Cottrell, Ltd. v. Biotrol International, Inc.

191 F.3d 1248, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20151, 1999 Colo. J. C.A.R. 5628, 52 U.S.P.Q. 2d (BNA) 1194, 1999 U.S. App. LEXIS 21645, 1999 WL 704260
CourtCourt of Appeals for the Tenth Circuit
DecidedSeptember 10, 1999
Docket97-1475
StatusPublished
Cited by58 cases

This text of 191 F.3d 1248 (Cottrell, Ltd. v. Biotrol International, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cottrell, Ltd. v. Biotrol International, Inc., 191 F.3d 1248, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20151, 1999 Colo. J. C.A.R. 5628, 52 U.S.P.Q. 2d (BNA) 1194, 1999 U.S. App. LEXIS 21645, 1999 WL 704260 (10th Cir. 1999).

Opinion

EBEL, Circuit Judge.

Cottrell, Ltd. (“Cottrell”) filed a Lanham Act claim against Pro-Dex, Inc. (“Pro-Dex”), and its wholly-owned subsidiary, Biotrol International, Inc. (“Biotrol”), alleging that they made false and misleading representations with regard to their hard *1250 surface cleaning product, “Birex.” The district court granted the defendants-ap-pellees’ motion to dismiss pursuant to Fed. R.Civ.P. 12(b)(6). We now reverse and remand.

BACKGROUND

The parties to this litigation manufacture, advertise, and market hard surface cleaners and disinfectants for use in medical and dental facilities. Because the parties’ products are antimicrobial pesticides, the cleaners and disinfectants are regulated by the Environmental Protection Agency (“EPA”), which must review and approve the text of all labels (“label claims”) on or accompanying the products before they can be sold. See 7 U.S.C. §§ 136 & 136a. As such, manufacturers and sellers of hard surface cleaners and disinfectants are forbidden by law from using label claims which have not been approved by and registered with the EPA. See 7 U.S.C. §§ 136a(c)(l) & 1363(a)(1)(B) (“it shall be unlawful for any person ... to distribute, sell, offer for sale, hold for sale, ship, deliver for shipment, or receive and (having so received) deliver or offer to deliver, to any person ... any registered pesticide if any claims made for it as a part of its distribution or sale substantially differ from any claims made for it as a part of the statement required in connection with its registration under section 136a of this title,” which requires pesticide registrants to file with the EPA administrator “a complete copy of the labeling of the pesticide, a statement of all claims to be made for it, and any directions for its use,” in order to qualify for approval). 1

Cottrell sued Pro-Dex and Biotrol (collectively “defendants-appellees”), claiming that representations made by defendants-appellees regarding their hard surface cleaner and disinfectant, which is sold under the name “Birex,” violated section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). Specifically, Cottrell alleged in its complaint that the defendants-appel-lees’ label claims were “violative of EPA clearance” and “[a]s such ... false,” and that the label claims deceptively imply that “EPA approval or clearance has been obtained.” The defendants-appellees filed a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(6), which the magistrate judge recommended granting, stating:

Plaintiffs allegations that the claims are false are based on the allegation that the claims violate the EPA clearance of the product. The complaint does not specifically allege, however, that Defendants’ claim that the efficacy of Birex continues for seven days after mixing is actually false or misleading. Thus, resolution of Plaintiffs claims would involve the determination of whether the claim that the efficacy of the product continues for seven days after mixing violates the EPA clearance. Similar to the Mylan [Labs., Inc. v. Matkari, 7 F.3d 1130 (4th Cir.1993) ] case, for purposes of a Lan-ham Act misrepresentation claim, it cannot be implied from the fact that the product has been placed on the market that the EPA has approved Defendants’ label claims. An affirmative representation is required. Mylan, 7 F.3d at 1139. Based on the above case law, absent an allegation that the Defendants’ claim regarding the efficacy of Birex is false, Plaintiff has failed to state a claim under section 43(a) of the Lanham Act.

Cottrell objected to the magistrate judge’s recommendation, but “agreed that *1251 an expansion of the existing factual predicate for its claims is warranted.” Accordingly, Cottrell filed a motion for leave to file an amended complaint. Cottrell’s proposed amended complaint alleged that the defendants-appellees affirmatively misrepresented that the EPA gave “clearance and/or approval” to claims made in Birex literature that “proper use is to discard weekly,” and that “Biotrol’s product is not known to be effective for that period of time [one week], nor has it been demonstrated to be effective under those use conditions [weekly discarding].”

The district court accepted the magistrate judge’s recommendation to grant the defendants’ motion to dismiss and denied Cottrell’s motion for leave to file an amended complaint despite recognizing that “Fed.R.Civ.P. 15(a) requires leave to amend be given freely,” on the ground “that the Proposed Amended Complaint suffers from the same defect as the original complaint.” The district court identified the “defect” it found in Cottrell’s original and proposed amended complaint as follows: “[T]his complaint seeks a determination whether the label claims [of the defendants] violate the EPA clearance. Resolution of the Plaintiffs complaint would require the court to interpret and apply regulations that are exclusively within the province of the EPA.”

Cottrell now appeals the district court’s grant of the motion to dismiss and denial of its motion for leave to file an amended complaint. We reverse and remand.

DISCUSSION

Whether the District Court Erred in Dismissing Cottrell’s Lanham Act Claim.

A. Standard of Review

‘We review de novo a district court’s dismissal of a cause of action for failure to state a claim upon which relief can be granted.” Chemical Weapons Working Group, Inc. v. United States Dep’t of the Army, 111 F.3d 1485, 1490 (10th Cir.1997). “We uphold a dismissal under Fed.R.Civ.P. 12(b)(6) only when it appears that the plaintiff can prove no set of facts in support of the claims that would entitle him to relief, accepting the well-pleaded allegations of the complaint as true and construing them in the light most favorable to the plaintiff.” Yoder v. Honeywell Inc., 104 F.3d 1215, 1224 (10th Cir.) (quotations omitted), cert. denied, — U.S. -, 118 S.Ct. 55, 139 L.Ed.2d 19 (1997). “[T]he Federal Rules of Civil Procedure erect a powerful presumption against rejecting pleadings for failure to state a claim.” Cayman Exploration Corp. v. United Gas Pipe Line Co., 873 F.2d 1357, 1359 (10th Cir.1989) (quotations omitted).

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
191 F.3d 1248, 30 Envtl. L. Rep. (Envtl. Law Inst.) 20151, 1999 Colo. J. C.A.R. 5628, 52 U.S.P.Q. 2d (BNA) 1194, 1999 U.S. App. LEXIS 21645, 1999 WL 704260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cottrell-ltd-v-biotrol-international-inc-ca10-1999.