Charles v. Sutter Home Winery, Inc.

232 Cal. Rptr. 3d 513
CourtCalifornia Court of Appeal, 5th District
DecidedMay 9, 2018
DocketB275295
StatusPublished

This text of 232 Cal. Rptr. 3d 513 (Charles v. Sutter Home Winery, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles v. Sutter Home Winery, Inc., 232 Cal. Rptr. 3d 513 (Cal. Ct. App. 2018).

Opinion

EPSTEIN, P. J.

*516Plaintiffs appeal from the judgment of dismissal based on the sustaining of a demurrer to their putative class action complaint under the California Safe Drinking Water and Toxic Enforcement Act of 1986. ( Health & Saf. Code, § 25249.5 et seq. (Proposition 65 or the Act).) This appeal challenges the Proposition 65 warning provided by defendants for wines that contain purportedly unsafe levels of inorganic arsenic, a chemical identified by the State of California as a carcinogen and reproductive toxicant (listed chemical).

It is undisputed that defendants provided the so-called "safe harbor" warning for alcoholic beverages: "WARNING: Drinking Distilled Spirits, Beer, Coolers, Wine and Other Alcoholic Beverages May Increase Cancer Risk, and, During Pregnancy, Can Cause Birth Defects." ( Cal. Code Regs., tit. 27, § 25603.3, subd. (e)(1) ;1 see Ingredient Communication Council , Inc. v. Lungren (1992) 2 Cal.App.4th 1480, 1485, 4 Cal.Rptr.2d 216 [describing "safe harbor" warnings].) Plaintiffs do not take issue with the adequacy of the safe harbor warning for alcoholic beverages as applied to the health risks posed by alcohol. Instead, their concern is with the lack of reference in that warning to inorganic arsenic, a listed chemical, and the increased health risks associated with that toxic substance. Plaintiffs contend defendants were required to provide an additional warning for inorganic arsenic, patterned after section 25603.2, which they claim is stronger than the alcoholic beverage warning. As pertinent, it reads: "WARNING: This product contains ... chemical[s] known to the State of California to cause cancer [and birth defects, or other reproductive harm]."

In sustaining the demurrer, the trial court reasoned that disclosure of chemical ingredients in alcoholic beverages is not a requirement of the Act, and compliance with Proposition 65 is established as a matter of law where, as here, it is undisputed that the safe harbor warning for alcoholic beverages was provided to consumers of defendants' wines. ( § 25603.3, subd. (e)(1).) We conclude the demurrer was properly sustained on this and other grounds, including res judicata. The drafting of safe harbor warnings is a regulatory function assigned to the lead agency, the Office of Environmental Health Hazard Assessment (OEHHA), and "[a]ny dissatisfaction with the adequacy of such a warning is a matter for consideration by OEHHA and the Legislature, rather than the court." ( Environmental Law Foundation v. Wykle Research , Inc. (2005) 134 Cal.App.4th 60, 68, fn. 8, 35 Cal.Rptr.3d 788 ( Environmental Law Foundation ).)

*517FACTUAL AND PROCEDURAL BACKGROUND

Acting in their personal and representative capacities, plaintiffs Doris Charles, Alvin Jones, Jason Peltier, and Jennifer Peltier sued the defendant manufacturers, distributors, and retailers of "arsenic-contaminated wines." The defendants are: Sutter Home Winery, Inc.; Rebel Wine Co., LLC; Don Sebastiani & Sons International Wine Negociants, Corp.; Jean-Claude Boisset Wines, USA, Inc.; Raymond Vineyard and Cellar, Inc.; Treasury Wine Estates Americas Company; Treasury Wine Estates Holding, Inc.; Beringer Vineyards; The Wine Group, Inc.; The Wine Group, LLC; Golden State Vintners; Varni Brothers Corporation; Fetzer Vineyards; Bronco Wine Company; Trader Joe's Company; Constellation Brands U.S. Operations, Inc.; California Natural Products (named as Constellation Wines, US and Simply Naked Winery); F. Korbel & Bros.; Megan Mason and Randy Mason; Oakville Winery Management Corp.; Sonoma Wine Co., LLC; and Winery Exchange, Inc.

Many of the defendants were parties to the consent judgment in a previous Proposition 65 class action lawsuit, Bonilla v. Anheuser-Busch (Super. Ct. L.A. County, 2014, No. BC537188, 2014 WL 717860 ) ( Bonilla ).2 Because res judicata is an issue on appeal, we begin with discussion of the Bonilla case.

The Bonilla Case

In Bonilla , plaintiffs John Bonilla, Rafael Delgado, Jr., Jesse Garrett, and Rachel Padilla filed a Proposition 65 class action complaint on behalf of themselves and all similarly situated California consumers of alcoholic beverage products manufactured, distributed, and sold by defendants Anheuser-Busch, LLC, Bacardi U.S.A., Inc., Constellation Brands, Inc., Diageo North America, Inc., Hangar 24 Craft Brewery, LLC, Heineken USA Incorporated, and others. Their complaint alleged the defendants failed to warn consumers that their alcoholic beverage products contained "chemicals" known to the state to cause cancer and reproductive harm.

OEHHA provides a safe harbor warning that the alcoholic beverage industry may provide in order to comply with the Act: "WARNING: Drinking Distilled Spirits, Beer, Coolers, Wine and Other Alcoholic Beverages May Increase Cancer Risk, and, During Pregnancy, Can Cause Birth Defects." ( § 25603.3, subd. (e)(1).) This warning is central to the 2014 consent judgment in the Bonilla case that was signed by many defendants in this case as "opt in defendants." The Bonilla defendants and opt-in defendants (jointly, the Releasees) stipulated to the following terms:

• The Releasees agreed to provide the safe harbor warning for alcoholic beverages. ( § 25603.3, sub. (e)(1).)
• Acting in the public interest, the Bonilla plaintiffs agreed that the consent judgment would constitute a full, final, and binding resolution "of any violation of Proposition 65 that has been or could have been asserted in the public interest against the Releasees arising *518out of exposure to the Covered Products."
• The Bonilla consent judgment defined "Covered Products" to mean "alcohol beverage products that expose consumers in the State of California to chemicals listed by the State of California pursuant to California Health & Safety Code [section] 25249.8, including 'alcoholic beverages, when associated with alcohol abuse[,]' 'ethyl alcohol in alcoholic beverages,' and 'ethanol in alcoholic beverages. ...' "

This Action

Plaintiffs initiated this action in March 2015, several months after the Bonilla consent judgment was entered. The parties do not dispute that Proposition 65 applies to the wines at issue in this case, and defendants do not seek an exemption from the warning requirement.

The Original Complaint.

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Bluebook (online)
232 Cal. Rptr. 3d 513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charles-v-sutter-home-winery-inc-calctapp5d-2018.