White v. Schwans Consumer Brands Inc

CourtDistrict Court, E.D. Wisconsin
DecidedMarch 14, 2024
Docket2:23-cv-00147
StatusUnknown

This text of White v. Schwans Consumer Brands Inc (White v. Schwans Consumer Brands Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. Schwans Consumer Brands Inc, (E.D. Wis. 2024).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

ANNIE WHITE,

Plaintiff, v. Case No. 23-cv-0147-bhl

SCHWANS CONSUMER BRANDS INC,

Defendants. ______________________________________________________________________________

ORDER GRANTING MOTION TO DISMISS ______________________________________________________________________________

In this putative class action, Plaintiff Annie White alleges that Defendant Schwan’s Consumer Brands, Inc. (Schwan’s) defrauded consumers by selling frozen pies with packaging stating the pies were “made with real butter.” Plaintiff concedes the pies are indeed made with some real butter but contends the labeling is nonetheless misleading because she expected what she calls more than a “de minimis” amount of butter in the product. In her amended complaint, Plaintiff seeks to represent a class of Wisconsin consumers in pursuing damages and injunctive relief based on claims for: (1) a violation of Wis. Stat. § 100.20; (2) breach of warranty; (3) common-law fraud; and (4) unjust enrichment. (ECF No. 7.) Schwan’s has moved to dismiss, arguing that its product labeling is not misleading or fraudulent as a matter law and that Plaintiff’s suggestion otherwise is based on an unreasonable reading of the label. (ECF No. 8.) In responding to the motion, Plaintiff has withdrawn her implied warranty and unjust enrichment claims, as well as her request for injunctive relief. (ECF No. 9 at 7 n.1.) But Plaintiff persists with her other claims. Having reviewed the pleadings and the relevant law, the Court agrees with Schwan’s that the amended complaint does not allege plausible claims. Accordingly, Schwan’s motion will be granted and Plaintiff’s claims dismissed. BACKGROUND1 Plaintiff is a citizen of Kenosha, Wisconsin. (ECF No. 7 ¶61.) Defendant Schwan’s is a Georgia corporation with its principal place of business in Bloomington, Minnesota. (Id. ¶57.)

1 This Background is derived from White’s amended complaint, (ECF No. 7), the allegations in which are presumed true for purposes of the motion to dismiss. See Bell Atl. Corp. v. Twombly, 550 U.S. 544, 554–56 (2007). Among other things, Schwan’s “manufactures, markets, and sells frozen apple pie” under the “Mrs. Smith’s” label. (Id. ¶1.) The packaging promotes Mrs. Smith’s pies as using an “original flaky crust made with real butter.” (Id.) The label also pictures “two pats of fresh butter” and “a blue ribbon seal, emblematic of state fairs.” (Id. ¶2.) Plaintiff alleges that butter is particularly desirable and emphasizes at length what she calls Wisconsin’s strong “culture of butter.” (See id. ¶¶3–28.) She contends that butter has a “natural appeal,” “healthier profile,” and “cream[ier], smooth[er] taste” than vegetable shortening. (Id. ¶¶9, 12, 15–17.) Given what she considers the natural advantages of butter, she alleges that she, “like the majority of consumers,” prefers “butter to vegetable shortening” in her baked goods. (Id. ¶68.) She claims to have relied on the packaging that Mrs. Smith’s pies are “made with real butter” and its depiction of “the two pats of butter” when she purchased Schwan’s pies at least once between 2021 and 2023 at a Walmart in Kenosha, Wisconsin. (Id. ¶¶69, 70.) The statements and photo led her to expect butter was present in what she calls “a non-de minimis amount.” (Id. ¶70.) She further asserts that the primary shortening ingredient in the pie crust is actually palm oil, based on the ingredient listing of “shortening butter blend,” which puts palm oil as its first ingredient. (Id. ¶40.) She alleges that even though butter is listed second after palm oil as a part of this blend, the product has only a de minimis amount as determined after a nutritional and ingredient analysis “based on the amount of nutrients and vitamins commonly found in butter.” (Id. ¶¶41, 42, 51.) This use of only a small amount of butter allegedly makes Mrs. Smith’s apple pie lack the “nutritional, structural (i.e., flaky crust), organoleptic, and sensory attributes” she would expect from a statement like “Made with Real Butter.” (Id. ¶52.)2 Plaintiff claims she paid at least $6.39 for each of the pies she purchased and proclaims she “would have paid less”—or not bought the pies at all—had she known the true butter content of the pies’ crusts. (Id. ¶¶71–73.) As a result of this deception, she also claims she “is unable to rely on the labeling and representations” of not only Mrs. Smith’s apple pies, but all other pies that promote butter. (Id. ¶77.)

2 Plaintiff’s assumption that butter is necessarily the superior fat to use in making a pie crust is questionable. Pastry chefs have long debated whether shortening, butter, or lard (or some combination of them) results in the “best” pie crust. See Rhoda Boone, Shortening vs. Butter: Which Fat Makes the Best Pie Crust?, epicurious (Oct. 25, 2017), https://www.epicurious.com/expert-advice/shortening-vs-butter-for-pie-crusts-lard-which-is-better-article. There is likely no right answer to the riddle; each ingredient has its own benefits and drawbacks, leading to different results in terms of preferred flavor and texture. Id. LEGAL STANDARD When deciding a Rule 12(b)(6) motion to dismiss, the Court must “accept all well-pleaded facts as true and draw reasonable inferences in the plaintiff[’s] favor.” Roberts v. City of Chicago, 817 F.3d 561, 564 (7th Cir. 2016) (citing Lavalais v. Village of Melrose Park, 734 F.3d 629, 632 (7th Cir. 2013)). “To survive a motion to dismiss, the complaint must ‘state a claim to relief that is plausible on its face.’” Id. (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. at 564–65 (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). “The complaint must do more than recite the elements of a cause of action in a conclusory fashion.” Id. at 565 (citing Iqbal, 556 U.S. at 678). ANALYSIS Plaintiff’s amended complaint seeks damages and injunctive relief based on four claims: a violation of Wis. Stat. § 100.20; breach of express warranty and implied warranty of merchantability and fitness for a particular purpose; common-law fraud; and unjust enrichment. (ECF No. 7 ¶¶87–118.) Schwan’s has moved to dismiss all four claims. (ECF No. 8.) Plaintiff opposes the motion only with respect to her Section 100.20, express warranty, and common-law fraud claims. For the reasons stated below, the Court will grant the motion and dismiss the amended complaint. I. Plaintiff Fails to State a Claim Under Wis. Stat. § 100.20. Plaintiff’s first cause of action is premised on an alleged violation of Wis. Stat. § 100.20, which prohibits “unfair methods of competition” and “unfair trade practices” in business. The circumstances in which this statute creates a private right of action are limited.

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Bluebook (online)
White v. Schwans Consumer Brands Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-schwans-consumer-brands-inc-wied-2024.