Hughes v. Ester C Co., NBTY

317 F.R.D. 333, 2016 U.S. Dist. LEXIS 144918, 2016 WL 6092487
CourtDistrict Court, E.D. New York
DecidedSeptember 30, 2016
Docket12-CV-0041 (PKC)
StatusPublished
Cited by12 cases

This text of 317 F.R.D. 333 (Hughes v. Ester C Co., NBTY) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hughes v. Ester C Co., NBTY, 317 F.R.D. 333, 2016 U.S. Dist. LEXIS 144918, 2016 WL 6092487 (E.D.N.Y. 2016).

Opinion

MEMORANDUM & ORDER

PAMELA K. CHEN, United States District Judge:

Plaintiffs Patrick Hughes and Nafise Nina Hodjat (together, “Plaintiffs”) bring this putative class action against Defendants The Ester C Company, NBTY, Inc., and Natures-mart LLC (collectively, “Defendants”), alleging that Defendants’ labeling of its “Ester-C” vitamin C supplements (the “Products”) as “The Better Vitamin C” is unlawful, deceptive, and misbranded. Before the Court are Plaintiffs’ motion to certify a nationwide class, as well as California and Missouri subclasses, and Defendants’ motion to strike Plaintiffs’ damages expert. For the reasons set forth below, the Court DENIES both parties’ motions, with the result that the proposed class and subclasses will not be certified.

BACKGROUND

I. FACTUAL BACKGROUND1

The crux of Plaintiffs’ claims in this action is that by labeling its product “The Better Vitamin C,” Defendants were “able [to] deceive consumers to choose its product over vitamin C (and other competitor’s products) and pay more money for its Ester-C Product [(the “Products”)].” (Dkt. 95 at ECF 8.)2 Plaintiffs contend that this representation is false, asserting that “an independent scientific study” comparing the Ester-C to “regular vitamin C” found that Ester-C “was not more bioavailable than simple ascorbic acid.” (Id. at ECF 9.)

Plaintiffs Hughes and Hodjat seek to represent a nationwide class of “[a]ll United [339]*339States residents who purchased Defendants’ Ester-C Products at any time from January 5, 2006, to the present in the United States.” (Dkt. 95 at ECF 10.) On behalf of that class, they have asserted common law claims for negligent misrepresentation and unjust enrichment. (Dkt. 13 at EOF 20-22.)3 Plaintiff Hodjat seeks to represent a California subclass class of individuals defined as “[a]ll California residents who purchased Defendants’ Ester-C Products at any time from January 5, 2008, to the present.” (Dkt. 95 at ECF 10.) On behalf of the purported California class, Hodjat alleges claims under the California Consumer Legal Remedies Act, Cal. Civ. Code § 1750, et seq. (the “CLRA”), California’s False Advertising Law (“FAL”), California Business and Professions Code § 17500, et seq., and California’s Unfair Competition Law (“UCL”), California Business and Professions Code § 17200, et seq. (Dkt. 13 at ECF 16-17.) Plaintiff Hughes seeks to represent a Missouri sub-class of individuals defined as “[a]ll consumers who purchased Defendants’ Ester-C Products in the State of Missouri between January 6, 2007, and the present. (Dkt. 95 at ECF 10.) On behalf of the purported Missouri class, Hughes alleges claims under Missouri’s Merchandising Practices Act (“MMPA”), Mo. Rev. Stat. § 407.010. (Dkt. 13 at ECF 13.)4 Lastly, Plaintiffs request that the Court appoint the named plaintiffs as class representatives, and the law firms of Reese Richman LLP and Whatley Kallas LLP as co-lead class counsel. (Dkt. 95 at ECF 24.)

II. PROCEDURAL HISTORY

Plaintiffs filed their original Complaint on January 4, 2012. (Dkt. 1.) On May 15, 2012, Plaintiffs filed their First Amended Complaint, adding, inter alia, an additional plaintiff and statutory claims under Missouri law. On June 13, 2012, Defendants moved to dismiss on three different grounds, arguing that: (1) Plaintiffs’ claims that the representations on the Ester-C packaging were false were conclusory; (2) Plaintiffs’ claims were not pled with the particularity required under Rule 9(b); and (3) Plaintiffs’ State law claims failed because they did not plead adequately the required elements. (Dkts. 16,17.) On March 15, 2013, Judge Bianco denied Defendants’ motion to dismiss. (Dkt. 27.)

After discovery, on March 13, 2014, Defendants filed a letter requesting a pre-motion conference to discuss their anticipated motion for partial summary judgment. (Dkt. 53.) At the conference, the Court granted Defendants leave to file a summary judgment motion solely on the issue of preemption. (5/5/2014 Minute Entry.) On March 27, 2015, the Court denied Defendants’ motion for summary judgment, specifically finding that Plaintiffs’ claims that Defendants falsely or misleadingly marketed Ester-C products are not preempted by federal statutory or regulatory law. (Dkt. 91.)

On August 4, 2014, Plaintiffs served on Defendants their motion for class certification. (Dkt. 76.) Defendants served their opposition on October 22, 2014, (Dkt. 78.) Plaintiffs served their reply on December 17, 2014. (Dkt. 86.) On July 14, 2015, the Court heard oral argument on Plaintiffs’ motion for class certification. (7/14/2015 Minute Entry.) The Court reserved its decision pending supplemental briefing by the parties on (1) whether there exist material differences between Plaintiffs’ New York common law claims and the applicable common laws of the other forty-nine States, and (2) Plaintiffs’ proposed model for measuring damages on a classwide basis pursuant to the Supreme Court’s ruling in Comcast v. Behrend. (Id.) The parties subsequently filed supplemental briefing and also briefed Defendants’ motion to strike, which was filed on February 16, 2016. (Dkt. 110.) On September 20, 2016, the Court held a Daubert hearing, at which Plaintiffs’ proposed damages expert testified, [340]*340and the Court heard oral argument on whether Plaintiffs’ expert had proffered a reliable methodology for measuring class-wide damages in this case.5

DISCUSSION

DEFENDANTS’ MOTION TO STRIKE

Defendants have moved to strike the testimony and declarations of Plaintiffs’ proposed damages expert, Colin B. Weir, on the grounds that his testimony is unreliable under Federal Rule of Evidence 702 (“FRE 702”) and Daubert v. Merrell Dow Pharm., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993). For the reasons that follow, Defendants’ motion is denied.

I. Applicability of Daubert to Class Certification

“Neither the Supreme Court nor the Second Circuit has definitively decided whether the Daubert standard governs the admissibility of expert evidence submitted at the class certification stage.” Chen-Oster v. Goldman, Sachs & Co., 114 F.Supp.3d 110, 114 (S.D.N.Y. 2015).6 Other Circuits, however, have applied Daubert at this stage of the proceedings. See, e.g., In re Blood Reagents Antitrust Litig., 783 F.3d 183, 187 (3d Cir. 2015) (“We join certain of our sister courts to hold that a plaintiff cannot rely on challenged expert testimony, when critical to class certification, to demonstrate conformity with Rule 23 unless the plaintiff also demonstrates, and the trial court finds, that the expert testimony satisfies the standard set out in Dau-bert.”); Ellis v. Costco Wholesale Corp., 657 F.3d 970

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317 F.R.D. 333, 2016 U.S. Dist. LEXIS 144918, 2016 WL 6092487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hughes-v-ester-c-co-nbty-nyed-2016.