Kreft v. Adolph Coors Co.

170 P.3d 854, 2007 Colo. App. LEXIS 1944, 2007 WL 2874426
CourtColorado Court of Appeals
DecidedOctober 4, 2007
Docket05CA2315
StatusPublished
Cited by24 cases

This text of 170 P.3d 854 (Kreft v. Adolph Coors Co.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kreft v. Adolph Coors Co., 170 P.3d 854, 2007 Colo. App. LEXIS 1944, 2007 WL 2874426 (Colo. Ct. App. 2007).

Opinion

Opinion by

Judge FURMAN.

Plaintiffs, Randy Kreft and Colleen Kreft, appeal the district court's judgment dismissing their class action complaint against defendants, Adolph Coors Company, Coors Brewing Company, Bacardi USA, Inc., Kob-rand Corporation, Beer Institute Inc., Heineken USA, Inc., Brown-Forman Corporation, Diageo North America, Inc., and Mark Anthony Brands, Inc., for lack of standing under C.R.C.P. 12%M)(5). We affirm the judgment, dismiss the appeal in part, and remand for awards of attorney fees.

In so doing, we join other courts across the country that have rejected virtually identical class action complaints against these or similar defendants. See, e.g., Alston v. Advanced Brands & Importing Co., No. Civ. 05-72629, 2006 WL 1374514 (E.D.Mich., May 19, 2006) (dismissing for failure to state a claim upon which relief can be granted), vacated, 494 F.3d 562 (6th Cir.2007) (remanding to dismiss for lack of standing) (Alston II); Eisenberg v. Anheuser-Busch, Inc., No. 1:04-CV-1081, 2006 WL 290808 (N.D.Ohio, Feb.2, 2006), vacated sub nom. Alston II (remanding to dismiss for lack of standing); Goodwin v. Anheuser-Busch Cos., No. BC310105, 2005 WL 280330 (Cal.Sup.Ct., Jan. 28, 2005); Hakki v. Zima Co., No. 03-9183, 2006 WL 852126 (D.C.Sup.Ct., Mar. 28, 2006), aff'd, No. 06-CV-467, 926 A.2d 722 (D.C. Ct.App. June 26, 2007); Tomberlin v. Coors Co., No. 05CV545, 2006 WL 4808298 (Wisc.Cir.Ct., Feb. 16, 2006).

I. Background

Plaintiffs filed a class action complaint alleging that alcohol advertisements encouraged underage children to use "family assets" illegally to purchase or consume alcoholic beverages. The complaint stated causes of action for violations of the Colorado Consumer Protection Act, unjust enrichment, and negligence. Plaintiffs sought disgorgement of billions of dollars, actual damages, and a broad injunction against defendants' national advertising of their products.

Defendants filed a joint motion to dismiss under C.R.C.P. 12(b)(5) asserting plaintiffs lacked standing. The district court granted defendants' motion, concluding plaintiffs' complaint did not show actual injury to a legally protected right. The district court then granted defendants' motion for attorney *857 fees under section 18-17-201, C.R.S8.2007, but deferred ruling on the amount of those fees.

This case presents two interrelated issues about the sufficiency of the complaint:

(1) Did plaintiffs' complaint allege actual injury to a legally protected right?
(2) If not, should plaintiffs be granted leave to amend their complaint?

Because we decide these issues in defendants' favor, we also consider whether the district court properly awarded attorney fees to defendants pursuant to section 183-17-201, and whether fees may be awarded on appeal. We address each question in turn.

IIL. Sufficiency of the Complaint

Plaintiffs contend the district court erred in dismissing their complaint pursuant to C.R.C.P. 12(b)(5) for failure to state a claim upon which relief can be granted. They contend their complaint alleged actual injury to legally protected rights. We disagree.

We review de novo a district court's C.R.C.P. 12(b)(5) order of dismissal. Sweeney v. United Artists Theater Circuit, Inc., 119 P.3d 538, 539 (Colo.App.2005). While we confine our review to the four corners of the complaint, we must accept as true all material facts alleged by plaintiffs and draw all inferences in plaintiffs' favor. See Rosenthal v. Dean Witter Reynolds, Inc., 908 P.2d 1095, 1099 (Colo.1995).

A. Standing

To defeat a C.R.C.P 12(b)(5) motion to dismiss, a plaintiff must have standing to bring suit. Grossman v. Dean, 80 P.3d 952, 958 (Colo.App.2008). A plaintiff has standing if (1) the plaintiff was injured in fact; and (2) the injury was to a legally protected interest. Romer v. Colo. Gen. Assembly, 810 P.2d 215, 218 (Colo.1991).

1. Injury in Fact

Injury in fact exists if "the action complained of has caused or has threatened to cause injury." Id. (quoting Colo. Gen. Assembly v. Lamm, 700 P.2d 508, 516 (Colo.1985)). However, the injury must be "direct and palpable," not indirect, remote, or uncertain. O'Bryant v. Pub. Utils Comm'n, 778 P.2d 648, 653 (Colo.1989) ("the alleged injury [must] be sufficiently direct and palpable to allow a court to say with fair assurance that there is an actual controversy proper for judicial resolution"); Olson v. City of Golden, 53 P.3d 747, 752 (Colo.App.2002).

Plaintiffs' complaint alleges that defendants direct alcohol advertisements to underage consumers, benefit monetarily from these advertisements, and contribute to human suffering associated with underage drinking. However, regarding plaintiffs' status the complaint only says:

Plaintiffs ... are residents of Colorado and were injured by Defendants' conduct as alleged herein ....
Plaintiffs ... are residents of Colorado, and are members and proposed representatives of the Guardian Class and the In-Jjunctive Class as defined herein.

Accepting these and all other allegations of material fact in the complaint as true, and drawing all inferences in favor of plaintiffs, we nonetheless conclude dismissal was proper because plaintiffs' complaint does not indicate they have suffered any injury in fact. Several deficiencies in the complaint support this conclusion.

First, the complaint does not allege plaintiffs have or ever had a son or daughter under the age of twenty-one. Thus, plaintiffs' complaint does not plead facts showing they had a child consumer who suffered injury.

Second, the complaint does not indicate that any such child, while under the age of twenty-one, viewed or heard defendants' advertisements, let alone whether any of defendants' advertisements had such a profound effect that they induced the child to use "family assets" to purchase or consume one of defendants' products illegally. See Alston II, 494 F.3d at 565.

Finally, while the complaint contends plaintiffs represent classes of persons whose children used funds to purchase alcoholic beverages, the complaint does not indicate whether a child used money to consume alcoholic beverages and, if so, whether those funds were plaintiffs' or the child's. See *858 Warth v. Seldin, 422 U.S. 490, 501, 95 S.Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
170 P.3d 854, 2007 Colo. App. LEXIS 1944, 2007 WL 2874426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kreft-v-adolph-coors-co-coloctapp-2007.