Mladenov v. Wegmans Food Markets, Inc.

124 F. Supp. 3d 360, 2015 WL 5023484
District Court, D. New Jersey·Decided August 26, 2015·No. civil Action Nos. 15-00373, 15-00382, 15-00618-JEI-AMD·Published·Cited by 34 cases

Opinion

[366]*366OPINION

IRENAS, Senior District Judge:

In these three diversity class actions, Plaintiffs Martchela Popova Mladenov, Mladen Mladenov and Chan Mao allege on behalf of themselves, and all of those similarly situated, that Whole Foods Market Group, Inc. (“Whole Foods”), Wegmans Food Markets, Inc. (“Wegmans”), and ACME Markets, Inc. (“ACME”) misrepresented various bread and bakery products as being baked fresh in store; when they were actually frozen, processed, or baked in another location or by another entity, in violation of The New Jersey Consumer Fraud Act' (“CFA”), The New Jersey Truth-In-Consumer Contract ' Warranty and Notice Act (“TCCWNA”) and New Jersey Law regarding Express Warranties.1

Defendants presently move to dismiss Plaintiffs’ First Amended Complaints pursuant to Fed.R.Civ.P. 12(b)(6) for failure to state a claim upon which relief may be granted. For.the reasons stated herein, Defendants’ motions "will be GRANTED.

I. BACKGROUND

Plaintiffs filed their initial Complaints in the. Superior Court of New Jersey, Camden County.. Promptly thereafter, Defendants each removed to this Court on diversity grounds and Plaintiffs amended their initial Complaints. Plaintiffs’ Amended Complaints allege the following:

Plaintiffs Martchela Mladenov, Mladen Mladenov and Chan Mao claim to be health conscious New Jersey residents who have purchased Defendants’ bread and bakery products in New Jersey stores.2 (Whole Foods Amend. Compl. ¶¶ 4-6, 9; Wegmans Amend. Compl. ¶¶ 4-6, 9; ACME Amend. Compl. ¶¶4-5, 9). Plaintiffs bring these class actions against Defendants on behalf of themselves and classes defined as:

All individuals and entities within the State of New Jersey who purchased bread and/or bakery products advertised and sold as “made in house” and/or “freshly baked” and/or “freshly boiled” and/or “fresh” in a Whole Foods Market store located in New Jersey on or after December 14,2008.

(Whole Foods Amend. Compl. ¶ 30.)

All individuals and entities within the State of New Jersey who purchased bread and/or bakery products advertised and sold as “store baked” and/or “fresh baked” in a Wegmans store located in New Jersey on or after December 14, 2008.

(Wegmans Amend. Compl. ¶ 25)

All individuals and entities within the State of New Jersey who. purchased bread and/or bakery products advertised and sold as “fresh bread” and/or “baked fresh” and/or “baked in our store daily” and/or “from our bakery made for you” in an ACME store located in New Jersey on or after December 14,2008.

(ACME Amend. Compl. ¶ 22)

Each class excludes Defendants, their employees, subsidiaries and affiliates, and Defendants’ executives, board members, and legal counsel. Plaintiffs also bring these actions on behalf of subclasses defined as those who purchased the same bread and bakery products as the main [367]*367class but used a credit or debit card to do so.3 (Whole Foods Amend. Compl. ¶ 31; Wegmans Amend. Compl. ¶ 26; ACME Amend. Compl. ¶ 23)

The Amended Complaints allege that Defendants display signs and advertisements suggesting that certain bread and bakery products are made in house from scratch. (Whole Foods Amend. Compl. ¶¶ 18-19; Wegmans Amend. Compl. ¶¶ 13-14; ACME Amend. Compl. ¶ 11) Specifically, Defendant Whole Foods posts signs such as ‘“MADE IN HOUSE BREAD/ MADE IN HOUSE BAGELS AND ROLLS/ ‘FRESHLY BOILED & PLAIN BAGEL’, ‘MADE IN HOUSE MULTI GRAIN EVERYTHING BAGEL/ and ‘MADE IN HOUSE SNOW CAP CAKES.’”4 (Whole Foods Amend. Compl. ¶ 18). Defendant ACME posts signs such as “ ‘BAKED FRESH IN OUR OVEN, FRESH BREAD, BAKED IN OUR STORE DAILY’, ‘NEW! BAKED IN-STORE DONUTS’ AND ‘TASTY SELECTION FROM OUR BAKERY MADE FOR YOU.’” (ACME Amend. Compl. ¶ 11). Wegmans posts signs such as “STORE BAKED ROLLS.” (Wegmans Amend. Compl. ¶ 13). Defendants allegedly charge a premium for such products. (Whole Foods Amend. Compl. ¶24, Wegmans Amend. Compl. ¶ 19; ACME Amend. Compl. ¶ 16)

Plaintiffs claim, however, that in reality Defendants’ bread and bakery products are not made from scratch, but 1) made, parbaked and/or frozen; and/or 2) delivered frozen, parbaked or premade, and re-baked or re-heated for sale; and/or 3) not made in store. (Whole Foods Amend. Compl. ¶ 21; Wegmans Amend. Compl. ¶ 16; ACME Amend. Compl. ¶ 13); Plaintiffs allege further that they would not have purchased Defendants’ products absent Defendants’ misleading advertisements. (Whole Foods Amend. Compl. ¶¶ 24-25; Wegmans Amend. Compl. ¶¶ 20-21; ACME Amend, Compl. ¶¶ 17-18).

The Amended Complaints do not identify any particular bread or bakery products that Plaintiffs have purchased, the prices Plaintiffs paid for such products, the particular advertisements linked to those particular products, or when such purchases took place. Plaintiffs allege that, as a result of Defendants’ misrepresentations, they “have suffered an ascertainable loss of money,” but do not identify that loss with any more particularity. Neither do Plaintiffs claim that the bread and bakery products they purchased lacked nutritional value due to the products’ not being 'made from scratch in store.

Each Amended Complaint includes counts for violations of the CFA and. TCCWNA, and for breach of express warranty. Defendants filed the instant motions to dismiss for failure to state a claim on April 3,2015.

Following the receipt of the parties’ submissions on the motions to dismiss, the Court issued an Order to Show Cause as to why each Amended Complaint’s class action allegations should not be stricken. Specifically, the Court asked the parties to address whether the classes defined above [368]*368would be ascertainable. The parties submitted responsive papers and the Court held oral argument on August 12, 2015. Counsel for ACME also submitted a motion to strike the declarations and exhibits attached to Plaintiffs’ response to the Order to Show Cause.

The Court will first address the Amended Complaint’s class action allegations and then the pending motions to dismiss named Plaintiffs’ underlying claims.

II. Plaintiffs’ Class Allegations

The Court has the authority to strike class allegations at the pleading stage under Fed.R.Civ.P. 12(f) if the complaint demonstrates that a class action cannot be maintained. Smith v. Merial Ltd., No. 10-439, 2012 WL 2020361, at *6 (D.N.J. June 5, 2012). This Court has addressed and stricken class allegations at the pleading stage on defendants’ motions pursuant.to Fed.R.Civ.P. 12(f) when it becomes clear from the complaint that plaintiffs cannot meet the certification requirements of Rule 23. Id. at *4; see also Advanced Acupuncture Clinic, Inc. v. Allstate Ins. Co., No. 07-4925, 2008 WL 4056244 at *10 (D.N.J. Aug. 26, 2008) (granting motion to

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Mladenov v. Wegmans Food Markets, Inc., 124 F. Supp. 3d 360, 2015 WL 5023484 (D.N.J. 2015).

124 F. Supp. 3d 360 (Mladenov v. Wegmans Food Markets, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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