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Reese v. Odwalla, Inc.

Citations: 30 F. Supp. 3d 935; 2014 WL 1244940Docket: Case No.: 13-CV-947 YGR

Court: District Court, N.D. California; March 25, 2014; Federal District Court

Narrative Opinion Summary

In a class action lawsuit, the plaintiff accused Odwalla, Inc. and The Coca-Cola Company of violating federal and California state laws through the mislabeling of products containing 'Evaporated Cane Juice' (ECJ). The plaintiff alleged that this labeling misled consumers into purchasing illegitimately branded products, contrary to the Federal Food, Drug, and Cosmetic Act (FDCA) and California's Sherman Law. The complaint included claims under California's Unfair Competition Law, False Advertising Law, and the Consumer Legal Remedies Act. The defendants sought dismissal, arguing that federal preemption and inadequate state claims justified such action. The court partially granted the motion to dismiss, citing the primary jurisdiction doctrine, and deferred to the FDA's authority to resolve whether ECJ is an appropriate ingredient name under the FDCA. The FDA had issued non-binding guidance advising against the use of ECJ but had not finalized its position. Consequently, the case was stayed pending the FDA's review, with a compliance hearing set for later in the year. The court also addressed requests for judicial notice, granting some and denying others, while staying preemption issues and not striking allegations at this stage.

Legal Issues Addressed

FDA's Authority on Food Labeling Standards

Application: The court recognized the FDA's regulatory authority over food labeling and the ongoing review of the term 'Evaporated Cane Juice', which is currently unsettled.

Reasoning: The FDA's ongoing review of the ECJ issue indicates that its legal stance is unsettled and actively considered.

Federal Preemption in Food Labeling

Application: The court discussed the possibility of federal preemption, as federal law preempts state requirements that are not identical, but did not decide on this issue due to the stay under the primary jurisdiction doctrine.

Reasoning: The claims hinge on whether the labels are misleading according to federal food labeling laws, as federal law preempts any non-identical state requirements.

Misbranding under California's Sherman Law

Application: The plaintiff's claims under California law for misbranding of products containing 'Evaporated Cane Juice' were not sufficiently stated, leading to partial dismissal.

Reasoning: The court's decision to grant the motion to dismiss stems from the assertion that the complaint does not sufficiently state a claim under the Sherman Law and potentially raises issues of federal preemption.

Primary Jurisdiction Doctrine

Application: The court applied the primary jurisdiction doctrine to defer to the FDA on the issue of whether 'Evaporated Cane Juice' qualifies as the 'common and usual name' for an ingredient under the Federal Food, Drug, and Cosmetic Act (FDCA).

Reasoning: In this case, the court finds that these factors warrant application of the primary jurisdiction doctrine, given the need to ascertain whether ECJ qualifies as the 'common and usual name' for an ingredient or if its use is misleading under the Federal Food, Drug, and Cosmetic Act (FDCA).

Requirements for Ingredient Naming

Application: The court noted that the FDCA requires ingredients to be listed by their common or usual names, and the FDA had issued guidance against using 'Evaporated Cane Juice' as such a name.

Reasoning: Plaintiff contends that ECJ must be labeled according to established standards for 'sugar' or 'cane syrup,' as products with ECJ are misbranded.