Sanderson Farms, Inc. v. Tyson Foods, Inc.

547 F. Supp. 2d 491, 2008 U.S. Dist. LEXIS 33893, 2008 WL 1838719
District Court, D. Maryland·Decided April 22, 2008·No. Civil Case RDB-08-210·Published·Cited by 5 cases

Opinion

MEMORANDUM OPINION

RICHARD D. BENNETT, District Judge.

Plaintiffs Sanderson Farms, Inc. (“Sand-erson”) and Perdue Farms, Inc. (“Perdue”) (collectively, “Plaintiffs”) bring this suit against their competitor, Tyson Foods, Inc. (“Tyson” or “Defendant”), alleging violations of section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). Plaintiffs’ Amended Complaint alleges that Tyson’s advertisements containing the claims “Raised Without Antibiotics” and “Raised Without Antibiotics that impact antibiotic resistance in humans” are false and misleading to the consumer. Plaintiffs specifically allege that Tyson uses ionophores in its chicken feed and that ionophores are antibiotics.

Pending before this Court is Plaintiffs’ Supplemental Motion for a Preliminary Injunction. Plaintiffs’ Motion seeks to require that Tyson immediately cease all non-label advertising using the unqualified “Raised Without Antibiotics” claim and the qualified “Raised Without Antibiotics that impact antibiotic resistance in humans” claim. Plaintiffs’ Amended Complaint requests injunctive relief against “any claim, direct or indirect, qualified or unqualified, in words or in substance, that Tyson’s chicken is raised without antibiotics.”

This Court held a hearing over four days, commencing on Monday, April 7, 2008 and concluding on Thursday, April 10, 2008, to allow the parties to present oral argument, testimony, and evidence. 1 Having heard the testimony of numerous witnesses, including experts proffered by the parties, and having reviewed hundreds of exhibits, this Court finds that consumers are being misled by Tyson’s advertisements proclaiming that its chicken is “Raised Without Antibiotics.” Based largely on Plaintiffs’ consumer survey, this Court also finds that the qualified language “Raised Without Antibiotics that impact antibiotic resistance in humans” is not likely to be understood by a significant portion of the consumer public. This Court further finds that there is a strong likelihood of success by Plaintiffs on the merits of this case when it proceeds to trial. Moreover, this Court finds that the public interest compels the issuance of a preliminary injunction during the pen-dency of this case. Accordingly, for the reasons set forth in the following findings of fact and conclusions of law, Plaintiffs’ *493 Supplemental Motion for a Preliminary Injunction is GRANTED.

FINDINGS OF FACT

At the hearing, Plaintiffs offered the testimony of the following witnesses: 1) Dr. Bruce Stewart Brown, Perdue’s Vice President of Food Safety and Quality; 2) Hilary Burroughs, Sanderson’s Manager of Marketing; 3) John Bartelme, Perdue’s Chief Marketing Officer; 4) Michael B. Mazis, Ph.D., Professor of Marketing at American University’s Kogod School of Business; and 5) David Hogberg, Tyson’s Senior Vice President of Product Marketing. 2 Defendant offered the testimony of the following witnesses: 1) Steve Roth, a market research consultant; 2) Dr. Patrick Pilkington, Tyson’s Vice President of State and Government Affairs; and 3) David Hogberg. In addition, both parties submitted a substantial amount of evidence, with hundreds of exhibits being introduced.

1. Ionophores, the USDA, and Tyson’s Labels

A. Ionophores Are Antibiotics

It is undisputed in this case that iono-phores are antibiotics. The United States Department of Agriculture (“USDA”), the Food and Drug Administration (“FDA”), and the American Veterinary Medical Association (“AVMA”) are all in agreement on this point. The Food Safety and Inspection Service (“FSIS”), the USDA agency to which Congress has delegated the authority to regulate poultry labels, confirmed this fact on several occasions. After FSIS notified Tyson in September 2007 of its classification of ionophores as antibiotics, it reiterated its position on December 19, 2007, explaining as follows:

It is longstanding FSIS policy that iono-phores are antibiotics because they meet the AVMA definition. The Food and Drug Administration (FDA) agrees that by strict definition, ionophores are antibiotics thus; poultry meat from birds to which ionophores have been administered is not eligible to bear a “RWA” claim.

(Pis.’ Ex. 1.)

Moreover, both Plaintiffs’ and Defendant’s witnesses uniformly testified that ionophores are antibiotics. Dr. Bruce Stewart Brown, Perdue’s Vice President of Food Safety and Quality, testified that it is indisputable that ionophores are antibiotics, as the scientific literature supporting this conclusion is voluminous and consistent. Dr. Patrick Pilkington, Tyson’s Vice President of State and Government Affairs, acknowledged that ionophores are antibiotics because the FDA classifies them as such. David Hogberg, Tyson’s Senior Vice President of Product Marketing, also acknowledged that ionophores are antibiotics.

The potential that humans might develop antibiotic resistance is behind the public’s fear of so-called “superbugs,” strains of bacteria that become impervious to antibiotic treatment. Because ionophores are not used in human drugs, however, the use of ionophores in chicken products presents only a minuscule threat to antibiotic resistance in humans. Dr. Pilkington testified that the inability of ionophores to cause antibiotic resistance in humans is as close to a scientific certainty as possible, although he could not rule out the possibility. 3

*494 B. The Chicken Industry and Iono-phores

All three chicken producers in this case — Sanderson, Perdue, and Tyson — use ionophores in their chicken feed. In fact, the use of ionophores is a widespread industry practice. Ionophores effectively prevent coccidiosis, a disease caused by a protozoan-type parasite that lives and multiplies in the intestinal tract of animals, including chicken. Coccidiosis may cause severe symptoms, such as the inhibition of food digestion and nutrient absorption, as well as dehydration and blood loss. Cocci-diosis may also result in death. The spread of coccidiosis is a significant concern in the industry.

In addition to using ionophores in its chicken feed, it was clearly established at the hearing that Tyson injects a vaccine containing antibiotics into its chicken eggs two or three days before the egg hatches. Tyson technically defines “Raised Without Antibiotics” to mean from hatch until slaughter, a definition that was not revealed in Tyson’s USDA application for label approval. Tyson also does not inform the consumer public that the term “Raised” does not refer to the period before hatch, nor does Tyson inform the consumer public that it injects its chicken eggs with antibiotics.

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Sanderson Farms, Inc. v. Tyson Foods, Inc., 547 F. Supp. 2d 491, 2008 U.S. Dist. LEXIS 33893, 2008 WL 1838719 (D. Md. 2008).

547 F. Supp. 2d 491 (Sanderson Farms, Inc. v. Tyson Foods, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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