Diane Hunter v. Capello’s LLC

CourtDistrict Court, E.D. California
DecidedDecember 17, 2025
Docket2:24-cv-02487
StatusUnknown

This text of Diane Hunter v. Capello’s LLC (Diane Hunter v. Capello’s LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diane Hunter v. Capello’s LLC, (E.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 FOR THE EASTERN DISTRICT OF CALIFORNIA 9 10 DIANE HUNTER, No. 2:24-cv-2487 DAD AC 11 Plaintiff, 12 v. FINDINGS AND RECOMMENDATIONS 13 CAPELLO’S LLC, 14 Defendant. 15 16 This case is before the court on plaintiff’s motions for class certification (ECF No. 14) and 17 for default judgment after such certification (ECF No. 13). The motion for class certification was 18 referred to the undersigned by the district judge presiding over this case (ECF No. 20), whereas 19 the motion for default judgment was referred to the undersigned pursuant to E.D. Cal. 20 R. 302(c)(19). The motions were taken under submission on the papers on June 17, 2025, but 21 restored to the calendar on October 2, 2025. ECF Nos. 21, 24. Following a hearing on December 22 3, 2025, for the reasons set forth below, the undersigned recommends that both motions be denied 23 without prejudice. 24 I. Relevant Background 25 Plaintiff filed this complaint on September 12, 2025, asserting jurisdiction under 28 26 U.S.C. §1332(d). ECF No. 1 at 8, 10. Plaintiff Diane Hunter is a California citizen, whereas 27 defendant Capello’s, LLC (“Capello’s”) is a Delaware company with its principal place of 28 business in Colorado. Id. 1 Plaintiff seeks to bring this action on behalf of anyone who bought any of a series of 2 “Products” by defendant. ECF No. 1 at 2, 11. The Products include defendant’s “Keto Cheese 3 Pizza”; “Keto Pizza Crust”; “White Pizza”, “Margherita Pizza”, “Whole Milk Mozzarella Cheese 4 Pizza”, and “Naked Pizza Crust”, each with Almond Flour Crust; “Five-Cheese Ravioli” and 5 “Spinach & Cheese Ravioli” varieties of Almond Flour Pasta; and Bakery Style Cookie Dough 6 for both “Chocolate Chip” cookies and “Sugar Cookies”. ECF No. 1 at 11-12. 7 The complaint alleges that each Product prominently displays the number of grams of fat, 8 carbohydrates, or proteins in a single serving, but not the disclaimers that must accompany such 9 claims when used to advertise a Product. ECF No. 1 at 11-13. Products making such a “nutrient 10 content claim” must also warn customers to “[s]ee nutrition information for [fat, saturated fat, 11 cholesterol, or sodium] content” if one serving contains more than 13 grams, 4 grams, 60 12 milligrams, or 480 milligrams respectively, in a legible disclaimer that is adjacent to the nutrient 13 content claim. ECF No. 1 at 20-21; 21 C.F.R. § 101.13(b), (h)(1), (h)(4). The Margherita Pizza 14 plaintiff purchased advertises that one serving has 14 grams of protein. ECF No. 1 at 11, 13. The 15 box does not include any disclaimer, however, despite one serving having 34 grams of fat, 15 16 grams of saturated fat, 130 milligrams of cholesterol, and 910 milligrams of sodium. ECF No. 1 17 at 13. Similarly, the Whole Milk Mozzarella Cheese Pizza advertises having 16 grams of protein 18 per serving but conceals the fact that it has 17 grams of saturated fat per serving. Id. at 12, 14. 19 Overall, the saturated fat in a serving of each Product ranges from 5 to 17 grams. Id. at 14. 20 The complaint contrasts defendant’s labeling practices with those of competitors who 21 either exclude any nutrient content claim from the packaging or include the disclaimer as to fat or 22 saturated fat levels. Id. at 25-27. The complaint alleges that defendant’s “deceptive 23 representations” gave it an unfair competitive advantage by falsely making its Products look 24 healthier than, and therefore superior to, its competitors’ equivalent offerings. Id. at 27. Plaintiff 25 and other members of the proposed class paid a premium price for Products that were effectively 26 not as represented, and for which they would not have paid as much but for the 27 misrepresentations. Id. at 30. The complaint further asserts that with the continued growth of the 28 //// 1 market for health-focused goods, defendant has an incentive to continuing mislabeling its 2 products. Id. at 28. 3 Based on these allegations, the complaint asserts causes of action for violations of 4 California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200 et seq.; False 5 Advertising Law (“FAL”), Cal. Bus. & Prof. Code § 17500 et seq.; and Consumer Legal 6 Remedies Act (“CLRA”), Cal. Civ. Code1 § 1750 et seq. ECF No. 1 at 34-42. For such 7 purposes, plaintiff seeks to represent a “California Class” consisting of anyone who purchased the 8 Products within the state of California within the applicable statute of limitations. ECF No. 1 at 9 31. The statute of limitations is three years under the FAL and CLRA, but four years under the 10 UCL. Id. at 31-32. The complaint also asserts an unjust enrichment claim on behalf of a 11 “Nationwide Class” consisting of anyone who bought the Products in the United States within the 12 four-year statute of limitations for such a claim. Id. at 32, 41. 13 Aside from certification of the classes, with plaintiff serving as representative plaintiff and 14 her counsel as class counsel (ECF No. 1 at 44-45), the complaint seeks an order enjoining the 15 future use of nutrient content claims on Products without the requisite disclaimer, restitution and 16 disgorgement of all money acquired through sale of the Products, compensatory and punitive 17 damages, and attorney’s fees and costs. Id. at 45. 18 Plaintiff served defendant with the summons on September 16, 2024. ECF No. 5. When 19 the Clerk of Court declined to enter default on November 13, 2024, it noted that the declaration in 20 support of plaintiff’s request cited Fed. R. Civ. P. 4(e)(2)(A). ECF No. 6-1 at 2; ECF No. 7. The 21 Clerk explained that this section, which concerned personal service on an individual defendant, 22 was inapplicable when the defendant is a corporation. ECF No. 7. In a renewed request for entry 23 of default, plaintiff clarified that service had been via delivery to defendant’s registered agent for 24 service of process, in accordance with Fed. R. Civ. P. 4(h)(1)(B). ECF No. 8-2 at 2. The Clerk of 25 Court entered default on January 29, 2025. ECF No. 12. Plaintiff filed the pending motions on 26 May 23, 2025, and served them on defendant on September 15, 2025. ECF Nos. 13-14, 23. 27

28 1 The complaint incorrectly cites the California Business & Professions Code. ECF No. 1 at 42. 1 Defendant has not responded to either motion or made any appearance in this case, including at 2 the hearing held on December 3, 2025. 3 II. Motion for Class Certification 4 In light of the defendant’s failure to appear, plaintiff seeks only certification of a 5 redefined, limited version of the complaint’s “California Class” (“Default Class”). Plaintiff’s 6 motion defines the Default Class as those who bought defendant Products2 within California from 7 a Whole Foods, Costco, Walmart, Target, Ralphs, Erewhon, Safeway, Lucky Supermarkets, 8 Raley’s, Sprouts, or Vons, or via DoorDash or Instacart delivery (“Class Retailers”). ECF No. 9 14-1 at 3. As in the complaint, such purchase must have occurred within the three-year statute of 10 limitations under the FAL and CLRA, and the four-year statute of limitations under the UCL, 11 both calculated from the complaint’s September 12, 2024, filing date. Id. 12 A. Legal Standard 13 Class action litigation is “an exception to the usual rule” that only individual named 14 parties bring and conduct lawsuits. Wal-Mart Stores, Inc. v.

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Diane Hunter v. Capello’s LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diane-hunter-v-capellos-llc-caed-2025.