Hanson v. Welch Foods Inc.

CourtDistrict Court, N.D. California
DecidedJuly 6, 2020
Docket3:20-cv-02011
StatusUnknown

This text of Hanson v. Welch Foods Inc. (Hanson v. Welch Foods Inc.) 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
Hanson v. Welch Foods Inc., (N.D. Cal. 2020).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 CURTIS HANSON, Case No. 20-cv-02011-JCS

8 Plaintiff, ORDER REGARDING MOTION TO 9 v. DISMISS

10 WELCH FOODS INC., Re: Dkt. No. 8 Defendant. 11

12 13 I. INTRODUCTION 14 Plaintiff Curtis Hanson asserts consumer protection and breach of warranty claims under 15 California law based on his allegations that Defendant Welch Foods Inc. (“Welch’s”) falsely 16 represented that certain grape juice products support heart health when they in fact increase the 17 risk of heart disease. Welch’s moves to dismiss under Rule 12(b)(6) of the Federal Rules of Civil 18 Procedure. The Court finds the matter suitable for resolution without oral argument and 19 VACATES the hearing previously set for 9:30 AM on July 10, 2020. The case management 20 conference previously set for the same time is CONTINUED to 2:00 PM the same day. 21 For the reasons discussed below, Welch’s motion is GRANTED in part, and Hanson’s 22 consumer protection claims under California’s False Advertising Law (“FAL”), Consumer Legal 23 Remedies Act (“CLRA”), and Unfair Competition Law (“UCL”) are DISMISSED with leave to 24 amend. The motion is DENIED as to Hanson’s claims for breach of express and implied 25 warranty. Hanson may file an amended complaint no later than July 24, 2020.1 26 27 1 II. BACKGROUND 2 A. Allegations of the Complaint 3 Because a plaintiff’s allegations are generally taken as true in resolving a motion to 4 dismiss under Rule 12(b)(6), this section summarizes the allegations of Hanson’s complaint as if 5 true. Nothing in this order should be construed as resolving any issue of fact that might be 6 disputed at a later stage of the case. 7 Welch’s sells fruit juice, and prominently represents on the labels of three products—100% 8 Grape Juice, 100% Juice Red Sangria, and 100% Black Cherry Concord Grape Juice—that each 9 product “Helps Support a Healthy Heart,” or on some packaging, “Helps Promote a Healthy 10 Heart.” Compl. ¶¶ 1, 14–15. The typical serving size for Welch’s grape juice products is eight 11 ounces, which contains between thirty-four and thirty-six grams of sugar, contributing most if not 12 all of the product’s calories. Id. ¶ 12–13. Other non-label advertisements on Welch’s website also 13 indicate that Welch’s grape juice products support heart health. Id. ¶ 16. 14 According to Hanson, however, fruit juices in fact increase the risk of cardiovascular 15 disease, type 2 diabetes, and all-cause mortality when consumed in typical quantities. Id. ¶ 2. 16 Hanson cites studies linking consumption of fruit juice to increased cardiovascular risk in 17 preschool children, increased risk of acute coronary syndrome in women, higher central systolic 18 blood pressure, harm to overall cardiovascular health, increased hypertension, and type-2 diabetes 19 (which Hanson alleges is a “well-known risk factor for cardiovascular disease”), as well as an 20 increase in all-cause mortality. Id. ¶¶ 18–22, 30–33. Some of those studies only showed risks 21 when fruit juice is consumed daily in quantities above a given threshold, but that threshold is 22 lower than the typical serving size of Welch’s products. See id. ¶¶ 21–22. Hanson also cites 23 studies showing similar risks from sugary beverages generally, and alleges that the naturally 24 occurring sugar in fruit juice “act physiologically identically to added sugars.” Id. ¶¶ 23–28. 25 Hanson notes that dietary guidance from the American Academy of Pediatrics, the federal 26 government, and the World Health Organization recommend limiting consumption of fruit juice. 27 Id. ¶¶ 34–36. Based on those alleged risk factors, Hanson asserts that Welch’s labeling regarding 1 the risks of fruit juice to heart health, and that its labeling violates California and federal law. Id. 2 ¶¶ 37–42. 3 Hanson has purchased Welch’s 100% Grape Juice once or twice per week since at least the 4 beginning of 2016. Id. ¶ 43. His decision to purchase that product was “in substantial part based 5 upon Welch’s representation that the product ‘Helps Support a Healthy Heart,’ which made the 6 product seem like a healthy choice.” Id. Hanson was not aware of the risks associated with 7 drinking fruit juice. Id. ¶ 45. But for the purportedly misleading labeling at issue, Hanson would 8 not have purchased Welch’s 100% Grape Juice, or would have only been willing to pay less for it. 9 Id. ¶ 47. Hanson alleges that the Welch’s products at issue cost more than similar products 10 without similar labeling, and that the market price for those products has been artificially inflated 11 by Welch’s labeling. Id. ¶ 46. 12 Hanson seeks to represent a class consisting of all individuals in California who purchased 13 any of the three products at issue with labels stating that they support or promote heart health since 14 March 23, 2016. Id. ¶ 49. He asserts the following claims: (1) violation of California’s FAL, id. 15 ¶¶ 58–59 (citing Cal. Bus. & Prof. Code §§ 17500 et seq.); (2) violation of California’s CLRA, id. 16 ¶¶ 62–66 (citing Cal. Civ. Code §§ 1750 et seq.); (3) violation of the “fraudulent,” “unfair”, and 17 “fraudulent” prongs of California’s UCL, id. ¶¶ 67–73 (citing Cal. Bus. & Prof. Code §§ 17200 et 18 seq.); (4) breach of express warranty, id. ¶¶ 74–79 (citing Cal. Com. Code § 2313(1)); and 19 (5) breach of the implied warranty of merchantability, id. ¶¶ 80–86 (citing Cal. Com. Code 20 § 2314(2)(f)). 21 B. Parties’ Arguments 22 1. Welch’s Motion 23 Welch’s moves to dismiss all claims on the basis that Hanson has not satisfied the 24 heightened pleading standard of Rule 9(b) of the Federal Rules of Civil Procedure for claims 25 sounding in fraud. Mot. (dkt. 8) at 1. Two introductory sections of the motion dispute the merits 26 of Hanson’s allegations, and assert that the grape juice products at issue in fact support heart 27 health, although Welch’s appears to recognize that such factual disputes are no basis for a motion 1 consider scientific papers cited in Hanson’s complaint under the doctrine of incorporation by 2 reference, and that portions of those papers cutting against Hanson’s conclusions render his claims 3 “not only implausible but untenable,” Welch’s does not tie that assertion to any particular 4 argument for dismissal. See id. at 4 n.2. 5 Welch’s argues that Hanson has not established standing under California law because he 6 has not alleged reliance on any particular representation by Welch’s. Id. at 8–9. Welch’s briefly 7 discusses a case addressing the degree of causation required for Article III standing, although its 8 motion does not seek dismissal for lack of subject matter jurisdiction under Rule 12(b)(1) or 9 otherwise address the requirements of constitutional standing. Id. at 9. 10 Welch’s contends that Hanson has not alleged with particularity “what” he purchased, 11 because he only alleges that he purchased one of the three products at issue for the class he seeks 12 to represent, and because the complaint does not identify the container size or sizes of Welch’s 13 100% Grape Juice that Hanson bought. Id. at 9–10. Welch’s argues that without that information, 14 the “math” of typical serving sizes and how often Hanson allegedly bought grape juice “simply 15 does not add up,” because it is possible that Hanson was buying the largest available containers of 16 juice and therefore consuming more than the typical serving size per day. Id. at 9.

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