Cortina v. Goya Foods, Inc.

• Decision Date: 19 March 2015
• Docket Number: Case No. 14–CV–169–L NLS.
• Citation: 94 F.Supp.3d 1174
• Court: U.S. District Court — Southern District of California
• Parties: Thamar Santisteban CORTINA, et al., on behalf of themselves and all others similarly situated, Plaintiffs, v. GOYA FOODS, INC., Defendant.

94 F.Supp.3d 1174

Thamar Santisteban CORTINA, et al., on behalf of themselves and all others similarly situated, Plaintiffs

v.GOYA FOODS, INC., Defendant.

Case No. 14–CV–169–L NLS.

United States District Court, S.D. California.

Signed March 19, 2015.

Courtland W. Creekmore, Matthew R. Bainer, Scott Edward Cole, Scott Cole & Associates, APC, Oakland, CA, Jack Fitzgerald, IV, The Law Office of Jack Fitzgerald, PC, Trevor Flynn, San Diego, CA, Lionel Z. Glancy, Marc L. Godino, Michael M. Goldberg, Glancy, Binkow & Goldberg, LLP, Vahn Alexander, The Alexander Firm P.C., A Professional Law Corporation, Los Angeles, CA, Amir David Benakote, Behram V. Parekh, Heather M. Baker Dobbs, Michael L. Kelly, Kirtland & Packard LLP, El Segundo, CA, for Plaintiffs.

James Patrick Muehlberger, Shook, Hardy & Bacon, Kansas City, MO, Naoki S. Kaneko, Paul B. La Scala, Shook Hardy and Bacon L.L.P., Irvine, CA, for Defendant.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT'S MOTION TO DISMISS PLAINTIFFS' FIRST AMENDED CONSOLIDATED COMPLAINT [DOC. 31]

M. JAMES LORENZ, District Judge.

This putative class action arises from Plaintiffs' allegations that Defendant manufactured, advertised, and sold mislabeled beverages. Defendant now moves to dismiss all claims in the First Amended Consolidated Complaint (“FACC”) under Federal Rule of Civil Procedure 12(b)(6) and alternatively, to strike two of the three listed beverages from the FACC. Plaintiffs oppose.

For the following reasons, the Court GRANTS IN PART and DENIES IN PART Defendant's motion to dismiss and DENIES Defendant's motion to strike.

I. BACKGROUND

Defendant Goya Foods, Inc. (“Defendant” or “Goya”) allegedly sells beverage products throughout the United States. (FACC ¶ 1, ECF No. 27.) Plaintiffs Thamar Cortina, Andrew Park, and Jilliann Perez (“Plaintiffs”) allege on behalf of themselves and all others similarly situated, that Defendant failed to disclose to the consuming public material facts about the levels of 4–MeI, a potential carcinogen, that its beverages “Malta Goya,” “Goya Sangria,” and “Goya Ginger Beer” allegedly contain. (Id. ¶¶ 1, 4.) Further, Defendant allegedly represents these products as “nutritious” when they contain potentially harmful ingredients. (Id. ¶ 4.)

Plaintiffs allege nine causes of action in the FACC: (1) violation of California Unfair Competition Law (“UCL”) (fraudulent prong); (2) violation of California False Advertising Law (“FAL”); (3) violation of California Consumers Legal Remedies Act (“CLRA”); (4) intentional misrepresentation; (5) negligent misrepresentation; (6) unjust enrichment; (7) breach of express warranty; (8) violation of California's Proposition 65; and (9) violation of California Unfair Competition Law (“UCL”) (unlawful prong).

Defendant now moves to dismiss Plaintiffs' claims for failure to comply with Proposition 65 notice requirements. (Def's Mot. 9, ECF No. 31–1.) Defendant further maintains that because the Proposition 65 claim fails, the UCL, FAL, and CLRA claims also fail. (See id. 10.) Additionally, Defendant argues that Plaintiffs' claims are expressly preempted by federal law, and the primary jurisdiction doctrine bars Plaintiffs' claims. (Id. 12, 15.) Defendant suggests Plaintiffs have failed to meet the pleading requirements of Federal Rule of Civil Procedure 8. (Id. 19.) Defendant further claims Plaintiffs' breach of express warranty claim must be dismissed for failure to allege sufficient facts or comply with statutory notice requirements. (Id. 21.) Lastly, Defendant claims that unjust enrichment is not a standalone cause of action, so Plaintiffs' claim for the same should be dismissed. (Id. 22.) In the alternative, should any claims not be dismissed, Defendant moves to strike Plaintiffs' allegations concerning Goya Sangria and Goya Ginger Beer, for failure to meet the heightened pleading requirement for fraud-based claims. (Id. 23.)

II. LEGAL STANDARD

A. Motion to Dismiss for Failure to State a Claim

The court must dismiss a cause of action for failure to state a claim upon which relief can be granted. Fed.R.Civ.P. 12(b)(6). A motion to dismiss under Rule 12(b)(6) tests the legal sufficiency of the complaint. Navarro v. Block, 250 F.3d 729, 732 (9th Cir.2001). The court must accept all allegations of material fact as true and construe them in light most favorable to the nonmoving party. Cedars–Sinai Med. Ctr. v. Nat'l League of Postmasters of U.S., 497 F.3d 972, 975 (9th Cir.2007). Material allegations, even if doubtful in fact, are assumed to be true. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). However, the court need not “necessarily assume the truth of legal conclusions merely because they are cast in the form of factual allegations.” Warren v. Fox Family Worldwide, Inc., 328 F.3d 1136, 1139 (9th Cir.2003) (internal quotation marks omitted). In fact, the court does not need to accept any legal conclusions as true. Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009).

“While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiff's obligation to provide the ‘grounds' of his ‘entitlement to relief’ requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955 (internal citations omitted). Instead, the allegations in the complaint “must be enough to raise a right to relief above the speculative level.” Id. Thus, “[t]o 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.’ ” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (citing Twombly, 550 U.S. at 570, 127 S.Ct. 1955 ). “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. “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. A complaint may be dismissed as a matter of law either for lack of a cognizable legal theory or for insufficient facts under a cognizable theory. Robertson v. Dean Witter Reynolds, Inc., 749 F.2d 530, 534 (9th Cir.1984).

Generally, courts may not consider material outside the complaint when ruling on a motion to dismiss. Hal Roach Studios, Inc. v. Richard Feiner & Co., 896 F.2d 1542, 1555 n. 19 (9th Cir.1990). However, documents specifically identified in the complaint whose authenticity is not questioned by parties may also be considered. Fecht v. Price Co., 70 F.3d 1078, 1080 n. 1 (9th Cir.1995) (superceded by statutes on other grounds). Moreover, the court may consider the full text of those documents, even when the complaint quotes only selected portions. Id. It may also consider material properly subject to judicial notice without converting the motion into one for summary judgment. Barron v. Reich, 13 F.3d 1370, 1377 (9th Cir.1994).

B. Motion to Strike

Federal Rule of Civil Procedure 12(f) provides that a court “may strike from a pleading any insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” Fed.R.Civ.P. 12(f). Motions to strike are “generally disfavored because they are often used as delaying tactics and because of the limited importance of pleadings in federal practice.” Rosales v. Citibank, 133 F.Supp.2d 1177, 1180 (N.D.Cal.2001). A federal court will not exercise its discretion under Rule 12(f) to strike a pleading unless the matters sought to be omitted have no possible relationship to the controversy, may confuse the issues, or otherwise prejudice a party. Ollier v. Sweetwater Union High Sch. Dist., 735 F.Supp.2d 1222, 1223 (S.D.Cal.2010). “Motions to strike generally will not be granted unless it is clear that the matter to be stricken could not have any possible bearing on the subject matter of the litigation.” In re Facebook PPC Adver. Litig., 709 F.Supp.2d 762, 773 (N.D.Cal.2010). A court should not strike allegations supplying background or historical material unless it is unduly prejudicial to the opponent. See LeDuc v. Ky. Cent. Life Ins. Co., 814 F.Supp. 820, 830 (N.D.Cal.1992). When considering a motion to strike, the court “must view the pleadings in a light most favorable to the pleading party.” In re 2TheMart.com, Inc., 114 F.Supp.2d 955, 965 (C.D.Cal.2000). Finally, Rule 12(f) “does not authorize a district court to strike a claim for damages on the ground that such damages are precluded as a matter of law.” Whittlestone, Inc. v. Handi–Craft Co., 618 F.3d 970, 971 (9th Cir.2010).

As noted above, a court may strike a pleading that is: (1) redundant, (2) immaterial, (3) impertinent, or (4) scandalous. Fed.R.Civ.P. 12(f). An “immaterial” matter has no essential or important relationship to the claim for relief or defenses pleaded. Cal. Dept. of Toxic Substances Control v. Alco Pac., Inc., 217 F.Supp.2d 1028, 1032 (C.D.Cal.2002) (internal citations and quotations omitted). An “impertinent” allegation is neither necessary nor relevant to the issues involved in the action. Fantasy, Inc. v. Fogerty, 984 F.2d 1524, 1527 (1993) (rev'd on other grounds). A scandalous pleading is one that “improperly casts a derogatory light on someone, most typically on a party to the action.” Aoki v. Benihana, Inc., 839 F.Supp.2d 759, 764 (D.Del.2012).

III. DISCUSSION

A. Defendant's Request for Judicial Notice.

Defendant seeks judicial notice of twelve documents. (Def.'s RJN, ECF No. 8–2.) Plaintiffs do not oppose. The Court may take notice of facts that are “not subject to reasonable dispute in that [they are] ... capable of accurate and ready determination by resort to sources whose accuracy cannot be reasonably questioned.”

Fed.R.Evid. 201(b)(2). Because the documents are either matters of public record or their accuracy is not subject to reasonable dispute,...