Hauger v. Dollar General Corporation

CourtDistrict Court, C.D. Illinois
DecidedJuly 7, 2022
Docket1:21-cv-01270
StatusUnknown

This text of Hauger v. Dollar General Corporation (Hauger v. Dollar General Corporation) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hauger v. Dollar General Corporation, (C.D. Ill. 2022).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF ILLINOIS PEORIA DIVISION DAWN HAUGER, individually and on ) behalf of all others similarly situation, ) ) Plaintiff, ) ) v. ) Case No. 1:21-cv-01270-JES-JEH ) DOLLAR GENERAL CORPORATION, ) ) Defendant. )

ORDER AND OPINION This matter is now before the Court on Defendant’s Motion (Doc. 5) and Memorandum in Support of its Motion to Dismiss (Doc. 6), and Plaintiff’s Memorandum in Opposition. (Doc. 11). Defendant has filed a Reply (Doc. 15) and filed a Notice (Doc. 17) of Supplemental Authority in the form of a recently published order in Wach v. Prairie Farms Dairy, Inc., No. 21 C 2191, 2022 WL 1591715 (N.D. Ill. May 19, 2022). For the reasons indicated herein, Defendant’s Motion to Dismiss is GRANTED, although Plaintiff will be given leave to replead. I. BACKGROUND The following facts are taken from Plaintiff’s Complaint, which the Court accepts as true for the purposes of a motion to dismiss. Bible v. United Student Aid Funds, Inc., 799 F.3d 633, 639 (7th Cir. 2015). Plaintiff filed a complaint on behalf of herself and the putative class of Illinois, Iowa, and Arkansas consumers who purchased Defendant Dollar General Corporation’s Clover Valley Brand Honey Graham Crackers during the applicable statutes of limitations. (Doc. 1 at 15). Plaintiff complains that, despite the name and images on the front of the box, the Honey Graham Crackers do not use whole wheat flour, or graham flour, as the main ingredient in the cracker. (Doc. 1 at 2). The first ingredient listed in the ingredient list on the box is enriched flour, followed by graham flour. (Doc. 1 at 3). Further, Plaintiff complains that, despite the name and images on the front of the box, the Honey Graham Crackers do not use honey as its main sweetening ingredient. (Doc. 1 at 6). In the ingredient list, sugar is listed as the third ingredient in the crackers, where honey is the fifth. (Doc. 1 at 9). Additionally, Plaintiff contends that the

words and associated imagery on the front of the box, insinuate that graham flour and honey are the primary ingredients in the crackers. (Doc. 1 at 2). On the box are the words “Graham Crackers,” with the word “Graham” in a larger font than any other word. (Doc. 1 at 2). Plaintiff alleges that the word “Graham” being the biggest word on the box insinuates that the primary ingredient would be graham flour. (Doc. 1 at 2). On the front of the box also appears the word “Honey” with an image of a dripping honey dipper. (Doc. 1 at 2). Plaintiff alleges that the image of the honey dipper and the word “Honey” insinuate that honey is the primary sweetener in the crackers. (Doc. 1 at 10). Plaintiff asserts that she would not have purchased the Honey Graham Crackers or would not have paid a premium price for them, had she known the product did not use graham flour as

the main ingredient. (Doc. 1 at 12). Further, Plaintiff asserts that she would not have purchased the Honey Graham Crackers or would not have paid a premium price for them, had she known that sugar was the main sweetening ingredient in the cracker, rather than honey. (Doc 1 at 12). A copy of the packaging and ingredient list of the crackers is reproduced below: 0 EEE INGREDIENTS: ENRICHED FLOUR (WHEAT FLOUR, NIACIN, REDUCED H RON, THIAMIN MONONITRATE, : oney RIBOFLAVIN, FOLIC ACID), GRAHAM Graham FLOUR (WHOLE WHEAT FLOUR), □ Crackers : SUGAR, HIGH OLEIC CANOLA a a AND/OR SOYBEAN OIL WITH TBHQ i aera AND CITRIC ACID FOR FRESHNESS, HONEY, CONTAINS 2% OR LESS OF: en LEAVENING (BAKING SODA, CALCIUM PHOSPHATE), SALT, cxcen a cn: NATURAL FLAVOR, SOY LECITHIN, eee SODIUM SULFITE.

Plaintiff does not deny that the product contains graham flour and honey, only claiming that the picture and labeling on the front of the box was false and intended to deceive the consumer in violation of the Illinois Consumer Fraud Act (“ICFA”), 815 ILCS 505/1 et seq.; the Iowa and Arkansas consumer fraud acts; state law express and implied warranties of merchantability and the Magnuson Moss Warranty Act (“MMWA”), 15 U.S.C. §§ 2301 et seq.; and resulted in negligent misrepresentation, fraud, and unjust enrichment. (Doc. 1 at 17). Plaintiff asserts that she has been economically injured in paying for the Honey Graham Crackers not made with graham flour and honey as the primary ingredients. (Doc. 1 at 19). She also requests injunctive relief, asserting that members of the putative class continue to face injury as they may continue purchasing the Honey Graham Crackers, unaware that the graham flour and honey are not primary ingredients. (Doc. | at 19). Plaintiff requests that the Court order Defendant to stop the allegedly deceptive practices and representations, disgorge profits, pay restitution to the class members, and pay punitive damages, fees, and costs. (Doc. 1 at 19).

Dollar General Corporation has moved to dismiss Plaintiff’s claims under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim; and to dismiss the claim for injunctive relief under Federal Rule of Civil Procedure 12(b)(1), for lack of standing. (Doc. 5 at 1). Further, Dollar General Corporation alleges that Plaintiff’s claims are preempted, because “the label

statements and images she claims are misleading” have been “mandated or expressly authorized by” the FDA. (Doc. 6 at 8). Plaintiff responds that none of Defendant’s arguments create a basis for dismissal, and therefore their motion should be denied. Further, Plaintiff contends that in deciding a motion to dismiss, the Court must accept all well-pleaded allegations as true and draw all reasonable inferences in favor of the pleader. Hishon v. King, 467 U.S. 69, 73 (1984). Plaintiff asks that the Court deny Defendant’s motion to dismiss or, in the alternative, grant her leave to file an amended complaint. II. LEGAL STANDARDS Rule 12(b)(6) Motion to Dismiss A motion to dismiss pursuant to Rule 12(b)(6) challenges whether a complaint

sufficiently states a claim upon which relief may be granted. See Fed. R. Civ. P. 12(b)(6). A motion to dismiss under 12(b)(6) tests the sufficiency of a complaint, but not the merits of a case. McReynolds v. Merrill Lynch & Co., 694 F.3d 873, 878 (7th Cir. 2012); Gibson v. City of Chicago, 910 F.2d 1510, 1520 (7th Cir. 1990). To survive a motion to dismiss, the complaint must describe the claim in sufficient detail to put the defendants on notice as to the nature of the claim and its bases, and it must plausibly suggest that the plaintiff has a right to relief. Bell Atlantic Corporation v. Twombly, 550 U.S. 544, 555 (2007). When considering such motions, courts “construe the complaint in the light most favorable to the plaintiff, accepting as true all well-pleaded facts alleged, and drawing all possible inferences in her favor.” Tamayo v. Blagovich, 526 F.3d 1074, 1081 (7th Cir. 2008). A complaint need not allege specific facts, but it may not rest entirely on conclusory statements or empty recitations of the elements of the cause of action. Ashcroft v.

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