Diane Hunter v. Capello’s LLC

District Court, E.D. California·Decided December 17, 2025·No. 2:24-cv-02487·Unknown

Opinion

DIANE HUNTER, No. 2:24-cv-2487 DAD AC Plaintiff, v. FINDINGS AND RECOMMENDATIONS Defendant. This case is before the court on plaintiff’s motions for class certification (ECF No. 14) and for default judgment after such certification (ECF No. 13). The motion for class certification was referred to the undersigned by the district judge presiding over this case (ECF No. 20), whereas the motion for default judgment was referred to the undersigned pursuant to E.D. Cal. R. 302(c)(19). The motions were taken under submission on the papers on June 17, 2025, but restored to the calendar on October 2, 2025. ECF Nos. 21, 24. Following a hearing on December 3, 2025, for the reasons set forth below, the undersigned recommends that both motions be denied without prejudice. I. Relevant Background Plaintiff filed this complaint on September 12, 2025, asserting jurisdiction under 28 U.S.C. §1332(d). ECF No. 1 at 8, 10. Plaintiff Diane Hunter is a California citizen, whereas defendant Capello’s, LLC (“Capello’s”) is a Delaware company with its principal place of business in Colorado. Id. Plaintiff seeks to bring this action on behalf of anyone who bought any of a series of “Products” by defendant. ECF No. 1 at 2, 11. The Products include defendant’s “Keto Cheese Pizza”; “Keto Pizza Crust”; “White Pizza”, “Margherita Pizza”, “Whole Milk Mozzarella Cheese Pizza”, and “Naked Pizza Crust”, each with Almond Flour Crust; “Five-Cheese Ravioli” and “Spinach & Cheese Ravioli” varieties of Almond Flour Pasta; and Bakery Style Cookie Dough for both “Chocolate Chip” cookies and “Sugar Cookies”. ECF No. 1 at 11-12. The complaint alleges that each Product prominently displays the number of grams of fat, carbohydrates, or proteins in a single serving, but not the disclaimers that must accompany such claims when used to advertise a Product. ECF No. 1 at 11-13. Products making such a “nutrient content claim” must also warn customers to “[s]ee nutrition information for [fat, saturated fat, cholesterol, or sodium] content” if one serving contains more than 13 grams, 4 grams, 60 milligrams, or 480 milligrams respectively, in a legible disclaimer that is adjacent to the nutrient content claim. ECF No. 1 at 20-21; 21 C.F.R. § 101.13(b), (h)(1), (h)(4). The Margherita Pizza plaintiff purchased advertises that one serving has 14 grams of protein. ECF No. 1 at 11, 13. The box does not include any disclaimer, however, despite one serving having 34 grams of fat, 15 grams of saturated fat, 130 milligrams of cholesterol, and 910 milligrams of sodium. ECF No. 1 at 13. Similarly, the Whole Milk Mozzarella Cheese Pizza advertises having 16 grams of protein per serving but conceals the fact that it has 17 grams of saturated fat per serving. Id. at 12, 14. Overall, the saturated fat in a serving of each Product ranges from 5 to 17 grams. Id. at 14. The complaint contrasts defendant’s labeling practices with those of competitors who either exclude any nutrient content claim from the packaging or include the disclaimer as to fat or saturated fat levels. Id. at 25-27. The complaint alleges that defendant’s “deceptive representations” gave it an unfair competitive advantage by falsely making its Products look healthier than, and therefore superior to, its competitors’ equivalent offerings. Id. at 27. Plaintiff and other members of the proposed class paid a premium price for Products that were effectively not as represented, and for which they would not have paid as much but for the misrepresentations. Id. at 30. The complaint further asserts that with the continued growth of the //// market for health-focused goods, defendant has an incentive to continuing mislabeling its products. Id. at 28. Based on these allegations, the complaint asserts causes of action for violations of California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200 et seq.; False Advertising Law (“FAL”), Cal. Bus. & Prof. Code § 17500 et seq.; and Consumer Legal Remedies Act (“CLRA”), Cal. Civ. Code1 § 1750 et seq. ECF No. 1 at 34-42. For such purposes, plaintiff seeks to represent a “California Class” consisting of anyone who purchased the Products within the state of California within the applicable statute of limitations. ECF No. 1 at 31. The statute of limitations is three years under the FAL and CLRA, but four years under the UCL. Id. at 31-32. The complaint also asserts an unjust enrichment claim on behalf of a “Nationwide Class” consisting of anyone who bought the Products in the United States within the four-year statute of limitations for such a claim. Id. at 32, 41. Aside from certification of the classes, with plaintiff serving as representative plaintiff and her counsel as class counsel (ECF No. 1 at 44-45), the complaint seeks an order enjoining the future use of nutrient content claims on Products without the requisite disclaimer, restitution and disgorgement of all money acquired through sale of the Products, compensatory and punitive damages, and attorney’s fees and costs. Id. at 45. Plaintiff served defendant with the summons on September 16, 2024. ECF No. 5. When the Clerk of Court declined to enter default on November 13, 2024, it noted that the declaration in support of plaintiff’s request cited Fed. R. Civ. P. 4(e)(2)(A). ECF No. 6-1 at 2; ECF No. 7. The Clerk explained that this section, which concerned personal service on an individual defendant, was inapplicable when the defendant is a corporation. ECF No. 7. In a renewed request for entry of default, plaintiff clarified that service had been via delivery to defendant’s registered agent for service of process, in accordance with Fed. R. Civ. P. 4(h)(1)(B). ECF No. 8-2 at 2. The Clerk of Court entered default on January 29, 2025. ECF No. 12. Plaintiff filed the pending motions on May 23, 2025, and served them on defendant on September 15, 2025. ECF Nos. 13-14, 23.

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