In re Light Cigarettes Marketing Sales Practices Litigation

271 F.R.D. 402, 2010 U.S. Dist. LEXIS 124774, 2010 WL 4901785
District Court, D. Maine·Decided November 24, 2010·No. No. 1:09-md-02068-JAW·Published·Cited by 14 cases

Opinion

ORDER ON PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION

JOHN A. WOODCOCK, JR., Chief Judge.

The Plaintiffs have brought a class action on behalf of purchasers of light1 cigarettes manufactured by Philip Morris USA, Inc. and Altria Group, Inc. (the Defendants). In this initial motion, the Plaintiffs seek certification for classes of smokers in the states of California, Illinois, and Maine as well as the District of Columbia.2 The Court concludes that common issues do not predominate and denies class certification for all four classes.

I. STATEMENT OF FACTS

On March 29, 2010, the Plaintiffs moved for class certification in California, Illinois, Maine, and the District of Columbia. Pis.’ Mot. to Certify Class (Docket # 186) (Pis. ’ Mot). On May 3, 2010, the Defendants responded. Defs’. Resp. in Opp’n to Mot. to Certify Class (Docket # 204) (Defs. ’ Resp.). On June 17, 2010, the Plaintiffs replied to the Defendants’ response. Pis.’ Reply to Resp. in Opp’n to Mot. to Certify Class (Docket #222) (Pis.’ Reply). The Court held oral argument on July 21, 2010. On August 20, 2010, Plaintiffs filed a proffer of evidence to be presented at trial. Pis. ’ Proffer of Evidence to be Presented at Trial (Docket #234) (Pis.’ Proffer). On September 20, 2010, Defendants responded. Defs.’ Resp. to Pis. ’ Proffer of Evidence to be Presented at Trial. (Docket # 238) (Defs. ’ Resp. Proffer ).3

A. The Classes

1. California

Miles Tyrer, a California resident, sues the Defendants individually and on behalf of other California purchasers of light cigarettes manufactured by the Defendants. Tyrer’s Second Am. Compl. (Docket # 132). The proposed class consists of

[a]ll persons residing in the State of California who purchased for personal use and not for resale Defendants’ cigarettes that are labeled “Light” and/or “Ultra Light” and/or purport to have lower tar and nicotine than conventional, full flavor cigarettes (“Light Cigarettes”), during the Class Period, through the present.

Id. ¶ 102. The class period for the UCL claim runs from January 13, 2005 to January 13, 2009, and the class period for the CLRA claim runs from January 13, 2006 to January 13,2009. Pis.’Mot. at In. A.

Mr. Tyrer alleges that the Defendants misrepresented the health risks of light cigarettes in violation of California’s Unfair Competition Law (UCL), Bus. & Prof.Code, § 17200, et seq.;4 California’s False Advertising Act (FAL), Bus. & Prof.Code, § 17500, et seq.f and California’s Consumer Legal Rem[406]*406edies Act (CLRA), California Civil Code, § 1750, et seq. Id. ¶ 113, 173, 1834.

The UCL prohibits unfair competition, which means “any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising and any act prohibited by [§ 17500].” UCL § 17200. Section 17500 prohibits businesses from making false or misleading statements, defined as any statement “which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading.” UCL § 17500.

The CLRA allows private lawsuits by “[a]ny consumer who suffers any damage as a result of the use or employment by any person of a method, act or practice declared to be unlawful by [the CLRA, pursuant to] section 1770.” CLRA § 1780(a). Section 1770 defines various unlawful misrepresentations, including “Representing that goods ... have ... characteristics, ingredients, uses, benefits, or quantities which they do not have” and “Representing that goods ... are of a particular standard, quality, or grade ... if they are of another.” CLRA § 1770(a)(5), (7).

2. The District of Columbia Class

Aubrey Parsons and Alex Slater, the named Plaintiffs, are District of Columbia residents. Parsons’ Am. Class Action Compl. ¶ 4, Parsons v. Phillip Morris USA, Inc., 10-ev-00074 (D.Me. Dec. 9, 2009) Attach. 2 (Docket # 1) (Parsons’ Compl.); Slater’s Am. Class Action Compl. ¶ 4, Slater v. Phillip Morris USA, Inc., 09-cv-00639 (D.Me. Dec. 22, 2009), Attach. 2 (Docket # 1) (.Slater’s Compl.). The proposed class is composed of

[a]ll District of Columbia residents who from January 1, 2000, to the present, purchased, not for resale, Philip Morris USA Inc.’s and Altria Group Inc.’s cigarettes labeled as “Light,” or “Ultra-Light”. The Class excludes all federal, state, and local governmental entities, and Philip Morris USA Inc.’s and Altria Group Inc.’s directors, officers, parent corporations, subsidiaries, and affiliates.

Parsons’ Compl. ¶ 8; Slater’s Compl. ¶ 8.

They contend that the Defendants have been unjustly enriched and that they misrepresented the health benefits of light cigarettes in violation of the District of Columbia Consumer Protection and Procedures Act (CPPA), § 28-3901, et seq. Parsons’ Compl. ¶¶ 40, 50; Slater’s Compl. ¶¶ 40, 50. The CPPA makes it illegal for businesses to “represent that goods ... have ... characteristics, ingredients, uses, benefits” if they do not; are of a “particular standard quality grade, style, or model” if they are not; “misrepresent as to a material fact which has a tendency to mislead”; and “fail to state a material fact if such failure tends to mislead.” CPPA § 28-3904(a), (d)-(f). The statute is violated “whether or not any consumer is in fact misled, deceived or damaged thereby.” Id. § 28-3904.

Under District of Columbia law, a claim of unjust enrichment has three elements: (1) the plaintiff conferred a benefit on the defendant; (2) the defendant retains the benefit; and (3) under the circumstances, the defendant’s retention of the benefit is unjust. See 1934 Inc. v. District of Columbia Dept. of Employment Services, 605 A.2d 50, 55-56 (D.C.1992).

3. The Illinois Class

Leonardo Biundo, an Illinois resident, sues the Defendants for misrepresenting light cigarettes as healthier than regular cigarettes. Biundo’s Second Am. Compl. ¶¶ 1, 4 (Docket #79). The proposed class is composed of

All Illinois residents who, from January 1, 2005, to the date of class certification, purchased, not for resale, Defendants’ cigarettes labeled as “Light,” or “UltraLight”. The Class excludes all federal, state, and local governmental entities, and Philip Morris USA, Inc.’s, and Altria Group, Inc.’s, directors, officers, parent corporations, subsidiaries, and affiliates.

Id. ¶ 7.

Mr. Biundo alleges that the marketing practices violated the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA), 815 ILCS § 505 and unjustly en-[407]*407riehed the Defendants. Id. ¶¶ 31-55. The ICFA makes it unlawful for a business to use or employ “any deception, fraud, false pretense, false promise, misrepresentation or the concealment, suppression or omission of any material fact, with intent that others rely upon the concealment, suppression or omission.” 815 ILCS § 505/2.

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In re Light Cigarettes Marketing Sales Practices Litigation, 271 F.R.D. 402, 2010 U.S. Dist. LEXIS 124774, 2010 WL 4901785 (D. Me. 2010).

271 F.R.D. 402 (In re Light Cigarettes Marketing Sales Practices Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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