KARI WARREN, individually and on behalf of all others similarly situated v. THE COCA-COLA COMPANY
No. 22-CV-6907 (CS)
UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK
April 21, 2023
Seibel, J.
Spencer Sheehan
Sheehan & Associates, P.C.
Great Neck, New York
James Chung
Law Office of James Chung
Bayside, New York
Counsel for Plaintiff
Steven A. Zalesin
Jane Metcalf
Michael Sochynsky
Patterson Belknap Webb & Tyler LLP
New York, New York
Counsel for Defendant
Seibel, J.
Before the Court is Defendant‘s motion for judgment on the pleadings. (ECF No. 15.) For the following reasons, Defendant‘s motion is GRANTED.
I. BACKGROUND
A. Facts
For purposes of this motion, the Court accepts as true the facts, but not the conclusions, alleged by Plaintiff in her Complaint. (See ECF No. 1 (“Compl.“).)
(Id. ¶ 1.)
Relying on the Product‘s front label, as well as the Merriam-Webster Dictionary, Wikipedia, and International Bartenders Association definitions of “Margarita,” (id. ¶¶ 6-9), Plaintiff alleges that “[c]onsumers expect to receive a cocktail containing tequila when they
Plaintiff also maintains that the Product‘s front label is misleading because the Product does not contain sparkling mineral water sourced in Monterrey, Mexico, which Plaintiff claims “is an essential part of Topo Chico beverages.” (Id. ¶ 31.) Put another way, because Plaintiff associates the Topo Chico brand with sparkling mineral water from that location, (id. ¶¶ 50-52), she was deceived into expecting the Product to contain that mineral water, (id. ¶ 57). Plaintiff claims that had she known that the Product contained neither tequila nor sparkling mineral water sourced in Mexico, she would not have purchased it, (see id. ¶¶ 30-31, 35), and that it was worth less than what she paid, (id. ¶ 33).
B. Procedural History
Plaintiff filed her Complaint on August 14, 2022, asserting claims for: (1) violations of
Defendant timely answered on August 26, 2022. (See ECF No. 6.) That same day, the Court granted Defendant‘s request for a pre-motion conference concerning a proposed motion for judgment on the pleadings pursuant to
II. LEGAL STANDARD
“The standard of review on a motion for judgment on the pleadings pursuant to
“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.‘” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim
In considering whether a complaint states a claim upon which relief can be granted, the court “begin[s] by identifying pleadings that, because they are no more than conclusions, are not entitled to the assumption of truth,” and then determines whether the remaining well-pleaded factual allegations, accepted as true, “plausibly give rise to an entitlement to relief.” Id. at 679. Deciding whether a complaint states a plausible claim for relief is “a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Id. “[W]here the well-pleaded facts do not permit the court to infer more than the mere possibility of misconduct, the complaint has alleged - but it has not ‘shown’ - ‘that the pleader is entitled to relief.‘” Id. (quoting
“On a
Here, along with its motion, Defendant filed a Request for Judicial Notice, (see ECF No. 17), which attached pictures of the individual labels that appear on the cans of each of the four varieties of the Product, as well as a picture of the entire 12-pack packaging, including the Product‘s Nutrition Facts panel, (see id.). In her Complaint, Plaintiff only included images of the 12-pack‘s front label and the ingredient list excerpted from the Nutrition Facts panel. (See Compl. ¶¶ 1, 19.) The entire 12-pack packaging, including the complete Nutrition Facts panel, is “incorporated by reference” because it is “referenced in and relied on in the [C]omplaint,” in the context of Plaintiff‘s allegations “that the product labels . . . are misleading.” Eshelby v. L‘Oreal USA, Inc., No. 22-CV-1396, 2023 WL 2647958, at *3 n.4 (S.D.N.Y. Mar. 27, 2023); see Randolph v. Mondelez Glob. LLC, No. 21-CV-10858, 2022 WL 953301, at *1 n.1 (S.D.N.Y. Mar. 30, 2022) (“[T]he full labels, provided via a defendant‘s declaration, are cognizable on a motion to dismiss claims under
III. DISCUSSION
A. New York General Business Law Claims
Plaintiff‘s first cause of action arises under
Defendant contends that Plaintiff has not plausibly alleged a material misstatement. “New York courts apply an objective standard in determining whether acts or practices are materially deceptive or misleading: whether the alleged act is likely to mislead a reasonable consumer acting reasonably under the circumstances.” Dwyer v. Allbirds, Inc., 598 F. Supp. 3d 137, 149 (S.D.N.Y. 2022). “To survive a motion to dismiss, a plaintiff must do more than plausibly allege that a label might conceivably be misunderstood by some few consumers.” Id. Instead, “a plaintiff must plausibly allege that a significant portion of the general consuming public or of targeted customers, acting reasonably in the circumstances, could be misled.” Id. “Although the question of whether a business practice or advertisement is misleading to a
Plaintiff‘s claims hinge on allegations that the Product‘s labeling is materially misleading because: (1) the word “Margarita” on the Product‘s label erroneously signals to consumers that they are purchasing a cocktail containing tequila; (2) the word “Hard” in “Hard Seltzer” and pictures of agave plants on the Product‘s front label reinforce a consumer‘s belief that the Product contains tequila; and (3) the brand Topo Chico leads reasonable consumers to expect that the Product contains sparkling mineral water from Monterrey, Mexico, which it does not. (See ECF No. 18 (“P‘s Opp.“) at 3-9.) I find that Plaintiff has failed to plausibly allege that a reasonable consumer would in fact conclude that the representations on the Product‘s label imply that it contains either tequila or sparkling mineral water, such that the label would be misleading.
1. Tequila Claim
Plaintiff maintains that her purchase of the Product was akin to “order[ing] a margarita,” i.e., that she believed the Product was “a cocktail containing tequila,” based on the label‘s use of the term “margarita.” (Compl. ¶ 5.) Plaintiff also contends that the word “hard” on the Product‘s label “refers to distilled spirits, i.e., ‘hard liquor,‘” reinforcing her belief that the Product contained tequila. (Id. ¶ 11.) These arguments reflect a strained reading that is inconsistent with the Product‘s labeling and with common sense.
The Product‘s label does not use the word “Margarita” in a vacuum, and instead states that the Product is a “Margarita Hard Seltzer.” (Id. ¶ 2.) The context provided by the term “Hard Seltzer” is critical and fatal to Plaintiff‘s claim. See Seljak v. Pervine Foods, LLC, No. 21-CV-9561, 2023 WL 2354976, at *13 (S.D.N.Y. Mar. 3, 2023) (“The allegedly deceptive act
Notably, the Product‘s labeling as a “Margarita Hard Seltzer” contrasts sharply with the labels of the BuzzBox and Dulce Vida “[r]eady to drink . . . margarita beverages” identified by
Accordingly, a reasonable consumer viewing the Product‘s label as a whole would understand that they were purchasing a hard seltzer made to taste like a margarita and not a ready-to-drink margarita cocktail. Cf. Werbel v. Pepsico, Inc., No. 09-CV-4456, 2010 WL 2673860, at *3 (N.D. Cal. July 2, 2010) (“As an initial matter, the term ‘Berries’ is not used alone, but always is preceded by the word ‘Crunch,’ to form the term, ‘Crunch Berries’ and ‘[t]here are no representations that the Crunch Berries are derived from real fruit nor are there
This conclusion is underscored by the circumstances of Plaintiff‘s purchase. Had she lived in New York for any length of time, she would know that cocktails containing hard liquor are not and cannot be sold in grocery stores.6 But even assuming that she moved to New York right before buying the Product, she plainly was familiar with a margarita cocktail, and surely knew that nobody sells a margarita for $1.50. (See Compl. ¶ 36.) Further, cursory observation of the other items on sale in the beverage section of the ShopRite supermarket where she purchased the Product would have revealed soft drinks, beer, and hard ciders/lemonades/seltzers, but no hard liquor, cocktails, or wine. See Wysong Corp. v. APN, Inc., 889 F.3d 267, 272 (6th Cir. 2018) (“In sum . . . context matters. Both the relevant market and the products’ labeling are crucial in evaluating plausibility . . . .“) (emphasis in original). Given those circumstances, it is simply not plausible that Plaintiff thought she was buying a product containing tequila. See
At bottom, Plaintiff‘s alleged belief is based on her “selective interpretation of individual words from [the] [P]roduct‘s labeling,” Hairston v. S. Beach Beverage Co., Inc., No. 12-CV-1429, 2012 WL 1893818, at *4 (C.D. Cal. May 18, 2012), and is “plainly inconsistent with the face of the package, and with common sense,” Seljak, 2023 WL 2354976, at *13. But Plaintiff is not “entitled to take a fleeting glimpse at the front of a product label, home in on the one word that confirms h[er] hopes about the product and ignore the other words, and then sue to recover the purchase price when [s]he eventually learns that the product is what the label, read in its entirety, says it is.” Alvarez v. Ashley Furniture Indus., Inc., No. 16-CV-630, 2017 WL 4785970, at *6 (C.D. Cal. Sept. 20, 2017); see Hairston, 2012 WL 1893818, at *4 (rejecting consumer protection claim “based on a single out-of-context phrase found in one component of [the product‘s] label.“).7
And even assuming for the sake of argument that the Product‘s front label created an ambiguity as to whether the Product contained tequila (which it did not), the ingredients panel on the back of the Product‘s packaging - which has no reference to tequila - can cure that ambiguity. See Brown v. Kellogg Sales Co., No. 20-CV-7283, 2022 WL 992627, at *6 (S.D.N.Y. Mar. 31, 2022) (“[A] manufacturer may clarify an ambiguous interpretation of a label based on disclaimers and disclosures on the side or back of product packaging” and “the reasonable consumer would overcome any confusion by referring to the unambiguous ingredient list on the packaging.“). Plaintiff argues that the ingredient list on the back of the Product is “not a defense on the pleadings” because reasonable consumers are not expected to look past misleading representations on the front label. (P‘s Opp. at 8.) That may be so where the front label contains an out-and-out deception, but not where it is merely ambiguous,8 and surely not
In that vein, Plaintiff further argues that because the ingredient list does not specify the type of alcohol the Product contains, her assumption that the Product contained tequila was reasonable. (See P‘s Opp. at 8 (“a consumer would not have known the alcohol did not come from tequila.“).) The Product‘s label contains no reference to “tequila” and - as discussed above - the context provided by the Product‘s front label makes clear that it is a “hard seltzer,” not a ready-to-drink cocktail containing tequila. Accordingly, the ingredient list confirms what the absence of the word “tequila” on the label suggests - that the Product does not contain it. See Winston v. Hershey Co., No. 19-CV-3735, 2020 WL 8025385, at *4 (E.D.N.Y. Oct. 26, 2020) (“[H]ere, there is no . . . misleading word or phrase on the packaging; rather, the ingredient list confirms what the absence of the word ‘chocolate’ on the packaging suggests - that Reese‘s White is not white chocolate.“).9
2. Sparkling Mineral Water Claim
Similarly, Plaintiff‘s claim that the Product‘s use of the Topo Chico brand name would lead reasonable consumers to believe that it contains sparkling mineral water sourced from Monterrey, Mexico is not plausible.
Plaintiff does not claim that the Product‘s label states that it contains sparkling mineral water from Monterrey or from any other source. (See generally Compl.) Instead her belief that the Product contains such water appears to be based solely on her understanding that “[t]he Topo Chico brand is known for its . . . no-frills approach to sparkling mineral water.” (Id. ¶ 52; see id. ¶ 57.) But the Product‘s label makes no claims that it was manufactured in Mexico or is otherwise connected to Mexico in any way, or that it contains sparkling mineral water of any kind. (See ECF No. 17-5 at 3.) Accordingly, it is implausible that a reasonable consumer would view the Topo Chico branding on the Product‘s label and automatically conclude - as Plaintiff apparently did - that the Product contained sparkling water sourced in Monterrey, Mexico. See Hardy v. Ole Mexican Foods, Inc., No. 21-CV-1261, 2022 WL 2906395, at *3 (W.D.N.Y. July 21, 2022) (“No reasonable consumer would view the representations relied upon by Plaintiff and automatically conclude the [product was] manufactured in Mexico when the representations say nothing about the country of origin . . . .“).
In sum, because none of the aspects of the Product‘s label identified by Plaintiff would mislead a reasonable consumer, her claims under
B. Plaintiff‘s Remaining Claims
Plaintiff also advances claims for common law fraud, violation of state consumer fraud laws, breaches of express and implied warranty, violation of the MMWA, and unjust enrichment. These claims are all premised on the assertion that Defendant‘s labeling is materially misleading. Because I have already determined that Plaintiff has not plausibly alleged that the Product‘s labeling would be likely to deceive or mislead a reasonable consumer, these causes of action are dismissed for the same reasons. See Barreto v. Westbrae Nat., Inc., 518 F. Supp. 3d 795, 806
Additionally, these claims fail for the independent reason that they are inadequately pleaded.10
1. Fraud
To state a claim for common law fraud a plaintiff must show that: “(1) the defendant made a material false statement or omission; (2) the defendant intended to defraud the plaintiff; (3) the plaintiff reasonably relied upon the representation or omission; and (4) the plaintiff suffered damage as a result of such reliance.” B & M Linen, Corp. v. Kannegiesser, USA, Corp., 679 F. Supp. 2d 474, 480 (S.D.N.Y. 2010). Fraud claims must be pleaded “with particularity.” Id. at 481 (quoting
Apart from the fact that Plaintiff has not pleaded facts rendering plausible the conclusion that the Defendant made a material false statement or omission, her fraud claim also fails because she pleads no facts giving rise to a strong inference of fraudulent intent. At most, the Complaint contains a lone, conclusory allegation that “Defendant‘s fraudulent intent is evinced by its knowledge that the Product was not consistent with its representations,” (Compl. ¶ 100), which is insufficient as a matter of law, see Dwyer, 598 F. Supp. 3d at 156 (dismissing fraud claim where “[t]he complaint contains only the conclusory allegation that Defendant‘s fraudulent intent is evinced by its knowledge that the Product was not consistent with its composition and qualities, which does not suffice.“); Twohig v. Shop-Rite Supermarkets, Inc., 519 F. Supp. 3d 154, 166 (S.D.N.Y. 2021) (dismissing fraud claim where “[t]he complaint only contains the conclusory allegation that Defendant‘s fraudulent intent is evinced by its failure to accurately identify the Product on the front label and ingredient list, when it knew its statements were neither true nor accurate and misled consumers.“); Campbell v. Whole Foods Mkt. Grp., Inc., 516 F. Supp. 3d 370, 391 (S.D.N.Y. 2021) (dismissing fraud claim where “Plaintiff‘s only allegation about Defendant‘s intent is that Defendant‘s fraudulent intent is evinced by its failure to accurately identify the Products on the front label when it knew this was not true.“).11 Accordingly, Plaintiff‘s fraud claim is dismissed.
2. Express Warranty, Implied Warranty, and Magnuson-Moss Warranty Act
Plaintiff maintains that Defendant breached an express warranty, the implied warranty of merchantability, and the MMWA. An express warranty is an “affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain.”
Plaintiff alleges that Defendant “expressly and impliedly warranted to Plaintiff that [the Product] contained tequila and Topo Chico‘s naturally sparkling mineral water,” (Compl. ¶ 81), based on “representations about the Product” including “the terms ‘Margarita’ and ‘Hard Seltzer’ and pictures of agave plants” and the Product‘s Topo Chico branding, (id. ¶ 84). But she points to no specific representation that the Product contained either of those ingredients. Rather, she relies on inferences she drew - which, as discussed, a reasonable consumer would not draw from the generalized representations on the Product‘s label. See Santiful v. Wegmans Food Mkts., Inc., No. 20-CV-2933, 2022 WL 268955, at *6 (S.D.N.Y. Jan. 28, 2022) (“[G]eneralized statements by the defendant do not support an express warranty claim if they are such that a reasonable consumer would not interpret the statement as a factual claim upon which he or she could rely.“). In any event, an inference by definition is the opposite of an express, specific representation of fact. See Marino v. Coach, Inc., 264 F. Supp. 3d 558, 574 (S.D.N.Y. 2017) (“[A]n inference that the . . . products are of better quality than they actually are is too vague and
A breach of the implied warranty of merchantability occurs when the product at issue is “unfit for the ordinary purposes for which such goods are used,” Santiful, 2023 WL 2457801, at *6 - in this case, unfit to drink. Plaintiff‘s claim for breach of implied warranty of merchantability fails because she did not allege that the Product is not drinkable or otherwise not of merchantable quality. To the extent the Complaint alleges that the Product does not conform to any promise or affirmation of fact made on its label, Plaintiff‘s implied warranty claim fails for the same reasons as her express warranty claim. See Barreto, 518 F. Supp. 3d at 807.
Finally, “since claims under the Magnuson-Moss Act stand or fall with the express and implied warranty claims under state law,” Plaintiff‘s MMWA claim must be dismissed as well. Cali v. Chrysler Grp. LLC, No. 10-CV-7606, 2011 WL 383952, at *4 (S.D.N.Y. Jan. 18, 2011);
3. Unjust Enrichment
To state a claim for unjust enrichment under New York law a plaintiff must show that “(1) the defendant was enriched; (2) at the expense of the plaintiff; and (3) that it would be inequitable to permit the defendant to retain that which is claimed by Plaintiff.” Reynolds v. Lifewatch, Inc., 136 F. Supp. 3d 503, 524 (S.D.N.Y. 2015). “Unjust enrichment is available only in unusual situations when, though the defendant has not breached a contract nor committed a recognized tort, circumstances create an equitable obligation running from the defendant to the plaintiff.” Mahoney v. Endo Health Sols., Inc., No. 15-CV-9841, 2016 WL 3951185, at *11 (S.D.N.Y. July 20, 2016).
Courts will routinely dismiss an unjust enrichment claim that “simply duplicates, or replaces, a conventional contract or tort claim.” Ebin v. Kangadis Food Inc., No. 13-CV-2311, 2013 WL 6504547, at *7 (S.D.N.Y. Dec. 11, 2013). Here, Plaintiff has failed to explain how her unjust enrichment claim is “not merely duplicative of [the] other causes of action.” Id. (dismissing unjust enrichment claim because plaintiffs failed to explain how it was not merely duplicative of negligent misrepresentation, fraud, and breach of warranty claims); see Barreto, 518 F. Supp. 3d at 808-09 (dismissing plaintiff‘s unjust enrichment claim because claim was based on plaintiff‘s consumer deception claims); Alce v. Wise Foods, Inc., No. 17-CV-2402, 2018 WL 1737750, at *12 (S.D.N.Y. Mar. 27, 2018) (dismissing unjust enrichment claim as duplicative of
C. Leave to Amend
Leave to amend a complaint should be freely given “when justice so requires.”
In her Opposition, Plaintiff requested that I either deny Defendant‘s motion or grant her leave to file an Amended Complaint. (P‘s Opp. at 14.) But because “[t]he problem[s] with [Plaintiff‘s] causes of action [are] substantive,” and “better pleading will not cure [them],” Cuoco v. Moritsugu, 222 F.3d 99, 112 (2d Cir. 2000), amendment would be futile, Trombetta v. Novocin, 414 F. Supp. 3d 625, 634 (S.D.N.Y. 2019); see Boswell v. Bimbo Bakeries USA, Inc., 570 F. Supp. 3d 89, 97 (S.D.N.Y. 2021); Roundtree v. N.Y.C., No. 19-CV-2475, 2021 WL 1667193, at *6 (S.D.N.Y. Apr. 28, 2021) (collecting cases).
Moreover, Plaintiff - with the benefit of a pre-motion letter from Defendant, (see ECF No. 7) - already had the opportunity to amend, but declined to do so, while acknowledging that the Court was unlikely to allow amendment later. (See Minute Entry dated Sept. 20, 2022.) Generally, the failure to fix deficiencies in an initial pleading, after being provided notice of those deficiencies, is alone sufficient ground to deny leave to amend. See Nat‘l Credit Union Admin. Bd. v. U.S. Bank Nat‘l Ass‘n, 898 F.3d 243, 257-58 (2d Cir. 2018) (“When a plaintiff was aware of the deficiencies in his complaint when he first amended, he clearly has no right to a second amendment even if the proposed second amended complaint in fact cures the defects of the first. Simply put, a busy district court need not allow itself to be imposed upon by the
Further, Plaintiff has not suggested that she is in possession of facts that would cure the deficiencies identified in this ruling. See TechnoMarine SA v. Giftports, Inc., 758 F.3d 493, 505 (2d Cir. 2014) (plaintiff need not be given leave to amend if plaintiff fails to specify how amendment would cure the pleading deficiencies in the complaint); Gallop v. Cheney, 642 F.3d 364, 369 (2d Cir. 2011) (district court did not err in dismissing claim with prejudice in absence of any indication plaintiff could or would provide additional allegations leading to different result); Olsen v. Sherry Netherland, Inc., No. 20-CV-103, 2022 WL 4592999, at *15 (S.D.N.Y. Sept. 30, 2022) (denying leave to amend where plaintiff did not “explain how any amendment would cure the deficiencies identified by the Court“).
Accordingly, the Court declines to grant Plaintiff leave to amend.
IV. CONCLUSION
For the foregoing reasons, Defendant‘s motion for judgment on the pleadings is GRANTED. The Clerk of Court is respectfully directed to terminate the pending motion, (ECF No. 15), and close the case.
SO ORDERED.
Dated: April 21, 2023
White Plains, New York
CATHY SEIBEL, U.S.D.J.
Notes
In the alternative, Plaintiff argues in her Opposition that breach of warranty notice requirements “‘have long been jettisoned in New York’ for retail sales.” (P‘s Opp. at 11 (quoting Gavilanes v. Gerber Products Co., No. 20-CV-5558, 2021 WL 5052896, at *7 (E.D.N.Y. Nov. 1, 2021)).) “But that appears to be a ‘minority’ view, and in any event it is limited to products for human consumption that cause physical injury. Accordingly, the exception - if it exists at all - would not apply here.” Bassaw v. United Indus. Corp., 482 F. Supp. 3d 80, 86 n.3 (S.D.N.Y. 2020) (emphasis added).
