Petersen v. Costco Wholesale Co.

312 F.R.D. 565, 2016 U.S. Dist. LEXIS 9030, 2016 WL 304299
CourtDistrict Court, C.D. California
DecidedJanuary 25, 2016
DocketCase No.: SA CV 13-1292-DOC (JCGx)
StatusPublished
Cited by1 cases

This text of 312 F.R.D. 565 (Petersen v. Costco Wholesale Co.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petersen v. Costco Wholesale Co., 312 F.R.D. 565, 2016 U.S. Dist. LEXIS 9030, 2016 WL 304299 (C.D. Cal. 2016).

Opinion

ORDER RE: MOTION FOR CLASS CERTIFICATION [133]

DAVID O. CARTER, UNITED STATES DISTRICT JUDGE

Before the Court is the Plaintiffs’ Motion for Class Certification (“Motion”) (Dkt. 134)

I. Background

This lawsuit is a putative consumer class action brought by Plaintiffs Jacob Petersen, [570]*570Gayle Prather,1 Suzanne Faber, Andrea Me-drano,2 Leslie Lee, David Troutman,3 Thomas Fiore Leslie Straka, Jay Sewards, and Frances Sewards (collectively, “Plaintiffs”) against Defendants Costco Wholesale Co., Inc, (“Costco”), Townsend Farms, Inc. (“Townsend”), Purely Pomengranate, Inc. (“Purely Pomengranate”), Fallon Trading Co. Inc. (“Fallon”), and United Juice Corp (“United Juice”). Plaintiffs allege injury as a result of the risk of exposure to the hepatitis A virus (“HAV”) after consuming Townsend Farms Organic Anti-Oxidant Blend, a frozen berry and pomegranate seed mix (“Townsend berry mix”) purchased at Costco, Third Amended Complaint (“TAC”) (Dkt. 71) ¶¶ 11, 21, 24.

A. Facts

An outbreak of hepatitis A infections occurred in the Western United States in May 2013. Declaration of Denis Stearns (“Stearns Deck”) (Dkt. 136) Ex. 5. On May 13, 2013, the New Mexico Department of Health notified the Centers for Disease Control and Prevention (“CDC”) of two people who were diagnosed with hepatitis A symptoms within one week of each other. Stearns Decl. Ex. 1 at 7. The Colorado Department of Public Health identified additional outbreaks soon after. Id. Ultimately, the outbreak was linked to the consumption of Townsend berry mix sold to consumers at various Costco locations in early 2013. Id. ¶ 24.

The CDC informed Defendant Costco of this outbreak on or about May 29, 2013. Stearns Deck Ex. 2 at 4. After learning of the outbreak, Costco took immediate steps to limit the harm caused by the product. Costco removed the Townsend berry mix from its retail locations on May 29, 2013 and May 30, 2013¡ Id. On or around May 31, 2013, Costco used its customer database to notify “potential Costco customers by telephone and mail regarding the potential outbreak” and specifically “mailed letters to all Costco members who purchased the product_” Id. Ex. 2 at 6.

In addition to directly communicating with its members, Costco executives sent several internal messages regarding the product. Christine Summers (“Summers”), Costco’s Director of Food Safety and Corporate Quality Assurance, sent a letter to all warehouse managers notifying them to “pull and hold” the Townsend berry mix and to “wrap and mark [the] product ’Do Not Sell.’ ” Stearns Deck Ex. 3 at 1. On May 31, Craig Wilson (“Wilson”), the Vice President of Costco, sent a letter to all building managers informing them the “CDC will this afternoon announce an outbreak of hepatitis A in 5 states— Colorado, New Mexico, Nevada, Arizona, and California” and that the outbreak was “potentially associated” with item # 5965820, the “ ’Townsend Farm Organic Anti-Oxidant Blend.’” Id. Ex. 4 at 1. That same day, Costco’s building managers were told to inform Costco members they should discard the product, and if they had consumed the product in the last two weeks, they should contact their health care providers to inquire about vaccinations. Id. Ex. 5 at 1.

On June 2, 2013, Townsend Farms “opened a call center for customers to contact Townsend Farms with any questions _” Id. Ex. 2 at 6. The following day, Townsend Farms announced a partial recall of the Townsend berry mix. Id. Ex. 7 at 1. The announcement stated Townsend was “implementing this voluntary recall after learning that one of the ingredients of the frozen Organic Antioxidant Blend, pomegranate seeds processed in Turkey,” was potentially linked to the outbreak. Id. Townsend later expanded its recall efforts “after the FDA and the CDC confirmed that the epidemiological evidence supports a clear associa[571]*571tion between hepatitis A illness outbreak and one lot of organic pomegranate seeds used in the Frozen Organic Antioxidant blend subject to the voluntary recall.” Id. Ex. 9 at 1; see id. Ex. 12 at 4. On June 6, 2013, Costco sent a food safety update to its members. The update informed Costco Members that “[i]f you have eaten the product in the last 10 days the CDC & FDA advice is to visit your personal health care provider or your local health department to receive a Hepatitis A vaccination.” Id. Ex. 14 at 1. The update added that starting on June 6, 2013, “vaccinations will [ ] be available at your local Costco Pharmacy at no charge.” Id. Costco also offered to reimburse the cost of vaccinations received at other locations. Id. In total, Costco administered approximately 10,316 vaccinations free of charge at its various stores. Id. Ex. 2 at 7. Costco maintained records of which members received the hepatitis A vaccination at its pharmacies, and sent letters to these members in December 2013 reminding them to get the follow-up hepatitis booster vaccination. See id. Ex.18 at 1. Costco initially paid for the vaccinations administered at its pharmacies, but later asked Townsend to reimburse these costs. Id. Ex. 17 at 9-10. Wilson sent a letter to Costco’s warehouse managers in mid-December stating that “[mjembers that chose to get vaccinated at their health care provider will be coming to get a refund for their booster vaccination.” Id. Ex. 19 at 1.

B. Named Plaintiffs

Plaintiffs are individuals from nine different states: California, Arizona, Colorado, Idaho, Nevada, Oregon, Washington, New Mexico, and Hawaii. TAC ¶ 20. Each Plaintiff submitted a declaration detailing his or her purchase and consumption of the Townsend berry mix, and the preventative medical care he or she received. Id. ¶ 22.

1.Jacob Petersen

Jacob Petersen (“Petersen”) purchased Townsend berry mix in Irvine, California on May 16, 2013. TAC ¶ 1. He consumed the product on May 16,17, 18, 21, 22, 24, and 30, 2013. Mot. Ex. A at 1. At the urging of Dr. Chung of the Orange County Department of Health, Petersen went to Sand Canyon Urgent Care where he received an immune-globulin shot. Declaration of Jacob Petersen (“Petersen Decl.” (Dkt. 141) ¶ 4. He paid $120.00 for the vaccination. Id. ¶ 5.

2. Gayle Prather

Gayle Prather (“Prather”) is a resident of Pima County, Arizona. TAC ¶ 2. She purchased the Townsend berry mix on April 12, 2013 at a Costco located in Tucson, Arizona. Declaration of Gayle Prather (“Prather Deck”) (Dkt. 142) ¶ 2. She consumed some of the fruit almost every day for over a month. Id ¶ 3. After receiving an automated phone message from Costco, she went to a local Walgreen’s Clinic and received the hepatitis A vaccination, for which she paid $108.99. Id. ¶¶ 3, 4.

3. Suzanne Faber

Suzanne Faber (“Faber”) bought the Townsend berry mix in Colorado Springs, Colorado, and she consumed the product between May 29 and June 3, 2013. Declaration of Suzanne Faber (“Faber Decl.”) (Dkt. 137) ¶ 2. She received an immune globulin shot on June 4 from a doctor with Colorado Spring Health Partners. Id. ¶ 3. She paid $120.00 for the shot. Id.

4.Leslie Lee

Leslie Lee (“Lee”) is a resident of Idaho. TAC ¶ 5.

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312 F.R.D. 565, 2016 U.S. Dist. LEXIS 9030, 2016 WL 304299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petersen-v-costco-wholesale-co-cacd-2016.