Albion Ranch 2006, L.L.C. v. Zoetis Inc.

CourtDistrict Court, D. Idaho
DecidedSeptember 29, 2023
Docket4:22-cv-00530
StatusUnknown

This text of Albion Ranch 2006, L.L.C. v. Zoetis Inc. (Albion Ranch 2006, L.L.C. v. Zoetis Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Albion Ranch 2006, L.L.C. v. Zoetis Inc., (D. Idaho 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF IDAHO

ALBION RANCH 2006, LLC, an Idaho limited liability company, Case No. 1:22-cv-00530-BLW

Plaintiff, MEMORANDUM DECISION AND ORDER v.

ZOETIS INC., a Delaware corporation; and ZOETIS US LLC, a Delaware limited liability company,

Defendants.

INTRODUCTION Before the Court is Defendants Zoetis Inc. and Zoetis US LLC’s (collectively “Zoetis”) motion to dismiss (Dkt. 2). The Court held oral argument on May 11, 2023, and now issues its decision. For the reasons explained below, the Court will grant the motion, but with leave to amend. BACKGROUND This case involves the unfortunate circumstances of the loss of a significant number of calves, which Albion alleges was caused by the vaccination of its pregnant heifers with a vaccine manufactured by Zoetis and approved by the United States Department of Agriculture (USDA). Specifically, Albion alleges that on November 15, 2019, it vaccinated its herd of 214 pregnant first-calf heifers with Bovine Rhinotracheitis-Virus Diarrhea-Parainfluenza 3-Respiratory Syncytial

Virus Vaccine (“Bovi-Shield”) it purchased from a company located in Burley, Idaho. Plf.’s Resps. at 2, Dkt. 14. Bovi-Shield is one variety of a USDA-approved vaccine that Zoetis develops, manufactures, and sells. See Def.’s Br. at 1, Dkt. 3.

In late December 2019, Albion alleges it first discovered an aborted calve in its pasture. Plf.’s Resps. at 2, Dkt. 14. The following day, Albion discovered 15 additional aborted calves. Albion alleges that after deciding to send two of the aborted calves off to obtain diagnostic testing and autopsies, it received the results

of the autopsies confirming that a single nucleotide polymorphism analysis affirmatively identified Zoetis’s virus technology of Bovi-Shield in the aborted calves. Id.

On December 6, 2022, Albion filed suit against Zoetis in the Fifth Judicial District of the State of Idaho, raising five causes of action: (1) Breach of Express Warranty; (2) Breach of Implied Warranties; (3) Breach of Contract; (4) Joint and Several Liability; and (5) Negligence. See Compl., Dkt. 1-1. Zoetis then timely

removed this matter to federal court based on diversity jurisdiction. See Notice of Removal, Dkt. 1. Following removal, Zoetis filed a motion to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(6). See Def.’s Br. at 1, Dkt. 2-1. Zoetis argues that the preemption doctrine precludes the entirety of Albion’s claims, that

Albion’s claims for negligence and “joint and several liability” are barred by the economic loss doctrine, and that it cannot be liable for Albion’s misuse of the vaccine. See id. After setting forth the legal standard governing Zoetis’s motion,

the Court will address each argument in turn. LEGAL STANDARD Federal Rule of Civil Procedure 8(a)(2) requires only “a short and plain statement of the claim showing that the pleader is entitled to relief,” in order to

“give the defendant fair notice of what the . . . claim is and the grounds upon which it rests.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007). While a complaint attacked by a Rule 12(b)(6) motion to dismiss “does not need detailed factual allegations,” it must set forth “more than labels and conclusions, and a

formulaic recitation of the elements of a cause of action will not do.” Id. at 555. To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to “state a claim to relief that is plausible on its face.” Id. at 570.

A claim has facial plausibility when the plaintiff pleads factual content that allows the court to reasonably infer that the defendant is liable for the alleged misconduct. Id. at 556. The plausibility standard is not akin to a “probability requirement,” but it asks for more than a sheer possibility that a defendant has acted unlawfully. Id. Where a complaint pleads facts that are “merely consistent with” a defendant’s

liability, it “stops short of the line between possibility and plausibility of ‘entitlement to relief.’” Id. at 557. The Supreme Court identified two “working principles” that underlie

Twombly in Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). First, the court need not accept as true, legal conclusions that are couched as factual allegations. Id. Rule 8 does not “unlock the doors of discovery for a plaintiff armed with nothing more than conclusions.” Id. at 678–79. Second, to survive a motion to dismiss, a

complaint must state a plausible claim for relief. Id. at 679. “Determining whether a complaint states a plausible claim for relief will . . . be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.”

Id. The Ninth Circuit has held that “in dismissals for failure to state a claim, a district court should grant leave to amend even if no request to amend the pleading was made, unless it determines that the pleading could not possibly be cured by the

allegation of other facts.” Cook, Perkiss and Liehe, Inc. v. N. California Collection Serv. Inc., 911 F.2d 242, 247 (9th Cir. 1990). ANALYSIS 1. Federal Preemption The crux of Zoetis’s motion to dismiss is that Albion’s state law claims are preempted by the Viruses, Serums, Toxins, and Analogous Products Act (“VSTA”)

and the Animal and Plant Health Inspection Service’s (“APHIS”) promulgation of regulations. As discussed below, the Court agrees. A. Preemption framework The Supremacy Clause of the Constitution of the United States dictates that

federal law is “the supreme Law of the land.” U.S. Const. art. VI, cl. 2. Accordingly, state law is preempted when it conflicts with federal law. “Preemption of state law, by operation of the Supremacy Clause, can occur in one

of several ways: express, field, or conflict preemption.” Cohen v. Apple Inc., 46 F.4th 1012, 1027 (9th Cir. 2022), cert. denied, 143 S. Ct. 2513 (2023) (citations omitted). Express preemption “arises when the text of a federal statute explicitly

manifests Congress’s intent to displace state law.” Valle del Sol Inc. v. Whiting, 732 F.3d 1006, 1022 (9th Cir. 2013) (quoting United States v. Alabama, 691 F.3d 1269, 1281 (11th Cir.2012). Field and conflict preemption, however, are types of implied preemption. Ass’n des Éleveurs de Canards et d’Oies du Quebec v. Bonta,

33 F.4th 1107, 1114 (9th Cir. 2022). “Field preemption prohibits state regulation of conduct in a field that Congress, acting within its proper authority, has determined must be regulated by its exclusive governance.” Id. (internal quotations and citations omitted). Conflict preemption occurs when it is impossible to comply

with both state and federal requirements or when “state law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” MetroPCS California, LLC v. Picker, 970 F.3d 1106, 1117-18 (9th Cir.

2020) (quoting Williamson v. Gen. Dynamics Corp., 208 F.3d 1144, 1149 (9th Cir. 2000)). It is well settled that “[s]tate law can be preempted by constitutional text, by federal statute, or by a federal regulation.” MetroPCS, 970 F.3d at 1117 (citing

Fid. Fed. Sav. & Loan Ass’n v.

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