Peacock v. Pabst Brewing Co., LLC

District Court, E.D. California·Decided March 18, 2024·No. 2:18-cv-00568·Unknown

Opinion

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

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 and denied certification of a Rule 23(b)(2) class as a result. (Order Den. Mot. to Certify Class at 5.)

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 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 ongoing. under the “The Original Olympia Beer” name, “directly and falsely suggesting to the consumer that the water in the beer is from the ‘original’ source, i.e., water from the Olympia area of Washington State.” (Id. ¶¶ 12–14.) Plaintiff also contends that Defendant’s usage of the “It’s the Water” slogan and the depiction of the “unique waterfalls from the (now) closed brewery from the Olympia area” on the Olympia Beer packaging “create an impression in the mind of consumers that the beer is still brewed using water from the Olympia area of Washington State.” (Id. ¶¶ 14–15.) Plaintiff also briefly points to the website and social media accounts owned by Defendant as helping to create a false impression including a description of the product on the website that states in part “It’s the water” and a social media post stating “It really is the water #OlympiaBeer” with a picture of a can of Olympia Beer “in front of waterfalls that look just like the waterfalls that were connected to Defendant’s (now) closed brewery in the Olympia area of Washington State.” (Id. ¶¶ 16–17.) Plaintiff was exposed to Defendant’s “marketing and advertising practices” for Olympia Beer as described above. (Id. ¶¶ 22–23.) On April 21, 2017, Plaintiff purchased Olympia Beer from a Grocery Outlet location. (Id. ¶ 21.) Plaintiff allegedly also purchased the product “several times per year” and drinking Olympia Bear “has been Plaintiff’s family tradition for many years and the story of the uniqueness and value of the artesian water has been passed down through oral tradition.” (Id. ¶¶ 21, 24–25.) Based on the above allegations, Plaintiff brought a single claim for violation of California Business and Professions Code § 17200, also known as the Unfair Competition Law or UCL.3 (Id. ¶¶ 40–48.) These claims were originally brought by 3 As pled, the SAC is somewhat unclear on Plaintiff’s exact claim. While the SAC is clear that Plaintiff’s 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, 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 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 has not brought a separate FAL claim. See Moor v. Mars Petcare US, Inc., 966 F.3d 1007, 1016 (9th Cir. Plaintiff on behalf of himself and a purported class of those similarly situated. (See Id. ¶¶ 31–39.) However, as previously noted, class certification was denied by Judge Nunley in a prior order. (See Order Den. Mot. to Certify Class.) I. Defendant’s Motion for Summary Judgment Defendant’s arguments in favor of summary judgment can be grouped into two broader points. First, Plaintiff has presented no evidence that a reasonable consumer is likely to be deceived by Defendant’s marketing of Olympia Beer while Defendant has presented evidence showing a reasonable customer would not be deceived. Second, Plaintiff cannot establish economic injury as he has not presented any evidence of economic injury, his claims are of de minimis monetary value, and Plaintiff is not entitled to injunctive relief. On the first point, Defendant argues that Plaintiff has failed to present “even a shred of evidence” to show that the “Challenged Label Aspects”— those aspects of the Olympia Beer packaging that Plaintiff specifically noted in the SAC — would be deceptive to a reasonable consumer. (Def.’s Mot. at 4.) Defendant notes that Plaintiff has not designated any expert witnesses (id. at 6) nor presented any evidence to establish “how any other consumer interpreted the Challenged Label Aspects, a probability that any other consumer shares the same (unreasonable) interpretation as Plaintiff, or that the Challenged Label Aspects factored into any other consumer’s purchasing decision” (id. at 4 (emphasis removed)). Defendant also argues that they 2020). As constructed, it appears Plaintiff’s claims are UCL claims under the “unfair” and “fraudulent” prongs but this does not influence the ultimate outcome of this order. Whether these claims are brought under the business act portion of the UCL, the advertising portion of the UCL, or the FAL, the “reasonable consumer” test discussed below would apply. Williams v. Gerber Products Co., 552 F.3d 934, 938 (9th Cir. 2008) (quoting Freeman v. Time, Inc.,

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

Peacock v. Pabst Brewing Co., LLC (Peacock v. Pabst Brewing Co., LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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