In re Trader Joe's Tuna Litig.

289 F. Supp. 3d 1074
CourtDistrict Court, C.D. California
DecidedOctober 3, 2017
DocketCase No. 2:16–cv–01371–ODW(AJWx)
StatusPublished
Cited by8 cases

This text of 289 F. Supp. 3d 1074 (In re Trader Joe's Tuna Litig.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Trader Joe's Tuna Litig., 289 F. Supp. 3d 1074 (C.D. Cal. 2017).

Opinion

OTIS D. WRIGHT, II, UNITED STATES DISTRICT JUDGE

I. INTRODUCTION

Defendants Trader Joe's Company and Trader Joe's East Inc. (collectively, "Trader Joe's") move to dismiss Plaintiffs' Second Amended Complaint ("SAC") on several bases. (ECF No. 55.) On June 2, 2017, the Court granted Trader Joe's Motion to Dismiss Plaintiffs' First Amended Complaint ("FAC"), with leave to amend. (ECF No. 54.) For the reasons discussed below, the Court GRANTS, IN PART, and DENIES, IN PART, Trader Joe's Motion.

II. FACTUAL BACKGROUND

Plaintiffs allege a consumer class action relating to Trader Joe's allegedly illegal *1080and deceptive practices of under filling cans of tuna, despite consumers' expectations that the cans would contain an "adequate amount." (SAC ¶¶ 1, 12-13, ECF No. 55.) Plaintiff Sarah Magier is a citizen of New York who purchased Trader Joe's Albacore Tuna in Water No Salt Added in New York, through the end of 2013, and wishes to represent a subclass of all class members who purchased Trader Joe's tuna in New York. (Id. ¶¶ 12, 20.) Plaintiff Atzimba Reyes is a citizen of California, and purchased 5-ounce canned Trader Joe's Albacore Tuna in Water Salt Added. (Id. ¶ 13.) Reyes wishes to represent a subclass of all Californians who purchased Trader Joe's tuna. (Id. ¶ 21.)

As described in detail in the Court's prior order, (ECF No. 54), Plaintiffs determined that the Trader Joe's tuna cans were underfilled and underweight by commissioning testing with the U.S. National Oceanic and Atmospheric Administration ("NOAA") on December 1, 2015. (See SAC ¶¶ 2-7.) NOAA conducted this testing by evaluating the pressed cake weight ("Pressed Weight Standard"). See 21 C.F.R. § 161.190(c). The Pressed Weight Standard is measured by using a complex process requiring specific machinery, and was promulgated by the FDA in 1957. Id. ; (Mot. 3.) The NOAA tests based on this method determined that several varieties of Trader Joe's tuna fell 19.2%, 24.8%, 24.8%, 11.1%, 9.9%, and 13.9% below the Pressed Weight Standard. (See SAC ¶¶ 2-7.)

Trader Joe's canned tuna labels do not contain any statements regarding the "pressed weight," but do contain representations as to the "net weight" (5 oz.), and the "drained weight" (4 oz.).1 (Defendants' Request for Judicial Notice ("RJN"), Ex. 1, ECF Nos. 62-2, 62-4.) NOAA also tested the "net weight" and the "drained weight" of the tuna. (RJN, Ex. 2, ECF Nos. 62-2, 62-5.) Trader Joe's contends that, according to the NOAA tests, neither the average "net weight" nor average "drained weight" ever tested below 5 oz. or 4 oz., respectively. (Mot. 3.) Plaintiffs do not dispute this. As discussed at length in the Court's prior Order, (ECF No. 54), Trader Joe's criticizes the Pressed Weight Standard, which is currently under reconsideration by the FDA, as being outdated and inaccurate. (Mot. 3-4.) Trader Joe's also claims that its alleged failure to follow the Pressed Weight Standard did not deceive consumers because the temporary marketing permit ("TMP") the FDA granted to Chicken of the Sea International, Bumble Bee Foods, LLC, and StarKist Co. (collectively, "Major Tuna Producers") allows them to market tuna without having to comply with the labeling requirements associated with the Pressed Weight Standard. (Mot. 3-4; ECF No. 54.) Federal Regulations require producers of tuna to state, "Below Standard in Fill," on cans of tuna that do not comply with the Pressed Weight Standard, unless the FDA granted the manufacturer a TMP. See 21 C.F.R. § 161.190(c)(4) ; 21 C.F.R. § 130.14(b). The FDA extended TMP for the Major Tuna Producers indefinitely on March 7, 2016. 81 Fed. Reg. 11813 (RJN, Ex. 7.) Trader Joe's does not allege that they are currently *1081included in the TMP, but maintain that they applied in February 2017. (RJN, Ex. 8, ECF No. 62-11.)

Since the Court's prior Order dismissing the FAC on preemption grounds, Plaintiffs' SAC alleges three new categories of fact. First, instead of only violating the "federally mandated minimum standard of fill" set forth in title 21, sections 130.14(b) and 161.190 of the Code of Federal Regulations (SAC ¶ 1), Trader Joe's also violates California's Sherman Food, Drug and Cosmetic Law ("Sherman Law"), which prescribes labeling requirements for certain foods. (Id. ¶ 9.) Plaintiffs also allege that Trader Joe's "conduct runs contrary to the standard practices and procedures of other tuna manufacturers." (Id. ¶ 10.) Finally, Plaintiffs allege they relied on the statements on the label in making their purchases, and would not have purchased the tuna "if the labels had properly contained the statement 'Below Standard in Fill,' " as required by title 21, section 130.14 of the Code of Federal Regulations . (Id. ¶¶ 12-13.)

Plaintiffs' SAC alleges claims for: breach of express warranty (Count I), breach of implied warranty of merchantability (Count II), unjust enrichment (Count III), negligent misrepresentation (Count VI), and fraud (Count VII). (See generally SAC.) Plaintiff Magier also brings claims on behalf of herself and the New York subclass for violation of New York General Business Law sections 349, 350. (Id. Counts IV & V.) Plaintiff Reyes also brings claims on behalf of herself and the California subclass for violation of California's Consumer Legal Remedies Act ("CLRA"), Unfair Competition Law ("UCL"), and False Advertising Law ("FAL"). (Id. Counts VIII-X.)

Trader Joe's moves to dismiss Plaintiffs' SAC on several grounds, including, as before, an implied preemption theory. (Mot. 5-8.)

III. LEGAL STANDARD

A motion to dismiss under either Rule 12(c) or 12(b)(6) is proper where the plaintiff fails to allege a cognizable legal theory or where there is an absence of sufficient facts alleged under a cognizable legal theory. Bell Atl. Corp. v. Twombly , 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) ; see also Shroyer v.

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Bluebook (online)
289 F. Supp. 3d 1074, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-trader-joes-tuna-litig-cacd-2017.