Lugones v. Pete and Gerry's Organics, LLC

CourtDistrict Court, S.D. New York
DecidedFebruary 21, 2020
Docket1:19-cv-02097
StatusUnknown

This text of Lugones v. Pete and Gerry's Organics, LLC (Lugones v. Pete and Gerry's Organics, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lugones v. Pete and Gerry's Organics, LLC, (S.D.N.Y. 2020).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK MICHELLE LUGONES; TRICIA RIZZI; MARCUS SIEZING; CLAUDIA VASSALLO; DENISE ALVARADO; MINOEE MODI; ISABELLE GRAY; KARINE SEWELL; ANNE FLOURNOY; and SONJA ROMANO, 19 Civ. 2097 (KPF) Plaintiffs, OPINION AND ORDER -v.- PETE AND GERRY’S ORGANIC, LLC and NELLIE’S FREE RANGE EGGS, Defendants. KATHERINE POLK FAILLA, District Judge: Plaintiffs bring this action, on behalf of themselves and as proposed representatives of a putative class of similarly situated individuals, against Defendant Pete and Gerry’s Organic, LLC.1 Plaintiffs allege that they purchased Defendant’s eggs, branded as Nellie’s Free Range Eggs, based on Defendant’s advertisements indicating that Defendant’s hens are loved and are given ample access to open, green spaces in which they can peck, perch, and play. However, Plaintiffs allege that this advertising is a lie, and conceals the facts that (i) Defendant’s hens are kept in tightly constricted spaces, with no real access to the outdoors, and (ii) the hens are subject to numerous husbandry practices that Plaintiffs oppose, such as beak-cutting and culling.

1 Although both Pete and Gerry’s Organic, LLC and Nellie’s Free Range Eggs are named as Defendants, Pete and Gerry’s has represented that Nellie’s Free Range Eggs is no more than a registered trademark and is therefore not a separate legal entity that can be sued. (Dkt. #18). Plaintiffs have not challenged Pete and Gerry’s representation. Therefore, given the lack of any showing that Nellie’s Free Range Eggs is an entity that can be sued, the Court dismisses it as a Defendant. Plaintiffs bring a wide variety of state-law statutory claims relating to false and deceptive advertising, as well as claims for fraud, fraudulent misrepresentation, and breach of express warranty, and request damages and injunctive relief.

Defendant moves, pursuant to Federal Rules of Civil Procedure 12(b)(2) and 12(b)(6), both to dismiss the claims brought by the non-New York plaintiffs and putative class members for lack of personal jurisdiction and to dismiss the complaint as a whole for failure to state a claim for relief. For the reasons set forth in the remainder of this Opinion, Defendant’s motion to dismiss for lack of personal jurisdiction is granted in part and denied in part, and Defendant’s motion to dismiss for failure to state a claim is granted in part and denied in part.

BACKGROUND2 A. Factual Background Plaintiffs are residents of New York, California, Massachusetts, Georgia, Maryland, and North Carolina. (SAC ¶¶ 16-24). Defendant is a limited liability company formed and headquartered in New Hampshire. (Id. at ¶ 25). Plaintiffs purchased Defendant’s Nellie’s Free Range Eggs in their respective states. (Id.

2 The facts contained in this Opinion are drawn principally from Plaintiff’s Second Amended Class Action Complaint, which is the operative pleading in this case and is referred to in this Opinion as the “SAC.” (Dkt. #29). The Court has also, in its consideration of Defendant’s Rule 12(b)(2) motion, evaluated certain exhibits attached to the Declaration of Jeanne Christensen in Opposition to Defendants’ Motion to Dismiss Under Rule 12(b)(2) (Dkt. #33), although the Court does not cite to them in this Opinion. For ease of reference, the Court refers to the parties’ briefing as follows: Defendant’s opening brief as “Def. Br.” (Dkt. #31); Plaintiffs’ opposition brief as “Pl. Opp.” (Dkt. #32); and Defendant’s reply brief as “Def. Reply” (Dkt. #34). at ¶¶ 16-24). In making their respective decisions to purchase the eggs, Plaintiffs relied on a combination of slogans, descriptions, and images on the Nellie’s Free Range Eggs containers. (Id.). The slogans included such

statements as: “WE LOVE OUR HENS, YOU’LL LOVE OUR EGGS”; “WE LOVE OUR HENS”; “BETTER LIVES FOR HENS MEAN BETTER EGGS FOR YOU!”; and “OUTDOOR FORAGE.” (Id.). The container also claimed that “[m]ost hens don’t have it as good as Nellie’s,” because Nellie’s hens “can peck, perch, and play on plenty of green grass.” (Id.). Finally, the containers all included imagery highlighting young children playing with hens in an open field. (Id. at ¶ 46). Based on these slogans, statements, and images, Plaintiffs believed that Nellie’s Free Range Eggs were “sourced from small farms providing all chickens

with space to move around both indoors and outdoors, as well as freedom from chick culling, beak-cutting, calcium depletion[,] and sale to commercial slaughterhouses and live markets.” (Id. at ¶ 16). Defendant’s website, it is alleged, only reinforced these beliefs. (Id.). Plaintiffs allege that Defendant’s hens face a far different and grimmer reality than Defendant’s advertising indicates. (SAC ¶¶ 7-8). In contrast to Defendant’s idyllic images of happy hens in green pastures, Defendant’s hens are instead crammed “into sheds up to 20,000 at a time … prevent[ing] them

from extending their wings, foraging or making their way to the outdoor space [Defendant] advertises so prominently.” (Id. at ¶ 7). In addition, Defendant mutilates its hens’ beaks. (Id. at ¶ 8). And once Defendant’s hens have laid so many eggs that they are depleted of the calcium “needed to lay eggs strong enough to make it to market,” Defendant “sells them to slaughterhouses and live markets that kill them.” (Id.). Plaintiffs allege that if they had known the truth about Defendant’s practices, they would not have paid premium prices

for Defendant’s eggs. (Id. at ¶¶ 16-24). Moreover, Plaintiffs “would only consider purchasing Nellie’s eggs in the future if Defendant[] were to treat chickens in a manner consistent with [its] advertising.” (Id. at ¶¶ 16-24). B. Procedural Background Plaintiffs initiated this action and filed their original Complaint on March 6, 2019. (Dkt. #1). Plaintiffs then amended their Complaint and added additional parties on May 7, 2019, prior to Defendant responding. (Dkt. #10). On May 20, 2019, Defendant requested a conference to discuss its anticipated

motion to dismiss (Dkt. #18), to which Plaintiffs responded on May 30, 2019 (Dkt. #22). The parties appeared before the Court for a pre-motion conference on June 27, 2019, at which the Court set both a date by which Plaintiffs could again amend their complaint and a briefing schedule for Defendant’s motion to dismiss. (Minute Entry of June 27, 2019). Plaintiffs filed their SAC on July 29, 2019. (Dkt. #29). The SAC alleged violations of New York General Business Law (“GBL”) Sections 349 and 350; California’s Unfair Competition Law, Cal. Bus. & Prof. Code §§ 17200 to 17210;

California’s False Advertising Law, Cal. Bus. & Prof. Code §§ 17500 to 17509; Maryland’s Unfair or Deceptive Trade Practices Law, Md. Code Ann., Com. Law § 13-301; North Carolina’s Unfair & Deceptive Trade Practices Law, N.C. Gen. Stat. § 75-1.1; Massachusetts’s Consumer Protection Act, Mass. Gen. Laws Ann. Ch. 93A, §§ 1 to 11; and Georgia’s Fair Business Practices Act, Ga. Code Ann. §§ 10-1-390 to 10-1-408. (SAC ¶¶ 128-88). The SAC also alleged common-law claims for fraud, fraudulent representation, and breach of express

warranty, without specifying any particular state statutes. (Id. at ¶¶ 189-208). Defendant filed its motion to dismiss, with an accompanying memorandum of law, on September 16, 2019. (Dkt. #30, 31). Plaintiffs responded with an opposing memorandum and supporting declaration on October 25, 2019. (Dkt. #32, 33). Defendant filed its reply brief on November 8, 2019. (Dkt. #34). DISCUSSION A. The Court Grants in Part Defendant’s Motion to Dismiss for Lack of Personal Jurisdiction 1.

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