Bates v. General Nutrition Centers, Inc.

897 F. Supp. 2d 1000, 2012 U.S. Dist. LEXIS 149306, 2012 WL 4857550
CourtDistrict Court, C.D. California
DecidedOctober 12, 2012
DocketCase No. 2:12-cv-1336-ODW(AJWx)
StatusPublished
Cited by7 cases

This text of 897 F. Supp. 2d 1000 (Bates v. General Nutrition Centers, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bates v. General Nutrition Centers, Inc., 897 F. Supp. 2d 1000, 2012 U.S. Dist. LEXIS 149306, 2012 WL 4857550 (C.D. Cal. 2012).

Opinion

ORDER RE MOTION TO DISMISS [36]

OTIS D. WRIGHT, II, District Judge.

Pending before the Court is Defendants’ Motion To Dismiss. (ECF No. 36.) Defendants’ Motion is GRANTED-IN-PART.1 Further, upon sua sponte review [1002]*1002of Plaintiffs Complaint, the Court finds that it lacks subject-matter jurisdiction and must dismiss the case. Fed.R.Civ.P. 12(h)(3).

Federal courts are courts of limited jurisdiction, having subject-matter jurisdiction only over matters authorized by the Constitution and Congress. See, e.g., Rokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994). Subject-matter jurisdiction exists in civil cases involving a federal question or diversity of citizenship. 28 U.S.C. §§ 1331, 1332.

A. Federal-question jurisdiction: the Magnuson-Moss Warranty Act

The presence or absence of federal-question jurisdiction is governed by the “well-pleaded complaint rule,” which provides that federal jurisdiction exists only when a federal question is presented on the face of a plaintiffs properly pleaded complaint. Caterpillar, Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). A case may not be removed to federal court on the basis of a federal defense. Hunter v. Philip Morris USA, 582 F.3d 1039, 1042-43 (9th Cir.2009).

For federal-question jurisdiction, Plaintiff brings one claim under the MagnusonMoss Warranty Act, alleging that Defendants breached their written warranties by stating that Defendants’ C-4 Extreme dietary supplement contains DMAA and claimed it as a component of geranium. (CAC ¶¶ 102-103.) Defendants argue in their Motion that the Magnuson-Moss Warranty Act claim is inapplicable here. (Mot. 22.)

The Magnuson-Moss Warranty Act applies to written warranties on consumer products. 15 U.S.C. §§ 2301-2312. But the Magnuson-Moss Warranty Act is limited, because it is “inapplicable to any written warranty the making or content of which is otherwise governed by Federal law.” 15 U.S.C. § 2311(d).

Defendants are correct that the Magnuson-Moss Warranty Act claim should be dismissed because the Food, Drug, and Cosmetic Act governs written warranties on the labeling of dietary supplements. (Mot. 22.) Other courts have followed the same language from the Magnuson-Moss Warranty Act and dismissed such claims relating to the labeling of products that the Food, Drug, and Cosmetic Act regulates. Ranter v. Warner-Lambert Co., 99 Cal.App.4th 780, 797, 122 Cal.Rptr.2d 72 (2002) (finding the Magnuson-Moss Warranty Act inapplicable because the Food, Drug, and Cosmetic Act governs the labeling of drugs); Hairston v. South Beach Beverage Co., No. CV 12-1429-JFW (DTBx), 2012 WL 1893818, *5 (C.D.Cal. May 18, 2012) (dismissing the Magnuson-Moss Warranty Act claim because the Food, Drug, and Cosmetic Act regulates the labeling of beverages).

This case deals with the labeling of Defendants’ C-4 Extreme dietary supplement. It matters not whether C-4 Extreme should be classified as a food, dietary supplement, or drug — the Food, Drug, and Cosmetic Act labeling regulations apply for all three classifications. 21 U.S.C. § 343. Thus, Plaintiff cannot state a claim for under the MagnusonMoss Warranty Act. Accordingly, Defendants’ Motion as to this claim is GRANTED.

B. Diversity jurisdiction

Diversity jurisdiction exists for all suits, including class-action suits, where “the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs,” and is between parties with [1003]*1003diverse citizenship. 28 U.S.C. § 1332(a). But multiple plaintiffs may not aggregate their claims against defendants — to reach the $75,000 threshold — unless they have a single title or right in a common and undivided interest. Gibson v. Chrysler Corp., 261 F.3d 927, 943-44 (9th Cir.2001).

Alternatively, plaintiffs may establish diversity jurisdiction under the Class Action Fairness Act (“CAFA”). Under CAFA, diversity jurisdiction exists in “mass action” suits so long as the following requirements are met: (1) 100 or more plaintiffs; (2) common questions of law or fact between plaintiffs’ claims; (3) minimal diversity, where at least one plaintiff is diverse from one defendant; (4) aggregated claims in excess of $5 million; and (5) at least one plaintiffs claim exceeding $75,000. 28 U.S.C. § 1332(d); Abrego v. Dow Chem. Co., 443 F.3d 676, 689 (9th Cir.2006).

In this class action, Plaintiff properly alleges complete diversity under § 1332(a), but fails to allege that the amount in controversy (per class member) exceeds $75,000.2 Plaintiff states that the aggregate amount in controversy “exceeds $5,000,000.” (FAC ¶ 5.) But this does not suffice — class members still must show that their individual claims exceed $75,000. Gibson, 261 F.3d at 943-44. In situations like this where plaintiffs do not state specific, individual amounts in damages, the Court determines under the preponderance-of-evidence standard whether the jurisdictional amount is satisfied. Lowdermilk v. U.S. Bank Nat’l Assoc., 479 F.3d 994, 998 (9th Cir.2007).

Examining the Complaint, the Court finds no evidence suggesting that any class member would be entitled to more than $75,000 in damages. This class-action suit is for deceptive business and marketing practices against Defendants in connection with their C-4 Extreme dietary supplement. Defendants sold C-4 Extreme in 30-dose bottles for $29.99. (CAC ¶ 25.) The Complaint fails to state — rightly so — that Plaintiff (or class members) have individually suffered damages in excess of $75,000; the Court sees no reason how they could. Based on the sale price of C-4 Extreme and Plaintiffs allegations, the Court finds that no class member’s (including the Plaintiff) claim — not just under a preponderance, but with legal certainty — could possibly exceed $75,000. Accordingly, as a regular class-action suit, there is no diversity jurisdiction here under § 1332(a).

But Plaintiff also alleges that this is a CAFA mass action under § 1332(d), because it involves more than 100 plaintiffs and over $5 million in aggregated damages.

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Cite This Page — Counsel Stack

Bluebook (online)
897 F. Supp. 2d 1000, 2012 U.S. Dist. LEXIS 149306, 2012 WL 4857550, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bates-v-general-nutrition-centers-inc-cacd-2012.