Hale v. Manna Pro Products, LLC

District Court, E.D. California·Decided October 27, 2021·No. 2:18-cv-00209·Unknown

Opinion

1] Ashley Hale individually, and on behalf of No. 2:18-cv-00209-KJM-DB other members of the general public similarly situated, , Plaintiff, ORDER v. Manna Pro Products, LLC, Defendant. This matter is before the court on two unopposed motions by plaintiff Ashley Hale. The first seeks an award of attorneys’ fees and costs and payment of an incentive award to Ms. Hale, Mot. Att’ys’ Fees, ECF. No. 67; Mem. Att’ys’ Fees, ECF No. 67-1. The second 1s for final approval of the parties’ class action settlement. Mot. Final Approval, ECF No. 68. As explained below, the court grants both motions. I. BACKGROUND Ms. Hale, a rabbit breeder, bought “Manna Pro Select Series Pro Formula Premium Rabbit Feed” (the feed mix). Second Am. Compl. (SAC) §f 17, 19, ECF No. 23. The bag was labeled with the following: “Contains No Corn: Helps Reduce The Risk of Digestive Disorders.” The list of ingredients on the bag did not include corn. /d. § 16. After purchasing the bag,

Ms. Hale found the feed mix had traces of corn. Id. ¶ 20. She then purchased additional bags and found those bags also contained corn. Id. ¶¶ 22–23. Ms. Hale alleges she would not have purchased the feed mix had she known there was corn because corn can be harmful to rabbits. Id. ¶¶ 17, 30. Corn “can increase the risk of a toxic mold, which mimics rabies and can cause death” and also can “caus[e] [rabbits] to put on ‘bad’ fat[ ] and have increased health issues.” Id. ¶ 17. She argues defendant’s labeling practice is deceptive in that it allows defendant to profit because it can charge $17.99 per bag for its purportedly corn-free feed mix, while competitors charge about $10 to $12 per bag for mixes not labeled as corn-free. Id. ¶ 28. On January 30, 2018, Ms. Hale filed this action, Compl., ECF No. 1, and defendants moved to dismiss, ECF No. 5. Ms. Hale amended the complaint, First. Am. Compl., ECF No. 12, and the court denied the motion to dismiss as moot, Min. Order, ECF No. 19. Shortly thereafter, the parties stipulated to plaintiff’s filing another amended complaint. Stipulation (Aug. 24, 2018), ECF No. 21. The operative second amended complaint makes three claims against defendant on behalf of the class: (1) unfair and unlawful business practices in violation of California’s unfair competition law (UCL), Cal. Bus. & Prof. Code § 17200, et seq., (2) fraudulent business practices in violation of the UCL, and (3) violation of California’s false advertising law (FAL), Cal. Bus. & Prof. Code § 17500, et seq. SAC ¶¶ 56–94. After “a substantial amount of written discovery,” the parties participated in a full day of mediation before the retired Honorable James P. Gray. Mot. for Prelim. Approval at 4, ECF No. 45. Mediation resulted in a settlement and plaintiff then moved for preliminary approval, Id. at 1, which the court granted, Prev. Order (July 6, 2020), ECF No. 58. Under the settlement, the defendant will pay $62,500 “on a claims made basis to Class Members, with each Class Member who makes a claim receiving a pro rata share of the amount.” Settlement Agreement § 5.01, Friedman Decl. Ex. 1, ECF No. 45-3. The defendant has agreed to pay class counsel’s attorneys’ fees, litigation and administration costs, and an incentive award to the class representative. Id. §§ 6.01–6.02, 8.02. The amount of these payments will not be deducted from the class fund. Id. The defendant also agrees to revise the package labeling and advertising of the feed mix so it is no longer advertised as corn-free. Mot. Final Approval at 13; Friedman Decl. ¶ 23, ECF No. 68-1. The court approved the following class: all individuals in California who purchased one or more units of Select Series Pro Formula Rabbit Food, for which the packaging contained a representation which stated: “Contains No Corn” between January 30, 2014 to May 14, 2019 (the “Class Period”). Excluded from the Class are any employees of Defendant, its parents, affiliates, or subsidiaries; the Judge or Magistrate Judge to whom the Action is assigned; and, any member of those Judges’ staffs or immediate families. Settlement Agreement § 2.07. At the time of preliminary approval, the parties estimated the class would “consist of approximately 1,583 individuals whose contact information is known and ascertainable.” Prev. Order (July 6, 2020) at 12 (citing Supp. Friedman Decl. ¶¶ 7–12, ECF No. 54). The court granted preliminary approval subject to the parties’ resolving several issues prior to final approval. First, the court “require[d] greater detail on the question of predominance at the final approval stage.” Id. at 10. Second, the court required further justification for the $125,000 attorneys’ fees and directed parties to file support showing “the negotiated fee reasonably compensates class counsel.” Id. at 20–21. Finally, the court noted further support was needed for the proposed incentive award of $7,500 to Ms. Hale. Id. at 21. Originally class counsel planned to fulfill notice requirements by mailing notice directly to California purchasers that could be identified from records of retailors, such as Walmart, who sold the feed. Mot. for Prelim. Approval at 7; Settlement Agreement § 9.01. The settlement administrator would also put the notice and claims forms on the Settlement Website. Settlement Agreement § 9.01. After the court granted preliminary approval, the parties conferred with Walmart and found they could not obtain the contact information for class members who bought the feed there. Stipulation (Oct. 15, 2020) at 1–2, ECF No. 59. The parties then stipulated to effect notice by publication. Id. The court approved the amended notice plan. Prev. Order (Jan. 15, 2021), ECF No. 66. Simpluris, the settlement administrator, effected notice by multiple methods over several months. In July 2020, Simpluris mailed direct notice to 28 identified class members. Mot. Final Approval at 6–7. Since February 9, 2021, Simpluris has been maintaining the settlement website (www. MannaProSettlement.com), which displays the long form notice, the claim form, and the other settlement related documents. Butler Decl. ¶ 11, ECF No. 68-3 (“As of April 28, 2021, the website had received 1,923 unique visitors with 13,297 visits”). Simpluris also established a toll- free number, which potential class members could call to obtain information about the settlement. Mot. Final Approval at 8. Simpluris ran a one-page ad about the settlement on March 15, 2021 and May 15, 2021 in Domestic Rabbits magazine. Id. Simpluris also utilized digital platforms to publish notices by placing two online banner ads on Facebook, Google, and targeted websites; posting the settlement information and a link to the settlement website on the Top Class Actions website; and arranging for a leader of the California Rabbit Breeders Group to post about this case on the group’s Facebook page. Id. at 7. Simpluris also informed the Humane Society, Petfinder.com, Petfinder Foundation, Friends of Rabbits, Los Angeles Rabbit Foundation and “leaders of 60 different rabbit breeder clubs in California, requesting them to share the class settlement website with members.” Id. Based on the changes to the proposed notice, the court directed the parties to address how any unclaimed residual funds would be distributed, Prev. Order (Nov. 3, 2020), ECF No. 60, and the parties stipulated to cy pres distribution to Public Justice. Response, ECF No. 63. The court approved the notice by publication and directed the parties to provide additional support before the final approval hearing. Prev. Order (Jan. 15, 2021) at 3. Plaintiff now moves unopposed for final approval of the class settlement, ECF No. 68, and attorneys’ fees, ECF. No. 67. When plaintiff filed the motion in April 2021, only 74 class members had submitted v

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