International Rights Advocates v. Mars, Incorporated

CourtDistrict Court, District of Columbia
DecidedMarch 13, 2025
DocketCivil Action No. 2024-0894
StatusPublished

This text of International Rights Advocates v. Mars, Incorporated (International Rights Advocates v. Mars, Incorporated) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Rights Advocates v. Mars, Incorporated, (D.D.C. 2025).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

INTERNATIONAL RIGHTS ADVOCATES,

Plaintiff,

v. Case No. 1:24-cv-894-RCL

MARS, INC., et al.,

Defendants.

MEMORANDUM OPINION

Plaintiff International Rights Advocates (“IRAdvocates”), pursuant to the private attorney

general provisions of the D.C. Consumer Protection Procedures Act (“DCCPPA”), filed a

complaint in D.C. Superior Court against a trio of major chocolate manufacturers, alleging that

their representations about their ethical cocoa sourcing practices are false and misleading.

The defendants removed the case to this Court. IRAdvocates now moves to remand the

case to D.C. Superior Court, arguing that removal was improper because this Court lacks subject-

matter jurisdiction. There is no disagreement that there is complete diversity of citizenship, as is

required for the exercise of diversity jurisdiction, but the parties dispute whether the defendants

have met their burden to show an amount in controversy exceeding $75,000. IRAdvocates also

requests reimbursement of attorneys’ fees and costs associated with the remand litigation.

For the reasons contained herein, the Court will GRANT IRAdvocates’ Motion for

Remand, but DENY its Motion for Attorneys’ Fees and Costs.

I. BACKGROUND

IRAdvocates is a § 501(c)(3) non-profit public interest organization involved in advocacy,

education, and impact litigation. See Am. Compl. ¶¶ 103–105, Notice of Removal ex. 1, ECF No.

1 1-2. IRAdvocates is incorporated under the laws of D.C. See Civil Cover Sheet 1, Notice of

Removal attach. 1, ECF No. 1-1. The defendants are large multinational food companies engaged,

among other things, in the global cocoa and chocolate trade. Am. Compl. ¶¶ 106, 109, 112. There

is no disagreement that each defendant is diverse in citizenship to IRAdvocates based on their

respective headquarters and places of incorporation.1

According to IRAdvocates, each defendant publicly represents to consumers that it has

implemented policies to reduce or eliminate the use of forced and child labor in its supply chain.

Am. Compl. ¶ 34. For example, Mars claims that it undertakes “comprehensive human rights due

diligence processes,” that it “unequivocally condemns the use of child labor,” and that it maintains

internal initiatives such as its “Protecting Children Action Plan” and “Child Labor Monitoring and

Remediation Systems” designed to ensure ethical sourcing of cocoa. Id. ¶¶ 46–47, 53. Cargill

claims to have put in place a “Human Rights Policy” encompassing issues such as forced and child

labor, and that it has undertaken programs to “break[] the cycle of child labor in cocoa production.”

Id. ¶¶ 59, 61. And Mondelez claims to “explicitly prohibit[] child [labor] in [its] operations,” and

represents that the company has “zero tolerance for modern slavery . . . .” Id. ¶¶ 71, 80.

IRAdvocates further alleges that, notwithstanding their representations to the contrary, all

three defendants in fact source cocoa from plantations that utilize child labor and other unjust labor

practices. IRAdvocates claims to have undertaken an investigation, in collaboration with CBS

News and with the cooperation of a whistleblower, in which it visited Ghanaian plantations from

1 Defendant Mars, Inc. is headquartered in Virginia and incorporated in Delaware. Notice of Removal ¶ 12, ECF No. 1. Defendant Mars Wrigley Confectionery US, LLC is headquartered in New Jersey, has subsidiaries headquartered in Illinois and Virginia, and is incorporated in Delaware. Id. ¶ 13; Am. Compl. ¶ 107. Defendant Cargill, Inc. is headquartered in Minnesota and incorporated in Delaware. Notice of Removal ¶ 14. Defendant Cargill Cocoa and Chocolate, Inc. is likewise headquartered in Minnesota and incorporated in Delaware. Id. at ¶ 15. Defendant Mondelez International, Inc. is headquartered in Illinois and incorporated in Virginia. Id. ¶ 16. No defendant is a domiciliary of the District of Columbia.

2 which the defendants purchase their cocoa. Id. ¶ 83. IRAdvocates alleges that the majority of the

workforce consisted of children working under unsafe conditions, and that a buyer for the

defendants used “rigged scale[s]” in order to deliberately underpay their laborers. Id. ¶¶ 83–86.

Furthermore, IRAdvocates claims to have looked into some of the names of children who had

supposedly benefited from the defendants’ child labor intervention programs, and found that some

of the named children had not received the benefits that the defendants purported to have given

them, whereas other listed names did not refer to real people and appear to have been fabricated

entirely. Id. ¶¶ 90–91. IRAdvocates also cites investigative reports by other non-governmental

and media organizations that, it claims, corroborates its own account. Id. ¶¶ 94–98.

IRAdvocates argues that consumers value ethical labor practices, and that the defendants’

representations would lead a reasonable consumer to believe that the defendants have implemented

stronger guarantees against child and forced labor than they actually have. Id. ¶¶ 100–02.

In November 2023, IRAdvocates initiated a lawsuit against the defendants in D.C. Superior

Court. See D.C. Superior Court Docket Report 5, Notice of Removal ex. 2, ECF No. 1-3.

IRAdvocates filed the operative Amended Complaint in February 2024. See Am. Compl. at 1.

The Amended Complaint lists a single cause of action: misrepresentation in violation of the D.C.

Consumer Protection Procedures Act, D.C. Code §§ 28-3904(a), (d), (e), (f), (f-1), & (h).

Importantly, IRAdvocates invokes the private attorney general or representative-action provision

found at D.C. Code § 28-3905(k)(1), which authorizes a public interest organization to bring an

action challenging an unlawful trade practice on its own behalf and on behalf of the “general

public”—that is, the residents of the District of Columbia. IRAdvocates seeks declaratory relief,

an injunction requiring the defendants to remediate their allegedly misleading public statements,

3 and attorneys’ fees and costs as provided by statute. Prayer for Relief, Compl. at 30; see also D.C.

Code § 28-3905(k)(2)(C).

In March 2024, the defendants removed the case to this Court. See Notice of Removal,

ECF No. 1. The defendants believed that removal was permissible because this Court could

properly exercise jurisdiction over the dispute pursuant to the diversity jurisdiction statute, 28

U.S.C. § 1332(a). In April 2024, IRAdvocates filed a Motion to remand the case back to D.C.

Superior Court. See Mot. for Remand, ECF No. 17. At the same time, IRAdvocates filed a Motion

for Attorney Fees and Costs associated with the incipient remand dispute, arguing that the

defendants had no reasonable basis upon which to remove the case to federal court. See Mot. for

Attorney Fees and Costs, ECF No. 18. The defendants responded to both motions in May 2024.

See Resp. to Mot. for Remand, ECF No. 23; Resp. to Mot. for Attorney Fees, ECF No. 22.

IRAdvocates submitted its reply briefs the following week. See Reply for Remand, ECF No. 24;

Reply for Attorney Fees, ECF No. 25. Both Motions are now ripe for the Court’s review.

II. LEGAL STANDARDS

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