Miller v. Big Heart Pet Brands, Inc.

District Court, N.D. California·Decided March 16, 2020·No. 3:19-cv-03613·Unknown

Opinion

PAULA RICE-SHERMAN, et al., Case No. 19-cv-03613-WHO

Plaintiffs, ORDER DENYING IN PART AND GRANTING IN PART MOTION TO v. DISMISS AND STRIKE THE FIRST AMENDED COMPLAINT WITH BIG HEART PET BRANDS, INC., LEAVE TO AMEND; DENYING MOTION TO TRANSFER Defendant. Re: Dkt. Nos. 45, 46

Plaintiffs Paula Rice-Sherman, Deborah Coleman, and Wilma Rogers bring this putative class action against defendant Big Heart Pet Brands, Inc. (“Big Heart”), alleging that it falsely markets its Grain Free Easy to Digest Salmon Sweet Potato & Pumpkin Recipe Dog Food (“Nature’s Recipe Food” or the “Product”) as “Grain Free,” and as containing “No Corn” and “No Soy Protein.” First Amended Complaint (“FAC”) [Dkt. No. 40] ¶¶ 6-8. For the reasons set forth below, I DENY Big Heart’s motion to transfer to the Northern District of Ohio, DENY in part its motion to dismiss the FAC and DENY its motion to strike the class definition. Plaintiffs have sufficiently pleaded (i) Article III standing; (ii) fraud under Federal Rule of Civil Procedure 9(b) and the reasonable consumer test1; (iii) a UCL claim under all three prongs; (iv), breach of express and implied warranty; (v) and unjust enrichment. However, plaintiffs have not adequately alleged (i) standing for injunctive relief because the risk of future harm has not been pleaded; (ii) equitable relief because it is based on the same false advertising theory as the legal causes of action; and (iii)

1 Rule 9(b) applies to plaintiffs’ class claims for breach of warranty (Counts 2-3), unjust enrichment (Count 4), as well as their claims under three California consumer protection statutes – the Unfair Competition Law (“UCL”), False Advertising Law (“FAL”) and Consumers Legal punitive damages because they have failed to meet their requisite burden under the CLRA. Plaintiffs have leave to amend their complaint as to these issues within 20 days of this Order. Big Heart manufactures Nature’s Recipe Food, which it markets and sells nationwide. FAC ¶ 9. The front, back, sides, and bottom of the packaging prominently states that the Product is “Grain Free”; the front of the bag states that the Product contains “No Corn” and “No Soy Protein.” Id. ¶¶ 19, 21-23. Big Heart’s website also touts the health benefits of grain-free pet food. Id. ¶¶ 13-18. “Pet owners who purchase ‘grain free,’ products with ‘no corn,’ and products with ‘no soy protein’ pay a premium in order to alleviate their pets’ allergies and provide various health benefits associated with a grain-free diet.” Id. ¶ 25. All three named plaintiffs allege that they bought the Product at specified times and locations and that they reviewed and relied on the Product’s packaging that included representations “Grain Free,” “Free of Grains,” “No Corn,” and “No Soy Protein.” Id. ¶ 6; see also id. ¶¶ 7-8. They were unaware that the Product contained any grain, corn, or soy protein given Big Heart’s false and misleading claims and would not have purchased the Product if the actual ingredient list had been fully disclosed. Id. Plaintiffs allege that “independent testing of Nature’s Recipe Food confirms that these representations are false because “[it] does, in fact, contain significant amounts of both corn and soy protein.” FAC ¶ 23. This testing is consistent with numerous academic studies that have found companies in the pet-food industry have inaccurate product labels, non-conforming ingredients, and cross-contamination. Id. ¶¶ 32-38. Named plaintiffs Coleman and Rogers further claim that their dogs began displaying allergy symptoms after eating the Product. FAC ¶¶ 40-41. Coleman’s dog developed red skin and rash, and yeast infection in her ear. Id. ¶ 40. Roger’s dog started vomiting after consuming the Product. Id. ¶ 41. Both Coleman and Rogers incurred hundreds of dollars in veterinarian costs to treat these allergy related conditions. Id. ¶¶ 40-41. On June 21, 2019, plaintiffs filed their initial Complaint, naming eight plaintiffs and asserting fifteen causes of action under seven different state laws. Dkt. No. 1. In response to Big Heart’s motion to dismiss, they filed an amended complaint removing all non-California state law claims and plaintiffs, and adding two California plaintiffs in addition to Rice-Sherman. The FAC now names three California plaintiffs and asserts seven causes of action on behalf of a California class – one federal Magnuson-Moss Warranty Act, which was subsequently withdrawn, and six California consumer protection claims. Big Heart renews its motion to transfer venue and moves to dismiss the FAC for lack of subject matter jurisdiction and failure to state a claim, as well as to strike the overbroad class definition. See Defendant Big Heart Pet Brands Inc.’s Notice of Renewed Motion to Transfer Venue (“MTT”) [Dkt No. 45]; Defendant Big Heart Pet Brands Inc.’s Notice of Motion and Motion to Strike and Dismiss First Amended Class Action Complaint (“MTD”) [Dkt. No. 46]. Provided that the action might have been brought in the transferee court, a court may transfer an action to another district: (1) for the convenience of the parties, (2) for the convenience of the witnesses, and (3) in the interest of justice. 28 U.S.C. § 1404(a); Lee v. Lockheed Martin Corp., No. 03-cv-1533-SI, 2003 WL 22159053, at *1 (N.D. Cal. Sept. 16, 2003). The Ninth Circuit requires that courts consider a variety of factors in determining whether to transfer an action. See Jones v. GNC Franchising, Inc., 211 F.3d 495, 498 (9th Cir. 2000); Decker Coal Co. v. Commonwealth Edison Co., 805 F.2d 834, 843 (9th Cir. 1986). The relevant factors are: (1) plaintiff’s choice of forum, (2) convenience of the parties, (3) convenience of the witnesses, (4) ease of access to the evidence, (5) familiarity of each forum with the applicable law, (6) feasibility of consolidation of other claims, (7) any local interest in the controversy, and (8) the relative court congestion and time of trial in each forum. Barnes & Noble v. LSI Corp., 823 F. Supp. 2d 980, 993 (N.D. Cal. 2011). The burden is on the party seeking transfer to show that when these factors are applied, the balance of convenience Cir. 1979). It is not enough for a defendant to merely show that it prefers another forum, and transfer will also not be allowed if the result is merely to shift the inconvenience from one party to another. Van Dusen v. Barrack, 376 U.S. 612, 645–46 (1964). II. MOTION TO DISMISS FOR LACK OF SUBJECT MATTER JURISDICTION Under Federal Rule of Procedure 12(b)(1), a district court must dismiss a complaint if it lacks subject matter jurisdiction to hear the claims alleged in the complaint. Fed. R. Civ. P. 12(b)(1). “Standing is a threshold matter central to our subject matter jurisdiction.” Bates v. United Parcel Serv., Inc., 511 F.3d 974, 985 (9th Cir. 2007). “The Supreme Court has made clear that when considering whether a plaintiff has Article III standing, a federal court must assume arguendo the merits of his or her legal claim.” Lorenz v. Safeway, Inc., 241 F.Supp.3d 1005, 1014 (N.D. Cal. 2017). Under Federal Rule of Civil Procedure 12(b)(6), a district court must dismiss if a claim fails to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion to dismiss

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Miller v. Big Heart Pet Brands, Inc., (N.D. Cal. 2020).

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