Hendricks v. Starkist Co.

30 F. Supp. 3d 917, 2014 U.S. Dist. LEXIS 41523, 2014 WL 1244770
CourtDistrict Court, N.D. California
DecidedMarch 25, 2014
DocketCase No.: 13-cv-729 YGR
StatusPublished
Cited by20 cases

This text of 30 F. Supp. 3d 917 (Hendricks v. Starkist Co.) 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
Hendricks v. Starkist Co., 30 F. Supp. 3d 917, 2014 U.S. Dist. LEXIS 41523, 2014 WL 1244770 (N.D. Cal. 2014).

Opinion

Order Granting In Part And Denying In Part Motion to Dismiss; Denying Motion For Leave To File Amicus Declaration

(Dkt. No. 21, 32)

YVONNE GONZALEZ ROGERS, UNITED STATES DISTRICT COURT JUDGE

Plaintiff Patrick Hendricks brings this putative class action against Defendant [922]*922StarKist Co. (“Starkist”). Plaintiff seeks monetary damages and injunctive relief on the grounds that four of StarKist’s canned tuna products are underfilled and, thus, substantially underweight. Plaintiff alleges claims for breach of express and implied warranties (Counts I, II, and III), unjust enrichment (Count IV), negligent misrepresentation (Count VIII), and fraud (Count IX), as well as violations of California’s Consumer Legal Remedies Act (“CLRA”), Cal. Civil Code section 1750 et seq., Unfair Competition Law (“UCL”), Cal. Bus. & Prof.Code section 17200 et seq., and False Advertising Law (“FAL”), Cal. Bus & Prof.Code section 17500 (Counts V-VII).

StarKist has filed a Motion to Dismiss on several grounds: (1) federal preemption under the federal Food, Drug, and Cosmetic Act (“FDCA”); (2) the primary jurisdiction doctrine; (3) failure to sufficiently plead claims for breach of express and implied warranties; (4) failure to plead fraud with particularity; (5) lack of standing; and (6) unjust enrichment does not constitute a claim for relief. (Dkt. No. 21).1

Having carefully considered the papers submitted,2 the parties’ oral arguments, and the pleadings in this action, and for the reasons set forth below, the Court hereby Orders that the Motion to Dismiss is Granted In Part and Denied In Part With Leave To Amend.

BACKGROUND

. StarKist is a Delaware Corporation with its principal place of business in Pittsburgh, Pennsylvania. On February 19, 2013, Plaintiff filed this putative class action in his individual capacity and on behalf of a nationwide class of all similarly situated purchasers of four StarKist canned tuna products. The four products at issue are 5-ounce cans of StarKist: (1) Chunk Light Tuna in Water; (2) Chunk Light Tuna in Vegetable Oil; (3) Solid White Albacore Tuna in Water; and (4) Solid White Albacore Tuna in Vegetable Oil (collectively, the “Products”). (Complaint [Dkt. No. 1] ¶ 1.)3 Plaintiff also seeks to represent a subclass of individuals who purchased the Products in California.

The Complaint alleges that Plaintiff purchased two of the Products, and the cans were underfilled and substantially underweight. (¶ 2.) Plaintiff confirmed that the cans of tuna were underfilled by retaining a laboratory to conduct independent testing using the methodology prescribed in 21 C.F.R. section 161.190(c). (¶¶ 2, 3.) Plaintiff alleges that testing revealed StarKist’s 5-ounce cans were “cheating” purchasers by providing anywhere from 1.1 % to [923]*92317.3% less tuna, on average, depending upon the variety of canned tuna, than purchasers were paying for, using to the weighing methodology and standard of fill set forth in the referenced federal regulations. (Id.)

Section 341 of the Food Drug and Cosmetics Act (“FDCA”) permits the Food and Drug Administration (“FDA”) to promulgate regulations “fixing and establishing for any food ... reasonable standards of fill of container,” “[wjhenever in the judgment of the Secretary such action will promote honesty and fair dealing in the interest of consumers.” 21 U.S.C. § 341. The FDA, under its authority in 21 U.S.C. section 341, enacted 21 C.F.R. section 161.190, which sets forth the requirements governing the standard of fill of a container of canned tuna. Currently, both the standard of identity4 and the standard of fill for canned tuna are set forth in that regulation, with the standard of fill provided at sub-section (c). Filling a container in a manner that is misleading is considered “misbranding” pursuant to 21 U.S.C. section 343.

Based on these allegations, the Complaint sets forth claims for breach of express warranty, and breach of the implied warranties of merchantability and fitness for a particular purpose. The express warranty claim alleges that StarKist, as the manufacturer, market and distributor of its products, expressly warranted that the Products contained an “adequate” amount of tuna for a 5-ounce can, but in reality they did not do so, and thus are not “legal for sale” in the United States. (¶¶ 19, 20.) The implied warranty claims each alleged that StarKist impliedly warranted that the cans contained an adequate amount of tuna, but the tuna cans were defective and unfit for their intended purpose, such that Plaintiff and the putative class members did not receive the goods as warranted. (¶¶ 24-30, 34-35.) As to all these claims, Plaintiff alleges that he and other putative class members were injured because they would not have purchased the Products on the same terms if the true facts were known, and that they paid a premium price based on StarKist’s “promises” that the Product cans contained an adequate amount for their size. (¶¶ 21, 31, 37.) Plaintiff further alleges, in his “Unjust Enrichment” count, that StarKist’s retention of revenues under these circumstances is unjust and inequitable, and that they should be required to pay restitution to Plaintiff and the class. (¶¶ 40-42.)

Similarly,. Plaintiffs CLRA, FAL, and UCL claims allege that StarKist misrepresented that its Products contained an adequate amount of tuna for a 5-ounce can consistent with the FDA standard, and that they would not have purchased the Products had they known the true facts concerning the quantity of the Product and StarKist’s failure to comply with the FDA standard. (¶¶ 46-47, 52-56, 59-63.) The CLRA, California Civil Code section 1770(a)(5), prohibits persons “Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval, status, affiliation, or connection which he or she does not have.” [924]*924The FAL, Business & Professions code 17500, makes it unlawful for any person to make, in any advertising device or any other manner or means, a statement that is untrue or misleading. Plaintiff alleges that StarKist’s misrepresentations violated the “unlawful,” “unfair,” and “fraudulent” prongs of the UCL.

Finally, Plaintiff alleges state law claims for negligent misrepresentation and fraud because StarKist misrepresented or omitted material facts about its Products, specifically that their Product cans contained an adequate amount of tuna for that size can, and are “legal for sale.” (¶¶ 67-68, 74.)

At the hearing on the motion to dismiss, Plaintiffs counsel confirmed that he is relying on the FDA regulations as the basis for claiming that the amount of tuna is inadequate and not “legal for sale in the United States.” (See Tr. at 18:21-19:8.) The Complaint cites no other legal predicate for claiming that StarKist’s 5-ounce cans of tuna are unlawful, deceptive, or misleading. The Complaint does not allege that the labeling of the packages was inaccurate.

APPLICABLE STANDARD

StarKist moves under Fed. R. Civ. P.

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Cite This Page — Counsel Stack

Bluebook (online)
30 F. Supp. 3d 917, 2014 U.S. Dist. LEXIS 41523, 2014 WL 1244770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hendricks-v-starkist-co-cand-2014.