In re Syngenta Mass Tort Actions

272 F. Supp. 3d 1074
CourtDistrict Court, S.D. Illinois
DecidedApril 3, 2017
DocketNo. 3:15-cv-01221-DRH
StatusPublished
Cited by6 cases

This text of 272 F. Supp. 3d 1074 (In re Syngenta Mass Tort Actions) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Syngenta Mass Tort Actions, 272 F. Supp. 3d 1074 (S.D. Ill. 2017).

Opinion

MEMORANDUM AND ORDER

David R. Herndon, UNITED STATES DISTRICT JUDGE

Before the Court is Syngenta’s motion to' dismiss, plaintiffs’ First Consolidated Amended Complaint [Doc. 59] for lack' of personal jurisdiction pursuant to Fed. R. Civ. P. 12(b)(2), and failure to state a claim pursuant to Fed. R. Civ. P. 12(b)(6), [Doc. 115]. Plaintiffs1 oppose the motion [Doc. 133]. Based on the following, the Court GRANTS in part Syngenta’s motion to dismiss and DENIES in part'Syngenta’s motion to dismiss and request for oral argument.

I. BACKGROUND

A. Introduction

In March 2016, Roland Poletti, et al.1 (“plaintiffs”) filed their First Consolidated [1079]*1079and Amended Complaint against Syngen-ta,2 under the Class Action Fairness Act (“CAFA”), 28 U.S.C. § 1332(d).3 Plaintiffs alleged that Syngenta prematurely commercialized the genetically modified corn trait “MIR162,”4 and in doing so, acted negligently, recklessly, and deceptively, causing harm to plaintiffs and contaminating the entire United States corn supply. Plaintiffs further contend that — at the time of the alleged acts — Syngenta knew of and foresaw the risk to plaintiffs, and thereby breached the duty owed in preventing the harm ¿lleged [Doc. 59],

B. MIR162 & VIPTERAtm Controversy

Plaintiffs note that United States exportation of corn amounts to billions of dollars annually, and because the U.S. corn marketing system is commodity-based,5 the highest standards of purity are required to be maintained. Id. at 282.6 Moreover, plaintiffs point to the premature release of Agrisure VIPTERAtm as the sole cause of foreign export-market refusal to import U.S. grown corn, and further maintain that heavy financial losses have been incurred. Id.

In 2009, Syngenta introduced and sold the genetically modified (“GMO”) corn trait MIR162 to U.S. farmers under the trade name Agrisure VIPTERAtm; at the time, MIR162 was barred for sale in several countries, including China — -where it was not yet approved for purchase or consumption. Id. Agrisure VIPTERAtm and its variant DURACADEtm (“genetically-modified products”), were licensed and marketed by Syngenta; and, both products contained multiple genetically enhanced modified traits and were sold for their insect-resistant capabilities. Id. at 283. Syngenta’s corn modification process used biotechnology to insert genetic substances into corn seeds from the bacterium Bacillus thuringiensis (“Bt”), in order to produce certain proteins that have insecticidal properties. One of the produced proteins, Vip3A, binds-, to the pest insects’ midgut and forms pores, which kill the insects before crop damage takes place. VIPTERAtm’s bio-engineered origin required foreign regulatory approval before it was able to be cultivated or imported outside of the United States. Id. at 290-91.

Plaintiffs vie, that Syngenta intentionally and recklessly released VIPTERAtm and DURACADEtm into the U.S. corn market before gaining MIR162 GMO approval. Id. [1080]*1080at 283. Allegations begin in the spring of 2010, when plaintiffs charge that Syngenta decided to release VIPTERAtm for the 2010-2011 corn season; all while lacking the necessary approval for import into foreign markets, namely China — who, in 2009-2010, imported 1,296 thousand metric tons of U.S. corn. Id. at 291-92.7 Plaintiffs claim that at the time of VIPTERAtm’s release, Syngenta assured consumers that import approval in Japan and European Union countries was pending — but made no mention in regard to China. Id. Plaintiffs alleged that in 2012 Syngenta misinformed U.S. corn farmers, grain elevators, grain exporters, landowners, the general public, and even Syngenta’s own investors, by directing all to believe that MIR162 GMO approval from China was forthcoming. Id. at 284. The statements, plaintiffs’ claim, were followed by Syngenta’s creation of documentation that implicitly established the belief that MIR162 had been accepted by Chinese importers. U.S. corn farmers immediately began to plant corn containing MIR162; however, China did not approve MIR162 until 2014. Id.

C. U.S. Corn Crop Contamination

Factual evidence suggests that planting, harvesting, and transporting assorted corn varieties together creates a risk of contamination, commingling, and cross pollination from one corn plant to another, resulting in an exchange of genetic traits. Id. at 292-94. Plaintiffs allege that notwithstanding this risk, Syngenta offered “a ‘side-by-side program’ which encouraged farmers to plant VIPTERA corn side-by-side with other corn seed.” This encouragement of side-by-side planting of VIPTERAtm and non-VIPTERATM corn led to the comin-gling of VIPTERAtmGMO corn with the wide-ranging U.S. corn supply. Id.

In November 2013, the first shipments of MIR162-infused GMO corn arriving in China were not approved for import and were subsequently rejected. Id. at 297. Refusal continued until December of 2014; and plaintiffs claim that Syngenta’s actions “shut down, for all intents and purposes” the 2014 U.S. corn market to China, “causing billions of dollars of damages to U.S. exporters, including farmers, farm landowners, and farming entities.” Id. at 285. In fact, plaintiffs point to a National Grain and Feed Association (“NGFA”) statement indicating that Syngenta’s premature release of VIPTERAtm corn cost the U.S. corn market between $1 Billion and $3 billion dollars due to rejection and seizures of containers and cargo ships transporting MIR162 GMO corn to China alone. Id. at 286.

D. Request to Stop DURACADEtm Release

Plaintiffs suggest that Syngenta continued “irreparable damage to U.S. exports of corn to China” by releasing a second version of MIR162 GMO corn — without Chinese approval — under the trade name DU-RACADEtm. Id. at 286-87. In anticipation of its release, the NGFA and North American Export Grain Association (“NAEGA”) released a joint statement requesting that Syngenta halt its release of DURACA-DEtm. Id. at 287. The statement explained that both organizations were gravely concerned about the serious economic harm resulting from Syngenta’s current approach to VIPTERAtm management.8 Id. [1081]*1081at 287. Plaintiffs contend that regardless of NGFA and NAEGA requests to halt production, Syngenta nevertheless released DURACADE™, further jeopardizing the Chinese import market. Id.

E. Claims Asserted/Causes of Action

Plaintiffs assert claims — against Syn-genta — of . public nuisance, private nuisance, negligence, products liability, tor-tious interference with business actions, strict liability as .to certain classes of plaintiffs, and the violation of various state deceptive trade practices and consumer protection acts. Id. at 302-30.9

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272 F. Supp. 3d 1074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-syngenta-mass-tort-actions-ilsd-2017.