In light of representations that the parties are close to settlement, a multidistrict litigation (MDL) court has continued to stay proceedings in litigation alleging that the isolated appearance of genetically modified (GM) wheat in Oregon, which purportedly led Japan and South Korea to suspend imports of soft-white wheat from the United States, caused wheat farmers to sustain economic losses. Barnes v. Monsanto Co., C.A., MDL No. 13-2473 (D. Kan., order entered September 10, 2014). Information about the lawsuit filed by Kansas farmer Ernest Barnes appears in Issue 486 of this Update. The court ordered the parties to file stipulations of dismissal of the soft-white wheat claims on or before September 29, 2014, or to submit a scheduling order, discovery plan and early mediation plan by November 7. Issue 537
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Wheat farmers who sued Monsanto Co. over losses they allegedly sustained after genetically modified (GM) wheat was discovered in an Oregon farmer’s field have reportedly decided to attempt to mediate the dispute. In re Monsanto Co. GE Wheat Litig., MDL No. 2473 (D. Kan.). Details about the consolidation of a number of related cases before a multidistrict litigation (MDL) court appear in Issue 500 of this Update. The GM wheat discovery prompted Japan and South Korea to suspend imports of soft white wheat from the United States, and the farmers contend that they lost money as a result. Monsanto denies any wrongdoing—it field tested GM wheat more than 10 years ago in Oregon—and calls the event an isolated incident. The MDL court had scheduled a March 10, 2014, status conference, but canceled the hearing and has stayed the litigation. See The National Law Journal, March 7, 2014. Issue 517
The Judicial Panel on Multidistrict Litigation (JPML) has ordered the transfer of five cases brought by wheat farmers who allege economic injuries due to lower wheat prices, import restrictions and increased production costs after genetically engineered (GE) wheat was discovered in an Oregon farmer’s field; pretrial matters will be heard by a multidistrict litigation (MDL) court in Kansas. In re Monsanto Co. GE Wheat Litig., MDL No. 2473 (J.P.M.L., decided October 16, 2013). According to the court, the actions involve common questions of fact, and centralization in Kansas “will serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation. All actions share factual questions arising from Monsanto’s conduct with respect to the development and field testing of genetically-engineered [sic] ‘Roundup Ready’ wheat from 1998 through 2005, and the alleged discovery of the Roundup Ready herbicide-resistant gene in wheat plants on an Oregon…
The U.S. Judicial Panel on Multidistrict Litigation (JPML) recently heard argument on the Center for Food Safety’s motion to transfer to a multidistrict litigation (MDL) court pending lawsuits against Monsanto Co. involving the genetically modified (GM) wheat that appeared in an Oregon farmer’s conventional wheat field and briefly disrupted exports to some of the nation’s trading partners. In re Monsanto Co. Genetically Engineered Wheat Litig., MDL No. 2473 (J.P.M.L., motion argued September 26, 2013). The center requested that suits filed in Idaho, Kansas, Oregon, and Washington be transferred to the Eastern District of Washington. Additional details about the Kansas litigation appear in Issue 486 of this Update.
A former employee of an Olathe, Kansas, waffle venue has brought a collective action against his employer alleging that it reported inaccurate tip earnings so that it would appear that his total earnings were compliant with the federal minimum wage. Spears v. Mid America Waffle House, Inc., No. 11-2273 (D. Kan., filed May 2010). Jared Spears, who was paid an hourly wage of $2.13 plus tips, contends that when he complained about the issue, he was given fewer hours to work and his wage “was further reduced by a mandatory meal credit that was deducted from his compensation whether he ate a meal or not.” He claims damages in excess of $75,000 and seeks injunctive and declaratory relief.
A coalition of food wholesalers and retailers has filed an antitrust lawsuit in a Kansas state court against egg producers and industry trade groups alleging that, by reducing the number of hens, increasing egg exports and decreasing hen lifecycles, the defendants conspired to manipulate egg prices, which have more than doubled in recent years. Associated Wholesale Grocers, Inc. v. United Egg Producers, No. 10 2181 (Kan. Dist. Ct., Wyandotte Cty., filed December 23, 2010). Similar class-action lawsuits nationwide were consolidated in multidistrict litigation (MDL) proceedings in a Pennsylvania federal court; the Kansas plaintiffs apparently opted out of class to file their own claims. The petition, alleging violations of the Kansas Restraint of Trade Act, discusses the U.S. Department of Justice investigation into industry practices and relies on some documents produced during the MDL proceedings. Several settlements have apparently been reached in the MDL, and one of the defendants apparently agreed to…
A Kansas resident has filed a putative class action in state court against POM Wonderful, LLC, alleging that the company’s claims that its pomegranate products have special health benefits are false, deceptive and misleading. Haynes v. POM Wonderful, LLC, No. CV08720 (Kan. Dist. Ct., Johnson Cty., filed September 29, 2010). Seeking to certify a statewide class of consumers, the plaintiff refers to actions that advertising watchdogs and government agencies have taken against the company, including the recent Federal Trade Commission administrative complaint, after purportedly determining that the company does not have a sufficient scientific basis to make health-related representations about its products. The plaintiff alleges violations of the Kansas Consumer Protection Act and unjust enrichment and seeks damages in excess of $25,000, attorney’s fees and costs.
A federal court in Kansas has dismissed a putative class action filed against Applebee’s International, Inc. and Weight Watchers International, Inc., finding that the claims raised under the Racketeer Influenced and Corrupt Organizations Act (RICO) were not sufficiently alleged. Shepard v. Applebee’s Int’l, Inc., No. 08-2416 (D. Kan., decided April 7, 2010). Details about the litigation, filed by a different named plaintiff, appear in issue 274 of this Update. The complaint alleged that the companies misrepresent the fat and calorie information in the dishes on the restaurateur’s “healthy” Weight Watchers® menu. The court had previously dismissed the plaintiffs’ state law claims as preempted by the Nutrition Labeling and Education Act, and sustained in part a motion to dismiss their RICO claims. Thereafter, defendants filed a motion for judgment on the pleadings as to the remaining RICO claim, arguing that the plaintiffs failed to allege “racketeering activity” because they did not…
Facing budget shortfalls in the upcoming fiscal year, several state and city legislatures are reportedly considering a tax on sugar-sweetened beverages. Kansas Senator John Vratil (R-Leawood) this week proposed a bill (S.B. 567) that would tax such products, including energy and sports drinks, at the rate of one penny per teaspoon of sugar. According to its proponents, the measure would add a dime to the cost of a typical 12-ounce soft drink and raise approximately $90 million per year. “The thinking is No. 1, we need money,” Vratil was quoted as saying. “But perhaps just as importantly, obesity is a real, growing problem.” See The Kansas City Star, March 9, 2010. In addition, Philadelphia Mayor Michael Nutter has introduced a FY 2010-11 budget that includes a 2-cent-per-ounce tax on the distribution of sugary drinks. Media sources have apparently likened the measure to current excise taxes or the 10 percent “liquor-by-the-drink” tax.…
The Institute for Responsible Technology (IRT) has urged Governor Kathleen Sebelius (D-Kansas) to veto a bill passed by the Kansas Legislature on April 3, 2009, that restricts U.S. dairies from labeling their milk products free from genetically engineered bovine growth hormone (rbGH or rbST). Sebelius, who is vying to become the new U.S. Secretary of Health and Human Services, has until April 16 to veto the bill. According to the consumer advocacy group, which claims milk from hormone-treated cows can cause cancer, companies such as Wal-Mart, Starbucks and Dannon, and more than half of the nation’s top 100 dairies have committed to stop using rbGH in some or all of their products. The Kansas legislation would require all manufacturers that sell rbGH-free products in the state, including national brands, to add a large disclaimer on their packages stating that the hormone does not change the quality of the milk. See…
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