Gardner v. Starkist Co.

CourtDistrict Court, N.D. California
DecidedMarch 31, 2020
Docket3:19-cv-02561
StatusUnknown

This text of Gardner v. Starkist Co. (Gardner v. Starkist Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gardner v. Starkist Co., (N.D. Cal. 2020).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 WARREN GARDNER, et al., Case No. 19-cv-02561-WHO

8 Plaintiffs, ORDER DENYING STARKIST'S 9 v. MOTION TO DISMISS THE SECOND AMENDED COMPLAINT; GRANTING 10 STARKIST CO., et al., DONGWON'S MOTION TO DISMISS WITH PREJUDICE Defendants. 11 Re: Dkt. Nos. 81, 82

13 Purchasers of StarKist Co. (“StarKist”) tuna from various states bring this class action 14 lawsuit alleging that StarKist promises consumers that its tuna products are dolphin-safe and 15 sustainably sourced and that those promises are false and misleading. See Second Amended 16 Complaint (“SAC”) [Dkt. No. 75] ¶¶ 12, 14. Plaintiffs seek to hold StarKist’s South Korean 17 parent company, Dongwon Industries (“Dongwon”), accountable as well. Before me is a second 18 round of motions to dismiss. For the reason’s set forth below, StarKist’s motion is DENIED, and 19 Dongwon’s motion is GRANTED with prejudice. 20 BACKGROUND 21 I detailed plaintiffs’ allegations in my December 2, 2019 Order granting in part and 22 denying in part StarKist’s motion to dismiss and granting Dongwon’s motion to dismiss with 23 leave to amend. See Gardner v. Starkist Co., 418 F. Supp. 3d 443, 449-54 (N.D. Cal. 2019) 24 (hereinafter “Gardner I”). I incorporate that discussion by reference here. 25 Plaintiffs adequately alleged their state law fraud claims in the First Amended Complaint 26 (“FAC”), but I gave them leave to amend their RICO claim as well as their alter ego and agency 27 theories as to Dongwon. Plaintiffs filed a Second Amended Complaint in response to that Order, 1 dropping their RICO claim. See Second Amended Complaint (“SAC”) [Dkt. No. 75]. StarKist 2 again moves to dismiss the SAC for failure to state a claim and Dongwon again moves to dismiss 3 for lack of personal jurisdiction. See StarKist Motion to Dismiss the Second Amended Complaint 4 (“StarKist MTD”) [Dkt. No. 81]; Dongwon Motion to Dismiss the Second Amended Complaint 5 (“Dongwon MTD”) [Dkt. No. 82]. 6 LEGAL STANDARD 7 I. RULE 12(B)(6): MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM 8 Under Federal Rule of Civil Procedure 12(b)(6), a district court must dismiss if a claim 9 fails to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion to 10 dismiss, the claimant must allege “enough facts to state a claim to relief that is plausible on its 11 face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible when 12 the plaintiff pleads facts that “allow the court to draw the reasonable inference that the defendant 13 is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation 14 omitted). There must be “more than a sheer possibility that a defendant has acted unlawfully.” Id. 15 While courts do not require “heightened fact pleading of specifics,” a claim must be supported by 16 facts sufficient to “raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555, 17 570. 18 Under Federal Rule of Civil Procedure 9(b), a party must “state with particularity the 19 circumstances constituting fraud or mistake,” including “the who, what, when, where, and how of 20 the misconduct charged.” Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1106 (9th Cir. 2003) 21 (internal quotation marks omitted). However, “Rule 9(b) requires only that the circumstances of 22 fraud be stated with particularity; other facts may be pleaded generally, or in accordance with Rule 23 8.” United States ex rel. Lee v. Corinthian Colls., 655 F.3d 984, 992 (9th Cir. 2011). In deciding 24 a motion to dismiss for failure to state a claim, the court accepts all of the factual allegations as 25 true and draws all reasonable inferences in favor of the plaintiff. Usher v. City of Los Angeles, 26 828 F.2d 556, 561 (9th Cir. 1987). But the court is not required to accept as true “allegations that 27 are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead 1 II. RULE 12(B)(2): MOTION TO DISMISS FOR LACK OF PERSONAL 2 JURISDICTION 3 Under Rule 12(b)(2) of the Federal Rules of Civil Procedure, a defendant may move to 4 dismiss for lack of personal jurisdiction. The plaintiff then bears the burden of demonstrating that 5 jurisdiction exists. Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004). 6 The plaintiff “need only demonstrate facts that if true would support jurisdiction over the 7 defendant.” Ballard v. Savage, 65 F.3d 1495, 1498 (9th Cir. 1995); Fields v. Sedgwick Assoc. 8 Risks, Ltd., 796 F.2d 299, 301 (9th Cir. 1986). “Although the plaintiff cannot simply rest on the 9 bare allegations of its complaint, uncontroverted allegations in the complaint must be taken as 10 true.” Schwarzenegger, 374 F.3d at 800 (citations omitted). Conflicts in the evidence must be 11 resolved in the plaintiff’s favor. Id. “Where, as here, the motion is based on written materials 12 rather than an evidentiary hearing, the plaintiff need only make a prima facie showing of 13 jurisdictional facts. In such cases, we only inquire into whether [the plaintiff’s] pleadings and 14 affidavits make a prima facie showing of personal jurisdiction.” Caruth v. International 15 Psychoanalytical Ass’n, 59 F.3d 126, 128 (9th Cir. 1995) (internal punctuation and citation 16 omitted). 17 DISCUSSION 18 I. FAILURE TO STATE A CLAIM AGAINST STARKIST 19 A. StarKist’s Motion Violates Rule 12(g)(2)’s Ban on Successive Rule 12(b) Motions 20 StarKist moves to dismiss plaintiffs’ fraud allegations as implausible because they have 21 failed to allege how a reasonable consumer could interpret the alleged “dolphin-safe” promise to 22 mean completely free of any possible harm or injury to dolphins. StarKist MTD 6. Plaintiffs 23 argue that I need not reach the merits of StarKist’s argument pursuant to Federal Rule of Civil 24 Procedure 12(g)(2). Plaintiffs’ Opposition to Defendant StarKist Co.’s Motion to Dismiss Second 25 Amended Complaint (“Oppo. StarKist MTD”) [Dkt. No. 84] 2. 26 Rule 12(g)(2) states that “[e]xcept as provided in Rule 12(h)(2) or (3), a party that makes a 27 motion under this rule must not make another motion under this rule raising a defense or objection 1 that was available to the party but omitted from its earlier motion.” Fed. R. Civ. P. 12(g)(2). Rule 2 12(h)(2), in turn, allows a party to raise a defense of failure to state a claim: “(A) in any pleading 3 allowed or ordered under Rule 7(a); (B) by a motion under Rule 12(c); or (C) at trial.” Fed. R. 4 Civ. P. 12(h)(2).

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