Scholder v. Sioux Honey Association, Cooperative

CourtDistrict Court, E.D. New York
DecidedJanuary 13, 2022
Docket2:16-cv-05369
StatusUnknown

This text of Scholder v. Sioux Honey Association, Cooperative (Scholder v. Sioux Honey Association, Cooperative) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scholder v. Sioux Honey Association, Cooperative, (E.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ------------------------------------------------------------------X

JASON SCHOLDER, on behalf of himself and all others similarly situated,

Plaintiff, MEMORANDUM & ORDER CV 16-5369 (GRB) -against-

SIOUX HONEY ASSOCIATION COOPERATIVE,

Defendant.

------------------------------------------------------------------X

GARY R. BROWN, United States District Judge:

Plaintiff Jason Scholder commenced this putative class action against defendant Sioux Honey Association Cooperative alleging claims under New York State’s consumer protection statutes prohibiting deceptive business practices and false advertising, as well as common law claims for breach of express warranty and unjust enrichment based on alleged misrepresentations in the company’s labeling of its honey products marketed under the SueBee brand. The gravamen of Sioux Honey’s alleged misrepresentations and omissions is that the words “Pure” or “100% Pure” on the SueBee product labels are deceptive because the honey contains glyphosate, a synthetic chemical and herbicide. Presently before the Court is defendant’s motion to dismiss the amended class action complaint (hereinafter the “complaint”) pursuant to Rule 12 of the Federal Rules of Civil Procedure. For the reasons that follow, defendant’s motion is granted in part and denied in part. BACKGROUND 1. Factual Background The following facts, drawn from the complaint, are assumed to be true for purposes of the pending motion to dismiss and are viewed in the light most favorable to plaintiff, the non-

moving party: Sioux Honey, a cooperative in Sioux City, Iowa, manufactures, markets, sells and distributes SueBee honey in retail stores in New York and throughout the United States. Docket Entry (“DE”) 41 ¶¶ 23-24. Scholder, a citizen of New York, purchased SueBee honey on multiple occasions at a Stop and Shop supermarket located in Port Washington, New York. Id. ¶ 25. Scholder made these purchases after seeing and relying upon the product label representing the SueBee honey to be “Pure” or “100% Pure” and was willing to pay more for the honey because of the representation. Id. ¶¶ 26-27. However, Scholder alleges that SueBee honey is not “Pure” or “100% Pure” because the honey contains the biocide glyphosate, an artificial chemical and potential carcinogen. Id. ¶ 2. Because SueBee honey contains glyphosate, plaintiff contends

that the use of the words “Pure” or “100% Pure Unfiltered Honey” on the label is false and misleading. Id. ¶¶ 2, 37. Scholder maintains that “[c]onsumers reasonably believe that a product labeled ‘[P]ure’ or ‘100% [P]ure’ does not contain synthetic substances, such as artificial biocides,” id. ¶ 35, and that had he known at the time that SueBee honey contained glyphosate, he would not have considered the honey to be pure and would not have paid a premium for the product, id. ¶¶ 27-28. Plaintiff states that he plans to purchase SueBee honey in the future if he can rely on accurate marketing representations on the product’s label. Id. ¶¶ 59-60. Plaintiff provided photos of the product labels for SueBee honey, id., Ex. 1: pe Seater 7 Pee □□ ee er nal cae PR oe te OM Be pe hee Bay □□ = a ao | oy a at 7 oes i a | 2 LB. □□ ll ee my Warning: Do not feed hone □ ore (o infants under one year of = 3 =a be = http:/Awww.suebee.com □ Se meee’ «= Nutrition Facts) “ze: a i Serving Size 1 Thsp. {21g} Hoa i ‘eS ; ty om rs Ame | Servings Per Container 43} 1 cup weighs ta oe □ bn Vatu rat Se ee ‘ 7 = Amount Per ia] Seay a en (eal a Cholesterol Free (ays Meta i Calories 6) Pesleranrat □ ie a j ——_“e Valan*] Packed by ifl, Si □□ ime \TotalFatOy —0%| Gmouumee” a Aunt OUeS, □ ; Sodium Om pos 7 A SucHee® Product Total Carh. 179 sical US.Grude a Lage 5 fl Sudars 1 a a aso = | me Rav-Wild Nava ian ae |creteln Og = ie | my as □□ . “Piscent Values 1 “| 4 Eo | □ FOND ==

; ha □ eae es *

2. Procedural Background On September 27, 2016, Scholder commenced this action on behalf of himself and a nationwide class of all consumers who purchased SueBee honey, as well as a sub-class of all New York residents who purchased the product. DE 1. Plaintiff alleges four causes of action against Sioux Honey: (1) violation of New York General Business Law § 349 for deceptive practices; (2) violation of New York General Business Law § 350 for false advertising; (3) breach of express warranty; and (4) unjust enrichment. DE 41 82-108. On June 27, 2017, the Honorable Arthur D. Spatt (1) stayed this matter pending the outcome of the FDA’s determination regarding the permissible uses of the term “natural” in food labeling; (11) denied defendant’s motions to dismiss without prejudice; and (111) granted defendant leave to refile the motions after the FDA’s decision. Plaintiff thereafter moved to vacate the

stay, and Judge Spatt denied the application on March 5, 2019. DE 35. The case was reassigned from Judge Spatt to the undersigned on June 30, 2020. By Order dated October 15, 2020, the Court lifted the stay and granted plaintiff thirty days to amend the complaint. Plaintiff filed an amended complaint on November 6, 2020. DE

41. Defendant thereafter filed a pre-motion letter outlining the grounds for its proposed motion to dismiss the amended complaint in accordance with the undersigned’s individual rules. DE 43. Following plaintiff’s response to the letter, DE 44, the Court held a pre-motion conference on January 4, 2021. At the conference, the Court directed the parties to submit a brief focused on the sole issue of the use of the term “Pure” or “100% Pure” on the SueBee label and the implications thereof regarding the plausibility of plaintiff’s claims, particularly in light of the Second Circuit’s decision in Axon v. Florida Natural Growers, Inc., 813 F. App’x 701 (2d Cir. 2020). Defendant now moves to dismiss the complaint pursuant to Rule 12 of the Federal Rules of Civil Procedure. DE 46. Plaintiff opposes the motion. DE 48, 49.

DISCUSSION Standard of Review Generally, motions to dismiss are decided under the well-established standard of review for such matters, as discussed in Burris v. Nassau County District Attorney, No. 14-5540 (JFB) (GRB), 2017 WL 9485714, at *3-4 (E.D.N.Y. Jan. 12, 2017), adopted by 2017 WL 1187709 (E.D.N.Y. Mar. 29, 2017), and incorporated by reference herein. The gravamen of that standard, of course, is the question of whether, assuming the allegations of the complaint to be true solely for the purposes of the motion, the complaint sets forth factual material to render the claims plausible. Analysis As noted, Plaintiff alleges the following causes of action against Sioux Honey: (1) violations of §§ 349 and 350 of New York General Business Law; (2) breach of express warranty; and (3) unjust enrichment. DE 41 ¶¶ 82-108. In addition, plaintiff seeks injunctive

relief. Id. at ¶ 61 and page 22. (1) New York General Business Law § 349 and § 349 Section 349 of the New York General Business Law (“GBL”) prohibits “deceptive acts and practices in the conduct of any business, trade or commerce or in furnishing of any service.” N.Y. Gen. Bus. Law § 349. A deceptive act or practice is one that is “likely to mislead a reasonable consumer acting reasonably under the circumstances.” Maurizio v. Goldsmith,

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