Anderson v. Hain Celestial Group, Inc.

87 F. Supp. 3d 1226, 2015 U.S. Dist. LEXIS 46708, 2015 WL 1744279
CourtDistrict Court, N.D. California
DecidedApril 8, 2015
DocketCase No. 5:14-cv-03895-EJD
StatusPublished
Cited by5 cases

This text of 87 F. Supp. 3d 1226 (Anderson v. Hain Celestial Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Hain Celestial Group, Inc., 87 F. Supp. 3d 1226, 2015 U.S. Dist. LEXIS 46708, 2015 WL 1744279 (N.D. Cal. 2015).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS

Re: Dkt. No. 41

EDWARD J. DAVILA, District Judge

Plaintiff Barbara Anderson (“Plaintiff’) bought one of Defendant The Hain Celes[1230]*1230tial Group, Inc.’s (“Defendant”) products because she thought, based on the front label, that it was “all natural.” It apparently was not. She now brings this purported class action asserting violations of California’s consumer protection statutes. See Docket Item No. 41. Defendant moves to dismiss the First Amended Complaint (“FAC”) under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). Plaintiff opposes the motion.

Federal jurisdiction arises pursuant to § 1332(d)(2). The court found this matter suitable for decision without oral argument pursuant to Civil Local Rule 7-l(b) and vacated the associated hearing. Having carefully considered the parties’ pleadings, the court has determined that this motion only partially succeeds. Thus, it will be granted in part and denied in part for the reasons explained below.

I. BACKGROUND

On an unspecified date in 2013, Plaintiff purchased one of Defendant’s products, Sunflower Dream Sunflower Drink Unsweetened (Original) (“Sunflower Dream Drink”). See FAC, Docket Item No. 38, at ¶ 15. The Sunflower Dream Drink’s front packaging label includes the statement “All Natural.” According to Plaintiff, she purchased the product in reliance on the statement. Id. at ¶¶ 17, 37.

However, on another unspecified date, Plaintiff somehow discovered that Defendant “unlawfully misbranded and falsely, misleadingly and deceptively” represented in marketing and labeling that the Sunflower Dream Drink was “all natural” when, in fact, it contains “the following artificial or synthetic ingredients: Tricalci-um Phosphate, Xanthan Gum, Vitamin A Palmitate, Folic Acid, and Vitamins D2.” Id. at ¶ 19. Since the list of these ingredients appears on the side of the package and in a font much smaller than the “All Natural” statement, Plaintiff believes the label is misleading to reasonable consumers who “do not have the specialized knowledge necessary to identify ingredients ... as being inconsistent with the ‘All Natural’ claims.” Id. at ¶¶ 20-21. To that end, Plaintiff alleges that a reasonable consumer “would expect that a product labeled ‘All Natural’ does not contain any artificial, synthetic or extensively processed ingredients.” Id. at ¶ 23.

As a result of the misbranding, Plaintiff alleges consumers like her who purchased the Sunflower Dream Drink and other “substantially similar Hain Celestial Products” 1 did not receive the benefits of their bargains. Id. at ¶42. She commenced this action in the Central District of California on November 5, 2013. The case was transferred to this court on August 28, 2014, and eventually assigned to the undersigned.

After Defendant moved to dismiss the original complaint, Plaintiff filed the FAC on November 24, 2014. She seeks to represent a class of “[a]ll persons in the United States who, after November 4, 2009, purchased any of the Hain Celestial Products which was labeled ‘All Natural.’ ” Plaintiff asserts the following causes- of action: (1) violation of the Unfair Competition Law (“UCL”), California Business and Professions Code § 17200 et seq., (2) violation of the False Advertising Law [1231]*1231(“FAL”), California Business and Professions Code § 17500 et seq., (3) and violation of the Consumer Legal Remedies Act (“CLRA”), California Civil Code § 1750 et seq.

II. LEGAL STANDARD

A. Federal Rule of Civil Procedure 12(b)(1)

A Rule 12(b)(1) motion challenges subject matter jurisdiction and may be either facial or factual. Wolfe v. Strankman, 392 F.3d 358, 362 (9th Cir.2004). A facial 12(b)(1) motion involves an inquiry confined to the allegations in the complaint, whereas a factual 12(b)(1) motion permits the court to look beyond the complaint to extrinsic evidence. Id. When, as here, a defendant makes a facial challenge, all material allegations in the complaint are assumed true, and the court must determine whether lack of federal jurisdiction appears from the face of the complaint itself. Thornhill Publ’g Co. v. General Tel. Elec., 594 F.2d 730, 733 (9th Cir.1979). “A party invoking the federal court’s jurisdiction has the burden of proving the actual existence of subject matter jurisdiction.” Thompson v. McCombe, 99 F.3d 352, 353 (9th Cir.1996).

B. Federal Rule of Civil Procedure 12(b)(6)

Federal Rule of Civil Procedure 8(a) requires a plaintiff to plead each claim with sufficient specificity to “give the defendant fair notice of what the ... claim is and the grounds upon which it rests.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (internal quotations omitted). A complaint which falls short of the Rule 8(a) standard may be dismissed if it fails to state a claim upon which relief can be granted. Fed. R.Civ.P. 12(b)(6). “Dismissal under Rule 12(b)(6) is appropriate only where the complaint lacks a cognizable legal theory or sufficient facts to support a cognizable legal theory.” Mendiondo v. Centinela Hosp. Med. Ctr., 521 F.3d 1097, 1104 (9th Cir.2008). Moreover, the factual allegations “must be enough to raise a right to relief above the speculative level” such that the claim “is plausible on its face.” Twombly, 550 U.S. at 556-57, 127 S.Ct. 1955.

Claims that sound in fraud are subject to a heightened pleading standard. Fed. R. Civ. Proc. 9(b) (“In alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake.”); Swartz v. KPMG LLP, 476 F.3d 756, 765 (9th Cir.2007) (“Rule 9(b) imposes heightened pleading requirements where ‘the object of the conspiracy is fraudulent.’ ”). The allegations must be “specific enough to give defendants notice of the particular misconduct which is alleged to constitute the fraud charged so that they can defend against the charge and not just deny that they have done anything wrong.” Semegen v. Weidner, 780 F.2d 727, 731 (9th Cir.1985). This generally requires “an account of the time, place, and specific content of the false representations as well as the identities of the parties to the misrepresentations.” Swartz, 476 F.3d at 764.

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Bluebook (online)
87 F. Supp. 3d 1226, 2015 U.S. Dist. LEXIS 46708, 2015 WL 1744279, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-hain-celestial-group-inc-cand-2015.