Clancy v. Bromley Tea Co.

308 F.R.D. 564, 2013 WL 4081632, 2013 U.S. Dist. LEXIS 112722
CourtDistrict Court, N.D. California
DecidedAugust 9, 2013
DocketCase No. 12-cv-03003-JST
StatusPublished
Cited by36 cases

This text of 308 F.R.D. 564 (Clancy v. Bromley Tea Co.) 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
Clancy v. Bromley Tea Co., 308 F.R.D. 564, 2013 WL 4081632, 2013 U.S. Dist. LEXIS 112722 (N.D. Cal. 2013).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS AND MOTION TO STRIKE, AND DENYING DEFENDANTS’ MOTION TO STAY DISCOVERY

JON S. TIGAR, United States District Judge

I. INTRODUCTION

Plaintiff Tony Clancy (“Clancy”), on behalf of himself and a proposed class of similarly situated individuals, has filed a First Amended Complaint (“FAC”) against Defendants Bromley Tea Company, Eastern Tea Corp., London Holding Company, Inc., Bromley Products Corp., and several individuals (collectively “Bromley”). ECF No. 17. Brom-ley has filed a motion for judgment on the pleadings, and a motion to stay discovery. ECF Nos. 50 & 54.

After considering the moving papers, the arguments of the parties at the hearing held on June 20, 2013, and good cause appearing, the Court hereby GRANTS IN PART and DENIES IN PART Bromley’s motion for judgment on the pleadings, and DENIES Bromley’s motion to stay discovery.

II. BACKGROUND

A. Factual Background

For the purposes of these motions, the Court adopts the following factual allegations from the Clancy’s First Amended Complaint.

Bromley produces, markets and sells several different varieties of tea and makes health claims about its products on its website and product labels. FAC 2-5. Clancy alleges that Bromley’s website contains antioxidant, nutrient content and health claims, and that the products themselves contain additional health claims on the package labels. FAC 4-5.

Clancy alleges that he purchased Brom-ley’s food products, including Pure Green Tea and 100% Organic Pure Black Tea, within the last four years. FAC 115,126. Clancy read the packaging labels, as well as Bromley’s website, before purchasing the Bromley’s products. FAC 116. The packaging labels included nutrient content, and health claims, including the phrase “natural source of antioxidants.” FAC 117. The website makes such claims as “Antioxidants in Green and Black Tea is brimming with Antioxidants, the disease-fighting compounds that help your body stave off illness” and “Green Tea Extract May Lower Blood Pres-sure____” FAC 3. Plaintiff relied upon these and other claims in purchasing Defendants’ products. FAC 117.

[567]*567B. Procedural History

Clancy, on behalf of himself and a proposed class of similarly situated individuals, filed a complaint against Bromley in June 2012, and a First Amended Complaint (“FAC”) in October of that year. ECF Nos. 1 & 17. In the FAC, Clancy alleges that Bromley made unlawful and deceptive claims on its product labels, violating California’s Sherman Law, Cal. Health & Safety Code §§ 109875, et seq. (“Sherman Law”), which incorporates the requirements of the federal Food, Drug, and Cosmetics Act (“FDCA”).1 ECF No. 17. Plaintiff asserts causes of action under California’s Unfair Competition Law, Cal. Bus. & Prof.Code §§ 17200 et seq. (“UCL”), the California False Advertising Law, Cal. Bus. & Prof.Code §§ 17500 et seq. (“FAL”), the Consumer Legal Remedies Act, Cal. Civ.Code §§ 1750 et seq. (“CLRA”), the Song-Beverley Consumer Warranty Act, Cal Civ.Code s§ 1790 et seq. (“Song-Beverly”), and the Magnuson Moss Warranty Act, 15 U.S.C. § 2301 (“Magnuson-Moss”). Plaintiff also alleges a common law claim for restitution based on unjust enrichment.

Defendants have moved for judgment on the pleadings. ECF No. 50. In the motion, Defendants argue that Plaintiff lacks standing as to certain products and representations that he did not see, that Plaintiffs state-law claims are preempted by the FDCA, that Plaintiff failed to plead fraud with particularity under FRCP 9(b), that unjust enrichment is not a legally cognizable cause of action, that Plaintiffs warranty claims fail as a matter of law because the products do not include express warranties, and that claims against the individual defendants should be dismissed since Plaintiff fails to allege that they committed any wrongdoing. Pursuant to FRCP 12(f), Defendants also moved to have the Court strike as immaterial Plaintiffs claims regarding: (1) products Plaintiff never bought and statements he never saw; (2) Plaintiffs nationwide class allegations. ECF No. 50.

Defendants have also filed a motion to stay discovery. ECF No. 54.

C. Legal Standards
1. Motion for Judgment on the Pleadings

After the pleadings are closed, any party may move for judgment on the pleadings pursuant to Rule 12(c). The Court must accept all facts in the complaint as true, and view them in the light most favorable to the non-moving party. Fleming v. Pickard, 581 F.3d 922, 925 (9th Cir.2009). Judgment on the pleadings is appropriately granted when there is no issue of material fact in dispute and the moving party is entitled to judgment as a matter of law. Hal Roach Studios, Inc. v. Richard Feiner and Co., Inc., 896 F.2d 1542, 1550 (9th Cir.1989). Analysis under Rule 12(c) is “substantially identical” to analysis under Rule 12(b)(6). Chavez v. United States, 683 F.3d 1102, 1108 (9th Cir.2012) (internal citations omitted).

In this case, Clancy’s preemption, unjust enrichment, warranty, and individual-defendant arguments are assessed under the standards that would govern dismissal for failure to state a claim under Rule 12(b)(6). Clancy’s standing argument goes to the Court’s subject-matter jurisdiction pursuant to Rule 12(b)(1). The Court assesses Bromley’s motion to dismiss Clancy’s fraud claims pursuant to Rule 9(b).

a. Failure to state a claim

For purposes of a Rule 12(b)(6) motion to dismiss, “all allegations of material fact are taken as true and construed in the light most favorable to the nonmoving party.” Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337-38 (9th Cir.1996). However, “[w]hile a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a Plaintiffs’ obligation to provide the ‘grounds’ of his ‘entitle[ment] to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. [568]*568v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). “To be entitled to the presumption of truth, allegations in a complaint or counterclaim may not simply recite the elements of a cause of action, but must contain sufficient allegations of underlying facts to give fair notice and to enable the opposing party to defend itself effectively.” Starr v. Baca, 652 F.3d 1202, 1216 (9th Cir.2011) cert. denied, — U.S.-, 132 S.Ct. 2101, 182 L.Ed.2d 882 (U.S.2012).

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Bluebook (online)
308 F.R.D. 564, 2013 WL 4081632, 2013 U.S. Dist. LEXIS 112722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clancy-v-bromley-tea-co-cand-2013.