Hanson v. Welch Foods Inc.

District Court, N.D. California·Decided July 6, 2020·No. 3:20-cv-02011·Unknown

Opinion

CURTIS HANSON, Case No. 20-cv-02011-JCS

Plaintiff, ORDER REGARDING MOTION TO v. DISMISS

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

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

Free access — add to your briefcase to read the full text and ask questions with AI

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

Hanson v. Welch Foods Inc. (Hanson v. Welch Foods Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Papasan v. Allain
478 U.S. 265 (Supreme Court, 1986)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Kearns v. Ford Motor Co.
567 F.3d 1120 (Ninth Circuit, 2009)
In Re Ferrero Litigation
794 F. Supp. 2d 1107 (S.D. California, 2011)
United States v. Container Corporation of America
273 F. Supp. 18 (M.D. North Carolina, 1967)
Weinstat v. Dentsply International, Inc.
180 Cal. App. 4th 1213 (California Court of Appeal, 2010)
Bly-Magee v. California
236 F.3d 1014 (Ninth Circuit, 2001)
Hadley v. Kellogg Sales Co.
273 F. Supp. 3d 1052 (N.D. California, 2017)