Ries v. Arizona Beverages USA LLC

287 F.R.D. 523, 84 Fed. R. Serv. 3d 296, 2012 WL 5975247, 2012 U.S. Dist. LEXIS 169853
CourtDistrict Court, N.D. California
DecidedNovember 27, 2012
DocketNo. 10-01139 RS
StatusPublished
Cited by110 cases

This text of 287 F.R.D. 523 (Ries v. Arizona Beverages USA LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ries v. Arizona Beverages USA LLC, 287 F.R.D. 523, 84 Fed. R. Serv. 3d 296, 2012 WL 5975247, 2012 U.S. Dist. LEXIS 169853 (N.D. Cal. 2012).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR SUMMARY JUDGMENT AND GRANTING MOTION FOR CLASS CERTIFICATION AS MODIFIED BY THE COURT

RICHARD SEEBORG, District Judge.

I. INTRODUCTION

This putative consumer class action challenges defendants’ representation that Arizona Iced Tea is “All Natural,” given that it contains high fructose corn syrup (HFCS) and citric acid. Defendants move for summary judgment on all of plaintiffs’ six claims, advanced under California’s Unfair Competition Law (UCL), California Business & Professions Code § 17200, et seq., False Advertising Law (FAL), id. at § 17500, et seq., and Consumers Legal Remedies Act (CLRA), California Civil Code § 1780. Plaintiffs oppose the motion, and move, over defendants’ opposition, for certification of a class consisting of: “All persons in California who purchased an Arizona brand beverage from March 17, 2006 until the present time which contained High Fructose Corn Syrup or citric acid ... which were marked, advertised or labeled as being ‘All Natural,’ or ‘100% Natural.’ ” First Am. Compl. (FAC) at ¶ 44. In consideration of the briefs, the arguments raised at the hearing, and for all the reasons set forth below, defendants’ motion for summary judgment is granted in part and denied in part, and plaintiffs’ motion for class certification is granted as modified by the court.

II. FACTS

The named plaintiffs in this action accuse defendants of advertising, marketing, selling, and distributing AriZona Iced Tea beverages 1 as “All Natural,” “100% Natural,” and “Natural” on the labeling of the drinks, in various advertisements, and on defendants’ website — despite the presence of HFCS and citric acid. According to the complaint, HFCS, which is produced by adding a series of enzymes to processed corn starch to change the glucose present in the corn into fructose, is not a natural product; likewise, citric acid is alleged to be man-made because it is produced from certain strains of the mold Aspergillus niger.

Plaintiff Lauren Ries has testified that she purchased an AriZona Iced Tea, labeled “All Natural Green Tea,” at a gas station convenience store in San Jose, California, sometime during the summer of 2006. The purchase is undocumented, and Ries cannot recall the name of the store, or the exact price she paid for the drink. She has testified, however, the drink cost approximately $2, and stated that after she took a sip, she looked at the label, noticed it contained HFCS, “felt deceived by the labeling of ‘All Natural’ or ‘Natural,’ ” and consequently threw it away. Defendants emphasize Ries does not recall whether the labeling included the term “all natural,” “all natural flavor,” or simply “natural.” She recalls only that it was represented as “natural.” They also stress Ries’s testimony listing several reasons for purchasing the drink — “because [she] was thirsty, and wanted a natural drink. Something healthier than a soft drink. [She] also liked the bottle.”

Plaintiff Serena Algozer alleges she purchased AriZona products on repeated occasions for at least five years, up until March of 2009, but cannot recall “all specific products or the quantities of those purchases.” She specifically recalls purchasing AriZona All Natural Green Tea with Ginseng and Honey, AriZona Iced Tea with Lemon Flavor, as well as defendants’ peach tea. Defendants emphasize that Algozer, like Ries, does not recall the exact prices she paid, or the precise statements upon which she relied. Also like Ries, Algozer purchased AriZona teas in consideration of price, healthfulness, taste, thirst, and the labeling of the bottle. Finally, defendants appear to question Algozer’s testimony concerning her beliefs about the “natural” character of AriZona beverages, because, at deposition, she corrected a prior [528]*528misstatement to clarify that she had known “since college, that [HFCS] was a highly processed product that was not healthy just from my own readings.” Based on Algozer’s prior testimony, defendants believe that it was plaintiffs’ counsel who, in March of 2009 before he represented her in this case, informed Algozer that HFCS is not “natural,” as Algozer testified she did not have the opinion HFCS was artificial prior to discussing the matter with him.

The FAC sets forth six claims for relief: under the FAL, for (1) misleading and deceptive advertising, and (2) untrue advertising, under the UCL, for (3) unlawful, (4) unfair, and (5) fraudulent business practices, and (6) under the CLRA, for injunctive and declarative relief. The FAC seeks restitution, disgorgement of profits, injunctive relief and' attorneys’ fees.

III. LEGAL STANDARD

A. Summary Judgment2

Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c). The moving party bears the initial burden of demonstrating the absence of a genuine issue of material fact. See Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). If the movant succeeds, the burden then shifts to the nonmoving party to “set forth specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e); see also Celotex, 477 U.S. at 323, 106 S.Ct. 2548. A genuine issue of material fact is one that could reasonably be resolved in favor of the nonmoving party, and which could affect the outcome of the suit. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The Court must view the evidence in the light most favorable to the nonmoving party and draw all justifiable inferences in its favor. See id. at 255,106 S.Ct. 2505.

B. Class Certification

It falls to plaintiffs to make a prima facie showing class certification is appropriate. See In re Northern Dist. of Cal. Daikon Shield IUD Prod. Liab. Litig., 693 F.2d 847, 854 (9th Cir.1982); Blackie v. Barrack, 524 F.2d 891, 901 (9th Cir.1975). Certification is only appropriate if a rigorous analysis indicates the prerequisites of Rule 23(a) have been satisfied. See Hanon v. Dataproducts Corp., 976 F.2d 497, 509 (9th Cir.1992). That Rule provides a class action may proceed only where: (1) the class members are so numerous that joinder is impracticable; (2) common questions of law or fact exist; (3) the claims or defenses of the representative parties are typical of the class; and (4) the representative parties will fairly and adequately protect the interests of the class. Additionally, plaintiffs must satisfy Rule 23(b)(1), (2), or (3).

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287 F.R.D. 523, 84 Fed. R. Serv. 3d 296, 2012 WL 5975247, 2012 U.S. Dist. LEXIS 169853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ries-v-arizona-beverages-usa-llc-cand-2012.