Hu v. Herr Foods, Inc.

251 F. Supp. 3d 813, 97 Fed. R. Serv. 3d 670, 2017 U.S. Dist. LEXIS 62656
CourtDistrict Court, E.D. Pennsylvania
DecidedApril 24, 2017
DocketCIVIL ACTION NO. 16-5037
StatusPublished
Cited by14 cases

This text of 251 F. Supp. 3d 813 (Hu v. Herr Foods, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hu v. Herr Foods, Inc., 251 F. Supp. 3d 813, 97 Fed. R. Serv. 3d 670, 2017 U.S. Dist. LEXIS 62656 (E.D. Pa. 2017).

Opinion

[816]*816MEMORANDUM

EDUARDO C. ROBRENO, District Judge

Plaintiff Michelle Hu (“Plaintiff”) brings this putative class action on behalf of herself and others similarly situated ágainst Defendant Herr Foods, Inc. (“Defendant”), alleging that Defendant misbranded approximately one dozen snack food products, including potato chips, cheese curls, tortilla chips, popcorn, and onion rings. Defendant filed an answer to Plaintiffs Amended Complaint, together with a motion for judgment on the pleadings and a motion for sanctions. Plaintiff opposes both motions. For the reasons that follow, the Court will grant in part and deny in part Defendant’s motion for judgment on the pleadings, deny Defendant’s motion for sanctions, dismiss all three counts of Plaintiffs Amended Complaint, and grant Plaintiff leave to amend Counts I and II of her Amended Complaint.

I. FACTUAL BACKGROUND

Defendant is a Pennsylvania corporation that sells a variety of snack food products. See Am. Compl. ¶¶ 12, 14, ECF No. 18. Plaintiff identifies at least twelve of Defendant’s products (“the Products”) that Plaintiff alleges bear the label “No Preservatives Added.” See id. ¶ 2. Plaintiff alleges that these statements are also displayed on Defendant’s website. See id. ¶ 16. Plaintiff is a New York resident who alleges that she purchased one of the Products, Herr’s Honey Cheese Curls, for personal consumption for $1.09 in New York State “[djuring the class period.” Id. ¶ 11.

According to Plaintiff, by representing that the Products had “No Preservatives Added,” Defendant sought to capitalize on consumers’ preferences for less processed products with fewer additives. See id. ¶ 17. Plaintiff alleges that, contrary to Defendant’s representations, all of the Products contain a preservative as an ingredient: citric acid. See id. ¶ 1. Plaintiff attaches as an exhibit the purported “Nutrition Facts” for each of the Products, which contain “citric acid” in the list of ingredients. See id. ¶ 2; Ex. A.

Plaintiff provides the following support for her allegation that citric acid is a preservative:

(1) a chart from the Food and Drug Administration (“FDA”) website listing citric acid as an example of a preservative;
(2) an FDA warning letter informing the manufacturer of other, unrelated products that the products are misbranded within the meaning of 21 U.S.C. § 343(j), “in that they contain the chemical preservative ascorbic acid and citric acid” but their labels fail to declare the preservatives with a description of their functions;
(3) an article from an online magazine identifying citric acid as an antioxidant;
(4) an article from the website Food-Navigator.com stating that citric acid has the potential to enhance the shelf life of stored food;
(5) a National Research Council article noting the usefulness of citric acid in protecting against spoilage;
(6) the ingredient list for another manufacturer’s crouton product, which states that citric acid is “added to maintain freshness;”
(7) a patent for a potato-blanching process that discusses the preservative properties of citric acid; and
(8) various sources discussing the effectiveness of citric acid in preventing the growth of salmonella.

Id. ¶¶ 21-34.

Plaintiff alleges that she and the putative class members did not know, and had [817]*817no reason to know, that the Products were “misbranded.” See id. ¶ 49. Plaintiff further alleges that she and the putative class members would not have purchased the Products had they known “the truth” about them. Id. Plaintiff claims that she did, and a reasonable consumer would, attach importance to Defendant’s “No Preservatives Added” representation because “it is common knowledge that consumers prefer to avoid foods with potentially unhealthy additives.” Id. ¶ 50. Thus, Plaintiff claims, the representation was a “material factor” in her and the putative class members’ decisions to purchase the Products. Id. ¶ 51.

Plaintiff claims that she was injured because she would not have purchased the Products, or would have only been willing to pay less for them, if she had known the truth about Defendant’s misrepresentation regarding preservatives. See id. ¶ 53. Accordingly, she asserts that she was injured in the amount of the purchase price or, alternatively, in the amount of the price premium she paid. See id.

II. PROCEDURAL HISTORY

Plaintiff filed this action against Defendant in the Eastern District of New York on June 20, 2016. ECF No. 1. The case was initially assigned to Judge Ann M. Donnelly. See id At a pre-motion conference held before Judge Donnelly on September 15, 2016, the parties indicated that they had reached an agreement to transfer the case to the Eastern District of Pennsylvania. See id The case was subsequently transferred to this Court. See id.

Defendant filed an ánswer to the initial complaint on October 12, 2016, ECF No. 4, and filed a motion for judgment on the pleadings the next day, ECF No. 7. In the motion, Defendant accused Plaintiff of copying entire sections of the complaint from complaints in other, unrelated actions, and indicated that it intended to file a motion for sanctions under Rule 11 of the Federal Rules of Civil Procedure. See ECF No. 8 at 32.

On October 19, 2016, Plaintiff filed a letter with the Court requesting leave to amend her complaint, ECF No. 10, which Defendant vigorously opposed, ECF No. 11. The Court granted Plaintiffs motion for leave to amend the complaint pursuant to Federal Rule of Civil Procedure 15(a)(1)(B), and without prejudice to Defendant’s ability to file a motion for sanctions under Federal Rule of Civil Procedure 11 at a later date. See ECF No. 15.

Plaintiff filed an Amended Complaint on November 10, 2016. ECF No. 18. Plaintiff asserts three claims, all of which are premised on Defendant’s alleged use of the phrase “No Preservatives Added” bn labels for products containing citric acid: (1) a claim for injunctive relief for violations of New York’s Deceptive Acts or Practices Law, General Business Law (“GBL”) § 349 (Count I); (2) a claim for damages for violations of GBL § 349 (Count II); and (3) unjust enrichment (Count III). See Am. Compl. ¶¶ 66-89, ECF No. 18.

Defendant filed an answer to the Amended Complaint on November 29, 2016. ECF No. 22. On December 2, 2016, Defendant filed a motion for judgment on the pleadings. ECF No. 23. Plaintiff filed a response on December 16, 2016. ECF No. 24.

On January 12, 2017, Defendant filed a motion for sanctions pursuant to Federal Rule of Civil Procedure

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251 F. Supp. 3d 813, 97 Fed. R. Serv. 3d 670, 2017 U.S. Dist. LEXIS 62656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hu-v-herr-foods-inc-paed-2017.