Crawford v. Arizona Beverages USA LLC

CourtDistrict Court, S.D. Illinois
DecidedMarch 30, 2024
Docket3:22-cv-00220
StatusUnknown

This text of Crawford v. Arizona Beverages USA LLC (Crawford v. Arizona Beverages USA LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crawford v. Arizona Beverages USA LLC, (S.D. Ill. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS

KENNETH CRAWFORD, individually ) and on behalf of all others ) similarly situated, ) ) Plaintiff, ) ) vs. ) Case No. 22-cv-220-DWD ) ARIZONA BEVERAGES USA LLC, ) ) Defendant. )

MEMORANDUM AND ORDER

DUGAN, District Judge: Plaintiff Kenneth Crawford1 brings this putative class action against Defendant AriZona Beverages USA, LLC2 for the alleged deceptive and misleading labeling of its 20oz “Lite Arnold Palmer” beverage. Plaintiff seeks monetary damages and injunctive relief for unfair business practices and deceptive advertising in violation of the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 Ill. Comp. Stat. Ann. 505/1, et seq. (“ICFA”) and unjust enrichment. 3 Now before the Court is Defendant’s Motion for Summary Judgment (Doc. 33). Plaintiff opposes the Motion (Doc. 36). I. BACKGROUND

1 Plaintiff is a citizen of Illinois (Doc. 1, ¶ 60). 2Defendant is a limited liability company organized under the laws of the State of New York with a principal place of business located in Woodbury, New York, and with at least one member having a different citizenship from Plaintiff (Doc. 1, ¶ 62). Accordingly, Defendant is a citizen of New York for purposes of determining CAFA jurisdiction. See 28 U.S.C. § 1332(d)(2). 3 This Court granted, in part, Defendant’s Motion to Dismiss (Doc. 14) thereby leaving only the claims for consumer fraud and unjust enrichment (Doc. 26). Plaintiff alleges the following facts. Defendant manufacturers the 200z Lite Arnold Palmer” beverage (the “Product”). Between January 2021 and January 2022, Plaintiff purchased the Product from a third-party on one or more occasions in Caseyville, Illinois (Doc. 1, |] 66-73). Below is an image of the Product label:

— SS aE Ez CONTAINS 5% JUICE TERRE ee SD Tg hn PRE □□ I Ee 7 A 5 a... pall Cony (ares Neen a i Lodo eee □□ so Cae a pO Fea rcarsiee Ku EG CUE ld Pa beuen SitULy □□ ae lis Wt 7 □□□ ie Ree RAW icc tcc □□ cate, □ ye if 3 wr Py Es eat ieee} arcs □ ty KY PRESERVATIVES □□ oa Ss i J es — \ ae ce Lie) CG 7 an □□ ese Vy rom \ Vines Updo ic] [er rover ror Scene ee “ iim RESIS gr es a a eo i

te 7 Sy & We ry ae = =a FS □□ eS 4 ANE TMAN HK SRN, meee a caicatca = es a cat] qT = See i rg Poised Pn eyo eT ——=s = □□ ss GBD EES ONAY ae ae eerie ed °F 1 ie an PAS Ate Ra acne ate ieee =

(Doc. 14-3, p. 2). Plaintiff claims in his Complaint that the label contains at least four false or misleading representations (Doc. 1, pp. 2-9). The first two representations concern Defendant’s use of the word “Lite” (Doc. 1, pp. 3-7). Plaintiff claims the use of the word “Lite” is misleading because the reasonable consumer would understand the term to mean that the Product is low in both sugar and calories, or lower in sugar and calories than other products (Doc. 1, p. 3). However, Plaintiff alleges that the Product is neither low in sugar or calories, but instead would qualify as a “high” sugar product under comparable FDA regulations and contains a similar number of high calories to that of a can of soda (Doc. 1, pp. 5-6). Plaintiff also complains that the label fails to identify a “reference food” so that consumers can compare the Product's “lite” claim to that of

another representative product with higher nutrient values in accordance with FDA regulations (Doc. 1, pp. 6-7).

Next, Plaintiff claims that the Product’s use of a “dual column” nutrition facts panel to show a serving size of 12 ounces is misleading because the entire 20-ounce bottle meets the regulatory definition for a single-serve container (Doc. 1, p. 7). Plaintiff argues that the dual column format of the label is inconsistent with the “information required to maintain healthy dietary practices”, and thus misleading, because it implies that a consumer will consume less than the entire container when they would instead consume

the entire bottle (Doc. 1, p. 8). Finally, Plaintiff contends that the Product falsely claims to be made in the United States because the label depicts a map of the United States covered in the image of the American flag and surrounded by the words “An American Company – Family Owned and Operated” (Doc. 1, ¶¶ 49-51). However, elsewhere on the label – just below the barcode – the label states that the Product is a “Product of

Canada” (Id.; Doc. 14-2, p. 2). Plaintiff alleges that he was damaged when he paid a premium for the Product, believing it to be low in sugar and calories, and lower in sugar and calories than comparable beverages (Doc. 1, ¶ 77). Plaintiff claims he would not have purchased the Product if he knew the representations and omissions were false and misleading (Doc. 1,

¶ 79). Alternatively, he would have paid less for it (Doc. 1, ¶ 81). Defendant seeks summary judgment in its favor pursuant to Rule 56 (Doc. 33, p. 1). Defendant claims in support that Plaintiff cannot prove causation, deception or damage under ICFA for four reasons: First, Plaintiff could not confirm at deposition that he purchased the product with the label identified in the Complaint; Second, that Plaintiff continued to purchase the product even after forming the belief that he had been

deceived; Third, he preferred purchasing the 23 ounce cans of the product over the 20 ounce cans at issue here and would only purchase the latter when the former was not available; and fourth, that no damages can be proven because Plaintiff testified that the product was the best product, was the best value and was sold at a fair price (Doc. 33, p. 2). In response, Plaintiff mounts a retreat. In a footnote, he states: “Plaintiff

withdrawals [sic] all claims in regards to any label statement other than “Lite”.” (Doc. 36, p. 5 n.1). And, in a following footnote references his Motion for Class Certification (Doc. 32, p. 1) where he “chose to waive multi-state claims arising under consumer fraud acts of “all states but Illinois (Doc. 36, p. 5 n.2). Consequently, Plaintiff does not address much of the argument Defendant makes for summary judgment in its favor. Rather, Plaintiff

focuses on his testimony regarding his purchases of the product for the proposition that he was mislead by the label indicating that it is “Lite”. II. SUMMARY JUDGMENT STANDARD Summary judgment is proper where the movant shows “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”

Fed. R. Civ. P. 56(a); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322–23 (1986). A genuine issue of triable fact exists only if, “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Pugh v. City Of Attica, Indiana, 259 F.3d 619, 625 (7th Cir. 2001) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986)). Defendant, as the movant bears the burden of establishing the absence of fact issues and entitlement to judgment as a matter of law. Santaella v. Metro. Life Ins. Co., 123

F.3d 456, 461 (7th Cir. 1997) (citing Celotex Corp., 477 U.S. at 323). Once the moving party has set forth the basis for summary judgment, the burden then shifts to the nonmoving party who must go beyond mere allegations and offer specific facts showing that there is a genuine issue for trial. Fed. R. Civ. P.

Related

Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Lujan v. National Wildlife Federation
497 U.S. 871 (Supreme Court, 1990)
Siegel v. Shell Oil Co.
612 F.3d 932 (Seventh Circuit, 2010)
Puffer v. Allstate Insurance
675 F.3d 709 (Seventh Circuit, 2012)
Smith v. Severn
129 F.3d 419 (Seventh Circuit, 1997)
Barbara Payne v. Michael Pauley
337 F.3d 767 (Seventh Circuit, 2003)
Etablissements Neyrpic v. Elmer C. Gardner, Inc.
175 F. Supp. 355 (S.D. Texas, 1959)
Bibbs v. Newman
997 F. Supp. 1174 (S.D. Indiana, 1998)
Avery v. State Farm Mutual Automobile Insurance
835 N.E.2d 801 (Illinois Supreme Court, 2005)
Robinson v. Toyota Motor Credit Corp.
775 N.E.2d 951 (Illinois Supreme Court, 2002)
De Bouse v. Bayer AG
922 N.E.2d 309 (Illinois Supreme Court, 2009)
Connick v. Suzuki Motor Co., Ltd.
675 N.E.2d 584 (Illinois Supreme Court, 1996)
White v. DaimlerChrysler Corp.
856 N.E.2d 542 (Appellate Court of Illinois, 2006)
Swartz v. Wabash National Corp.
674 F. Supp. 2d 1051 (N.D. Indiana, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
Crawford v. Arizona Beverages USA LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crawford-v-arizona-beverages-usa-llc-ilsd-2024.