Peacock v. Pabst Brewing Co., LLC

CourtDistrict Court, E.D. California
DecidedMarch 18, 2024
Docket2:18-cv-00568
StatusUnknown

This text of Peacock v. Pabst Brewing Co., LLC (Peacock v. Pabst Brewing Co., LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peacock v. Pabst Brewing Co., LLC, (E.D. Cal. 2024).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 BRENDAN PEACOCK, No. 2:18-cv-00568 DJC CKD 12 Plaintiff, 13 v. ORDER 14 PABST BREWING CO., LLC, 15 Defendants. 16 17 Plaintiff Brendan Peacock brought this action alleging that Defendant misled 18 Plaintiff and others by marketing and selling “The Original Olympia Beer” as using 19 naturally filtered, artisan water from Tumwater, Washington (a suburb of Olympia, 20 Washington) despite the product being brewed elsewhere in the country using lower 21 quality water and brewing methods. Defendant now brings a motion for summary 22 judgment arguing that Plaintiff has failed to present evidence that Defendant’s 23 marketing of the product was likely to deceive a reasonable consumer, Defendant has 24 brought evidence that the product’s label was, in fact, not likely to deceive a 25 reasonable consumer, and Plaintiff has not provided evidence to support restitution 26 damages. For the reasons stated below, the Court grants Defendant’s motion for 27 summary judgment. 28 //// 1 BACKGROUND 2 I. Procedural History 3 Plaintiff originally filed this action on March 15, 2018. (See ECF No. 1.) The 4 current operative complaint, the Second Amended Complaint (“SAC”), was filed on 5 September 19, 2019 (SAC (ECF No. 30)) and, after District Judge Troy L. Nunley 6 denied a motion to dismiss, Defendant filed an answer (ECF No. 37). At the close of 7 class certification discovery, Plaintiff filed a Motion to Certify Class (Mot. to Certify 8 Class (ECF No. 52)) which Judge Nunley denied (Order Den. Mot. to Certify Class 9 (ECF No. 62)).1 After additional discovery was conducted, Defendant filed the present 10 Motion for Summary Judgment. (Def.’s Mot. (ECF No. 71).) Plaintiff has opposed (Pl.’s 11 Opp’n (ECF No. 72)), Defendant has filed a reply (Def.’s Reply (ECF No. 75)), and the 12 matter was submitted without oral argument pursuant to Local Rule 230(g) (see ECF 13 No. 76). 14 II. Allegations in the SAC 15 In Plaintiff’s SAC, Plaintiff alleges that Defendant’s product, The Original 16 Olympia Beer (“Olympia Beer”), was originally brewed in Tumwater, Washington, a 17 suburb synonymous with Olympia, Washington, but that in 2003 Defendant closed 18 down production in Tumwater and instead began to “contract-brew” Olympia beer “at 19 different locations throughout the country using lower quality water and mass- 20 produced brewing methods.”2 (SAC ¶¶ 1–3.) Plaintiff claims that despite moving to 21 different locations as well as using different or lower quality water and mass- 22 production brewing methods, Defendant continued to market and sell the product 23

24 1 Olympia Beer was discontinued by Defendant in 2021. Based on the fact that the product was no longer in production, Judge Nunley determined that Plaintiff lacked standing to seek injunctive relief 25 and denied certification of a Rule 23(b)(2) class as a result. (Order Den. Mot. to Certify Class at 5.)

26 2 According to the allegations in the SAC, Capital Brewing Company began brewing Olympia Beer began in 1896 and, as a result of mergers, acquisitions, and consolidations, Defendant eventually 27 acquired the company responsible for producing Olympia Beer in 1999. (SAC ¶ 8–10.) As noted previously, Defendant discontinued production and sale of Olympia beer in 2021, while this suit was 28 ongoing. 1 under the “The Original Olympia Beer” name, “directly and falsely suggesting to the 2 consumer that the water in the beer is from the ‘original’ source, i.e., water from the 3 Olympia area of Washington State.” (Id. ¶¶ 12–14.) Plaintiff also contends that 4 Defendant’s usage of the “It’s the Water” slogan and the depiction of the “unique 5 waterfalls from the (now) closed brewery from the Olympia area” on the Olympia Beer 6 packaging “create an impression in the mind of consumers that the beer is still 7 brewed using water from the Olympia area of Washington State.” (Id. ¶¶ 14–15.) 8 Plaintiff also briefly points to the website and social media accounts owned by 9 Defendant as helping to create a false impression including a description of the 10 product on the website that states in part “It’s the water” and a social media post 11 stating “It really is the water #OlympiaBeer” with a picture of a can of Olympia Beer “in 12 front of waterfalls that look just like the waterfalls that were connected to Defendant’s 13 (now) closed brewery in the Olympia area of Washington State.” (Id. ¶¶ 16–17.) 14 Plaintiff was exposed to Defendant’s “marketing and advertising practices” for 15 Olympia Beer as described above. (Id. ¶¶ 22–23.) On April 21, 2017, Plaintiff 16 purchased Olympia Beer from a Grocery Outlet location. (Id. ¶ 21.) Plaintiff allegedly 17 also purchased the product “several times per year” and drinking Olympia Bear “has 18 been Plaintiff’s family tradition for many years and the story of the uniqueness and 19 value of the artesian water has been passed down through oral tradition.” (Id. ¶¶ 21, 20 24–25.) 21 Based on the above allegations, Plaintiff brought a single claim for violation of 22 California Business and Professions Code § 17200, also known as the Unfair 23 Competition Law or UCL.3 (Id. ¶¶ 40–48.) These claims were originally brought by 24 3 As pled, the SAC is somewhat unclear on Plaintiff’s exact claim. While the SAC is clear that Plaintiff’s 25 claims are under the UCL and contains discussion of both the “unfair” and “fraudulent” prongs of the “business act” portion of the UCL, the SAC also contains what might be a reference to the “unfair, 26 deceptive, untrue or misleading advertising” portion of the UCL. (SAC ¶¶ 44–46.) The SAC also contains a citation to California Business and Professions Code § 17500, often referred to as the “False 27 Advertising Law” or “FAL”, which is a section of the California Business and Professions Code separate from the UCL. (SAC ¶ 42.) A violation of the FAL also necessarily is a violation of the UCL but Plaintiff 28 has not brought a separate FAL claim. See Moor v. Mars Petcare US, Inc., 966 F.3d 1007, 1016 (9th Cir. 1 Plaintiff on behalf of himself and a purported class of those similarly situated. (See Id. 2 ¶¶ 31–39.) However, as previously noted, class certification was denied by Judge 3 Nunley in a prior order. (See Order Den. Mot. to Certify Class.) 4 MOTION FOR SUMMARY JUDGMENT 5 I. Defendant’s Motion for Summary Judgment 6 Defendant’s arguments in favor of summary judgment can be grouped into two 7 broader points. First, Plaintiff has presented no evidence that a reasonable consumer 8 is likely to be deceived by Defendant’s marketing of Olympia Beer while Defendant 9 has presented evidence showing a reasonable customer would not be deceived. 10 Second, Plaintiff cannot establish economic injury as he has not presented any 11 evidence of economic injury, his claims are of de minimis monetary value, and Plaintiff 12 is not entitled to injunctive relief. 13 On the first point, Defendant argues that Plaintiff has failed to present “even a 14 shred of evidence” to show that the “Challenged Label Aspects”— those aspects of the 15 Olympia Beer packaging that Plaintiff specifically noted in the SAC — would be 16 deceptive to a reasonable consumer. (Def.’s Mot. at 4.) Defendant notes that Plaintiff 17 has not designated any expert witnesses (id. at 6) nor presented any evidence to 18 establish “how any other consumer interpreted the Challenged Label Aspects, a 19 probability that any other consumer shares the same (unreasonable) interpretation as 20 Plaintiff, or that the Challenged Label Aspects factored into any other consumer’s 21 purchasing decision” (id. at 4 (emphasis removed)). Defendant also argues that they 22 2020).

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Bluebook (online)
Peacock v. Pabst Brewing Co., LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peacock-v-pabst-brewing-co-llc-caed-2024.