Janney v. Mills

944 F. Supp. 2d 806, 2013 WL 1962360, 2013 U.S. Dist. LEXIS 67187
CourtDistrict Court, N.D. California
DecidedMay 10, 2013
DocketNo. C 12-3919 PJH
StatusPublished
Cited by13 cases

This text of 944 F. Supp. 2d 806 (Janney v. Mills) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Janney v. Mills, 944 F. Supp. 2d 806, 2013 WL 1962360, 2013 U.S. Dist. LEXIS 67187 (N.D. Cal. 2013).

Opinion

[809]*809ORDER GRANTING MOTION TO DISMISS IN PART AND DENYING IT IN PART

PHYLLIS J. HAMILTON, District Judge.

Defendant’s motion to dismiss the first amended complaint came on for hearing before this court on May 1, 2013. Plaintiffs appeared by their counsel Stephen Gardner, and defendant appeared by its counsel Charles C. Sipos and David T. Biderman. Having read the parties’ papers and carefully considered their arguments and the relevant legal authority, the court hereby GRANTS the motion in part and DENIES it in part.

BACKGROUND

In this proposed class action, plaintiffs allege that the product packaging and advertising of certain Nature Valley® products manufactured and sold by defendant General Mills is deceptive because the products, which contain the sweeteners high fructose corn syrup (“HFCS”), high maltose corn syrup (“HMCS”), and/or maltodextrin and rice maltodextrin (“Maltodextrin”), are labeled “natural.”1 Plaintiffs claim that these substances are “highly processed” and are therefore not “natural.”

In the first amended complaint (“FAC”), plaintiffs assert four causes of action — a claim under the California Consumers Legal Remedies Act (“CLRA”), Cal. Civ.Code § 1770(a)(5), (a)(7); a claim of unfair competition under California Business & Professions Code § 17200 (“UCL”); a claim of false advertising under California Business & Professions Code § 17500 (“FAL”); and a claim of unjust enrichment.

Plaintiffs allege that the term “natural” applies only to products that contain no artificial or synthetic ingredients and that consist entirely of ingredients that are only minimally processed. Plaintiffs assert, however, that General Mills deceptively uses the term “natural” to describe products “containing ingredients that have been fundamentally altered from their natural state and cannot be considered ‘minimally processed,’ ” and that the use of “natural” to describe such products “creates customer confusion and is deceptive.” FAC ¶ 3.

Plaintiffs contend that the term “natural” is “pervasive and prominent on the packaging and advertising” of Nature Valley® products, and that General Mills “reinforces” the image of its products as all-natural on the Nature Valley® website, and through social media accounts on Twitter, Facebook, Flickr, and YouTube. FAC ¶ 4. Indeed, plaintiffs assert, the name Nature Valley® itself “directly conjures up images of naturalness.” FAC ¶ 5. For example, they claim that the Nature Valley® website, which “features images of forests, mountains, and seaside landscapes,” links Nature Valley® with “the concept of natural.” FAC ¶ 23. They contend that by representing that Nature Valley® products are “natural,” General Mills “seeks to capitalize on consumers’ preference for all-natural foods and the association between such foods and a wholesome way of life.” FAC ¶ 27.

Plaintiffs assert that they bought certain varieties of Nature Valley® Chewy Trail Mix Granola Bars, Sweet & Salty Nut Granola Bars, and Granola Thins, relying on the claims that they are “natural.” Plaintiffs were “attracted to these products because they prefer to consume all-[810]*810natural foods for reasons of health, safety, and environmental preservation[,]” and they “believe that all-natural foods contain only ingredients that occur in nature or are minimally processed, and they would not include HFCS, HMCS, and Maltodextrin among such ingredients.” As a result, the Nature Valley® Chewy Trail Mix Granola Bars, Sweet & Salty Nut Granola Bars, and Granola Thins, with their “deceptive ‘Natural’ claims,” have no value to them. FAC ¶ 47. They contend that they stopped buying the Nature Valley® products when they discovered they were not “all natural.” FAC ¶¶ 61, 57.

General Mills now seeks an order dismissing the FAC pursuant to Federal Rules of Civil Procedure 12(h)(3) and 12(b)(6), arguing that the court lacks subject matter jurisdiction over the case, and that plaintiffs have failed to plead fraud with particularity.

DISCUSSION

A. Legal Standard

A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) tests for the legal sufficiency of the claims alleged in the complaint. Ileto v. Glock, Inc., 349 F.3d 1191, 1199-1200 (9th Cir.2003). Review is limited to the contents of the complaint. Allarcom Pay Television, Ltd. v. Gen. Instrument Corp., 69 F.3d 381, 385 (9th Cir.1995). To survive a motion to dismiss for failure to state a claim, a complaint generally must satisfy only the minimal notice pleading requirements of Federal Rule of Civil Procedure 8, which requires that a complaint include a “short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a)(2).

Nevertheless, however, legally conelusory statements, not supported by actual factual allegations, need not be accepted. Ashcroft v. Iqbal, 556 U.S. 662, 678-79, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). The allegations in the complaint “must be enough to raise a right to relief above the speculative level.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (citations and quotations omitted). A motion to dismiss should be granted if the complaint does not proffer enough facts to state a claim for relief that is plausible on its face. See id. at 558-59, 127 S.Ct. 1955. “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (citation omitted).

In addition, in actions alleging fraud, “the circumstances constituting fraud or mistake shall be stated with particularity.” Fed.R.Civ.P. 9(b). That is, Rule 9(b) requires that falsity be pled with specificity, including an account of the “time, place, and specific content of the false representations as well as the identities of the parties to the misrepresentations.” Swartz v. KPMG LLP, 476 F.3d 756, 764 (9th Cir.2007) (citations omitted); see also Neubronner v. Milken, 6 F.3d 666, 672 (9th Cir.1993).

Consequently, “[ajverments of fraud must be accompanied by ‘the who, what, when, where, and how’ of the misconduct charged.” Vess v. Ciba-Geigy Corp. USA 317 F.3d 1097, 1106 (9th Cir.2003) (quoting Cooper v. Pickett,

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Bluebook (online)
944 F. Supp. 2d 806, 2013 WL 1962360, 2013 U.S. Dist. LEXIS 67187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/janney-v-mills-cand-2013.