Lone Star Bakery, Inc. v. United States

354 F. App'x 119
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 17, 2009
Docket09-50374
StatusUnpublished
Cited by1 cases

This text of 354 F. App'x 119 (Lone Star Bakery, Inc. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lone Star Bakery, Inc. v. United States, 354 F. App'x 119 (5th Cir. 2009).

Opinion

PER CURIAM: *

Lone Star Bakery brought a negligence claim against the government under the Federal Tort Claims Act, alleging that Food and Drug Administration agents negligently caused an erroneous report of dangerous bacteria in its products. The district court granted summary judgment to the government, finding that Lone Star had failed to raise fact issues on the ele *120 ments of duty and causation. Because we agree that Lone Star has failed to raise a fact issue on causation, we affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

Lone Star Bakery, Inc., is a commercial baker that makes biscuits at a plant in China Grove, Texas. Until 2002, Lone Star had sold biscuits to Southland Corporation, the owner of 7-Eleven convenience stores. Under that arrangement, Lone Star delivered biscuits to Phoenix, Arizona, where MarketFare Foods, Inc., assembled them into completed sandwiches for delivery to convenience stores; MarketFare purchased other ingredients, such as egg and cheese, from different vendors. The termination of Lone Star’s arrangement with Southland prompted the lawsuit at issue.

On March 1, 2002, the Florida Department of Agriculture and Consumer Services received a consumer complaint of gastrointestinal distress. The complaint alleged that the stomachache was caused by consumption of a sausage, egg, and cheese biscuit sandwich purchased from a convenience store in Daytona Beach, Florida. An inspector collected five sample sandwiches from the store, two of which tested positive for Listeria monocytogenes, a harmful and potentially fatal bacterium. The Florida agency alerted MarketFare and the United States Food and Drug Administration (FDA).

The FDA began its investigation at Mar-ketFare’s Phoenix assembly plant. Two inspectors collected the individual components and shipped them to an FDA laboratory in California. There, the individual components were tested. On April 5, 2002, a representative from the FDA informed MarketFare that the biscuit component and the finished sandwich had both tested presumptive positive for Listeria monocytogenes. That same day, Market-Fare issued a recall of the sandwiches, and Southland terminated its business relationship with Lone Star.

On April 9, the FDA conducted an inspection at Lone Star’s China Grove plant. FDA workers observed perforations in the plastic packaging used to seal the biscuits before they were shipped to MarketFare. Lone Star was informed on April 25 that the facility and biscuits tested negative for Listeria monocytogenes; a written report to this effect was issued on April 30. During this time, the FDA did not order a recall of any Lone Star biscuits.

Lone Star filed an administrative claim with the FDA on August 1, 2003, claiming over $2.9 million in damages. After waiting the requisite six months under 28 U.S.C. § 2675(a), Lone Star filed suit in federal distinct court under the Federal Tort Claims Act, 28 U.S.C. §§ 2671 et seq. Lone Star’s amended complaint alleged that the FDA was negligent in its collection, testing, and reporting of the biscuit samples manufactured by Lone Star.

The government moved to dismiss Lone Star’s complaint under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief could be granted. Lone Star filed a memorandum in opposition to the motion and attached a partial transcript of the deposition testimony of Bruce Benware, one of the FDA representatives who collected sandwich components at MarketFare’s Phoenix plant. The government filed a reply, attaching the reports of both parties’ experts. Because matters outside the pleadings were presented, the district court treated the government’s motion as one for summary judgment under Rule 56. See Fed.R.Civ.P. 12(d). The district court granted the government’s motion, holding that Lone Star had neither established that the *121 FDA owed it a duty under Texas law nor raised a fact issue on whether the FDA proximately caused Lone Star’s claimed damages. Lone Star now appeals.

II. STANDARD OF REVIEW

“We review a grant of summary judgment de novo, applying the same standards as the district court.” Frakes v. Crete Carrier Corp., 579 F.3d 426, 429 (5th Cir.2009). Summary judgment is appropriate when “the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). Summary judgment is proper only if no reasonable jury could return a verdict for the nonmoving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Where the nonmov-ing party bears the burden of proof at trial on a dispositive issue, he or she must go beyond the pleadings and designate specific facts showing a genuine issue for trial. Celotex Corp. v. Catrett, 477 U.S. 317, 324, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Factual controversies are resolved in favor of the nonmoving party, but factual controversies require more than conclusory allegations, unsubstantiated assertions, or a mere scintilla of evidence. Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir.1994).

III. DISCUSSION

The Federal Tort Claims Act, 28 U.S.C. §§ 2671 et seq., abrogates the United States’ sovereign immunity for compensatory damages arising out of claims for

injury or loss of property ... caused by the negligent or wrongful act or omission of any employee of the Government while acting within the scope of his office or employment, under circumstances where the United States, if a private person, would be liable to the claimant in accordance with the law of the place where the act or omission occurred.

28 U.S.C. § 1346(b)(1); see Johnson v. Sawyer, 47 F.3d 716, 727 (5th Cir.1995) (en banc). The parties agree, and we will assume for purposes of this appeal, that Texas law governs this dispute.

Related

Lone Star Bakery, Inc. v. United States
178 L. Ed. 2d 37 (Supreme Court, 2010)

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Bluebook (online)
354 F. App'x 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lone-star-bakery-inc-v-united-states-ca5-2009.