Whitaker v. Herr Foods, Inc.

198 F. Supp. 3d 476, 2016 WL 4060127, 2016 U.S. Dist. LEXIS 99244
CourtDistrict Court, E.D. Pennsylvania
DecidedJuly 29, 2016
DocketCIVIL ACTION No. 16-2017
StatusPublished
Cited by62 cases

This text of 198 F. Supp. 3d 476 (Whitaker v. Herr Foods, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whitaker v. Herr Foods, Inc., 198 F. Supp. 3d 476, 2016 WL 4060127, 2016 U.S. Dist. LEXIS 99244 (E.D. Pa. 2016).

Opinion

MEMORANDUM

EDUARDO C. ROBRENO, District Judge.

Plaintiff Kenneth Whitaker initiated this putative class action in the Pennsylvania Court of Common Pleas of Philadelphia County against Defendant Herr Foods, Inc. (“Defendant”). Plaintiff alleges that Defendant “misbranded” approximately one dozen snack food products—namely, chips and pretzels. Defendant removed this action pursuant to the Class Action Fairness Act (“CAFA”), 28 U.S.C. § 1332(d)(2). Defendant now moves to dismiss all of Plaintiffs claims, except for the breach of express warranty claim, and to strike the class allegations. For the reasons that follow, the Court will grant Defendant’s motion to dismiss and deny Defendant’s motion to strike. Therefore, only the breach of express warranty claim remains.

I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY

Defendant is a Pennsylvania corporation that sells a variety of snack products. Compl. ¶¶ 6, 8, ECF No. 1. Plaintiff identifies at least twelve1 of Defendant’s products (hereinafter, “the products”) bearing labels with the following statements: “No Preservatives,” “No MSG,” “All Natural,” and “No Trans Fat.” Id. ¶¶ 1, 8-9. These statements are also displayed on Defendant’s website. Id. ¶ 9. According to Plaintiff, these statements are false, because [482]*482many of the products’ ingredients are, among other things, chemically synthesized and highly processed. Id. ¶¶ 3, 10 Plaintiff further alleges that the products’ labels evade federal regulations, which oblige Defendant to disclose when its products contain certain ingredients. Id. ¶¶ 10-11,14-15,18, 21-23, 31-38, 44.

Plaintiff alleges that he prefers “healthy, wholesome, and nutritious” foods. Id. ¶ 50. He tries to avoid foods containing artificial or highly processed ingredients, chemical preservatives, and artificial flavors or colors. Id. Given these preferences, Plaintiff states that he pm-chased Defendant’s products in reliance on their labels’ representations that the contents were natural and free of artificial or synthetic ingredients. Id. ¶¶ 51-52. He alleges that he also paid more money than he would have paid for other products containing artificial ingredients.2 Id. ¶¶ 53-54.

Plaintiff filed the present action on behalf of himself and others similarly situated, based on Defendant’s alleged (1) violation of Pennsylvania’s Unfair Trade Practices and Consumer Protection Law (“UTPCPL”), 73 Pa. Cons. Stat. §§ 201-1 to 201-9; (2) breach of express warranty; (3) fraudulent misrepresentation; (4) negligent misrepresentation; (5) breach of contract; and (6) unjust enrichment.

Plaintiff purports to represent the following putative class:

All persons in the United States or, alternatively, Pennsylvania who purchased one or more of the Misbranded Products from six (6) years prior to the filing of the Complaint and continuing to the present.

Compl. ¶ 56. Plaintiff asserts that “the proposed class includes thousands if not millions of members.” Id. ¶ 60.

II. JURISDICTION

In its Notice of Removal, ECF No. 1, Defendant asserts that this Court has subject matter jurisdiction pursuant to CAFA, 28 U.S.C. § 1332(d)(2). “CAFA confers on district courts original jurisdiction where: (1) the amount in controversy exceeds $5,000,000, as aggregated across all individual claims; (2) there are minimally diverse parties; and (3) the class consists of at least 100 or more members.” Neale v. Volvo Cars of N. Am., LLC, 794 F.3d 353, 357 n. 1 (3d Cir.2015) (citing 28 U.S.C. § 1332(d)(2), (5)(B), (6)).

Although the parties do not dispute jurisdiction under CAFA, the Court “must nevertheless satisfy [itself] that federal subject matter jurisdiction exists in the first instance.” Kaufman v. Allstate N.J. Ins. Co., 561 F.3d 144, 151 (3d Cir.2009). “[T]he party alleging jurisdiction [must] justify his allegations by a preponderance of the evidence.” Judon v. Travelers Prop. Cas. Co. of Am., 773 F.3d 495, 501 (3d Cir.2014) (second alteration in original) (quoting McNutt v. Gen. Motors Acceptance Corp. of Ind., 298 U.S. 178, 189, 56 S.Ct. 780, 80 L.Ed. 1135 (1936)). “Courts may consider pleadings as well as evidence that the parties submit to determine whether subject matter jurisdiction exists or an exception thereto applies.” Vodenichar v. Halcon Energy Props., Inc., 733 F.3d 497, 503 n. 1 (3d Cir.2013). Here, the three elements of CAFA jurisdiction are satisfied.

First, the amount in controversy exceeds $5,000,000. Plaintiff seeks damages equal to the amount that the putative class members paid for the products during the class period. Compl. ¶¶82, 89, 96, 100. Defendant’s Senior Vice President of Sales and Marketing avers that Defendant’s ag[483]*483gregate sales revenues from the identified products during the class period was $407,903,654. Notice of Removal ¶¶ 17-18. Of those revenues, $213,026,510 was derived from sales to out-of-state customers. Id. ¶ 18.

Second, CAFA’s diversity requirement is satisfied. Under CAFA, only minimal diversity is required for federal jurisdiction. 28 U.S.C. § 1332(d)(2)(A). CAFA’s minimal diversity requirement is an exception to the “complete diversity” otherwise required under 28 U.S.C. § 1332(a). See Strawbridge v. Curtiss, 7 U.S. (3 Cranch) 267, 267-68, 2 L.Ed. 435 (1806). Under CAFA, “a federal court may exercise jurisdiction over a class action if ‘any member of a class of plaintiffs is a citizen of a State different from any defendant.’ ” Mississippi ex rel. Hood v. AU Optronics Corp., — U.S.—, 134 S.Ct. 736, 740, 187 L.Ed.2d 654 (2014) (quoting 18 U.S.C. § 1332(d)(2)(A)). The court looks to the “[citizenship of the members of the proposed plaintiff class[ ] ... as of the date of filing of the complaint.” 18 U.S.C. § 1332(d)(7).

Here, although the Complaint pleads that the named plaintiff is a “resident” 3 of Pennsylvania, the Complaint itself states that members of the proposed plaintiff class are “consumers throughout the United States who have purchased one or more of’ the products at issue and amounts to “thousands if not millions of members.” Id. ¶¶ 1, 56, 60. By contrast, Defendant is incorporated and has its principal place of business in Pennsylvania. Daryl Thomas aff. ¶¶ 21-23, Notice of Removal Ex. C. Therefore, the Court con-eludes that at least one member of the putative class is diverse from Defendant.

Third, the Complaint alleges that there are “thousands if not millions of members.” Compl.

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Cite This Page — Counsel Stack

Bluebook (online)
198 F. Supp. 3d 476, 2016 WL 4060127, 2016 U.S. Dist. LEXIS 99244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitaker-v-herr-foods-inc-paed-2016.