English v. Danone North America Public Benefit Corporation

CourtDistrict Court, S.D. New York
DecidedJune 26, 2023
Docket7:22-cv-05105
StatusUnknown

This text of English v. Danone North America Public Benefit Corporation (English v. Danone North America Public Benefit Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
English v. Danone North America Public Benefit Corporation, (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------------------------------------x ROSITA ENGLISH, individually and on behalf : of all those similarly situated, : Plaintiff, : OPINION AND ORDER v. :

: 22 CV 5105 (VB) DANONE NORTH AMERICA PUBLIC : BENEFIT CORPORATION, : Defendant. : --------------------------------------------------------------x

Briccetti, J.: Plaintiff Rosita English brings this putative class action against defendant Danone North America Public Benefit Corporation alleging violations of Sections 349 and 350 of New York’s General Business Law (“GBL”); violations of Sections 17.41 through 17.63 of the Texas Business and Commerce Code (“DTPA”); violations of the consumer fraud acts of Alaska, Idaho, Iowa, Kansas, Kentucky, Montana, Nebraska, North Dakota, South Carolina, Utah, and Virginia; breach of express warranty; breach of the implied warranty of merchantability; breach of the implied warranty of fitness for a particular purpose; violation of the Magnuson Moss Warranty Act (“MMWA”); fraud; and unjust enrichment, all based on the assertion that defendant misrepresents its International Delight brand French Vanilla coffee whitener as a “coffee creamer” even though it does not contain cream. (Doc. #1 (“Compl.”) ¶ 1). Now pending is defendant’s motion to dismiss pursuant to Rule 12(b)(6). (Doc. #6). For the reasons set forth below, the motion is GRANTED. The Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332(d). BACKGROUND For the purpose of ruling on the motion to dismiss, the Court accepts as true all well- pleaded factual allegations in the complaint and draws all reasonable inferences in plaintiff's favor, as summarized below. This case concerns statements made on the packaging of International Delight French Vanilla flavored coffee whitener (the “Product”), manufactured by defendant, which has a principal place of business in New York. Plaintiff, a citizen of Texas,! allegedly purchased the Product in June 2022 in Fort Worth, Texas. Plaintiff alleges the Product is sold next to dairy products such as coffee cream. Further, the Product’s front packaging identifies it as a “‘Coffee Creamer,’ beneath a large seal stating, ‘Delightfully Creamy,’” as depicted below:

| aya, (a ve ae

ee N ATloy aan delight ‘Ome ral 4 Pow aay Praag iu

Drawing all reasonable inferences in plaintiff's favor, the Court construes plaintiff to allege she is a Texas citizen. Although in one paragraph plaintiff alleges she is “a citizen of New York” (Compl. § 36), this is belied by her other allegations that “[p]laintiff’s citizenship of Texas is diverse from [d]efendant,” which resides in Delaware and New York (id. § 38), and “[p]laintiff Rosita English is a citizen of Forth Worth, Tarrant County, Texas.” (Id. § 43).

(Compl. ¶¶ 17–18). According to plaintiff, marketing the Product as a coffee creamer misleads consumers into believing the Product contains cream from dairy ingredients. In particular, plaintiff alleges the “name ‘coffee creamer’ is almost identical to ‘coffee cream’” (Compl. ¶ 22), which the U.S.

Food and Drug Administration (“FDA”) defines as a specialized dairy product “‘contain[ing] not less than 18 percent but less than 30 percent milkfat,’ with added sweeteners and/or flavorings.” (Id. ¶¶ 8–9 (quoting 21 C.F.R. § 131.55(a)). But unlike coffee cream, defendant’s coffee creamer purportedly contains no cream or dairy ingredients, except for “a de minimis amount of sodium caseinate.” (Id. ¶ 19).2 Defendant allegedly uses water and palm oil in the Product instead of dairy cream to lower costs. In addition, plaintiff contends reasonable consumers rely on companies “to honestly and lawfully market and describe the components, attributes, and features of a product, relative to itself and other comparable products or alternatives.” (Compl. ¶ 28). Further, plaintiff claims dairy has benefits that the Product lacks. For example, dairy

ingredients “contain[] protein, calcium and vitamins A, D, E, and K, which are absent from refined vegetable oils like palm oil” (Compl. ¶ 25), and research purportedly indicates “fats in dairy ingredients do not increase the risk of cardiovascular disease or increase cholesterol, in contrast to vegetable oils.” (Id. ¶ 24). Therefore, plaintiff alleges she would not have purchased

2 According to plaintiff, the Product’s Ingredients are listed as follows: “WATER, SUGAR, PALM OIL, CONTAINS 2% OR LESS OF: SODIUM CASEINATE* (A MILK DERIVATIVE), DIPOTASSIUM PHOSPHATE, CARRAGEENAN, MONO AND DIGLYCERIDES, NATURAL & ARTIFICIAL FLAVORS, SODIUM STEAROYL LACTYLATE, SALT. *SODIUM CASEINATE IS NOT A SOURCE OF LACTOSE. CONTAINS A MILK DERIVATIVE.” (Compl. ¶ 19). the Product if she had known it lacked dairy cream, or would have paid much less for it, and that the Product is actually worth “materially less” than defendant represented. (Id. ¶ 29). DISCUSSION I. Standard of Review In deciding a Rule 12(b)(6) motion, the Court evaluates the sufficiency of the complaint under the “two-pronged approach” articulated by the Supreme Court in Ashcroft v. Iqbal, 556 U.S. 662, 679 (2009).3 First, a plaintiff’s legal conclusions and “[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements,” are not entitled to the assumption of truth and thus are not sufficient to withstand a motion to dismiss. Id. at 678;

Hayden v. Paterson, 594 F.3d 150, 161 (2d Cir. 2010). Second, “[w]hen there are well-pleaded factual allegations, a court should assume their veracity and then determine whether they plausibly give rise to an entitlement to relief.” Ashcroft v. Iqbal, 556 U.S. at 679. To survive a Rule 12(b)(6) motion, the allegations in the complaint must meet a standard of “plausibility.” Ashcroft v. Iqbal, 556 U.S. at 678; Bell Atl. Corp. v. Twombly, 550 U.S. 544, 564 (2007). A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. at 678. “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. (quoting Bell Atl. Corp. v. Twombly, 550 U.S. at 556).

3 Unless otherwise indicated, case quotations omit all internal citations, quotation marks, footnotes, and alterations. II. New York GBL Claims Defendant argues plaintiff fails plausibly to allege GBL claims because plaintiff purchased the Product in Texas. The Court agrees.

GBL Section 349 prohibits “deceptive acts or practices in the conduct of any business, trade, or commerce . . . in this state.” N.Y. Gen. Bus. Law § 349(a). Likewise, GBL Section 350 prohibits “[f]alse advertising in the conduct of any business, trade, or commerce, or in the furnishing of any service in this state.” Id. § 350. To state a claim under either section, “[t]he transaction in which the consumer is deceived must occur in New York.” Goshen v. Mut. Life Ins. Co. of N.Y., 98 N.Y.2d 314, 324 (2002); see also Cruz v. FXDirectDealer, LLC, 720 F.3d 115, 122 (2d Cir. 2013).

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English v. Danone North America Public Benefit Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/english-v-danone-north-america-public-benefit-corporation-nysd-2023.