Wallerstein v. Dole Fresh Vegetables, Inc.

967 F. Supp. 2d 1289, 2013 WL 5271291, 2013 U.S. Dist. LEXIS 132218
CourtDistrict Court, N.D. California
DecidedSeptember 13, 2013
DocketCase No.: 13-cv-01284-YGR
StatusPublished
Cited by64 cases

This text of 967 F. Supp. 2d 1289 (Wallerstein v. Dole Fresh Vegetables, Inc.) 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
Wallerstein v. Dole Fresh Vegetables, Inc., 967 F. Supp. 2d 1289, 2013 WL 5271291, 2013 U.S. Dist. LEXIS 132218 (N.D. Cal. 2013).

Opinion

Order Granting Defendant Dole Fresh Vegetables, Inc.’s Motion to Transfer Action to the Central District of California

YVONNE GONZALEZ ROGERS, United States District Court Judge.

Plaintiff Traci Wallerstein (“Plaintiff’ or ‘Wallerstein”) filed this putative class action against Defendant Dole Fresh Vegetables, Inc. (“Defendant” or “Dole”) on March 21, 2013. (Compl. [Dkt. No. 1].) Plaintiff seeks monetary damages and injunctive relief on the grounds that the “All Natural” label on Dole Salad Kits is “false, deceptive, and unfair to consumers because the Salad Kits contain synthetic (man made) ingredients” and consumers are misled into purchasing those products. (First Amended Class Action Complaint [“Wallerstein FAC”] ¶¶ 1-3 [Dkt. No. 8].) Dole is also a defendant in another putative class action filed on February 26, 2013 in the Northern District of California, Park v. Dole Fresh Vegetables, Inc., Case No. 13-cv-00872-LHK (“Park Action”). That case was subsequently transferred to the Central District of California. (See Park Action at Dkt. No. 45.)

Dole has filed a Motion to Transfer Plaintiff Traci Wallerstein’s Action to the Central District of California Pursuant to the First-to-File Rule and/or 28 U.S.C. § 404(a) or, in the Alternative, to Dismiss or Stay the Action. (“Motion” [Dkt. No. 29].)1 Wallerstein filed an Opposition to Defendant’s Motion to Transfer Pursuant to 28 U.S.C § 1404(a) or, in the Alternative, to Dismiss or Stay the Action. (“Opposition” [Dkt. No. 34].) Dole filed a reply in turn. (Dkt. No. 37.)

Having carefully considered the papers submitted and the pleadings in this action, and for the reasons set forth below, the Court hereby GRANTS Dole’s Motion to Transfer based on the first-to-file rule.2

I. Factual and Procedural Background A. The Instant Action

On March 21, 2013, Wallerstein filed this putative class action in the Northern District of California. (Dkt. No. 1.) On May 10, 2013, Plaintiff filed an amended complaint “on behalf of herself and all those who purchased an All Natural Dole Salad Kit (the ‘Salad Kits’) at any time from January 1, 2009 through the present.” (Wallerstein FAC ¶ 1.) Dole Fresh Vegetables, Inc. is a subsidiary of Dole Food Company, Inc., one of the world’s largest food suppliers, who produces the Dole Salad Kits as well as “over 200 brands of food that are sold throughout the United States and the world.” (Id. ¶ 9.)

Wallerstein alleges that the following varieties of Salad Kits contain synthetic ingredients: (1) Asian Island Crunch Salad Kit; (2) Caesar Salad Kit; (3) Endless Summer Salad Kit; (4) Garlic Caesar Salad Kit; (5) Light Caesar Salad Kit; (6) Perfect Harvest Salad Kit; (7) Southwest Salad Kit; (8) Spinach Cherry Almond Bleu Salad Kit; (9) Ultimate Caesar Salad Kit; and (10) Value Size Caesar Salad Kit. [1292]*1292(Id. ¶ 10.) Wallerstein further alleges that Dole Salad Kits cannot be natural because they contain xanthan gum and ascorbic acid. (Id. ¶¶ 19-20.)

Wallerstein asserts six claims in the FAC: (1) violation of the Consumer Legal Remedies Act, Cal. Civ. Code section 1750 et seq. (“CLRA”); (2) violation of the unlawful, unfair, and fraudulent prongs of Cal. Bus. & Prof. Code section 17200 et seq. (“UCL”); (3) violation of California’s False Advertising Law, Cal. Bus. & Prof. Code section 17500 et seq. (“FAL”); (4) breach of implied-in-law contract/quasi-contract under California Law; (5) deceptive acts and practices in violation of N.Y. Gen. Bus. Law section 349 et. seq.; and (6) unjust enrichment under New York law.

B. The Park Action

On February 26, 2013, plaintiff Andrew Park initiated the Park Action in the Northern District of California. On April 25, 2013, Park filed an amended complaint “on behalf of a nationwide class of all consumers who purchased Dole Salad Kit products that were deceptively labeled as ‘All Natural’ ... when in fact those products contain unnaturally processed and synthetic ingredients.” (First Amended Class Action Complaint in Park Action at Dkt. No. 22 [“Park FAC”] ¶ 1.)3

Park ’alleges that the same ten varieties of Dole Salad Kits are deceptively labeled. (Park FAC ¶ 23.) Further, Park alleges that the Salad Kits are unnatural because they contain synthetic ingredients, namely ascorbic acid and/or xanthan gum. (Id. ¶¶ 26-27.) Park alleges two claims for violations of the unfair, unlawful, and fraudulent prongs of the UCL and also the CLRA.

On August 2, 2013, the Honorable Lucy H. Koh transferred the Park Action to the Central District of California pursuant to Section 1404(a). (Park Action at Dkt. No. 45.) The case is currently assigned to the Honorable Otis D. Wright.4

II. Discussion

A. First-to-File Rule

A federal district court has discretion to dismiss, stay, or transfer a case to another district court under the first-to-file rule. Pacesetter Sys., Inc. v. Medtronic, Inc., 678 F.2d 93, 94-95 (9th Cir.1982); Alltrade, Inc. v. Uniweld Prods. Inc., 946 F.2d 622, 628 (9th Cir.1991) (“The most basic aspect of the first-to-file rule is that it is discretionary.”). The first-to-file rule is “a generally recognized doctrine of federal comity” permitting a district court to decline jurisdiction over an action. Inherent.com v. Martindale-Hubbell, 420 F.Supp.2d 1093, 1097 (N.D.Cal.2006) (citing Pacesetter, 678 F.2d at 94-95). The rule is primarily meant to alleviate the burden placed on the federal judiciary by duplicative litigation and to prevent the possibility of conflicting judgments. Church of Scientology of Cal. v. U.S. Dep’t of Army, 611 F.2d 738, 750 (9th Cir.1979) (citations omitted). As such, the rule [1293]*1293should not be disregarded lightly. See Microchip Tech., Inc. v. United Module Corp., No. CV-10-04241-LHK, 2011 WL 2669627, at *3 (N.D.Cal. July 7, 2011). Courts analyze three factors in determining whether to apply the first-to-file rule: (1) chronology of the actions; (2) similarity of the parties; and (3) similarity of the issues. Schwartz v. Frito-Lay N. Am., No. C-12-02740 EDL, 2012 WL 8147135, at *2 (N.D.Cal. Sept. 12, 2012) (citing Alltrade, 946 F.2d at 625).

A court may, in its discretion, decline to apply the fírst-to-file rule in the interests of equity or where the Section 1404(a) balance of convenience weighs in favor of the later-filed action. Adoma v. Univ. of Phoenix, Inc., 711 F.Supp.2d 1142, 1149 (E.D.Cal.2010); Ward v. Follett Corp., 158 F.R.D. 645, 648 (N.D.Cal.1994). Exceptions to the first-to-file rule include where the filing of the first suit evidences bad faith, anticipatory suits, and forum shopping. Alltrade, 946 F.2d at 628.

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967 F. Supp. 2d 1289, 2013 WL 5271291, 2013 U.S. Dist. LEXIS 132218, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallerstein-v-dole-fresh-vegetables-inc-cand-2013.