In a 4-2 ruling with one judge not participating, New York’s highest court has affirmed lower court rulings invalidating a New York City Board of Health rule that would have limited the size of the containers in which sugary drinks are sold in certain venues. In re N.Y. Statewide Coal. of Hispanic Chambers of Commerce v. NYC Dept. of Health & Mental Hygiene, No. 134 (N.Y. June 26, 2014). Details about the intermediate appellate court ruling appear in Issue 492 of this Update. Finding that the board lacks legislative authority, the majority weighed the separation-of-powers factors that are analyzed to determine whether a particular action is legislative or regulatory and determined that the board had overstepped its authority by engaging in political compromise, choosing between ends and making difficult and complex policy choices. It contrasted agency action regulating the purity of drinking water, the use of interior lead paint or the use…
Category Archives State Courts
According to a news source, the Irwindale City Council has decided to drop its public-nuisance declaration and lawsuit against Huy Fong Foods, the California-based company that makes the popular Sriracha hot sauce. Information about the dispute appears in Issue 520 of this Update. The company had asked for more time to address the odors emitted from its facility; residents had complained about burning throats and eyes since the hot sauce maker moved its main operation to Irwindale in 2013. Council’s vote was reportedly taken behind closed doors after a meeting with company CEO David Tran and representatives from the governor’s Business and Economic Development Office. Tran has indicated that better filters have been installed and should block fumes during the chili-grinding season that begins in August. See AP, May 29, 2014. Issue 525
A wheelchair-bound plaintiff has reportedly filed a putative class action in California state court against the largest franchisee of TGI Friday’s, Briad Restaurant Group LLC, for alleged violations of the Americans with Disabilities Act (ADA). Hicks v. Briad Restaurants Grp. LLC, No. BC546927 (Cal. Super. Ct., Los Angeles Cty., filed May 28, 2014). Plaintiff, Chris Hicks, alleges that Briad Restaurant violated the ADA by having deficient bathroom facilities and insufficient signage for disabled parking spaces in at least 20 of its locations, and he further asserts that the company had received notice of the issues, was given an opportunity to fix them and failed to do so. As a result, Hicks argues that Briad Restaurant has violated the Unruh Civil Rights Act and the California Disabled Persons Act and seeks statutory relief and injunctive damages. See Law360, May 29, 2014 Issue 525
A California court has approved the settlement of claims that alcohol beverage makers allegedly sold their products without providing warnings required under the state’s Safe Drinking Water and Toxic Enforcement Act of 1986 (Prop. 65). Bonilla v. Anheuser-Busch, LLC, No. BC537188 (Cal. Super. Ct., Los Angeles Cty., judgment entered May 30, 2014). Additional details about the claims appear in issue 515 of this Update. Under the agreement, the companies, denying that the signage they already provided to retailers failed to comply with Prop. 65, will (i) obtain a list of all current licensees from the state Department of Alcoholic Beverage Control; (ii) mail or email to every licensee “Proposition 65 Signage”; (iii) mail or email a letter providing contact information for ordering additional signage free of charge, informing licensees of their posting obligations and describing regulatory requirements pertaining to placement; and (iv) repeat these actions every five years. They also…
A California state trial court has approved the settlement agreement in a class action against Innovative Dining Group LLC (IDG), owner of the Boa Steakhouse and Sushi Roku chains, alleging that the restaurants falsely advertised their menu as containing Kobe beef. Hall v. Innovative Dining Grp. LLC, No. BC493144 (Cal. Super. Ct., Los Angeles Cty., motion granted May 30, 2014). Plaintiffs claimed that using the term “Kobe beef” implies that the beef came from Wagyu cattle raised and slaughtered in the Kobe region of Japan, but IDG’s restaurants advertised Kobe beef on their menus even while the U.S. Department of Agriculture banned beef imports from that region from May 2010 to August 2012. While admitting no wrongdoing, IDG has agreed to issue $20 gift certificates to customers who can prove that they purchased a Kobe beef menu item, $10 gift certificates to any class member who submits a claim, and…
A Papa John’s customer has filed a putative class action against the pizza company in Illinois state court, alleging that the chain illegally charges sales tax on delivery fees, resulting in each delivery customer overpaying by $0.16. Zucker v. Papa John’s Int’l, Inc, No. 14-668 (Madison Cty. Ct., filed May 5, 2014). Zachary Tucker argues that Illinois sales tax may be imposed only on the total sales price of tangible property, excluding the delivery fee, so long as the actual cost of delivery is less than the amount of the delivery fee. As a result, the complaint alleges, Papa John’s has violated and continues to violate the Uniform Deceptive Trade Practices Act (UDTPA), an Illinois consumer protection statute. In addition to class certification, Tucker seeks a cease-and-desist ruling to prevent Papa John’s from continuing to charge sales tax on delivery fees in Illinois, as well as damages for negligence, breach of…
Frank Magliato, “in his capacity as stockholder representative for the former shareholders of Natural Balance Pet Foods,” has reportedly filed a lawsuit against H.J. Heinz Co., alleging that the food company knowingly sold processed sheep lungs adulterated with rubber rings to Natural Balance. The complaint alleges that while Heinz knew both that the rubber rings had been lodged in internal organs of the sheep and that the rings could be hazardous to animals, the company did not alert Natural Balance or its customers to the potential danger. According to Magliato, Natural Balance recognized that the food was adulterated before selling the products, but had it not, Heinz’s negligence could have exposed the pet food company to litigation and damaged its reputation. Magliato seeks disgorgement of ill-gotten gains, restitution and $400,000 in damages for strict products liability, breach of express and implied warranty, negligence, unfair business practices and fraud, as well…
After a three-week trial, a jury has reportedly cleared Anheuser-Busch of sex discrimination in a suit brought by former executive Francine Katz, who had alleged that she was paid less than her male counterparts because of her gender. Katz v. Anheuser-Busch Inc., No. 922-CC09513 (St. Louis Circ. Ct., verdict rendered May 16, 2014). Katz worked at Anheuser-Busch as vice president of communications and consumer affairs from 2002 to 2008, when she left following InBev NV’s November 2008 acquisition of the company. During the acquisition process, Katz learned that her compensation was lower than the pay received by her male colleagues on the strategy committee, and she filed a suit alleging violations of the Missouri Human Rights Act in 2009. Following the jury’s decision, Katz told the media that she hoped she had helped to draw attention to the issue of gender bias in compensation. See St. Louis Post-Dispatch, May 17,…
A New York state court has granted a motion for summary judgment and dismissed libel claims filed against Fox Television Stations Inc. by a D’Lites ice cream seller. Prince v. Fox Television Stations Inc., No. 107129/2011 (N.Y. S. Ct., order entered May 6, 2014). Matthew Prince filed a libel suit against Fox after a local channel in New York aired a report claiming that the low-calorie ice cream sold in the D’Lites stores Prince would soon be opening in the area contained more than three times as many calories, carbohydrates, total fat, and sugar than the amounts the chain advertised—for example, 148 calories rather than the advertised 50. The court rejected Fox’s argument that its report had not sufficiently identified Prince, despite that the reporters only visited stores that Prince did not own and the report briefly showed a screenshot of the D’Lites website listing what cities would soon have…
According to news sources, the South Dakota Supreme Court has denied the defendants’ petition seeking review and dismissal of a lawsuit filed by Beef Products, Inc. alleging that the ABC network and news anchor Diane Sawyer, among others, defamed the company by their coverage of the company’s lean, finely textured beef, which has been dubbed “pink slime” by critics. Beef Prods., Inc. v. Am. Broadcasting Cos., Inc., No. 12-292 (Union Cty. Cir. Ct., S.D., supreme court order entered May 22, 2014). Without discussing the case merits, the court also apparently lifted a stay that had stopped the discovery process in April 2014. Additional details about the lawsuit appear in Issues 519 and 453 of this Update. The plaintiff seeks $1.2 billion in damages. See AP, May 23, 2014. Issue 524
