Beasley v. Lucky Stores, Inc.

CourtDistrict Court, N.D. California
DecidedJanuary 24, 2020
Docket3:18-cv-07144
StatusUnknown

This text of Beasley v. Lucky Stores, Inc. (Beasley v. Lucky Stores, 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
Beasley v. Lucky Stores, Inc., (N.D. Cal. 2020).

Opinion

1 2 3 IN THE UNITED STATES DISTRICT COURT 4 FOR THE NORTHERN DISTRICT OF CALIFORNIA 5 6 MARK BEASLEY, Case No. 18-cv-07144-MMC

7 Plaintiff, ORDER DENYING DEFENDANTS' 8 v. MOTION TO DISMISS

9 LUCKY STORES, INC., et al., 10 Defendants.

11 Before the Court is defendants’ Motion, filed October 25, 2019, to Dismiss 12 Plaintiff’s Second Amended Complaint. Plaintiff Mark Beasley (“Beasley”) has filed 13 opposition, to which defendants have replied. Having read and considered the papers 14 filed in support of and in opposition to the motion, the Court rules as follows.1 15 BACKGROUND 16 The instant case is a putative class action lawsuit brought by Beasley, a California 17 citizen, as a purchaser and consumer of Coffee-mate, a line of coffee-creamer products. 18 Beasley alleges defendant Nestlé USA, Inc. (“Nestlé”) “manufactures, markets, and sells” 19 Coffee-mate. (See Second Am. Compl. (“SAC”), filed October 4, 2019, ¶ 3.) He also 20 alleges that four retailers, namely, defendants Lucky Stores, Inc. (“Lucky”), Save Mart 21 Super Markets (“Save Mart”), Save Mart Companies, Inc. (“SMCI”), and The Kroger 22 Company (“Kroger”), “sold Coffee-mate at their grocery stores throughout California” (see 23 id. ¶ 4) and that, during the class period, he purchased Coffee-mate from grocery stores 24 owned by said retailers. 25 According to Beasley, all flavors of Coffee-mate, other than the “‘Natural Bliss’ 26 line” (see id. ¶ 78), contained, during the class period, an “[a]rtificial” form of trans fat (see 27 1 id. ¶ 18) and “unsafe food additive” (see id. ¶ 3), specifically, partially hydrogenated oil 2 (“PHO”), and during the class period, Coffee-mate’s labels bore “unauthorized nutrient 3 content claims” (see id. ¶ 81), namely, “0g Trans Fat” and/or “IT’S GOOD TO KNOW: 0g 4 TRANS FAT/SERV” (see id. ¶ 78; see also id. ¶¶ 6, 81), which language, Beasley 5 alleges, “was part of an intentional, long-term campaign to deceptively market Coffee- 6 mate as healthful and free of trans fat” (see id. ¶ 79). 7 Based on the above allegations, Beasley, on October 29, 2018, filed his initial 8 complaint in the Superior Court of California, in and for the County of San Francisco. 9 On November 26, 2018, defendants removed the case to federal court. 10 On December 19, 2018, Beasley filed his First Amended Complaint (“FAC”), in 11 which he challenged defendants’ manufacture and distribution of Coffee-mate, on the 12 basis that (1) it contains PHO (“use claims”) and (2) it was falsely labeled with “0g Trans 13 Fat” statements (“labeling claims”). 14 By order filed September 16, 2019, the Court dismissed the use claims with 15 prejudice, finding those claims barred by the doctrine of conflict preemption, and 16 dismissed the labeling claims with leave to amend, finding the allegations in support 17 thereof deficient on a number of grounds. 18 On October 4, 2019, Beasley filed the SAC, in which he asserts the following four 19 Causes of Action: (1) “Unfair Competition Law [Cal.] Bus. & Prof. Code §§ 17200 et seq.,” 20 (2) “California False Advertising Law, [Cal.] Bus. & Prof. Code §§ 17500 et seq.,” (3) 21 “Breach of Express Warranty,” and (4) “California Consumer Legal Remedies Act, Cal. 22 Civ. Code §§ 1750 et seq.”2 Beasley brings these claims both individually and on behalf 23 of the following putative class: “[a]ll citizens of California who purchased in California, 24 between January 1, 2010 and December 31, 2014, Coffee-mate containing the nutrient 25 content claim “0g Trans Fat” and containing partially hydrogenated oil.” (See id. ¶ 119.) 26

27 2 The First, Second, and Fourth Causes of Action are brought against all 1 LEGAL STANDARD 2 Dismissal under Rule 12(b)(6) of the Federal Rules of Civil Procedure “can be 3 based on the lack of a cognizable legal theory or the absence of sufficient facts alleged 4 under a cognizable legal theory.” See Balistreri v. Pacifica Police Dep't, 901 F.2d 696, 5 699 (9th Cir. 1990). Rule 8(a)(2), however, “requires only ‘a short and plain statement of 6 the claim showing that the pleader is entitled to relief.’” See Bell Atlantic Corp. v. 7 Twombly, 550 U.S. 544, 555 (2007) (quoting Fed. R. Civ. P. 8(a)(2)). Consequently, “a 8 complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual 9 allegations.” See id. Nonetheless, “a plaintiff's obligation to provide the grounds of his 10 entitlement to relief requires more than labels and conclusions, and a formulaic recitation 11 of the elements of a cause of action will not do.” See id. (internal quotation, citation, and 12 alteration omitted). 13 In analyzing a motion to dismiss, a district court must accept as true all material 14 allegations in the complaint, and construe them in the light most favorable to the 15 nonmoving party. See NL Indus., Inc. v. Kaplan, 792 F.2d 896, 898 (9th Cir. 1986). “To 16 survive a motion to dismiss, a complaint must contain sufficient factual material, accepted 17 as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 18 662, 678 (2009) (quoting Twombly, 550 U.S. at 570). “Factual allegations must be 19 enough to raise a right to relief above the speculative level[.]” Twombly, 550 U.S. at 555. 20 Courts "are not bound to accept as true a legal conclusion couched as a factual 21 allegation." See Iqbal, 556 U.S. at 678 (internal quotation and citation omitted). 22 DISCUSSION 23 By the instant motion, defendants argue that (1) Beasley has failed to adequately 24 allege statutory standing to bring his Unfair Competition Law (“UCL”), False Advertising 25 Law (“FAL”), and Consumer Legal Remedies Act (“CLRA”) claims; (2) each of Beasley’s 26 claims is time-barred; and (3) none of Beasley’s claims meets the heightened pleading 27 requirements for fraud under Rule 9(b) of the Federal Rules of Civil Procedure. 1 A. Standing: Reliance Element 2 In the Court’s order dismissing the FAC (hereinafter, “September 16 Order”), the 3 Court found the FAC failed to adequately allege Beasley’s reliance on the “0g Trans Fat” 4 label and, consequently, Beasley lacked statutory standing to bring his UCL and FAL 5 claims. By the instant motion, defendants challenge, on that ground, Beasley’s statutory 6 standing to bring his UCL and FAL claims, as well as his CLRA claim. 7 To have standing to pursue a claim under the UCL, FAL, or CLRA, a party must: 8 “(1) establish a loss or deprivation of money or property sufficient to qualify as injury in 9 fact, i.e., economic injury[;] and (2) show that that economic injury was the result of, i.e., 10 caused by, the unfair business practice or false advertising that is the gravamen of the 11 claim.” See Kwikset Corp. v. Sup. Ct., 51 Cal. 4th 310, 322 (2011) (emphasis omitted); 12 Reid v. Johnson & Johnson, 780 F.3d 952, 958 (9th Cir. 2015). With respect to the 13 second element,3 a plaintiff “proceeding on a claim of misrepresentation . . . must 14 demonstrate actual reliance on the allegedly deceptive or misleading statements.” 15 Kwikset Corp., 51 Cal.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Bartlett v. Strickland
556 U.S. 1 (Supreme Court, 2009)
Cafasso v. General Dynamics C4 Systems, Inc.
637 F.3d 1047 (Ninth Circuit, 2011)
Nl Industries, Inc. v. Stuart M. Kaplan
792 F.2d 896 (Ninth Circuit, 1986)
Bernson v. Browning-Ferris Industries of California, Inc.
873 P.2d 613 (California Supreme Court, 1994)
People v. Nance
1 Cal. App. 4th 1453 (California Court of Appeal, 1991)
Unruh-Haxton v. Regents of University of California
76 Cal. Rptr. 3d 146 (California Court of Appeal, 2008)
MARK K. v. Roman Catholic Archbishop
79 Cal. Rptr. 2d 73 (California Court of Appeal, 1998)
Fox v. Ethicon Endo-Surgery, Inc.
110 P.3d 914 (California Supreme Court, 2005)
Guerrero v. Gates
442 F.3d 697 (Ninth Circuit, 2006)
Clemens v. DaimlerChrysler Corp.
530 F.3d 852 (Ninth Circuit, 2008)
China Agritech, Inc. v. Resh
584 U.S. 732 (Supreme Court, 2018)
Shavonda Hawkins v. the Kroger Co.
906 F.3d 763 (Ninth Circuit, 2018)
Kwikset Corp. v. Superior Court
246 P.3d 877 (California Supreme Court, 2011)
Minor v. Fedex Office & Print Services, Inc.
182 F. Supp. 3d 966 (N.D. California, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
Beasley v. Lucky Stores, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/beasley-v-lucky-stores-inc-cand-2020.