Balistreri v. McCormick & Company, Inc.

District Court, N.D. California·Decided September 13, 2023·No. 5:22-cv-00349·Unknown

Opinion

KELLY BALISTRERI, et al., Case No. 5:22-cv-00349-EJD

Plaintiffs, ORDER GRANTING MOTION TO DISMISS v.

MCCORMICK & COMPANY, INC., Re: Dkt. No. 32 Defendant.

Plaintiffs Kelly Balistreri, Tony Michel, Tam Dang, Lance Snead, Frank Ortega, Hollie Pour, and Jason Jordan (collectively “Plaintiffs”), individually and on behalf of all others similarly situated, initiated this suit against Defendant McCormick & Company, Inc., (“McCormick” or “Defendant”) seeking damages and injunctive relief for McCormick’s alleged continuing misrepresentations and failure to disclose to consumers that certain McCormick herbs and spices (“Products”) contained lead, arsenic, and cadmium (“Heavy Metals”). McCormick filed a motion to dismiss under Rule 12(b)(1) for lack of jurisdiction and Rule 12(b)(6) for failure to state a claim. Plaintiffs filed an Opposition, and McCormick filed a Reply. Having carefully reviewed the relevant documents, the Court finds this matter suitable for decision without oral argument pursuant to Civil Local Rule 7-1(b). For the reasons explained below, the Court GRANTS Defendants’ motion to dismiss under Rule 12(b)(6) with leave to amend. A. Parties Plaintiffs are seven individuals who purchased McCormick spices in the past four years. Am. Compl. (“Compl.”) ¶¶ 5–18, ECF 28. Plaintiffs reside in California and Washington. Id. Plaintiffs bring this action individually and on behalf of all other persons similarly situated pursuant to Federal Rule of Civil Procedure 23. Id. ¶ 77. Plaintiffs seek class certification for the following proposed class: “All persons within the United States who purchased the Products from the beginning of any applicable limitations period through the date of judgment.” Id. ¶. Plaintiffs also bring this action on behalf of the following state subclasses: “[a]ll persons who purchased the Products in the State of Washington from the beginning of any applicable limitations period through judgment” (“Washington Subclass”); and “[a]ll persons who purchased the Products in the State of California from the beginning of any applicable limitations period through judgment” (“California Subclass”). Id. ¶ 78. Defendant McCormick & Company, Inc., is a foreign corporation with its headquarters in Hunt Valley, Maryland. Id. ¶ 19. McCormick manufactures, markets, and sells herbs and spices, including the Products, throughout California, Washington State, and the United States. Id. B. Factual Background Prior to purchasing the Products, Plaintiffs allege that they saw and relied on the packaging of the Products and believed they were purchasing quality and healthy spices that did not contain (or risk containing) unsafe toxic Heavy Metals. Am. Compl. ¶¶ 5–18. Specifically, the packaging of the Products stated: “The Taste You Can Trust.” Id. ¶ 66. In November 2021, Consumer Reports published an article stating that they found Heavy Metals in several brands’ herbs and spices, including McCormick’s Culinary Ground Basil, Ground Ginger, Ground Oregano, Paprika, Ground Thyme, and Ground Turmeric (collectively, the “Products”). Id. ¶ 2. The article labeled McCormick’s Products as having “Some Concern,” on a scale of “No Concern,” “Some Concern,” “Moderate Concern,” and “High Concern.” Def.’s Mot. Dismiss (“Mot. Dismiss”), Ex. 2 at 11–18, ECF 32-3. The article also states: “We tested two or three samples from different lots of each product. Our findings are a spot check of the market and cannot be used to draw definitive conclusions about brands.” Id. ¶ 2, n.1; Mot. Dismiss, Ex. 2 at 11. Had the Products’ labels disclosed they contained (or risk containing) Heavy Metals, Plaintiffs allege that they would not have purchased the Products. Id. ¶¶ 5–18. Plaintiffs continue to desire to purchase the Products from McCormick, but they are unable to determine if the Products are safe. Id. Plaintiffs allege that so long as the Products are marketed as safe, they will be unable to make informed decisions about whether to purchase McCormick’s Product. Id. Plaintiffs further allege that they “were harmed in the form of monies they paid for the Products which they would not otherwise have paid had they known the truth about the Products.” Id. ¶ 52. Plaintiffs allege eleven claims in their Complaint: multiple California’s Unfair Competition Law (“UCL”) violations, California’s False Advertising Law (“FAL”) violations, California’s Consumer Legal Remedies Act (“CLRA”) violations, breach of implied warranty of merchantability under the Song-Beverly Act, breach of implied warranty of merchantability under the Uniform Commercial Code (“UCC”), fraud, unjust enrichment, Washington Consumer Protection Act (“WCPA”) violations, and negligent failure to warn. Id. ¶¶ 89–188. Plaintiffs seek class certification, declaratory relief, injunctive relief, restitution, disgorgement, compensatory damages, and punitive damages. Id. ¶¶ 96, 104, 114, a–j. A. Rule 12(b)(1) A district court must dismiss an action if it lacks jurisdiction over the subject matter of the suit. Fed. Rules Civ. Pro. 12(b)(1). Once a defendant moves to dismiss for lack of subject matter jurisdiction, the plaintiff has the burden of establishing the court’s jurisdiction. Chandler v. State Farm Fut. Auto. Ins. Co., 598 F.3d 1115, 1122 (9th Cir. 2010). B. Rule 12(b)(6) A complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). A defendant may move to dismiss a complaint for failing to state a claim upon which relief can be granted under Rule 12(b)(6). When deciding whether to grant a motion to dismiss under Rule 12(b)(6), the court must generally accept as true all “well-pleaded factual allegations.” Ashcroft v. Iqbal, 556 U.S. 662, 664 (2009). While a plaintiff need not offer detailed factual allegations to meet this standard, she is required to offer “sufficient factual matter . . . ‘to state a claim to relief that is plausible on its face.’” Id. at 678 (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). The court must construe the alleged facts in the light most favorable to the plaintiff. See Retail Prop. Trust v. United Bd. of Carpenters & Joiners of Am., 768 F.3d 938, 945 (9th Cir. 2014) (“[The court] must accept as true all factual allegations in the complaint and draw all reasonable inferences in favor of the nonmoving party.”). However, “courts are not bound to accept as true a legal conclusion couched as a factual allegation.” Iqbal, 556 U.S. at 678. Claims sounding in fraud must also meet the heightened pleading requirements of Federal Rule of Civil Procedure 9(b). See Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1102–03 (9th Cir. 2003). Under Rule 9(b), a party “must state with particularity the circumstances constituting fraud.” Fed. R. Civ. P. 9(b). Typically, Rule 9(b) requires the party alleging fraud to plead “the who, what, when, where, and how” of the misconduct. Vess, 317 F.3d at 1106 (quoting Cooper v. Pickett, 137 F.3d 616, 627 (9th Cir. 1997)). If the court concludes that a 12(b)(6) motion should be granted, the “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

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