Gardner v. Starkist Co.

District Court, N.D. California·Decided October 19, 2020·No. 3:19-cv-02561·Unknown

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 WITHOUT 9 v. PREJUDICE MOTION TO DENY CLASS CERTIFICATION 10 STARKIST CO., Re: Dkt. No. 107 Defendant. 11

12 13 Defendant StarKist Co. (“StarKist”) has moved to deny class certification, arguing that it 14 should not have to endure the burden and expense of class discovery because plaintiffs’ purported 15 classes and subclasses cannot be certified. I find this motion is suitable for decision without oral 16 argument and VACATE the hearing scheduled for October 21, 2020. Civ. L. R. 7-1(b). 17 As the Ninth Circuit recently reiterated, “[a]s discovery unfolds, it may become clear that 18 individual questions predominate, or that the proposed class does not satisfy the other 19 requirements for class treatment.” Wisdom v. Easton Diamond Sports, LLC, No. 19-55742, 2020 20 WL 5960939, at *2 (9th Cir. Oct. 8, 2020) (unpublished). “But more class discovery is required to 21 make this determination, even as the district court retains discretion to impose reasonable limits on 22 discovery.” Id. StarKist’s motion is DENIED without prejudice because it is premature for the 23 reasons stated below. 24 BACKGROUND 25 Purchasers of StarKist tuna from various states bring this class action lawsuit alleging that 26 StarKist promises consumers that its tuna products are dolphin-safe and sustainably sourced and 27 that those promises are false and misleading. Second Amended Complaint (“SAC”) [Dkt. No. 75] 1 incorporate by reference here. See Gardner v. Starkist Co., 418 F. Supp. 3d 443, 449–54 (N.D. 2 Cal. 2019); Gardner v. Starkist Co., No. 19-CV-02561-WHO, 2020 WL 1531346, at *1 (N.D. Cal. 3 Mar. 31, 2020). In my March 31, 2020 order, I found that plaintiffs plausibly pleaded their state 4 law fraud claims against StarKist in their SAC, but dismissed StarKist’s South Korean parent 5 company, Dongwon Industries Co. Ltd., for lack of personal jurisdiction. 2020 WL 1531346, at 6 *7. 7 At the May 26, 2020 case management conference, I adopted the parties’ discovery 8 schedule and class certification briefing schedule as proposed. Minute Entry for Proceeding Held 9 on May 26, 2020 [Dkt. No. 105]. The deadline for substantial completion of document production 10 related to non-expert class discovery is December 31, 2020, the deadline for completion of non- 11 expert factual discovery (including depositions) and third-party discovery is March 3, 2021, and 12 plaintiffs’ class certification motion and Rule 26(a)(2) expert disclosures/reports for class 13 certification will be filed by June 4, 2021, with hearing set for November 17, 2021. Joint Case 14 Management Statement [Dkt. No. 100]. 15 On September 11, 2020, StarKist filed its motion to deny class certification. StarKist Co.’s 16 Motion to Deny Class Certification (“Mot.”) [Dkt. No. 107]. Plaintiffs’ contend that StarKist has 17 not responded to any of its discovery requests, and when it did respond, it objected to every single 18 request such that no discovery has been produced to date. Plaintiffs’ Memorandum of Points and 19 Authorities in Opposition to Defendant’s Motion to Deny Class Certification (“Oppo.”) [Dkt. No. 20 108] 1. 21 LEGAL STANDARD 22 “Before certifying a class, the trial court must conduct a ‘rigorous analysis’ to determine 23 whether the party seeking certification has met the prerequisites of Rule 23.” Mazza v. Am. Honda 24 Motor Co., Inc., 666 F.3d 581, 588 (9th Cir. 2012). The party seeking certification bears the 25 burden of showing that Rule 23 has been met. Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 350 26 (2011); Conn. Ret. Plans & Trust Funds v. Amgen Inc., 660 F.3d 1170, 1175 (9th Cir. 2011), aff’d, 27 133 S.Ct. 1184 (2013). Rule 23(a) requires that plaintiffs demonstrate numerosity, commonality, 1 588. A Rule 23(b)(3) class action may be maintained if “the court finds that the questions of law 2 or fact common to class members predominate over any questions affecting only individual 3 members, and that a class action is superior to other available methods for fairly and efficiently 4 adjudicating the controversy.” Fed. R. Civ. P. 23(b)(3). A Rule 23(b)(2) class action may be 5 maintained if “the party opposing the class has acted or refused to act on grounds that apply 6 generally to the class, so that final injunctive relief or corresponding declaratory relief is 7 appropriate respecting the class as a whole.” Fed. R. Civ. P. 23(b)(2). 8 The Ninth Circuit has held that a defendant may file a motion to deny class certification 9 before the close of fact discovery and before the pretrial motion deadline. Vinole v. Countrywide 10 Home Loans, Inc., 571 F.3d 935, 944 (9th Cir. 2009) (“Rule 23 does not preclude a defendant 11 from bringing a ‘preemptive’ motion to deny certification.”). However, such a motion is 12 disfavored and may be denied as premature. See Amey v. Cinemark USA Inc., No. 13-CV05669- 13 WHO, 2014 WL 4417717, at *3–4 (N.D. Cal. Sept. 5, 2014). “District courts have broad 14 discretion to control the class certification process.” Vinole, 571 F.3d at 942. 15 DISCUSSION 16 StarKist argues that the purported classes and subclasses cannot be certified for three 17 reasons: (i) plaintiffs’ proposed class and subclasses cannot meet the predominance requirement of 18 Rule 23(b)(3) because their claims are based on a handful of non-label StarKist representations to 19 which plaintiffs cannot possibly show that most class member were exposed; (ii) plaintiffs 20 purported nationwide unjust enrichment class separately fails the predominance requirement of 21 Rule 23(b)(3) because it would require the application of the laws of all fifty states; and (iii) 22 plaintiffs cannot certify a class under Rule 23(b)(2) because they primarily seek monetary—not 23 declaratory and injunctive—relief. Mot. 1. 24 I. NON-LABEL REPRESENTATIONS 25 StarKist contends that plaintiffs’ theory of the case does not only depend on those 26 consumers that have been exposed to StarKist’s dolphin-safe logo on their packaging, but also on 27 those that have been exposed to StarKist’s non-label representations, which makes them believe 1 dolphin-safe logo enacted by the Dolphin Protection Consumer Information Act (“DPCIA”), 16 2 U.S.C § 1385. Mot. 11. 3 Accordingly, it argues, a consumer could have only been deceived by its logo if that 4 consumer had previously been exposed to a non-label representation made by it, and the relevant 5 non-label advertising alleged by plaintiffs only include a handful of representations made on 6 StarKist’s website, social media, or in press releases over a 30-year period. Mot. 12 (citing SAC 7 ¶¶ 71–72). Given the theory as to how consumers were deceived—i.e., by exposure to non-label 8 representations that altered the meaning of the product label—StarKist asserts that these classes 9 cannot satisfy the predominance requirement of Rule 23(b)(3) because “an individualized case 10 must be made for each member.” Mot. 14 (quoting Mazza, 666 F.3d at 596). 11 Plaintiffs respond that StarKist has mis-framed the predominance analysis. Oppo. 5. They 12 contend that this case does not depend on class members’ exposure to various non-label 13 representations, as StarKist suggests.

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