Gedalia v. Whole Foods Market Services, Inc.

53 F. Supp. 3d 943, 2014 U.S. Dist. LEXIS 142961, 2014 WL 5315030
CourtDistrict Court, S.D. Texas
DecidedSeptember 30, 2014
DocketCivil Action No. 4:13-CV-3517
StatusPublished
Cited by5 cases

This text of 53 F. Supp. 3d 943 (Gedalia v. Whole Foods Market Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gedalia v. Whole Foods Market Services, Inc., 53 F. Supp. 3d 943, 2014 U.S. Dist. LEXIS 142961, 2014 WL 5315030 (S.D. Tex. 2014).

Opinion

OPINION AND ORDER

MELINDA HARMON, District Judge.

Pending before the Court is Plaintiffs Uri Gedalia (“Gedalia”) and Kira Lewis’s (“Lewis”) (collectively “Plaintiffs”) Motion to Certify (Doc. 17) and Defendants Whole Foods Market Services, Inc., et al.’s (“Whole Foods”) Motion to Dismiss (Doc. 18). Also before the Court is Plaintiffs’ response (Doc. 36) and Whole Foods’s reply (Doc. 42). Having considered the motion, the response, the reply, the facts in the record and the applicable law, the Court concludes Whole Food’s Motion to Dismiss (Doc. 18) should be granted. Plaintiffs Motion to Certify (Doc. 17) is denied as moot.

I. Background

Plaintiffs filed this class action suit against Whole Foods individually and on behalf of all persons who have purchased Whole Foods’s private-label 365 Organic and 365 Everyday Value (collectively “365 Brands”) products that are allegedly falsely labelled as being organic, natural, and/or GMO-free. (Doc. 1). Plaintiffs seek certification as a nationwide class, or, in the alternative, as either state statutory sub-classes, or as Texas and California sub-classes. (Id. ¶¶ 137-39). The Complaint asserts violations of California’s Organic Products Act (“COPA”, Cal. Health & Safety Code §§ 110810-110959), Consumers Legal Remedies Act (“CLRA”, Cal. Civ.Code § 1750 et seq.), False Advertising Law (“FAL”, Cal. Bus. & Prof.Code § 17500 et seq.), and Unfair Competition Law (“UCL”, Cal. Bus. & Prof.Code § 17200 • et seq.). Plaintiffs also allege breaches of express and implied warranties, fraud, unjust enrichment, and negligence and negligent misrepresentation. Plaintiffs Gedalia and Lewis are residents of Houston, Texas and Encino, California, respectively. They claim to have purchased 365 Brands products1 in reliance on false representations that the products did not contain non-organic, artificial, or [947]*947genetically modified (“GMO”) ingredients. (Orig. Class Action Pet., Doc. 1 ¶¶ 26-35).

In its motion to dismiss (Doc. 18), Whole Foods contends: (1) the complaint violates the Federal Rules of Civil Procedure Rule 8(a); (2) the Plaintiffs lack standing to sue for products they did not personally purchase and for representations that they never alleged they saw; (3) the claims about “organic” and “natural” representations are preempted by federal statutes; (4) the doctrine of primary jurisdiction should be invoked; (5) the Plaintiffs failed to allege plausible, actual, or reasonable reliance on Whole Foods’s representations; (6) the complaint violates the Federal Rule of Civil Procedure 9(b); and (7) the warranty and unjust enrichment claims fail as a matter of law.

II. Legal Standard

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). Factual matter is limited to “documents attached to or incorporated in the complaint and matters of which judicial notice may be taken.” U.S. ex rel. Willard v. Humana Health Plan of Texas Inc., 336 F.3d 375, 379 (5th Cir.2003).

III. Discussion

A. Rule 8(a)

Whole Foods argues the complaint’s length (74 pages) runs afoul of the requirement for “a short and plain statement of the claim showing that the pleader is entitled to relief.” Feb. R. Civ. Peo. 8(a). However, “verbosity or length is not by itself a basis for dismissing a complaint based on Rule 8(a).” Hearns v. San Bernardino Police Dep’t, 530 F.3d 1124, 1131-32 (9th Cir.2008) (citing Wynder v. McMahon, 360 F.3d 73, 80 (2d Cir.2004)); see also Atwood v. Humble Oil & Ref. Co., 243 F.2d 885, 888 (5th Cir.1957).

B. Standing

1. Unpurchased Products

Plaintiffs’ claims extend beyond the nine allegedly purchased items to all 365 Brands products that are allegedly falsely labelled as being organic, natural, and/or GMO-free. (Doc. 1.) Whole Foods argues Plaintiffs lack standing in regard to unpur-chased products for which they arguably have not suffered any injury. Standing under Article III requires that plaintiffs suffer an injury-in-fact. Lujan v. Defenders of Wildlife, 504 U.S. 555, 560, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992). The UCL, FAL, and CLRA have an “economic injury” standing requirement that is met if the plaintiff “can truthfully allege [he was] deceived by a product’s label into spending money to purchase the product, and would not have purchased it otherwise.” Kwikset Corp. v. Superior Court, 51 Cal.4th 310, 120 Cal.Rptr.3d 741, 246 P.3d 877, 881 (2011).

Courts in the Fifth Circuit have not directly considered standing for unpur-[948]*948chased product claims. In the Ninth Circuit, courts have considered the issue and are in disagreement. See Miller v. Ghirardelli Chocolate Co., 912 F.Supp.2d 861, 868-70 (N.D.Cal.2012) (recognizing split and analyzing positions). Some courts hold there is no standing because there is no injury-in-fact. See Id. at 869 (citing Granfield v. NVIDIA Corp., No. C 11-05403 JW, 2012 WL 2847575, at *6 (N.D.Cal. July 11, 2012); Carrea v. Dreyer’s Grand Ice Cream, Inc., No. C 10-01044 JSW, 2011 WL 159380, at *3 (N.D.Cal. Jan. 10, 2011)); see also Larsen v. Trader Joe’s Co., C 11-05188 SI, 2012 WL 5458396, at *5 (N.D.Cal. June 14, 2012). Others hold there is standing if plaintiffs can show unpurchased products “substantially similar” to products actually purchased by the plaintiff. Id. at 869 (citing Anderson v. Jamba Juice, 888 F.Supp.2d 1000, 1005-06 (N.D.Cal.2012); Stephenson v. Neutrogena Corp., C 12-0426 PJH, 2012 WL 8527784, at *1 (N.D.Cal. July 27, 2012); Astiana v. Dreyer’s Grand Ice Cream, Inc., No. C-11-2910 EMC, 2012 WL 2990766, at *11 (N.D.Cal. July 20, 2012)). A final group holds that the issue should be addressed not in a motion to dismiss but in a motion for certification. See Miller, 912 F.Supp.2d at 869 (citing Cardenas v. NBTY, Inc., 870 F.Supp.2d 984, 992-93 (E.D.Cal.2012); Forcellati v. Hyland’s, Inc., 876 F.Supp.2d 1155, 1161 (C.D.Cal.2012)); Clancy v. The Bromley Tea Co., 12-CV-03003-JST, 2013 WL 4081632, at *5 (N.D.Cal.

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53 F. Supp. 3d 943, 2014 U.S. Dist. LEXIS 142961, 2014 WL 5315030, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gedalia-v-whole-foods-market-services-inc-txsd-2014.