York law will apply to the case. According to the named plaintiffs, each of whom was allegedly sickened by consuming contaminated meat, federal investigators confirmed 40 E. coli cases linked to the outbreak strain and estimate that for every reported case, 20 cases go unreported. Thus, they suggest that the number of injury…

Connecticut residents have filed a putative class action in state court against several fast food companies alleging that they violated consumer protection laws by selling grilled chicken products containing a carcinogenic chemical without providing warnings. Delio v. McDonald’s Corp., No. __ (Conn. Super. Ct., Hartford Cty., filed October 21, 2009). They seek to represent a class of all individuals who purchased and ingested these products in Connecticut and allege that the defendants knew or should have known that PhIP is formed when chicken is grilled and that it “has no safe level for ingestion.” The named plaintiffs, who are represented by The Cancer Project, a Washington, D.C.-based nonprofit organization, seek warning signs, actual damages, punitive damages, and attorney’s fees. The complaint refers to scientific research on PhIP and notes that California placed it on its list of chemicals known to the state to cause cancer in 1994 and that the…

A federal court in Florida has refused to enforce a $97 million judgment obtained in a Nicaraguan court by 150 banana plantation workers who alleged that exposure to the pesticide DBCP caused their sterility. Osorio v. Dole Food Co., No. 07-22693 (S.D. Fla., decided October 20, 2009). The plaintiffs sought to enforce the award under a Florida law allowing for the recognition of out-of-country foreign money judgments. Defendants Dole Food Co. and Dow Chemical Co. contended that the Nicaraguan law under which the case was litigated, Special Law 364, violated their due process rights in a number of respects, and the court agreed, finding multiple grounds for non-recognition under the Florida statute. Among other matters, the Nicaraguan law targeted a limited number of defendants, established irrefutable presumptions about causation, restricted defendants’ ability to introduce evidence, required significant financial deposits by defendants even before liability was determined, and granted no right…

Shortly after Canada filed its challenge to U.S. country-of-origin labeling (COOL) requirements, Mexico apparently followed suit, asking the World Trade Organization (WTO) to establish a panel to undertake a dispute settlement process. Mexico’s agricultural authority reportedly contends that the rules may unfairly discriminate against the country’s meat industry by requiring U.S. meat processors to segregate imported meats. This has allegedly led some U.S. processors to stop buying meat from Mexico or Canada. The panel request is reportedly scheduled to be considered during an October 23, 2009, meeting of WTO’s Dispute Settlement Body. See Product Liability Law 360, October 12, 2009.

A coalition of dairy farmers from the northeastern United States has reportedly filed a putative class action against the Dairy Farmers of America (DFA) and Dean Foods Co., alleging that they have monopolized the distribution of fluid milk in the Northeast, fixed prices and created an economic crisis in the industry. Allen v. DFA, No. ___ (D. Vt., filed October 8, 2009). Similar litigation is reportedly pending in a federal court in Tennessee. According to plaintiffs’ counsel, “Many dairy farmers have been forced to choose between joining DFA or DMS [Dairy Marketing Services] or going out of business. If they join, they have to pay a fee to continue to market to their own customers at prices fixed by DFA, DMS and other cooperatives. Meanwhile major milk processors Dean and HP Hood, which is part-owned by DFA, enjoy the economic benefits.” He also reportedly said that the anticompetitive milk distribution…

The National Chicken Council and several other industry groups have signed a letter to the Office of the U.S. Trade Representative, requesting the initiation of a World Trade Organization (WTO) dispute settlement panel to re-establish poultry exports to Europe. According to the letter, the European Union prohibits four antimicrobials commonly applied in the United States to reduce pathogens on processed poultry. The trade groups have reportedly estimated that U.S. poultry exports could exceed $300 million if EU regulators permitted the in plant use of chlorine dioxide, trisodium phosphate, acidified sodium chlorite and peracetic acid in products destined for the European market. “[T]he United States should continue to pursue with the European Union resolution of the issue,” stated the letter, which concluded that “it would be most appropriate to take the issue to the next step in the WTO dispute settlement process.” See NCC News Release, October 1, 2009; Law360, October 2,…

Canada’s government has reportedly asked the World Trade Organization (WTO) to establish a dispute settlement panel to hear its claims that U.S. country-of-origin labeling requirements for meat have unfairly reduced demand for Canadian products. U.S. Agriculture Secretary Tom Vilsack and Trade Representative Ron Kirk responded to the request by stating, “We regret that formal consultations have not been successful in resolving Canada’s concerns over country of origin labeling (COOL) required by the 2008 Farm Bill for certain agricultural products. We believe that our implementation of COOL provides information to consumers in a manner consistent with our World Trade Organization commitments.” Apparently, Canada was able to gain some concessions on the matter from the Bush administration, but regulations adopted after President Barack Obama (D) took office did not provide the flexibility Canadian producers were evidently seeking. Canada’s minister of international trade was quoted as saying, “The U.S. COOL requirements are so…

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