Peterson v. BASF Corp.

711 N.W.2d 470, 2006 Minn. LEXIS 161, 2006 WL 799218
Supreme Court of Minnesota·Decided March 30, 2006·No. C3-02-857·Published·Cited by 20 cases

Opinion

OPINION

ANDERSON, RUSSELL A., Chief Justice.

In February 2004, we affirmed the judgment for respondents Ronald Peterson, et al., in this class action against appellant BASF Corporation for violation of the New Jersey Consumer Fraud Act (“NJCFA”), N.J. Stat. Ann. §§ 56:8-1 to - 106 (West 2001), in BASF’s marketing and advertising of its herbicides Poast and Poast Plus. Peterson v. BASF Corp., 675 N.W.2d 57 (Minn.2004) (“Peterson III”). BASF petitioned the United States Supreme Court for a writ of certiorari. In an order filed May 2, 2005, the Court granted the writ of certiorari, vacated the judgment, and remanded for reconsideration in light of Bates v. Dow Agrosciences LLC, 544 U.S. 431, 125 S.Ct. 1788, 161 L.Ed.2d 687 (2005), a recently-decided case on preemption under the Federal Insecticide, Fungicide, and Rodenticide Act (“FIFRA”), 7 U.S.C. §§ 136-136y (2000). BASF Corp. v. Peterson, 544 U.S. 1012, 125 S.Ct. 1968, 161 L.Ed.2d 845 (Mem.) (2005). Bates confirms our earlier conclusion that the respondents’ claims are not preempted by FIFRA, and we therefore affirm the court of appeals.

The facts and procedural history of this case are explained in our initial decision, 675 N.W.2d at 61-65, and need not be recounted in detail here. BASF is a corporation that develops, produces, and markets herbicides. Respondents (“farmers”) are a nationwide class of farmers 1 who alleged that BASF violated the NJCFA by deceptively advertising and marketing two BASF herbicides, Poast and Poast Plus. Evidence introduced at trial established that the two products, when applied according to label instructions, contain the same amount of the same active ingredient per acre. 2 Both products were registered with the Environmental Protection Agency (“EPA”) under FIFRA for use on the same crops, including both major crops and minor crops. 3 Nevertheless, pursuant to a marketing strategy to maximize profits based on the different economics of the major and minor crop herbicide markets, BASF did not register Poast Plus with state regulators for use on most minor crops and its label did not indicate it was *474 suitable for use on minor crops. 4 BASF furthered this marketing plan by use of advertising and literature, and other conduct, that BASF’s internal documents indicated were intended to prevent farmers from learning that the lower-priced Poast Plus was EPA-registered for minor crops and was the active-ingredient equivalent of Poast.

The farmers brought this class action suit against BASF under the New Jersey Consumer Fraud Act in 1997. The district court certified the class action in 1999. In 2000, the court denied BASF’s motion to decertify the class, but granted BASF’s motion for summary judgment, concluding that BASF’s actions did not violate the NJCFA. On appeal, the Minnesota Court of Appeals reversed the summary judgment, holding that there was a question of fact as to whether BASF had violated the NJCFA. Peterson v. BASF Corp., 618 N.W.2d 821, 825-26 (Minn.App.2000) (“Peterson I ”). This court denied BASF’s petition for review.

The case proceeded to trial, at the end of which the jury unanimously found by special verdict that BASF had violated the NJCFA. The jury found $15 million- in damages to the class members, which was trebled as required by the NJCFA. N.J. Stat. Ann. § 56:8-19 (West 2001). With the addition of attorney fees, available to prevailing plaintiffs under the NJCFA, id., and interest, judgment was entered for the farmers in the amount of $52,058,931.51.

BASF appealed on numerous grounds, including as relevant here federal preemption of the state-law claims, erroneous admission of prejudicial evidence, and improper denial of BASF’s requested jury instructions. The court of appeals affirmed. Peterson v. BASF Corp., 657 N.W.2d 858 (Minn.App.2003) (“Peterson II”). BASF petitioned this court for review; the petition included the preemption issue, but did not include any express reference to evidentiary or jury instruction issues. We granted review and affirmed in Peterson III.

BASF petitioned the United States Supreme Court for a writ of certiorari. The Court granted the writ, vacated the judgment, and remanded the ease to this court for reconsideration in light of a recently-decided FIFRA preemption case, Bates, 544 U.S. 431, 125 S.Ct. 1788. 5 BASF Corp., 125 S.Ct. 1968. As Bates only involved the issue of FIFRA preemption, we review only the preemption aspect of our decision in Peterson III. See In re Linehan, 594 N.W.2d 867, 871 (Minn.1999).

*475 BASF raises two main claims that it contends should be reviewed under Bates. First, BASF argues that under the Bates analysis the consumer fraud claims that are the foundation of this case are preempted by FIFRA, and therefore the case must be dismissed. In the alternative, BASF argues that even if the claims are not preempted as a matter of law, erroneous rulings regarding evidence and jury instructions mandate a new trial under Bates.

I.

The starting point for any preemption analysis is the statute itself, because the touchstone of preemption is Congressional intent. E.g., Malone v. White Motor Corp., 435 U.S. 497, 504, 98 S.Ct. 1185, 55 L.Ed.2d 443 (1978). We therefore begin our analysis with a brief summary of FI-FRA, which is described in more detail in our initial opinion. Peterson III, 675 N.W.2d at 61-62. FIFRA is a federal statute that regulates pesticides. 6 FIFRA requires federal registration of pesticides with the EPA and imposes labeling requirements. 7 U.S.C. §§ 136(p), (q), (ee); 136a(a); 136j(a)(2)(G); 136w(c)(3) (2000); 40 C.F.R. § 156.10 (2005). Under FIFRA, a pesticide may only be distributed or used on a particular crop if: (1) the EPA has registered it for that crop, and (2) the farmer uses the pesticide in conformity with its label. 7 U.S.C. §§ 136(ee), 136a(a).

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Peterson v. BASF Corp., 711 N.W.2d 470, 2006 Minn. LEXIS 161, 2006 WL 799218 (Mich. 2006).

711 N.W.2d 470 (Peterson v. BASF Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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