Frompovicz v. Niagara Bottling, LLC

313 F. Supp. 3d 603
CourtDistrict Court, E.D. Pennsylvania
DecidedMay 24, 2018
DocketCIVIL ACTION NO. 18–54
StatusPublished
Cited by6 cases

This text of 313 F. Supp. 3d 603 (Frompovicz v. Niagara Bottling, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frompovicz v. Niagara Bottling, LLC, 313 F. Supp. 3d 603 (E.D. Pa. 2018).

Opinion

WENDY BEETLESTONE, District Judge.

Percolating through this case is the question of who is selling genuine bottled "spring" water and who is not. Plaintiff, a spring water extractor, alleges that Defendants have violated the Lanham Act, 15 U.S.C. § 1125(a), and Pennsylvania's unfair competition law by mislabeling their water as "spring water." One of the Defendants *607extracts water and three of them bottle, sell, and label the extracted water as "spring water." Plaintiff, who is "in the spring water business," possessed a license from the Pennsylvania Department of Environmental Protection ("DEP") to operate a spring water extraction site. He alleges that Defendants' labeling of their water as "spring water" has damaged his business because the labels are designed to entice purchasers to buy Defendants' products under the false belief that their "spring water" is at least equal, if not superior, to Plaintiff's true spring water. Plaintiff brings this case as a putative class action for "[a]ll persons in the United States who, within the applicable statute of limitations preceding the filing of this action through class certification, extract and/or bottle spring water for sale in the United States," as well as a Pennsylvania subclass.

Defendants have filed Motions to Dismiss under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). For the reasons below, Defendants' motions are granted in part and denied in part.

I. FACTS

Stanley Frompovicz, doing business as Far Away Springs,1 brings this putative class action under the federal Lanham Act, 15 U.S.C. § 1125(a), and for unfair competition under Pennsylvania law, against James Land,2 who is engaged in the business of extracting and marketing water, as well as three water bottlers and distributors who purchase Land's water (collectively, "Defendants"). Those bottlers are Niagara Bottling Co., LLC ("Niagara"), Ice River Springs Water Co. Inc. ("Ice River"), and Crossroads Beverage Group ("Crossroads") (collectively "Bottler Defendants"). The crux of Plaintiff's Complaint is that Defendant Land sells "well water" and the Bottler Defendants market it as more desirable "spring water," thereby diminishing Plaintiff's market to sell spring water.

The following facts are taken from the Complaint. Bottled water is the second largest beverage category by volume in the United States. The success of bottled water is attributable to several factors, including consumer's perceptions about taste, healthfulness, convenience, safety, and value as compared to other bottled beverages. There are many types of bottled water, including, as relevant here, "spring water" and "well" or "tap water." Spring water typically sells at a premium compared to other bottled water, such as well water or tap water, because customers recognize and prefer the taste of spring water to other types of bottled water. However, spring water sites require substantially more resources to locate, develop, and maintain because of the unique characteristics necessary to extract the water to ensure that it remains "spring water" throughout the extraction process.

The Bottler Defendants source their water from Defendant Land's facility and label their water as "spring water." Plaintiff asserts that the labels are misleading for four reasons. First, Pennsylvania's DEP does not recognize Defendant Land's facility as a "spring water" source. In fact, a DEP permit for Land's facility, attached as an exhibit to the Complaint, clearly identifies the site as a "well water" site, and not a "spring water" site. Second, the Complaint alleges that the raw water extracted *608from Land's facility does not satisfy the Food and Drug Administration's ("FDA") definition of "spring water." Third, water extracted from Land's facility has been extracted, handled, or treated with equipment or techniques that are inconsistent with a "spring water" classification. Last, water from Land's facility has tested as containing more particulates or trace elements than are otherwise permissible or recommended under industry standards for spring water.

II. LEGAL ANALYSIS

Defendants seek to dismiss Plaintiff's complaint on the grounds that: (1) he lacks standing under Article III of the United States Constitution; and (2) because he does not have a "right to sue" under the Lanham Act. Defendants also contend that Plaintiff's Lanham Act claims are precluded, by the Food, Drug, and Cosmetics Act.

A plaintiff must demonstrate standing in order to avail itself of the jurisdiction of federal courts. See Common Cause of Pennsylvania v. Pennsylvania, 558 F.3d 249, 257 (3d Cir. 2009). In the context of a class action-as is the case here-if the class representative lacks standing, the court "must dismiss ... for lack of subject matter jurisdiction." Finkelman v. Nat'l Football League, 810 F.3d 187, 195 (3d Cir. 2016) (citing Neale v. Volvo Cars of N. Am., LLC, 794 F.3d 353, 362 (3d Cir. 2015) ). Standing is, thus, a "bedrock requirement" that must be met before a court can reach the merits of a suit. In re Schering Plough Corp. Intron/Temodar Consumer Class Action, 678 F.3d 235, 244 (3d Cir. 2012) ; see also Hartig Drug Co. v. Senju Pharm. Co. , 836 F.3d 261, 269 (3d Cir. 2016) (holding that Article III standing is a "threshold issue").

A. Standard of Review

A motion to dismiss for lack of Article III standing comes in the form of a "facial" or "factual" attack on the Court's subject-matter jurisdiction. The distinction is important because it determines how the pleading must be reviewed. See In re Schering Plough , 678 F.3d at 243. "[A] facial attack 'contests the sufficiency of the pleadings' 'whereas a factual attack concerns the actual failure of a [plaintiff's] claims to comport [factually] with the jurisdictional prerequisites.' "

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337 F. Supp. 3d 498 (E.D. Pennsylvania, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
313 F. Supp. 3d 603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frompovicz-v-niagara-bottling-llc-paed-2018.