Category Archives State Courts

The North American Olive Oil Association (NAOOA) has filed a lawsuit against Mehmet Oz of "The Dr. Oz Show" alleging he falsely told his audience in a May 2016 episode that 80 percent of olive oil sold in supermarkets is fraudulent. N. Am. Olive Oil Ass'n v. Oz, No. 283156 (Ga. Super. Ct., Fulton Cty., filed November 29, 2016). The complaint asserts that Oz told viewers: "So how does it become fake, if it's just fresh olive juice? . . . Adulterated oil . . . takes some of the real oil and mixes it with fake olive oil substitute. To make the fake olive oil, you take an oil with no flavor or color like sunflower oil, add some coloring in there like chlorophyll to give it that rich green hue, then you mix that in with some of the real stuff, into extra virgin olive oil, and then,…

A Missouri appeals court has reversed a lower court’s dismissal of a lawsuit alleging Stonewall Kitchen, LLC misled consumers about its cupcake mix containing sodium acid pyrophosphate (SAPP), which the complaint contended precludes the company from marketing the mixes as “all natural.” Murphy v. Stonewall Kitchen, LLC, No. 104072 (Mo. Ct. App., E.D., order entered November 8, 2016). The trial court determined that because the ingredient list included SAPP, the plaintiff could not claim that Stonewall had failed to disclose its contents within the meaning of the Missouri Merchandising Practices Act (MMPA). Further, it found that the “all natural” description was inherently ambiguous with no clearly settled meaning. The appeals court disagreed, finding that the definition of “all natural” is a question of fact requiring further investigation during discovery. “Furthermore, we expressly reject the notion that the ‘ingredient list’ defense asserted by Stonewall Kitchen defeats [the plaintiff’s] claim as a…

The Organic Consumers Association (OCA) and Beyond Pesticides have filed a complaint against the Sioux Honey Association alleging the company’s Sue Bee® honey products contain the herbicide glyphosate despite being marketed as “Pure” and “Natural.” Organic Consumers Assoc. v. Sioux Honey Assoc. Coop., No. 008012 (D.C. Super. Ct., filed November 1, 2016). The complaint acknowledges that the glyphosate “may be due to the application of glyphosate on crops by neighboring farms and unrelated to beekeeping activities” but argues that the labeling is inaccurate regardless. The plaintiff organizations seek an injunction enjoining the labeling and mandating a corrective advertising campaign as well as costs. “A consumer seeing the words ‘Pure,’ ‘100% Pure’ or ‘Natural’ on a honey product would reasonably expect that product to contain nothing other than honey,” OCA International Director Ronnie Cummins said in a November 1, 2016, press release. “Regardless of how these products came to be contaminated,…

The Pennsylvania Supreme Court has denied an application for extraordinary relief filed by several industry groups in an effort to prevent Philadelphia’s 1.5-cent-per-ounce tax on sugar-sweetened beverages (SSBs) from taking effect on January 1, 2017. Williams v. City of Philadelphia, No. 160901452 (Ct. C.P., Philadelphia Cty., order entered November 2, 2016). The one-page order does not provide any reasoning for the decision. The lower court currently presiding over the case has indicated that it will rule on the tax’s legality before the January 1 enforcement date. See The Philadelphia Inquirer, November 2, 2016. Details about the industry lawsuit appear in Issue 617 of this Update.   Issue 621

Rapper Snoop Dogg and Pabst Brewing Co. have reportedly reached an agreement to settle a lawsuit disputing a Colt 45® endorsement deal that the rapper argued entitled him to a portion of the proceeds when the brand was sold to Blue Ribbon Intermediate Holdings in 2014. Snoop Dogg’s claims survived Pabst’s motion to dismiss in February 2016 and motion for summary judgment in August 2016. Details about the motion to dismiss appear in Issue 595 of this Update. See The Hollywood Reporter, October 7, 2016.   Issue 619

The American Beverage Association, other industry groups, retailers and distributors have filed a lawsuit against the city of Philadelphia challenging its tax on sugar-sweetened beverages (SSBs), arguing the statute unlawfully attempts to circumvent Pennsylvania’s taxation supremacy. Williams v. City of Philadelphia, No. 160901452 (Penn. Ct. C.P., Philadelphia Cty., filed September 14, 2016). The plaintiffs assert the statute creates “a roadmap for every local government in the Commonwealth [of Pennsylvania] to evade the Commonwealth’s supreme taxation structure on thousands of products— from over-the-counter pharmaceuticals to cars—merely by imposing a duplicative tax at a different level in the distribution chain than a tax already imposed by the Commonwealth.” Because the beverages subject to the Philadelphia tax are also subject to Pennsylvania tax, the city tax duplicates the state tax, the plaintiffs argue, which amounts to “seizing the taxing authority expressly reserved to the Commonwealth in contravention of the Sterling Act’s prohibition on…

A Texas judge has reportedly voided a 2013 law prohibiting Texas craft-beer brewers from selling territorial rights to distribute their beers, finding the state had no compelling state interest in restricting the breweries. The statute was part of a package of other laws benefitting small breweries, but the distribution limitation was apparently inserted at the behest of large Texas wholesalers. The rule prevented brewers from receiving monetary compensation for distribution rights. The brewer who challenged the law, a former plaintiffs’ attorney, told Texas Lawyer, “It restores millions of dollars of value to brewers who had their rights taken from them for no justifiable reason.” See Houston Chronicle, August 26, 2016; Texas Lawyer, August 29, 2016.   Issue 617

Two consumers have filed lawsuits against Genki Sushi, Koha Foods and Sea Port Products Corp. alleging they distributed contaminated scallops linked to as many as 206 infections of Hepatitis A. Mauk v. Genki Sushi USA Inc., No. 16-1-1573-08 (Haw. Cir. Ct., filed August 16, 2016); Cuelho v. Genki Sushi USA Inc., No. 16-1-1612-08 (Haw. Cir. Ct., filed August 23, 2016). The plaintiff in one case alleges he was infected with Hepatitis A after eating contaminated scallops, began feeling symptoms that day and ultimately required a seven-day stay in the hospital to recover. The second plaintiff, represented by Bill Marler of Marler Clark, consumed allegedly contaminated food at Genki Sushi and received a Hepatitis A vaccine after learning of the potential exposure. Both lawsuits pursue strict product liability and negligence claims against the defendants and seek to represent a class of affected plaintiffs.   Issue 615

The Julia Child Foundation for Gastronomy and the Culinary Arts has filed a lawsuit against Airbnb Inc. alleging the home-sharing company used Child’s name and likeness without permission in an advertised promotion. Julia Child Found. For Gastronomy & Culinary Arts v. Airbnb Inc., No. 16-2626 (Cal. Super. Ct., Santa Barbara Cty., filed June 22, 2016). According to the complaint, Airbnb contacted the foundation in April 2016 requesting permission to use the famed American chef and author’s name and likeness in an ad promoting a free night’s stay at a French property Child and her husband had used as a summer home. “Consistent with Mrs. Child’s longstanding and widely-known policy of politely refusing all requests to associate her name or image with commercial products and brands,” the foundation denied the request, then discovered that Airbnb used her image in its marketing campaign anyway. The foundation seeks a preliminary and permanent injunction,…

A California state court has certified a class challenging the source and grade of Safeway Inc.’s olive-oil products, which are labeled as “extra virgin” and “Imported from Italy” despite being manufactured from olives grown and pressed outside that country. Kumar v. Safeway Inc., No. RG14726707 (Cal. Super. Ct., Alameda Cty., order entered May 24, 2016). The plaintiff proposed two classes: one composed of consumers who purchased the products relying on the “extra virgin” label and another with consumers who relied on the “Imported from Italy” claims. The court assessed the classes in accordance with each requirement—ascertainability, commonality, typicality, adequacy and superiority—and found the plaintiff’s class definitions demonstrably met each standard. “Defendant’s argument that Plaintiff is required to demonstrate that class members have a common understanding of what ‘extra virgin’ means is unsupported by the authorities cited, and is not well taken,” the court noted. The plaintiff also leads a challenge…

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