Category Archives Litigation

A New York appeals court has dismissed a lawsuit that sought a declaration from the state agricultural department that foie gras is an adulterated food product which poses a risk to human health. In re: Humane Soc’y of the U.S., Inc. v. Brennan, No. 506189 (N.Y. App. Div., decided June 18, 2009). According to the court, the plaintiff lacked standing to bring the suit. The Humane Society and other interested parties had unsuccessfully petitioned the Commissioner of Agriculture and Markets to issue an adulterated food product declaration as to foie gras. A trial court dismissed the plaintiffs’ subsequent declaratory judgment action for lack of standing, and they appealed. According to the appeals court, to establish standing, “petitioners were required to demonstrate that the Commissioner’s declination to issue a declaratory ruling caused them an injury-in-fact different from the general public.” The court noted that commission declaratory rulings are discretionary and stated,…

Food litigation lawyer William Marler has apparently filed the first lawsuit against Nestlé USA for injury allegedly caused by E. coli-contaminated cookie dough. The outbreak, which has reportedly infected more than 70 people in 30 states since March 2009, has been linked through food surveys to the consumption of raw refrigerated cookie dough, which has been recalled. According to news sources, a Nestlé facility in Danville, Virginia, has been closed and is being inspected by federal microbiologists and food safety investigators. Samples from batches of the purportedly implicated dough have been tested, and no contamination has apparently been found to date. E. coli is not typically associated with eggs, which are the only ingredient in the cookie dough that could potentially cause foodborne illness if contaminated with Salmonella and consumed raw. Health officials and food producers are reportedly puzzled over how E. coli, which lives in cattle intestines, could have ended…

The U.S. attorney for the Western District of Missouri has announced that a Nevada company and its owners entered guilty pleas in federal court “to distributing a tainted ingredient used to make pet food, which resulted in a nationwide recall of pet food and the death and serious illness of countless pets across the United States in 2007.” Sally Qing Miller, her husband Stephen Miller and their company Chemnutra, Inc. reportedly pleaded guilty to some of the charges in a February 2008 indictment, admitting that “melamine was substituted wholly or in part for the protein requirement of the wheat gluten” they imported from China and distributed in the United States and Canada and that “the labeling of wheat gluten was false and misleading.” The Millers are apparently each subject to a sentence of up to two years in prison without parole, fines of up to $200,000 and an order of…

A New Jersey Superior Court judge has denied insurers’ request for summary judgment in a case brought by Taco Bell Restaurant franchisees seeking “protection from the consequences of publicity about contaminated food served at restaurants.” In re: Quick Service Mgmt., Inc. v. Underwriters of Lloyds, No. 4861-07 (N.J. Super. Ct., decided June 12, 2009). The court also granted plaintiffs’ motion for partial summary judgment as to coverage. According to the court, the franchisees specifically sought insurance in 1999 to protect against revenue losses from food contamination outbreaks. They purchased “Food Borne Illness” and “Trade Name Restoration, Loss of Business Income and Incident Response Insurance for Food Borne Illness” policies from defendants. The latter policy, which was in force in 2006-2007, apparently contained an “Aggregate Supplier Incident Sublimit” of $0, and plaintiffs claimed that no one explained that the sublimit would exclude coverage previously provided under the former policy, which had been…

Consumers who sued the company that makes Van’s brand frozen waffles and a number of retailers, alleging that the calorie and nutrition information on the packaging did not accurately reflect what was in the products, have filed a motion to certify a nationwide class. Hodes v. Van’s Int’l Foods, No. 09-01530 (C.D. Cal., motion filed June 15, 2009). Additional information about the complaint appears in issue 295 of this Update. According to the motion, the defendants have filed motions to dismiss since the suit was filed in March 2009, and thus, no discovery has taken place. The named plaintiffs discuss how their complaint fulfills class certification requirements, contending that all class members were injured in the same way, that is, “they purchased Van’s waffles products in the belief that the waffles had the nutritional value represented by the labeling.” The plaintiffs argue that no conflicts of laws issues arise because they…

A company that manufactures mustard oil supplied to the employers of food-flavoring workers who alleged they contracted bronchiolitis obliterans from occupational exposure to diacetyl and other chemicals, is seeking court confirmation of its good faith settlement with some of the workers. Ortiz v. Flavor & Extract Mfrs. Assoc. of the U.S., No. BC364831 (Cal. Super Ct., Los Angeles Cty., motion filed June 2, 2009). According to Naturex, Inc.’s motion for an order confirming the settlement, its experts were prepared to testify that scientific evidence and published literature do not link mustard oil to bronchiolitis obliterans, a point two of the plaintiffs appeared to concede when they initiated settlement discussions rather than making their expert available for deposition. The settlement agreement would provide these plaintiffs with $7,500 in exchange for a release and dismissal with prejudice. The motion also indicates that another plaintiff never used mustard oil during his employment. He has…

Environmental World Watch, Inc. (EWW) has reportedly filed litigation under California’s Proposition 65 (Prop. 65) against a number of companies that make snack foods. According to the attorneys who litigate as this advocacy organization, the companies fail to warn consumers that their products contain acrylamide, a chemical formed when certain foods such as breads, french fries and potato chips are made; it is included on the state’s list of substances known to cause cancer. Filed in Los Angeles Superior Court, the suit apparently seeks punitive damages for fraudulent concealment and Prop. 65 violations. EWW has previously brought Prop. 65 claims involving acrylamide against fast food restaurants. More information about that litigation appears in issue 5 of this Update. See CourtHouse News, June 10, 2009.

A California resident has sued Unilever United States, Inc. in federal district court, seeking class certification, injunctive relief, restitution, and punitive damages for alleged violations of state consumer protection laws in the sale and marketing of a butter-substitute product known as “I Can’t Believe It’s Not Butter!®” Rosen v. Unilever U.S., Inc., No. 09-02563 (N.D. Cal., filed June 9, 2009). According to the complaint, Unilever labels and promotes its product as “Made with a Blend of Nutritious Oils” and “a better nutrition option than butter,” when, in fact, the product contains “a highly unhealthy, non-nutritious oil known as partially hydrogenated oil.” Claiming that he would not have purchased the product but for reliance on defendant’s purportedly deceptive statements, named plaintiff Amnon Rosen alleges only economic injury, stating that he “suffered injury in that he would not have paid money for the Product had these misrepresentations not been made.” Still, he avers…

According to a news source, a Las Vegas-based company and its co-owners have agreed to plead guilty to charges that they imported from China melamine-tainted wheat gluten used to make the pet food that purportedly sickened and killed thousands of cats and dogs in the United States and Canada in 2007. More details about the criminal indictments appear in issue 247 of this Update. ChemNutra, Inc. and its co-owners, Stephen and Sally Miller, have apparently reached an agreement with federal prosecutors and will enter their pleas during a June 16, 2009, hearing. The export broker, a Chinese company, allegedly mislabeled 800 metric tons of wheat gluten to avoid inspection in China and did not properly declare the contaminated product when it was shipped to the United States for use in pet food. ChemNutra took delivery of the wheat gluten in Kansas City and then sold it to various pet food manufacturers.…

A federal court in California has dismissed a putative class action alleging that the maker of Cap’n Crunch with Crunchberries® cereal misrepresented its product in violation of the state’s Business & Professions Code. Sugawara v. Pepsico, Inc., No. 08-01335 (E.D. Cal., decided May 21, 2009). Plaintiff alleged that the colorful “Crunchberries” depicted on the cereal box, combined with the use of the word “berry” in the product name, convey the message that the product contains fruit. She claimed that she purchased the product for some four years because she had been misled by defendant’s advertising and misrepresentations, never discerning that the product has no berries of any kind and that the only fruit content is “strawberry fruit concentrate, twelfth in order on the ingredient list.” According to the court, “while the challenged packaging contains the word ‘berries’ it does so only in conjunction with the descriptive term ‘crunch.’ This Court…

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