Bryan v. Del Monte Foods, Inc.

District Court, N.D. California·Decided July 25, 2023·No. 3:23-cv-00865·Unknown

Opinion

KERSTINE BRYAN, Case No. 23-cv-00865-MMC

Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART DEFENDANT’S MOTION TO DISMISS; AFFORDING DEL MONTE FOODS, INC., PLAINTIFF LEAVE TO AMEND Defendant. Re: Dkt. No. 21

Before the Court is defendant Del Monte Foods, Inc.’s (“Del Monte”) Motion, filed June 2, 2023, “to Dismiss Plaintiffs’ Complaint.” Plaintiff Kerstine Bryan (“Bryan”) has filed opposition, to which Del Monte has replied. Having read and considered the papers filed in support of and in opposition to the motion, the Court rules as follows.1 Del Monte is a Delaware corporation with a principal place of business in California. (See Class Action Compl. (“CAC”) ¶ 20, Dkt. No. 1.) Bryan, a “citizen of Oregon,” alleges she purchased, “at retailers throughout Oregon,” fruit cups manufactured by Del Monte, specifically, “Mango Chunks and Peach Chunks,” and that she did so in reliance on an assertedly false and misleading statement made on their respective front labels. (See CAC ¶ 20.)2 Specifically, Bryan alleges that in purchasing the fruit cups, she saw and relied on

1 By order filed July 14, 2023, the Court took the matter under submission. 2 Although the CAC also states Bryan’s purchases “took place in California” (see the phrase “fruit naturals,” with a bolded emphasis on “naturals” (see CAC ¶¶ 6, 42), which she understood to mean the products “contained only natural ingredients” (see CAC ¶ 44), when, in fact, they “contain[ed] multiple synthetic ingredients,” including citric acid, potassium sorbate, sodium benzoate, and methylcellulose gum (see CAC ¶¶ 49- 50). Bryan further alleges that other Del Monte products (hereinafter, together with Mango Chunks and Peach Chunks, the “Products”) include the same “fruit naturals” phrase on their front labels, despite containing the same synthetic ingredients. (See CAC ¶¶ 1 n.1, 42, 50.) Based on said allegations, Bryan, on her own behalf and on behalf of three putative classes, asserts the following five claims for relief: (1) “Violation of California’s Unfair Competition Law (‘UCL’), Cal. Bus. & Prof. Code § 17200, et seq.” (Count I);3 (2) “Violation of The False Advertising Law (‘FAL’), Cal. Bus. & Prof. Code § 17500, et seq.” (Count II);4 (3) “Violation of Oregon’s Unlawful Trade Practices Act (‘UTPA’)” (Count III);5 (4) “Unjust Enrichment” (Count IV);6 and (5) “Violation of State Consumer Protection Statutes (Count V).”7 //

3 Bryan asserts the UCL claim on her own behalf and on behalf of a “Nationwide Class” comprised of “[a]ll persons who purchased [Del Monte’s] Products within the United States and within the applicable statute of limitations period.” (See CAC ¶¶ 69c, 79.) 4 Bryan asserts the FAL claim on her own behalf and on behalf of the Nationwide Class. (See CAC ¶ 88.) 5 Bryan asserts the UTPA claim on her own behalf and on behalf of an “Oregon Class” comprised of “[a]ll persons who purchased [Del Monte’s] Products within the State of Oregon and within the applicable statute of limitations period.” (See CAC ¶¶ 69b, 98.) 6 Bryan asserts the Unjust Enrichment claim on her own behalf and on behalf of three classes, namely, the Nationwide Class, Oregon Class, and a “Multi-State Consumer Class” comprised of “[a]ll persons in the States of California, Florida, Illinois, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, Pennsylvania, Oregon, and Washington who purchased the Products.” (See CAC ¶¶ 69a, 111.) 7 Bryan asserts the Consumer Protection Statutes claim on her own behalf and on By the instant motion, Del Monte seeks an order dismissing the above-titled action under Rule 12(b)(1) of the Federal Rules of Civil Procedure for lack of Article III standing, and/or under Rule 12(b)(6) for failure to state a claim. The Court turns first to the question of standing. A. Article III Standing 1. Legal Standard A district court has subject matter jurisdiction only where the plaintiff has “[s]tanding to sue” under Article III of the Constitution. See Spokeo, Inc. v. Robins, 578 U.S. 330, 338 (2016). To satisfy Article III's standing requirements, (1) “the plaintiff must have suffered an injury in fact” that is “concrete and particularized” and “actual or imminent, not conjectural or hypothetical,” (2) the injury must be “fairly traceable” to the challenged conduct of the defendant, and (3) “it must be likely . . . that the injury will be redressed by a favorable decision.” See Lujan v. Defs. of Wildlife, 504 U.S. 555, 560-61 (1992) (internal quotation, citation, and alteration omitted). “The party invoking federal jurisdiction bears the burden of establishing” the elements of standing, see id. at 561, and must make such a showing separately for each form of relief requested, see Friends of the Earth, Inc. v. Laidlaw Envtl. Servs. (TOC) Inc., 528 U.S. 167, 185 (2000). 2. Injury in Fact / Causation At the outset, Del Monte contends Bryan “pleads no facts establishing an economic injury that confers Article III standing.” (See Def.’s Mot. to Dismiss Pl.’s Compl. (“Def.’s Mot.”) at 21:4, Dkt. No. 21.) As set forth below, the Court disagrees. The Ninth Circuit has “consistently recognized that a plaintiff can satisfy the injury in fact requirement by showing that [such plaintiff] paid more for a product than [he/she] otherwise would have due to a defendant's false representations about the product.” See McGee v. S-L Snacks Nat'l, 982 F.3d 700, 706 (9th Cir. 2020). A plaintiff also can “plead an economic injury by alleging that [he/she] bargained for a product worth a given value Here, Bryan alleges that she and the class members “paid for the Products based on [Del Monte]’s misrepresentations that they [were] ‘natural’” (see CAC ¶ 67) and that they “purchased, purchased more of, and/or paid more for, the Products than they would have had they known the truth about the Products” (see CAC ¶ 65), specifically, “that the Products were made with synthetic ingredients” (see CAC ¶ 84). In addition, Bryan alleges, “‘natural’ products are worth more than products that contain artificial ingredients” (see CAC ¶ 30), and that by misrepresenting the Products as natural, Del Monte was “able to, and did, charge a premium price for the Products over the cost of competitive products not bearing the misrepresentations” (see CAC ¶ 64). The Court finds Bryan’s allegations are sufficient to establish an economic injury for purposes of Article III standing. See, e.g., Mazza v. Am. Honda Motor Co., 666 F.3d 581, 595 (9th Cir. 2012) (holding, where plaintiffs alleged they “paid more for the [product] than they otherwise would have paid, or bought it when they otherwise would not have done so, because [defendant] made deceptive claims,” they “suffered an ‘injury in fact’”); Maisel v. S.C. Johnson & Son, Inc., 2021 WL 1788397, at *3 (N.D. Cal. May 5, 2021) (holding “because [plaintiff] allege[d] she purchased the [defendant’s] dishwasher tablets and would not have if she knew they were mislabeled, . . . she ha[d] Article III standing to bring th[e] case”).8

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Bryan v. Del Monte Foods, Inc., (N.D. Cal. 2023).

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