Category Archives State Courts

A putative class alleging that the extra virgin olive oil sold in the United States does not meet the “extra virgin” standard has filed consumer fraud claims against several of the largest importers of the product in a state court in Florida. Nachio v. Am. Rice, Inc., No. 10-33154 (Fla. Cir. Ct., filed August 13, 2010). Like the plaintiffs in a class action filed in California, named plaintiff Joseph Nachio refers to the June 2010 extra virgin olive oil study conducted by University of California at Davis’s Olive Oil Center researchers who concluded that the defendants’ products are not “extra virgin” olive oil. Additional information about that litigation appears in Issue 359 of this Update. Nachio contends that the time-sensitive process required to produce extra virgin olive oil makes it impossible for defendants to sell the quantities they do, and that they sell true extra virgin olive oil solely in countries…

According to a news source, a man who worked in a Chicago-area plant for eight years and was diagnosed with bronchiolitis obliterans has been awarded $30.4 million on claims that workplace exposure to the butter-flavoring chemical diacetyl left him with 25 percent of normal lung capacity that will require a lung transplant within the next 10 years. Solis v. BASF Corp., No. ___ (Ill. Cir. Ct., Cook Cty.) The largest verdict previously awarded in a similar case was $20 million to a former popcorn plant worker in Missouri. Plaintiff Gerardo Solis, 45, was represented by Independence, Missouri, attorney Ken McClain. See The Joplin Globe, August 16, 2010.

Renowned restaurateurs Mario Batali and Joseph Bastianich have reportedly been sued by workers in their East and West Coast restaurants. A complaint filed in late July 2010 by current and former employees of New York City’s Babbo Ristorante e Enoteca was amended to include a class of employees who work in five additional east coast eateries. They reportedly allege that the Batali-Bastianich enterprise “unlawfully confiscated a portion of their workers’ hard-earned tips in order to supplement their own profit. At the end of every shift, instead of distributing customers’ credit card tips to the workers who earned them as the law requires, Mr. Batali, Mr. Bastianich, and their restaurants took from the tip pool an amount equal to approximately 4-5% of the restaurants’ wine sales (and sometimes other beverage sales) for the night and put it in their own pockets.” The New York plaintiffs are apparently seeking class certification and…

A putative class action has been filed against the maker of POM Wonderful® pomegranate (PWP) juice in a Florida state court, alleging that the company is misleading consumers by marketing its product “as having special health benefits, including but not limited to, the prevention, mitigation, and or treatment of the following: (a) atherosclerosis; (b) Blood Flow/Pressure; (c) Prostate Cancer; (d) Erectile Function; (e) cardiovascular disease; (f) Reduce LDL cholesterol; (g) and other age related medical conditions.” Giles v. POM Wonderful, LLC, No. 10-32192 (Fla. Cir. Ct., Broward Cty., filed August 6, 2010). Seeking to represent a statewide class of consumers, the plaintiff claims, “In sum, the message is drink PWP and it will keep you young forever.” According to the complaint, the company has no reasonable basis for making its health-related marketing claims and has, in fact, been warned by the Food and Drug Administration that the product’s labeling directly…

The National Consumers League has filed a consumer fraud action in a Washington, D.C. court against Nestlé HealthCare Nutrition, Inc., alleging that the company falsely advertises its BOOST Kid Essentials® drinks as products that can strengthen children’s immune systems and aid their digestive systems. The Nat’l Consumers League v. Nestlé HealthCare Nutrition, Inc., No. 5772-10 (D.C. Super. Ct., filed July 30, 2010). Bringing the action on behalf of the D.C. general public, the nonprofit organization alleges one count of violating the D.C. Consumer Protection Procedures Act and seeks declaratory and injunctive relief, as well as “treble damages or statutory damages in the amount of $1,500 per violation, whichever is greater,” costs and attorney’s fees. The league relies on the Federal Trade Commission’s (FTC’s) complaint against the company to assert that clinical studies do not support the promotional health-related representations. Additional details about the FTC’s settlement of its complaint and Nestlé’s agreement…

A California appellate court has reversed a summary judgment order that terminated litigation involving claims that chain restaurants violated Proposition 65 (Prop. 65) by selling grilled chicken products to consumers without appropriate warnings about carcinogens created by the cooking process. Physicians Comm. for Responsible Med. v. McDonald’s Corp., No. B218089 (Cal. Ct. App., decided August 12, 2010). The carcinogens at issue are polycyclic aromatic hydrocarbons and PhIP (2-amino-1-methyl-6-phenylimidazol[4,5-b]pyridine). The trial court had dismissed the claims in late 2008 finding that the proposed warnings, which mentioned “well cooked,” “thoroughly cooked” and “grilled” chicken, were barred by conflict preemption because they would frustrate the U.S. Department of Agriculture’s (USDA’s) “longstanding policy of promoting the safe cooking of chicken” under the federal Poultry Products Inspection Act (PPIA). The court agreed with the defendants that the warnings would have frightened consumers from properly cooking chicken. The trial court dismissed the claims again in June 2009…

Seeking to represent a statewide class of all those who purchased extra virgin olive oil during a four-year period, one of Bravo TV’s “Top Chefs” and individual consumers have sued companies that make and sell the product, alleging that it often does not meet international and U.S. standards. Martin v. Carapelli USA, LLC, No. BC442300 (Cal. Super. Ct., Los Angeles Cty., filed July 30, 2010). The complaint cites a June 2010 study conducted by University of California at Davis’s Olive Oil Center researchers who apparently concluded that samples of imported olive oil labeled as “extra virgin” often did not meet applicable standards. They allegedly determined that the failures could be attributed to (i) oxidation from poor handling, (ii) “adulteration with cheaper refined olive oil,” or (iii) oil made from inferior olives, processing flaws, and/or improper oil storage. According to the complaint, “For years, chefs and home cooks have shared anecdotal…

According to a news source, a company that makes high-priced cookware and targets its sales to Spanish-speaking immigrants in the Los Angeles area has agreed to settle litigation accusing it of fraudulently claiming that its products could cure diseases ranging from cancer and Alzheimer’s to diabetes and heart disease. California v. Rena Ware Int’l, Inc., No. BC437981 (Cal. Super. Ct., Los Angeles Cty., settlement reached July 1, 2010). California Attorney General Jerry Brown brought the lawsuit, alleging unfair competition and false advertising. Sales representatives reportedly told consumers that the cookware reduced high blood pressure by removing hormones from meat while it cooked. Under the agreement, the manufacturer will pay a total of $625,000 to resolve the dispute and must ensure, by means of an independent monitor, that it will refrain from using either false information or high-pressure sales tactics. See Mealey’s Personal Injury Report, July 12, 2010.

A number of Minnesota-based apple growers have filed a complaint against the regents of the University of Minnesota and others claiming that exclusive and limited licensing agreements pertaining to the cultivation and sale of a new apple variety violate federal and state competition and restraint of trade laws. Aamodt Apple Farm, Inc. v. Regents, U. Minn., No. __ (Minn. Dist. Ct., Hennepin Cty., filed June 16, 2010). According to the complaint, the SweeTango®, a cross between the Honeycrisp™ and Zestar!™ varieties, was developed with the use of state funding through the university’s apple-breeding program. One grower allegedly has an exclusive license to grow the apple and may license others to grow it on its behalf. The agreements allegedly limit the number of trees that can be planted and where and how the apples can be sold. The plaintiffs allege unreasonable restraint of trade in commerce; establishment, maintenance and use of a…

A Wisconsin organic farm was reportedly scheduled to argue in court this week that state restrictions on the sale of raw milk do not apply where the sales are made to consumers who are part owners of the farm. While the legislature recently attempted to change a law that regulators contend allows incidental raw milk sales only, the state calls the farm’s sales in excess of $80,000 yearly to consumers, who each own a $10 share in the farm, well beyond what the law allows. Wisconsin’s governor vetoed the popular bill, which would have allowed on farm raw milk sales, apparently concerned that E. coli outbreaks purportedly linked to consumption of the unpasteurized product could affect the state’s entire dairy industry. Raw milk proponents dispute that any such link exists. Meanwhile, public health officials investigating a recent E. coli outbreak that has allegedly sickened eight Minnesota residents including school-aged children…

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