Elias v. Ungar's Food Products, Inc.

252 F.R.D. 233, 2008 U.S. Dist. LEXIS 49729, 2008 WL 2704538
CourtDistrict Court, D. New Jersey
DecidedJune 30, 2008
DocketCiv. Action No. 06-2448 (KSH)
StatusPublished
Cited by34 cases

This text of 252 F.R.D. 233 (Elias v. Ungar's Food Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elias v. Ungar's Food Products, Inc., 252 F.R.D. 233, 2008 U.S. Dist. LEXIS 49729, 2008 WL 2704538 (D.N.J. 2008).

Opinion

OPINION

KATHARINE S. HAYDEN, District Judge.

I. INTRODUCTION

Plaintiffs Alexandria Elias, Roxanne Scher, Dolores Baez and Jennifer Tosi (collectively “plaintiffs”) are New York residents who purchased and consumed various frozen food products manufactured and distributed by defendant Ungar’s Food Products, Inc. d/b/a Dr. Praeger’s Sensible Foods, a New Jersey corporation. (Am.Compl.lffl 9-13.) They assert claims for common law negligent misrepresentation, breach of express warranty under N.J.S.A. 12A:2~101, and consumer fraud under the New Jersey Consumer Fraud Act (“NJCF”), N.J.S.A. 56:8-2. The suit alleges that independent testing of defendants’ products, which are marketed as foods that con[237]*237tribute to a healthy lifestyle, revealed that the nutritional information on the packaging misrepresents the fat and calorie content of those products.

Plaintiffs have moved for class certification pursuant to Federal Rule of Civil Procedure 23. This Court referred that motion to Magistrate Judge Patty Shwartz, who issued a Report and Recommendation (“R & R”) recommending that the Court “grant the motion to certify a class to pursue claims under the [NJCFA], and for breach of express warranty g but deny the motion to certify a class to pursue the common law claim of negligent misrepresentation.” (R & R at 1.) Currently before the Court are defendants’ timely-filed objections to the R & R.

For the reasons that follow, the Court adopts Judge Shwartz’s recommendation that plaintiffs’ motion for class certification be denied for the common law fraud claim and granted for the NJCFA and breach of warranty claims.

II. STANDARD OF REVIEW

The Court’s review of a party’s objections to an R & R is governed by Local Civil Rules 72.1(a)(2) and 72.1(c)(2). Pursuant to the Local Rules, the Court “shall make a de novo determination of those portions [of the R & R] to which objection is made and may accept, reject or modify, in whole or in part, the findings or recommendations made by the magistrate judge. The [Court] ... may consider the record developed before the magistrate judge, making [its] own determination on the basis of that record.” L. Civ. R. 72.1(c)(2); see also Poveromo-Spring v. Exxon Corp., 968 F.Supp. 219, 221 & n. 2 (D.N.J.1997).

III. DISCUSSION

A. Class Certification Generally

Federal Rule of Civil Procedure 23(a), which prescribes the prerequisites to a class action, requires plaintiffs to satisfy the elements of numerosity, commonality, typicality, and adequacy of representation. Johnston v. HBO Film Mgmt., Inc., 265 F.3d 178, 183 (3d Cir.2001).

One or more members of a class may sue or be sued as representative parties on behalf of all members only if: (1) the class is so numerous that joinder of all members is impracticable; (2) there are questions of law or fact common to the class; (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class; and (4) the representative parties will fairly and adequately protect the interests of the class.

Fed.R.Civ.P. 23(a). If those requirements are satisfied, the Court must then find that the lawsuit is maintainable as a class action under one of the three provisions of Rule 23(b). Johnston, 265 F.3d at 184. Here, plaintiffs contend that this matter falls within the ambit of Rule 23(b)(3), which provides that “[a] class action may be maintained if Rule 23(a) is satisfied and if g the court finds that the questions of law or fact common to class members predominate over any questions affecting only individual members, and that a class action is superior to other available methods for fairly and efficiently adjudicating the controversy.”

If the Court finds that each of the four elements of Rule 23(a) have been satisfied and that the predominance and superiority requirements of Rule 23(b)(3) are met, then the proposed class may be certified.

B. Common Law Fraud

The Court has reviewed de novo Judge Shwartz’s recommendation, which neither party has objected to, that class certification be denied on the common law fraud claim. Because no error is evident from the face of the record concerning this particular determination, the Court adopts those portions of the R & R as the decision of the Court. See L. Civ. R. 72.1(c) Comment 4d.

C. Rule 23(a)

The Court has reviewed de novo Judge Shwartz’s recommendation, which neither party has objected to, that the plaintiffs have established the Rule 23(a) elements. Because no error is evident from the face of the record concerning this particular determination, the Court adopts those portions of the R [238]*238& R as the decision of the Court. See L. Civ. R. 72.1(c) Comment 4d.

D. NJCFA and Breach of Warranty

Judge Shwartz determined that plaintiffs met their burden under Rule 23(b)(3), which requires them to demonstrate that “questions of law or fact common to members of the class predominate over any questions affecting only individual members.” Fed.R.Civ.P. 23(b)(3). The Court’s Rule 23(b)(3) analysis focuses on the substantive law on which plaintiffs base their claims. “Although class certification may not be denied based on the factual merits of a complaint, some preliminary analysis of the legal theory on which the action is based is required.” Debra F. Fink, D.M.D., MS, PC v. Ricoh Corp., 365 N.J.Super. 520, 538, 839 A.2d 942 (Law Div.2003) (citing In re Cadillac, 93 N.J. 412, 426, 461 A.2d 736 (1983); Olive v. Graceland Sales Corp., 61 N.J. 182, 189, 293 A.2d 658 (1972)). To establish their NJCFA claims, plaintiffs must prove that: (1) the defendant(s) engaged in deception, fraud, false pretense, false promise, or misrepresentation; (2) the plaintiff(s) suffered an ascertainable loss; and (3) a causal relationship can be established between the unlawful conduct and the loss. N.J.S.A. 56:8-2; Weinberg v. Sprint Corp., 173 N.J. 233, 236-37, 801 A.2d 281 (2002). The thrust of defendants’ objections to the R & R is that plaintiffs’ claims require highly individualized proofs, rendering this matter unmanageable as a class action.

Defendants assert that each plaintiff must prove causation under the NJCFA on an individualized basis and that Judge Shwartz skirted the issue of causation by erroneously relying on the “presumption of causation” principle established in Varacallo v. Mass. Mut. Life Ins. Co., 332 N.J.Super. 31, 752 A.2d 807 (App.Div.2000). Defendants assert that this reliance was misplaced, because “the Varacallo presumption is applicable in NJCFA cases only where the alleged unlawful conduct takes the form of an omission.” (Defs.’ Obj. to R & R 4.) Defendants cite no case holding that Varacallo

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252 F.R.D. 233, 2008 U.S. Dist. LEXIS 49729, 2008 WL 2704538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elias-v-ungars-food-products-inc-njd-2008.