Floyd v. Pepperidge Farm, Incorporated

CourtDistrict Court, S.D. Illinois
DecidedJanuary 24, 2022
Docket3:21-cv-00525
StatusUnknown

This text of Floyd v. Pepperidge Farm, Incorporated (Floyd v. Pepperidge Farm, Incorporated) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Floyd v. Pepperidge Farm, Incorporated, (S.D. Ill. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS

DEBORAH FLOYD, Individually and on Behalf of all Others Similarly Situated,

Plaintiff, Case No. 21-cv-525-SPM

v.

PEPPERIDGE FARM, INCORPORATED,

Defendant.

MEMORANDUM AND ORDER

McGLYNN, District Judge: Pending before the Court is a Motion to Dismiss pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure filed by Defendant Pepperidge Farm, Incorporated (“Pepperidge Farm”). For the reasons set forth below, the Court GRANTS the Motion to Dismiss in its entirety. FACTUAL BACKGROUND The following facts are taken from plaintiff Deborah Floyd’s (“Floyd”) complaint (Doc. 1) and are accepted as true for purposes of Pepperidge Farm's motion to dismiss. FED. R. CIV. P. 10(c); Arnett v. Webster, 658 F.3d 742, 751-52 (7th Cir. 2011). Floyd resides in Maryville, Illinois (¶ 36). Pepperidge Farms is the manufacturer, distributer, marketer, labeler and seller of Golden Butter [Crackers] (“crackers”) (4 1). Floyd reproduced in her complaint the following copy of the cracker box: @aga

A site 2 } LW) . A a

—— Bk. co Floyd also reproduced the following ingredient list of the crackers in her complaint: MADE FROM: ENRICHED WHEAT FLOUR (FLOUR, NIACIN, REDUCED IRON, THIAMINE MONONITRATE, RIBOFLAVIN, FOLIC ACID), BUTTER (MILK), VEGETABLE OILS (CANOLA, SUNFLOWER AND/OR SOYBEAN), SUGAR, INVERT SYRUP, CONTAINS 2% OR LESS OF: SALT, MALTED BARLEY FLOUR, BAKING SODA, MONOCALCIUM PHOSPHATE. Butter is second on the ingredient list, behind enriched wheat flour, but the claims are concerned with the presence of the third ingredient — vegetable oils.

Page 2 of 18

Floyd purchased the crackers on at least one occasion at Schnucks, 2222 Troy Road, Edwardsville, Illinois during 2019 and 2020 because “she wanted to consume a cracker which contained more butter than it did” and “did not contain butter substitutes where butter could be used” (¶¶ 41, 42). Floyd claims that the packaging of the crackers was misleading because “even though the [crackers] contain butter, it

contains a non-de minimis amount of butter substitutes – vegetable oils” (¶ 10). Floyd contends that the value of the crackers was less because they contained vegetable oils and that Pepperidge Farms was able to sell the crackers at a higher price premium due to the “misleading representations and omissions” (¶¶ 28, 31). Floyd “would not have paid as much absent [Pepperidge Farm’s] false and misleading statements and omissions” (¶43).

PROCEDURAL BACKGROUND On May 31, 2021, plaintiff Deborah Floyd (“Floyd”) filed a putative class action complaint against Pepperidge Farms (Doc. 1). The complaint alleges numerous theories of liability against Pepperidge Farms as the manufacturer, distributer, marketer, labeler and seller of “Golden Butter [Crackers]” (¶ 1). Within the complaint, Floyd asserts claims under the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”), 815 ILCS 505/1, et seq., and the Magnuson Moss

Warranty Act, 15 U.S.C §§ 2301, et seq. (pp. 8, 9). Floyd also asserts claims for breach of express warranty, breach of implied warranty of merchantability, negligent misrepresentation, fraud, and unjust enrichment (pp. 8-10). Specifically, Floyd claims that the label and name of the crackers is misleading, because the crackers contain vegetable oils in addition to butter (¶ 10). She further claims that the name was chosen to entice customers, who chose said crackers because they contained butter (¶ 26). Floyd asserted that customers relied on the “Golden Butter” name and that the customers would not have chosen those crackers had they known about the vegetable oils (¶ 30). She further asserted that Pepperidge Farms sold the “Golden Butter” crackers for a premium price, which they would not

have been able to do without the misleading name (¶¶ 29, 31). On October 22, 2021, Pepperidge Farm filed a Motion to Dismiss pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, along with supporting memorandum of law (Docs. 12, 12-1). Pepperidge Farms also challenges whether Floyd met the heightened pleading standard under Rule 9(b) of the Federal Rules of Civil Procedure (Doc. 12-1, p. 12).

With respect to the 12(b)(6) grounds for dismissal, Pepperidge Farms argues that Floyd has not plausibly alleged that the “Golden Butter” name is deceptive (Doc. 12-1, p. 7). Pepperidge Farms also asserts that Floyd does not state claims for breach of warranty, negligent misrepresentation, fraud, or unjust enrichment (Doc. 12-1, pp. 12-15). Additionally, Pepperidge Farms contends that Floyd does not have standing to seek injunctive relief (Doc. 12-1, p. 15). On October 28, 2021, Floyd filed two separate “responses” to the Pepperidge

Farms motion. In the first, Floyd indicated she would file an amended complaint as of right pursuant to Rule 15(a)(1)(B) of the Federal Rules of Civil Procedure no later than November 12, 2021, which was 21 days after the motion was filed (Doc. 15). In the second, Floyd withdrew the previous response and indicated she would file opposition to motion to dismiss by November 23, 2021 (Doc. 16). On November 10, 2021, Pepperidge Farms sought leave to file supplemental authority in support of its motion to dismiss (Doc. 18). On November 12, 2021, this Court granted said motion (Doc. 19), allowing Pepperidge Farms to submit the recent decision in a virtually identical matter, albeit in a different jurisdiction, to wit: Kamara, et al. v. Pepperidge Farm, Inc., No. 1:20-cv-09012 (S.D.N.Y., Nov. 9, 2021).

In Kamara, Judge Castel of the Southern District of New York granted Pepperidge Farm’s motion to dismiss in its entirety and denied leave to amend the complaint. This decision followed an analysis of each of count/claim, including consumer fraud and deception (under the New York Business Law), negligent misrepresentation, breach of implied warranty, breach of express warranty and Magnuson Moss warranty, fraud, and unjust enrichment. While not binding

precedent, this decision and analysis is certainly persuasive authority for this Court to consider. On November 24, 2021, Floyd filed her Memorandum in Opposition to Motion to Dismiss (Doc. 20). Within the opposition, Floyd attempted to rebut each and every one of Pepperidge Farm’s assertions (Id.). First, Floyd contended that Pepperidge Farms conduct was in violation of the ICFA in that it could plausibly deceive a reasonable customer (pp. 2-8). Second, Floyd countered that she stated claims for

breach of implied and express warranty, along with a claim under the Magnuson Moss Warranty Act (“MMWA”) (pp. 9-12). Third, Floyd asserted that she adequately pled the common law claims of negligent misrepresentation, fraud, and unjust enrichment (pp. 12-13). Finally, Floyd argued that she had standing to seek injunctive relief (pp. 13-14). Any reply should have been received before December 8, 2021; as such, this matter is ripe for review. LEGAL STANDARD In addressing a motion to dismiss for failure to state a claim on which relief can be granted pursuant to Federal Rule of Civil Procedure 12(b)(6), a district court

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