Earth Island Institute v. Coca-Cola Company

CourtDistrict Court, District of Columbia
DecidedMarch 24, 2022
DocketCivil Action No. 2021-1926
StatusPublished

This text of Earth Island Institute v. Coca-Cola Company (Earth Island Institute v. Coca-Cola Company) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Earth Island Institute v. Coca-Cola Company, (D.D.C. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

____________________________________ ) EARTH ISLAND INSTITUTE, ) ) Plaintiff, ) ) v. ) Civil Action No. 21-1926 (PLF) ) THE COCA-COLA COMPANY, ) ) Defendant. ) ____________________________________)

OPINION AND ORDER

On July 16, 2021, defendant The Coca-Cola Company (“Coca-Cola”) filed a

notice of removal, removing this action from the Superior Court of the District of Columbia to

this Court. See Notice of Removal (“Notice”) [Dkt. No. 1]. As grounds for removal, Coca-Cola

asserted that “[t]his Court has jurisdiction pursuant to 28 U.S.C. § 1332(a), as the parties are

completely diverse and Plaintiff seeks injunctive relief that, if granted, would cost well in excess

of $75,000 to implement.” Id. at ¶ 5. On August 16, 2021, plaintiff Earth Island Institute

(“Earth Island”) moved to remand this action back to the Superior Court, asserting that this Court

lacks federal diversity jurisdiction because “Coca-Cola has failed to meet its burden in

establishing the amount in controversy.” Memorandum of Points and Authorities in Support of

Plaintiff’s Motion to Remand and for Fees and Costs (“Pl. Mot.”) [Dkt. No. 15] at 1. Earth

Island simultaneously moved to recoup its fees and costs associated with litigating the remand

motion. Id. at 11. Upon careful consideration of the briefs and the relevant legal authorities, the

Court concludes that the parties lack diversity jurisdiction because the amount in controversy does not exceed $75,000. The Court therefore will grant Earth Island’s motion to remand. The

Court will nonetheless deny Earth Island’s request for fees and costs. 1

I. BACKGROUND

On June 4, 2021, Earth Island filed a complaint with the Civil Division of the

Superior Court of the District of Columbia seeking injunctive and declaratory relief against

Coca-Cola for violations of the District of Columbia Consumer Protection Procedures Act (“the

CPPA”), D.C. Code § 28-3901, et seq. Complaint at ¶¶ 20, 27. Earth Island is a non-profit

organization whose “mission includes educating consumers, including in the District of

Columbia, and engaging in advocacy related to environmental and human health issues.” Id. at

¶ 25. Consistent with the CPPA’s private-attorney-general provision, see D.C. Code

§ 28-3905(k)(l)(D)(i), Earth Island brought this action “[o]n behalf of itself and the general

public, and in the interest of consumers.” Complaint at 1.

Earth Island’s complaint alleges that “Coca-Cola’s marketing is false and

deceptive because the company portrays itself as ‘sustainable’ and committed to reducing plastic

pollution while polluting more than any other beverage company and actively working to prevent

effective recycling measures in the U.S.” Complaint at ¶ 28. In other words, Earth Island

contends that “Coca-Cola’s marketing and advertising tend to mislead and are materially

1 The papers reviewed in connection with this motion include the following: Notice of Removal (“Notice”) [Dkt. No. 1]; Complaint [Dkt. No. 1-1]; Memorandum of Points and Authorities in Support of Plaintiff’s Motion to Remand and for Fees and Costs (“Pl. Mot.”) [Dkt. No. 15]; defendant The Coca-Cola Company’s Memorandum of Law in Opposition to Plaintiff Earth Island’s Motion to Remand (“Def. Opp.”) [Dkt. No. 20]; plaintiff Earth Island Institute’s Reply to Defendant Coca-Cola’s Opposition to Remand (“Pl. Reply”) [Dkt. No. 21]; and plaintiff Earth Island Institute’s Notice of Supplemental Authority in Support of Motion to Remand [Dkt. No. 23].

2 deceptive about the true nature and quality of its products and business.” Id. at ¶ 19. Earth

Island’s prayer for relief seeks:

A. a declaration that Coca-Cola’s conduct is in violation of the CPPA;

B. an order enjoining Coca-Cola’s conduct found to be in violation of the CPPA; and

C. an order granting Plaintiff costs and disbursements, including reasonable attorneys’ fees and expert fees, and prejudgment interest at the maximum rate allowable by law.

Complaint at 36.

On July 16, 2021, Coca-Cola filed a notice of removal from the Superior Court to

this Court, asserting diversity jurisdiction under 28 U.S.C. § 1332(a). Notice at ¶ 4. Coca-Cola

asserts that the parties are completely diverse because “Coca-Cola is headquartered in Georgia

and incorporated in Delaware, and Plaintiff is a California organization.” Id. at ¶ 13. More

relevant here, to satisfy the amount in controversy requirement, Coca-Cola further alleges that

“Plaintiff seeks sweeping injunctive relief—to ‘end the lawful conduct directed at D.C.

consumers’—that, if granted, would cost Coca-Cola more than $75,000 to implement.” Id. at

¶ 15. In support of this allegation, Coca-Cola submits a declaration from Alpa Sutaria, the

Sustainability General Manager for Coca-Cola’s North American Operating Unit, describing

how the company would have to spend over $75,000 to “identify and remove all statements

about Coca-Cola’s commitment to environmental sustainability and recycling from its website,”

“remove references to recycling from its product labels,” and “issue other forms of corrective

advertising.” Declaration of Alpa Sutaria in Support of the Coca-Cola Company’s Notice of

Removal [Dkt. No. 1-3] at ¶¶ 5-8.

3 On August 16, 2021, Earth Island moved to remand the case back to the Superior

Court. The motion to remand advances three main arguments. First, Earth Island alleges that

Coca-Cola’s estimate of the amount in controversy fails because “the cost of compliance must be

calculated on a per-affected-individual basis, according to the non-aggregation principle.” Pl.

Mot. at 3. Second, Earth Island contends that even without the application of the non-

aggregation principle, Coca-Cola’s estimate is “speculative, [and] unsupported by evidence.” Id.

at 7. And third, Earth Island argues that their request for attorneys’ fees cannot meet the

jurisdictional minimum under 28 U.S.C. § 1332(a). Id. at 9-11. In addition, Earth Island asserts

that they are entitled to recoup the fees and costs associated with litigating the remand motion.

Id. at 11-12

II. LEGAL STANDARD

Federal courts are courts of limited jurisdiction, with the ability to hear only cases

entrusted to them by a grant of power contained either in the Constitution or in an act of

Congress. See, e.g., Beethoven.com LLC v. Librarian of Congress, 394 F.3d 939, 945 (D.C.

Cir. 2005); Abulhawa v. U.S. Dep't of the Treasury, 239 F. Supp. 3d 24, 30 (D.D.C. 2017)

(“[Courts] have ‘an affirmative obligation to consider whether the constitutional and statutory

authority exist for [them] to hear each dispute’ brought before them.”) (quoting James Madison

Ltd. ex rel. Hecht v. Ludwig, 82 F.3d 1085, 1092 (D.C. Cir. 1996)). The Court’s subject-matter

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Earth Island Institute v. Coca-Cola Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/earth-island-institute-v-coca-cola-company-dcd-2022.