Order Granting In Part And Denying In Part Motion to Dismiss; Denying Motion For Leave To File Amicus Declaration
(Dkt. No. 21, 32)
Plaintiff Patrick Hendricks brings this putative class action against Defendant
StarKist has filed a Motion to Dismiss on several grounds: (1) federal preemption under the federal Food, Drug, and Cosmetic Act (“FDCA”); (2) the primary jurisdiction doctrine; (3) failure to sufficiently plead claims for breach of express and implied warranties; (4) failure to plead fraud with particularity; (5) lack of standing; and (6) unjust enrichment does not constitute a claim for relief. (Dkt. No. 21).
Having carefully considered the papers submitted,
BACKGROUND
. StarKist is a Delaware Corporation with its principal place of business in Pittsburgh, Pennsylvania. On February 19, 2013, Plaintiff filed this putative class action in his individual capacity and on behalf of a nationwide class of all similarly situated purchasers of four StarKist canned tuna products. The four products at issue are 5-ounce cans of StarKist: (1) Chunk Light Tuna in Water; (2) Chunk Light Tuna in Vegetable Oil; (3) Solid White Albacore Tuna in Water; and (4) Solid White Albacore Tuna in Vegetable Oil (collectively, the “Products”). (Complaint [Dkt. No. 1] ¶ 1.)
The Complaint alleges that Plaintiff purchased two of the Products, and the cans were underfilled and substantially underweight. (¶ 2.) Plaintiff confirmed that the cans of tuna were underfilled by retaining a laboratory to conduct independent testing using the methodology prescribed in 21 C.F.R. section 161.190(c). (¶¶ 2, 3.) Plaintiff alleges that testing revealed StarKist’s 5-ounce cans were “cheating” purchasers by providing anywhere from 1.1 % to
Section 341 of the Food Drug and Cosmetics Act (“FDCA”) permits the Food and Drug Administration (“FDA”) to promulgate regulations “fixing and establishing for any food ... reasonable standards of fill of container,” “[wjhenever in the judgment of the Secretary such action will promote honesty and fair dealing in the interest of consumers.” 21 U.S.C. § 341. The FDA, under its authority in 21 U.S.C. section 341, enacted 21 C.F.R. section 161.190, which sets forth the requirements governing the standard of fill of a container of canned tuna. Currently, both the standard of identity
Based on these allegations, the Complaint sets forth claims for breach of express warranty, and breach of the implied warranties of merchantability and fitness for a particular purpose. The express warranty claim alleges that StarKist, as the manufacturer, market and distributor of its products, expressly warranted that the Products contained an “adequate” amount of tuna for a 5-ounce can, but in reality they did not do so, and thus are not “legal for sale” in the United States. (¶¶ 19, 20.) The implied warranty claims each alleged that StarKist impliedly warranted that the cans contained an adequate amount of tuna, but the tuna cans were defective and unfit for their intended purpose, such that Plaintiff and the putative class members did not receive the goods as warranted. (¶¶ 24-30, 34-35.) As to all these claims, Plaintiff alleges that he and other putative class members were injured because they would not have purchased the Products on the same terms if the true facts were known, and that they paid a premium price based on StarKist’s “promises” that the Product cans contained an adequate amount for their size. (¶¶ 21, 31, 37.) Plaintiff further alleges, in his “Unjust Enrichment” count, that StarKist’s retention of revenues under these circumstances is unjust and inequitable, and that they should be required to pay restitution to Plaintiff and the class. (¶¶ 40-42.)
Similarly,. Plaintiffs CLRA, FAL, and UCL claims allege that StarKist misrepresented that its Products contained an adequate amount of tuna for a 5-ounce can consistent with the FDA standard, and that they would not have purchased the Products had they known the true facts concerning the quantity of the Product and StarKist’s failure to comply with the FDA standard. (¶¶ 46-47, 52-56, 59-63.) The CLRA, California Civil Code section 1770(a)(5), prohibits persons “Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval, status, affiliation, or connection which he or she does not have.”
Finally, Plaintiff alleges state law claims for negligent misrepresentation and fraud because StarKist misrepresented or omitted material facts about its Products, specifically that their Product cans contained an adequate amount of tuna for that size can, and are “legal for sale.” (¶¶ 67-68, 74.)
At the hearing on the motion to dismiss, Plaintiffs counsel confirmed that he is relying on the FDA regulations as the basis for claiming that the amount of tuna is inadequate and not “legal for sale in the United States.” (See Tr. at 18:21-19:8.) The Complaint cites no other legal predicate for claiming that StarKist’s 5-ounce cans of tuna are unlawful, deceptive, or misleading. The Complaint does not allege that the labeling of the packages was inaccurate.
APPLICABLE STANDARD
StarKist moves under Fed. R. Civ. P. 12(b)(6) and challenges the legal sufficiency of the claims alleged. “Federal Rule of Civil Procedure 8(a)(2) requires only a ‘short and plain statement of the claim showing that the pleader is entitled to relief,’ in order to ‘give the defendant fair notice of what the claim is and the grounds upon which it rests.’ ” Bell Atlantic Corp. v. Twombly,
Under Twombly, a plaintiff must not merely allege conduct that is conceivable but must instead allege “enough facts to state a claim to relief that is plausible on its face.” Twombly,
DISCUSSION
I. Preemption
A. Legal Framework
StarKist contends that Plaintiffs claims should be dismissed because the FDCA preempts them. However, StarKist concedes that state law claims which depend on FDCA statutory provisions are permissible if they are grounded in traditional state-law duties. (Mtn. at 1:22-24.)
Preemption is fundamentally a question of Congressional intent. Wyeth v. Levine,
In analyzing the preemption question, the Court must begin with the presumption that unless a “clear and manifest purpose of Congress”' exists, federal acts should not supersede the states’ historic police powers. Wyeth,
Express preemption results from a Congressional expression of intent to displace state law. Chae,
In the absence of expressly preemptive language, Congressional intent to preempt can be implied under two scenarios: field preemption and conflict preemption. Field preemption occurs “where the scheme of federal regulation is ‘so pervasive as to make reasonable the inference that Congress left no room for the States to supplement it.’ ” Valentine, 804
Conflict preemption arises when “compliance with both federal and state regulations is a physical impossibility.” Bank of America,
B. Preemption Under the FDCA
Under the FDCA, no state may establish a requirement for food that is not identical to an FDA-established standard of identity. 21 U.S.C. § 343-l(a)(l). Thus, state law or state law claims seeking to establish standards that differ from the FDCA’s standards are expressly preempted. See Lam v. Gen. Mills, Inc.,
However, a state-law claim relying on a standard consistent with the FDCA standard may not be preempted, as articulated in a line of Supreme Court authority:
In Medtronic, Inc. v. Lohr,
The Supreme Court’s decision in Buck-man followed, clarifying the scope of the state law claims that were excepted from the reach of preemption in Medtronic. Buckman Co. v. Plaintiffs' Legal Comm.,
The Supreme Court’s subsequent decision in Wyeth v. Levine,
Based upon this Supreme Court precedent, the Ninth Circuit has held that the FDCA “does not preempt a state-law claim for violating a state-law duty that parallels a federal-law duty under the [FDCA].” Stengel v. Medtronic, Inc.,
C. Application to Plaintiffs Claims
Plaintiffs claims are not expressly preempted since they do not seek to impose requirements different from or additional to FDA regulations in the area of canned tuna standards of fill. Indeed, Plaintiffs claims specifically reference existing FDA regulations as their basis for alleging that the amount, of tuna in StarKist’s 5-ounce cans is “inadequate.” Plaintiffs claims focus on the inadequacy of the amount of tuna in StarKist’s 5-ounce cans as measured from the standard of fill stated in 21 U.S.C. section 161.190(e)(2)(i)-(xii). Plaintiff alleges that StarKist: (1) “cheated” purchasers by providing less tuna than they are paying, for (¶ 2); (2) warranted that the cans contained an “adequate” amount of tuna and were legal for sale and, in breaching these warranties, committed statutory and common law fraud (¶ 13); and (3) misrepresented that the cans contained an “adequate” amount of tuna (¶ 46). Plaintiff alleges that he and members of the1 putative class would not have purchased StarKist tuna on the same terms if the true facts were known concerning its quantity and failure to comply with FDA regulations, and that they paid a premium price for StarKist tuna due to promises that it contained an adequate amount of tuna for a 5-ounce can. (¶ 47.) Thus, the claims here do not seek to establish or rest upon a fill standard that differs from the standard established under the FDCA and there is no express preemption. Cf. Samet, supra,
StarKist argues that implied preemption bars Plaintiffs claims because the claims are an attempt to enforce FDA regulations directly, and therefore prohibited by Section 337 of the FDCA. Section 337 only allows the United States to bring proceedings to enforce the FDCA. 21 U.S.C. § 337. StarKist contends that Plaintiffs claims here would not exist but for the FDCA requirements applicable to pressed weight in 21 C.F.R. section 161.190. Thus StarKist argues that Plaintiff is seeking to enforce FDA requirements as a private citizen, which he cannot do.
While section 337(a) precludes direct actions to enforce FDA regulations, it does not preclude actions under state law consistent with and arising out of such regulations. The FDA’s public enforcement requirements “[do] not prevent a State from providing a damages remedy for claims premised on a violation of FDA regulations; the state duties in such a case ‘parallel,’ rather than add to, federal requirements.” Riegel v. Medtronic, Inc.,
As the Ninth Circuit recently held in an analogous FDA enforcement context, in order to avoid preemption under the FDCA, a claim must fit through a “ ‘narrow gap: [t]he plaintiff must be suing for conduct that violates the FDCA [or else be expressly preempted for seeking to enforce a different or additional substantive requirement] ... but the plaintiff must not be suing because the conduct violates the FDCA’ ” or else be impliedly preempted by the private enforcement ban. Perez,
Here, Plaintiffs state law claims are all based upon conduct that violates a clear regulation under the FDCA regarding standards of fill for tuna. However, the claims are not based solely upon the fact that the regulation is violated. Rather, Plaintiffs claims allege that the 5-ounce cans led him to believe that an “adequate” amount of tuna would be inside, and that if he had known the can was under-filled, he would not have purchased the product. He alleges that he was harmed by the misleading conduct of under-filling the can. These allegations thread the gap as described in Perez.
Other courts of this district have rejected implied preemption arguments raised in food labeling and packaging cases similar to the case at bar. For example, in Samet, the district court determined that the claims alleged violations not of the FDCA but of California state law, including the California Sherman Law, UCL, FAL, and CLRA, and therefore were not preempted. Samet, supra,
Although Defendants argue Plaintiffs should not be allowed to “circumvent” the FDCA’s bar on private enforcement, this argument falls flat in light of the ample [legislative history] evidence that Congress and the FDA intended that -the states would be free to adopt a statutory scheme paralleling the FDCA and offer a private suit of enforcement of those parallel state regulations.... Plaintiffs’ claims for damages arise from state-made common law duties that also happen to coincide with the federal statutory scheme, which ensures that these claims will not conflict with or impair the FDA’s regulatory power....
Id.at *6-7 (internal citations and quotations omitted); see also Chavez v. Blue Sky Natural Beverage Co.,
StarKist also argues that the Ninth Circuit’s holding in Pom Wonderful LLC v. Coca-Cola Co.,
Finally, StarKist argues that it and other tuna manufacturers have petitioned the FDA to change the standard of fill. That argument is simply not relevant to the matters at issue here. The complaint here alleges that StarKist’s Products do not comply with the existing standard and that, as a result, state law duties have been breached, and consumer protection statutes have been violated. Whether the FDA might eventually change those standards is of no consequence to a decision whether the claims here are preempted or otherwise properly stated.
The Court therefore concludes that StarKist has not established that Plaintiffs claims should be dismissed based upon preemption.
II. Primary Jurisdiction
Given that the applicable FDA standard here is clear, detailed, and longstanding, the Court sees no reason to stay
StarKist argues that it, along with other canned tuna manufacturers, has filed a citizen’s petition with the FDA, requesting it to amend or suspend the regulation. These same producers sought a Temporary Marketing Permit to test market use of a drained weight fill standard, ráther than the pressed cake standard in the current regulation. So far as the Court is aware, nothing has changed in the interim regarding the standard set forth in 21 C.F.R. section 161.190. Unless and until there is some indication beyond mere speculation that the FDA may change the regulation, the Court sees no need to defer under the primary jurisdiction doctrine.
III. Alleged Misrepresentations To Support UCL, FAL And CLRA Claims (Counts V-VII)
StarKist next argues that Plaintiff has failed to allege reliance or deception, both of which are necessary to state a claim under the UCL, FAL, and CLRA. These statutory consumer protection claims allege StarKist misrepresented that its Product cans contained an adequate amount of tuna for a 5-ounce can, consistent with the FDA standard. Plaintiff alleges that he would not have purchased StarKist Chunk Light Tuna in Water had he known the true facts concerning the quantity of tuna in the can and StarKist’s failure to comply with the FDA standard.
StarKist contends that the FDA standard of fill does not require any information be communicated to consumers or that the products be labeled in any particular way. Instead, the standard of fill is only meant to provide guidance to manufacturers and food inspectors as to what constitutes a “well-filled container.” StarKist does not include pressed weight measurements on the-can, and is not required to do so. The information that is listed on the can labels states: “NET WT 5 OZ (142g)” and “Serving] Size: 2oz drained (56g— about 1/4 cup); Servings about 2.” (Defs RJN, Exh. 1.) Plaintiff does not dispute the truth of the label statements or allege how he was misled by those statements.
StarKist’s arguments miss the point of the allegations here. Plaintiff has alleged that Starkist’s 5-ounce cans of tuna contain less tuna than would be expected, ie., not an “adequate amount.”
Plaintiffs claims all allege that StarKist failed to comply with standards designed to prevent the level of fill in a tuna can from being misleading, and injury as a result. While StarKist argues that it is “simply not plausible” that Plaintiff was deceived, the Court cannot agree that these claims lack plausibility on their face. The motion to dismiss is Denied as to Counts V-VTI.
IV. Express and Implied Warranty Claims
Plaintiff alleges, three warranty-based claims: breach of express warranty, breach of the implied warranty of merchantability, and breach of the implied warranty of fitness for a particular purpose. StarKist again argues that there are no allegations that it made any statement that could form the basis of any warranty, express or implied.
“To plead an action for breach of express warranty under California law, a plaintiff must allege: (1) the exact terms of the warranty; (2) reasonable reliance thereon; and (3) a breach of warranty which proximately caused plaintiffs injury.” Baltazar v. Apple, Inc., CV-1 0-3231-JF,
StarKist also argues that the Complaint fails to allege that Plaintiff and StarKist were in privity, as is required for a claim based upon an implied warranty. However, as Plaintiff counters, California law does not require privity for implied warranty claim's involving sealed food products. See Klein v. Duchess Sandwich Co.,
StarKist’s arguments against the viability of Plaintiffs claims based upon merchantability likewise gain no traction. The implied warranty of merchantability actually requires goods to be “adequately contained, packaged, and labeled as the agreement may require; and ... [to] conform to the promises or affirmations of fact made on the container or label.” Cal. Com.Code § 2314(2)(a). The Complaint sufficiently sets forth a claim that the Products here were not adequately packaged, consistent with an implied promise that they were adequately filled with tuna. Thus a plausible claim for breach of the implied warranty of merchantability claim is stated.
As to the additional claim for breach of the implied warranty of fitness for a particular purpose, StarKist argues that Plaintiff has not alleged a “particular purpose” different from the ordinary purpose in the complaint. A warranty of fitness for a particular purpose is implied “[w]here the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller’s skill or judgment to select or furnish suitable goods.” Cal.Com.Code § 2315. Plaintiffs opposition does not address this claim, apparently conceding the merits of the motion.
Consequently, the motion to dismiss is Granted as to Count III for breach of implied warranty of fitness, and Denied as to Counts I and II.
Y. Unjust Enrichment Claim
StarKist argues that Plaintiffs count for unjust enrichment does not state a cognizable claim. Under California law, a claim for unjust enrichment is considered to be a restitution claim. Low v. LinkedIn Corp.,
Here, Plaintiffs claim alleges that Plaintiff and the class conferred benefits on StarKist by purchasing the Products and that StarKist’s retention of the revenue from such sales would be unjust and inequitable. Plaintiffs’ claim seeks of a benefit unjustly conferred on StarKist. The Court agrees with StarKist that the claim and relief sought is duplicative of Plaintiffs statutory claim under the CLRA and UCL. As such, it is subject to dismissal. See Brazil,
VI. Fraud Claim
StarKist further moves to dismiss on the grounds that the fraud claim, and all of the fraud-based claims, fail to plead the elements of fraud insufficiently, as required by Rule 9 of the Federal Rules of Civil Procedure. The Court disagrees.
Plaintiff has alleged that:
• StarKist misrepresented that its products contained an adequate amount of tuna for a 5-ounce can and were legal for sale in the United-States. (¶ 19.)
• StarKist falsely represents that its products contained an adequate amount of tuna for a 5-ounce can and that its products were legal for sale in the United States. (¶ 19.)
• Plaintiff purchased a 5-ounce can of SthrKist Tuna within the relevant class period. (¶ 2.).
• Plaintiff relied on StarKist’s false representations in purchasing the product. (¶¶ 21, 26, 31, 35, 37, 47, 56, 63, 71, 75.)
• Defendant’s conduct was false and misleading because “StarKist Tuna is underfilled and thus substantially underweight, does not contain an adequate amount of tuna for a 5-ounee can, and is illegal for sale in the United States.” (¶ 20.)
• Plaintiff was induced to pay substantially more for StarKist Tuna based on these' • false representations. (¶¶ 21, 31, 37, 47, 56, 63, 71, 75.)
These allegations are sufficient to meet the fraud pleading standard. The motion to dismiss for insufficient pleading of fraudulent conduct is Denied.
VII. Standing
StarKist moves to dismiss all claims here to the extent they involve products that he did not purchase. The Complaint includes claims relating to four products: Chunk Light Tuna in Water, Solid White Albacore Tuna in Water, Solid White Albacore Tuna in Vegetable Oil, and Chunk Light Tuna in Vegetable Oil. Plaintiff alleges that he purchased only one of the four: Chunk Light Tuna in Water. (¶¶ 1-2.) The allegations are all made against “the Products” generally and without differentiation.
Courts permit plaintiffs to brings claims on products they did not purchase where “common misrepresentations are the crux of Plaintiff[s’] case.” Brown v. Rain Celestial Grp.,
Defendant argues that solid tuna products are governed by pressed weight standards that differ from the standards applicable to the product Plaintiff bought. See 21 C.F.R. § 161.190(c)(1) (specifying different minimum weights for solid,, chunk, flakes, and grated tuna). Further the allegations of the Complaint show that the four products fell short of the pressed weight requirements by four different amounts. Thus Defendant argues that the claims relating to the three products Plaintiff did not purchase differ significantly from the claims against the one he did purchase, and that he lacks standing for claims based on those other three products.
The Court disagrees that the claims differ significantly here. There is sufficient similarity between the product purchased and other products accused here. The Complaint alleges the same misrepresentation as to all four varieties of canned tuna. Moreover, the cases cited by StarKist are distinguishable, since those cases involved different representations made as to the various products at issue. Cf. Hairston v. S. Beach Beverage Co.,
Therefore, the motion to dismiss for lack of standing as to claims based on products not purchased by Plaintiff is Denied.
CONCLUSION
For the reasons stated above, StarKist’s Motion to Dismiss is Granted In Part as to Plaintiffs claim for unjust enrichment, and is otherwise Denied.
Defendants shall file and serve their answer to the complaint no later than April 18, 2014. This Order terminates Docket Nos. 21 and 32.
It Is So Ordered.
Notes
. The National Fisheries Institute filed an Administrative Motion for Leave to File Amicus Curiae Declaration in support of the instant motion. (Dkt. No. 32.) Because the Court finds the declaration irrelevant to the issues presented in the motion to dismiss, as well as outside the scope of matters the Court may consider on such a motion, the Administrative Motion For Leave To File is Denied. The Court has not considered the declaration submitted in connection with the decision herein.
. StarKist requested that the Court take judicial notice of six exhibits. (Defendant StarKist Co.’s Request for Judicial Notice in Support of its Motion to Dismiss the Complaint, Dkt. No. 22.) Generally, the Court may take judicial notice of relevant documents as to which no party disputes the authenticity. See Knievel v. ESPN,
.All further "¶ ” references are to the Complaint, unless otherwise stated.
. The FDA has established “standards of identity” for a limited number of foods and beverages. A standard of identity is a regulation setting forth the ingredients contained in a particular food or beverage, such that "thereafter a commodity cannot be introduced into interstate commerce which 'purports to be or is represented as’ the food which has been thus defined unless it is composed of the required ingredients.” 62 Cases, More or Less, Each Containing Six Jars of Jam v. United States,
. Moreover, a defendant asserting preemption bears the burden of proving that it applies. Bruesewitz v. Wyeth LLC,
. Section 360k(a) preempts not only state-laws that are "different from, or in addition to” federal law, but also state laws “which relatfe] to the safety or effectiveness of the device or to any other matter included in a requirement applicable to the device" as stated in federal law. 21 U.S.C. § 360k(a).
. StarKist also argued that the appropriate standard for determining whether a claim is preempted is found in the Sixth Circuit's decision in Loreto v. Procter & Gamble Co.,
. Section 130.14(b), in turn, requires the “Below Standard in Fill” label statement to be a specified type size, boldness, and contrast so it may be "easily seen when the name of the food or any pictorial representation thereof is viewed, wherever such name or representation appears so conspicuously as to be easily seen under customary conditions of purchase.” 21 C.F.R. § 130.14.
. This Court agrees with others that have found the split in the authorities on the existence of a "cause of action” for "unjust enrichment” under California law is essentially founded on semantics, drawing a distinction — between unjust enrichment, restitution, and quasi-contract — without a difference. Regardless of whether the claim is labeled one for unjust enrichment, restitution, or some other equitable theory such as quasi-contract or constructive trust, the legal basis for relief is recognized in California law. See also Restatement (Third) of Restitution And Unjust Enrichment § 1 (2011) (“A person who is unjustly enriched at the expense of another is subject to liability in restitution.”); id. at Reporter's Note (e) ("The confused view that 'restitution' is merely a remedy appears to result from a historical accident in the American law school curriculum.”)
