Reeves v. 7-Eleven, Inc.

CourtDistrict Court, District of Columbia
DecidedJuly 29, 2024
DocketCivil Action No. 2022-3533
StatusPublished

This text of Reeves v. 7-Eleven, Inc. (Reeves v. 7-Eleven, Inc.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reeves v. 7-Eleven, Inc., (D.D.C. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

S.J. REEVES and H. O’MALLEY, individually and on behalf of all others similarly situated,

Plaintiffs,

v. Case No. 1:22-cv-3533-RCL

7-ELEVEN, INC.,

Defendant.

MEMORANDUM AND ORDER

S.J. Reeves and H. O’Malley, residents of Washington, D.C., have brought a putative class

action suit against 7-Eleven, Inc. over the company’s sale of menthol cigarettes. In February 2023,

this Court applied the primary jurisdiction doctrine to grant the parties’ joint motion to stay the

case while the FDA considered a proposed rule banning menthol cigarettes. Since then, however,

the FDA has repeatedly delayed its rulemaking. A rule the FDA originally expected to be final by

August 2023 now lacks any timeline. Plaintiffs have thus moved to lift the stay. The question is

whether this case should remain stayed despite the FDA’s delays.

The time has come to lift the stay and allow this case to move forward. Like a smoker

daily promising himself he will quit tomorrow, the FDA keeps assuring the public it will

promulgate a final rule on menthol cigarettes at some later date. Preserving the stay until the FDA

completes—or officially abandons—its rulemaking risks significantly delaying the resolution of

this case. The unexpected length of the FDA’s administrative process now outweighs any

advantages of deferring to the agency. Since a stay is no longer justified under the primary

jurisdiction doctrine, the Court will GRANT plaintiffs’ motion to lift the stay.

1 I. BACKGROUND

A. The Primary Jurisdiction Doctrine

“The primary jurisdiction doctrine allows a district court to dismiss, or stay, an action over

which it has subject-matter jurisdiction.” Himmelman v. MCI Commc’ns Corp., 104 F. Supp. 2d

1, 7 (D.D.C. 2000). “When adjudicating a claim would ‘require[] the resolution of issues which,

under a regulatory scheme, have been placed within the special competence of an administrative

body,’ the primary jurisdiction doctrine permits a court to suspend the judicial process ‘pending

referral of such issues to the administrative body for its view.’” United States v. Philip Morris

USA Inc., 686 F.3d 832, 837 (D.C. Cir. 2012) (quoting United States v. W. Pac. R.R. Co., 352 U.S.

59, 64 (1956)).

No exact formula exists for when to apply the primary jurisdiction doctrine. Id. (citing W.

Pac. R.R. Co., 352 U.S. at 64). Courts in this Circuit, however, generally examine the following

factors:

(1) whether the question at issue is within the conventional expertise of judges; (2) whether the question at issue lies particularly within the agency’s discretion or requires the exercise of agency expertise; (3) whether there exists a substantial danger of inconsistent rulings; and (4) whether a prior application to the agency has been made.

Himmelman, 104 F. Supp. 2d at 4; United States v. Philip Morris USA, Inc., 787 F. Supp. 2d 68,

78 (D.D.C. 2011) (same), aff’d, 686 F.3d 832 (D.C. Cir. 2012). Another important consideration

is the length of the agency’s process:

When reaching a decision to defer, a court must consider how long an administrative process will run before its work is done. When the time necessary to completion is short, the case for deference is great. But when that process threatens to drag on . . . for many years, then the rationale supporting deference is much weaker. While that process struggles forward plaintiff’s case grows stale. Witnesses vanish, memories dim, and the record grows more distant and difficult to retrieve with every day.

Rohr Indus., Inc. v. Wash. Metro. Area Transit Auth., 720 F.2d 1319, 1326 (D.C. Cir. 1983).

2 B. Factual Background

Reeves is a citizen of Colorado who resides in the District of Columbia. Compl. ¶ 12, ECF

No. 1. O’Malley is a citizen of New York who also resides in the District of Columbia. Id.

7-Eleven is a convenience store chain. Id. ¶ 1. It is both incorporated and headquartered in Texas.

Id. ¶ 17. On multiple occasions, Reeves and O’Malley purchased menthol cigarettes from 7-

Eleven’s stores around the country including, in O’Malley’s case, within the District of Columbia.

Id. ¶¶ 56–57.

A menthol cigarette is a cigarette containing menthol, a minty flavor additive. Id. ¶¶ 5, 31.

According to plaintiffs, menthol disguises the taste of cigarettes, enticing new smokers, and

enhances the effects of nicotine, trapping smokers who wish to quit. Id. ¶¶ 4–5. For these reasons,

“menthol cigarettes are far more dangerous and addictive than any other type of cigarette available

to consumers.” Id. ¶ 3. Nonetheless, plaintiffs allege that 7-Eleven holds out menthol cigarettes

as regular cigarettes and does not disclose the particular dangers of this method of tobacco

consumption. Id.

C. The FDA’s Rulemaking on Menthol Cigarettes

The FDA is the “primary Federal regulatory authority with respect to the manufacture,

marketing, and distribution of tobacco products.” Philip Morris USA Inc. v. U.S. Food & Drug

Admin., 202 F. Supp. 3d 31, 36 (D.D.C. 2016) (quoting Family Smoking Prevention and Tobacco

Control Act, Pub. L. No. 111-31, § 3(1), 123 Stat. 1776, 1781 (2009)).

In 2010, an FDA advisory committee began reviewing evidence about the dangers of

menthol cigarettes. Compl. ¶¶ 27–29. The following year, the committee reported that excluding

these products from the marketplace would benefit American public health. Id. ¶¶ 30–40. A later

3 FDA investigation concurred in the committee’s finding that menthol cigarettes pose a greater risk

to public health than ordinary cigarettes. Id. ¶¶ 41–43.

In April 2022, the FDA took action, announcing a proposed rule to ban the use of menthol

in cigarettes and prohibit the manufacture, distribution, and sale of such cigarettes. Id. ¶¶ 51–54;

see also Tobacco Product Standard for Menthol in Cigarettes, 87 Fed. Reg. 26,454, 25,455

(proposed Apr. 4, 2022). The FDA initially set a deadline for promulgation of the final rule of

August 2023. See Off. of Info. and Regul. Affs., Tobacco Product Standard for Menthol in

Cigarettes (Fall 2022), https://tinyurl.com/3kcexcnw [https://perma.cc/XG3E-66WV]. But the

FDA missed its deadline. Next, the FDA indicated it would publish the final rule by the end of

2023. Jen Christensen, FDA Says It Will Finalize Ban on Menthol Tobacco Products “in Coming

Months,” CNN (Sept. 1, 2023) https://tinyurl.com/3wfv9nzn [https://perma.cc/4UPM-SBHF].

That did not happen. The FDA set a new deadline for March 2024. Off. of Info. and Regul. Affs.,

Tobacco Product Standard for Menthol in Cigarettes (Fall 2023), https://tinyurl.com/2s3zmk8y

[https://perma.cc/AFM2-CYM7]. Again, the agency blew past its own deadline. Now, the

agency’s deadline for final action is “To Be Determined.” Off. of Info. and Regul. Affs., Tobacco

Product Standard for Menthol in Cigarettes (Spring 2024), https://tinyurl.com/3urpydv7

[https://perma.cc/S5RY-7F3G].

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Related

United States v. Western Pacific Railroad
352 U.S. 59 (Supreme Court, 1956)
Taylor v. Sturgell
553 U.S. 880 (Supreme Court, 2008)
United States v. Philip Morris USA Inc.
686 F.3d 832 (D.C. Circuit, 2012)
United States v. Philip Morris USA, Inc.
787 F. Supp. 2d 68 (District of Columbia, 2011)
Himmelman v. MCI Communications Corp.
104 F. Supp. 2d 1 (District of Columbia, 2000)
Philip Morris USA Inc. v. United States Food and Drug Administration
202 F. Supp. 3d 31 (District of Columbia, 2016)
Seneca Nation of Indians v. State of New York
988 F.3d 618 (Second Circuit, 2021)
Krukas v. AARP, Inc.
376 F. Supp. 3d 1 (D.C. Circuit, 2019)

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