Mason v. Coca-Cola Co.
2011 U.S. Dist. LEXIS 35390
| D.N.J. | 2011Background
- Plaintiffs Thomas Mason and Molly Adams allege NJCFA, negligent misrepresentation, and intentional misrepresentation against Coca-Cola based on Diet Coke Plus labeling.
- This is Coca-Cola's second motion to dismiss; the court previously dismissed unjust enrichment with prejudice and allowed amendment of remaining claims.
- The Third Amended Complaint alleges the label misleads by promoting vitamins/minerals and healthfulness, due to the term “Plus” and “Diet Coke with Vitamins and Minerals.”
- Plaintiffs rely on an FDA Warning Letter attached to the complaint to show factual inaccuracy; defendant contends the label does contain vitamins/minerals and the claims lack particularity.
- The court has subject matter jurisdiction under 28 U.S.C. § 1332(d) and applies standard 12(b)(6) with heightened Rule 9(b) pleading for fraud claims; the court will grant dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| NJCFA elements and unlawful conduct | Mason argues Coke’s label constitutes unlawful deceptive practice. | Coca-Cola contends the statements are not proven false and the alleged losses are not asserted. | NJCFA claim dismissed for lack of concrete unlawful conduct and ascertainable loss. |
| Ascertainable loss under NJCFA | Pleading shows monetary losses from buying a supposedly healthier product. | Loss alleged is non-quantifiable dissatisfaction, not ascertainable. | NJCFA failure due to lack of ascertainable loss. |
| Negligent and intentional misrepresentation | Misrepresentation claims rely on misleading marketing about health/nutrition. | Claims hinge on same deficient NJCFA theory and lack damages. | Misrepresentation claims dismissed for lack of proveable damages/ascertainable loss. |
Key Cases Cited
- In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410 (3d Cir.1997) (pleading standards; 2nd Circuit admonitions on notice pleading)
- Hedges v. U.S., 404 F.3d 744 (3d Cir.2005) (burden on alleging no claim; standard for pleading)
- Gennari v. Weichert Co. Realtors, 148 N.J. 582, 691 A.2d 350 (N.J.) (elements of intentional misrepresentation and reliance)
- Naporano Iron & Metal Co. v. Am. Crane Corp., 79 F.Supp.2d 494 (D.N.J.2000) (requirements for pleading fraud with particularity (9(b)))
- Frederico v. Home Depot, 507 F.3d 188 (3d Cir.2007) (NJCFA elements and ascertainable loss standard)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (U.S.) (pleading standard: plausibility needed at 12(b)(6) stage)
- Ashcroft v. Iqbal, 129 S. Ct. 1937 (U.S.) (heightened pleading standard post-Twombly)