Crane v. Archer-Daniels-Midland Company

District Court, E.D. Missouri·Decided May 31, 2024·No. 2:24-cv-00003·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI NORTHERN DIVISION

ARLA CRANE, ) ) Plaintiff, ) ) v. ) No. 2:24-CV-3 RLW ) ARCHER DANIELS MIDLAND ) COMPANY, ) ) Defendant. )

MEMORANDUM AND ORDER

This matter is before the Court on Defendant Archer Daniels Midland Company’s (“ADM”) Motion to Strike and Dismiss Count I and Dismiss First Amended Complaint Pursuant to Fed. R. Civ. Pro. 12(b)(2) and 12(b)(6). (ECF No. 34). The motion is fully briefed. For the reasons set forth below, the Court will grant in part and deny in part the motion. Background In this removed diversity action, Plaintiff Arla Crane, a breeder of show rabbits, alleges tortious conduct by ADM in manufacturing rabbit feed which caused the death of her entire breeding rabbit population. Crane asserts claims of breach of implied warranty of merchantability (Count I), negligence (Count II), and violation of the Missouri Merchandising Practices Act (“MMPA”) (Count III). (Amended Compl., ECF No. 29). Upon review of briefing on ADM’s previous motion to dismiss under Rules 12(b)(2) and 12(b)(6) (ECF Nos. 14, 20, 23), the Court entered a memorandum and order finding that it lacked personal jurisdiction 1 over ADM and granting Crane leave to file an amended complaint (ECF No. 28). Crane timely filed an amended complaint, in which she alleges the following. Crane resides in Palmyra, Missouri. (Amended Compl., ¶ 1). At all times relevant to this action, Crane “raised over one hundred (100) adult breeding rabbits for the purpose of

breeding and selling their progeny as show rabbits.” Id. ¶ 11. ADM, a Delaware corporation with its principal place of business in Illinois, is a nutrition company that specializes in formulating animal nutrition products such as feed and supplements, which it markets to consumers. Id. ¶ 9. As part of ADM’s regular business operations, it purchases, sells, distributes, and processes grain and feed within Missouri, and it has over ten physical locations in the state from which it transacts business. Id. ¶ 10. ADM advertises its products in Missouri through mailings, distribution of product in promotional packaging, and sponsorship of local rabbit shows. Id. ¶¶ 14, 15, 18. ADM also advertises its products by posting photos of local rabbit show winners on social media; in one instance, ADM posted a photo of Crane and her daughter after she won a local show. Id. ¶ 16.

From November 2022 to February 2023, Crane purchased specially formulated rabbit feed named “Pen Pals Professional Rabbit 18” (the “Feed”) from ADM’s store location in Quincy, Illinois for the purpose of feeding it to her rabbit population. Id. ¶ 12. Crane had received promotional products at her residence from ADM, including magazines advertising the Feed. Id. ¶ 14. The Feed is a formulated product for the purpose of use as rabbit feed and is furnished in sealed bags with marketing and promotional materials on the packaging. Id. ¶ 18. ADM advertises the Feed as “‘a complete feed specially fortified for rabbits requiring higher nutritional levels,’” including “show rabbits.” Id. ¶ 20. ADM sells the Feed in retail locations

2 throughout Missouri, including the Farm & Home Supply store in Hannibal, Missouri. Id. ¶ 13. To Crane’s knowledge, the Feed she purchased was manufactured at the Quincy location. Id. ¶ 17. Crane fed the Feed directly to her rabbit population and did not add additional ingredients

or supplements. Id. ¶ 21. Shortly thereafter, the rabbits became averse to eating and lost weight. Id. ¶ 22. Crane sent a feed sample to the University of Missouri, Veterinary Medical Diagnostic Laboratory for testing. Id. ¶ 23. The test results showed that the feed sample contained vomitoxin in an amount great enough to be toxic to and ultimately cause the death of the rabbits. Id. ¶ 24. Crane subsequently observed the death of her entire breeding rabbit population, causing her to “incur the loss of future progeny of breeding stock,” as well as monetary damages. Id. ¶¶ 25, 30. On multiple occasions, ADM sent its employees to Crane’s residence to retrieve samples of the Feed and dead rabbits for testing purposes. Id. ¶ 26. On or around May 1, 2023, Crane sent written notice of her injury to ADM. Id. ¶ 27. ADM now renews its motion to dismiss arguing that Crane has failed to state a claim for

relief as to Counts I and III, and that all claims should be dismissed due to lack of personal jurisdiction over ADM. (ECF No. 34). The Court must first resolve the issues surrounding personal jurisdiction before it may conduct a review under Rule 12(b)(6). Discussion A. Personal Jurisdiction “Personal jurisdiction over a defendant represents the power of a court to enter a valid judgment imposing a personal obligation or duty in favor of the plaintiff.” Viasystems, Inc. v. EBM-Pabst St. Georgen GmbH & Co., KG, 646 F.3d 589, 592 (8th Cir. 2011) (internal quotation

3 omitted). The plaintiff “bear[s] the burden of establishing a prima facie showing of jurisdiction,” and the Court “views the facts in the light most favorable to the plaintiff.” Kaliannan v. Liang, 2 F.4th 727, 733 (8th Cir. 2021) (internal quotation omitted). The evidentiary showing required at this stage in minimal. Brothers & Sisters in Christ, LLC v.

Zazzle, Inc., 42 F.4th 948, 951 (8th Cir. 2022). “A prima facie showing is accomplished by pleading sufficient facts to support a reasonable inference that the defendant can be subjected to jurisdiction within the state.” Id. (internal quotation omitted). The Court may, however, “look beyond the pleadings to determine whether personal jurisdiction exists, including reviewing affidavits and other exhibits.” Penderson v. Frost, 951 F.3d 977, 979 (8th Cir. 2020) (citation omitted). “Personal jurisdiction can be specific or general.” Viasystems, 646 F.3d at 593. “Specific jurisdiction refers to jurisdiction over causes of action arising from or related to a defendant’s actions with the forum state, while general jurisdiction refers to the power of a state to adjudicate any cause of action involving a particular defendant, regardless of where the cause

of action arose.” Id. (cleaned up). The record does not establish that ADM is subject to general or all-purpose jurisdiction in Missouri, and the Court does not construe Crane’s filings as asserting such. Thus, the Court need only address specific jurisdiction. For specific jurisdiction to exist, “the suit must arise out of or relate to the defendant’s contacts with the forum state.” Bristol-Myers Squibb Co. v. Superior Ct. of Cal., S.F. Cnty., 582 U.S 255, 262 (2017) (cleaned up). “In other words, there must be an affiliation between the forum and the underlying controversy, principally, an activity or an occurrence that takes place in the forum State and is therefore subject to the State’s regulation.” Id. (cleaned up).

4 “Specific personal jurisdiction can be exercised by a federal court in a diversity suit only if authorized by the forum state’s long-arm statute and permitted by the Due Process Clause of the Fourteenth Amendment.” Viasystems, 646 F.3d at 593 (citation omitted). Missouri’s long-arm statute and due process inquiries “are separate.” Dairy Farmers of Am., Inc. v. Bassett &

Walker Int’l, Inc., 702 F.3d 472, 475 (8th Cir. 2012). Defendant argues that neither permits the Court’s exercise of specific personal jurisdiction here. 1. Missouri’s Long-Arm Statute The “‘ultimate objective’” of Missouri’s long-arm statute, Mo. Rev. Stat.

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