In re Santa Fe Natural Tobacco Co. Mktg. & Sales Practices & Prods. Liab. Litig.

• Decision Date: 21 December 2017
• Docket Number: No. MD 16–2695 JB/LF,MD 16–2695 JB/LF
• Citation: 288 F.Supp.3d 1087
• Parties: IN RE: SANTA FE NATURAL TOBACCO COMPANY MARKETING & SALES PRACTICES AND PRODUCTS LIABILITY LITIGATION
• Court: U.S. District Court — District of New Mexico

288 F.Supp.3d 1087

IN RE: SANTA FE NATURAL TOBACCO COMPANY MARKETING & SALES PRACTICES AND PRODUCTS LIABILITY LITIGATION

No. MD 16–2695 JB/LF

United States District Court, D. New Mexico.

Filed December 21, 2017

[288 F.Supp.3d 1124]

Counsel: Scott P. Schlesinger, Jonathan Gdanski, Schlesinger Law Offices, P.A., Fort Lauderdale, Florida, Attorneys for Plaintiffs Justin Sproule, Steve Okstad, Michael Anderson, Brooke Balocca, Elijah Bent, Charlene Blevins, Sam Bowman, Matokie Brim, Terry Cliver, Christos Christolow, George Coon, Gary Cruse, Margie Harris, Charles Honse, Clinton Horton, Collin Jass, Christopher Jensen, Shereen Keith, Kelly Keiser, Asher King, Marilyn Komarinski, Jodi Kumpula, Tom Kurtz, Richard Kusick, Mike Lair, Tracy Lee, Kathleen Lelli, Robert Litwin, Linda MacDonald–Lewis, Rudolph Miller, Richard Morelock, Deborah Orrtim Paulson, Richard Peavy, Concetta Schultz, Judy

[288 F.Supp.3d 1125]

Sell, Harrison Thomas, Dani Weir, Tom Weir, Kyle Wiebe, and Vicki Wilson

Jeffrey Louis Haberman, Schlesinger Law Offices, P.A., Fort Lauderdale, Florida, Attorney for Plaintiffs Justin Sproule, Patrick Scott, Victoria Cuebas, Steve Okstad, Michael Anderson, Brooke Balocca, Elijah Bent, Charlene Blevins, Sam Bowman, Matokie Brim, Terry Cliver, Christos Christolow, George Coon, Gary Cruse, Margie Harris, Charles Honse, Clinton Horton, Collin Jass, Christopher Jensen, Shereen Keith, Kelly Keiser, Asher King, Marilyn Komarinski, Jodi Kumpula, Tom Kurtz, Richard Kusick, Mike Lair, Tracy Lee, Kathleen Lelli, Robert Litwin, Linda MacDonald–Lewis, Rudolph Miller, Richard Morelock, Deborah Orrtim Paulson, Richard Peavy, Concetta Schultz, Judy Sell, Harrison Thomas, Dani Weir, Tom Weir, Kyle Wiebe, and Vicki Wilson

Randi McGinn, McGinn, Carpenter, Montoya & Love, PA, Albuquerque, New Mexico, Attorney for Plaintiffs Anthony Dunn, Ceyhan Haskal, Michael Robinson, Harry Vartanyan, Michael Yang, Doug Pyle, Nick Vadis, Theodore Rothman, Patrick Scott, Russell Brattain, Shannon White, C.M. LeCompte, Danae Grandison, Michael Laboon, Dave Moyer Victoria Cuebas, Ashley Waldo, Steve Okstad, Michael Anderson, Brooke Balocca, Elijah Bent, Sam Bowman, Makotie Brim, Terry Cliver, Christolow, George Coon, Gary Cruse, Margie Harris, Charles Honse, Clinton Hornton, Colin Jass, Christopher Jensen, Shereen Keith, Kelly Keiser, Asher King, Marilyn Komarinski, Jodi Kumpula, Tom Kurtz, Richard Kusick, Mike Lair, Tracy Lee, Kathleen Lelli, Robert Litwin, Linda MacDonald–Lewis, Richard Morelock, Deborah Orrtim Paulson, Richard Peavy, Concetta Schultz, Judy Sell, Harrison Thomas, Dani Weir, Tom Weir, Kyle Wiebe, Vicki Wilson, Timothy Ruggiero, Desire Gudmundson, Jacques–Rene Herbert, Sara Benson, Justin Sproule, Rudolph Miller, Carol Murphy, Francisco Chavez, Joshua Horne, Albert Lopez, Abigail Emmons, Charlene Blevins, Scott Johnston, Jason Cole, and Rachel King

Kathleen J. Love, McGinn, Carpenter, Montoya & Love, PA, Albuquerque, New Mexico, Attorney for Plaintiffs Anthony Dunn, Ceyhan Haskal, Michael Robinson, Harry Vartanyan, Michael Yang, Doug Pyle, Nick Vadis, Theodore Rothman, Patrick Scott, Russell Brattain, Shannon White, C.M. LeCompte, Danae Grandison, Michael Laboon, Dave Moyer Victoria Cuebas, Ashley Waldo, Steve Okstad, Michael Anderson, Brooke Balocca, Elijah Bent, Sam Bowman, Makotie Brim, Terry Cliver, Christolow, George Coon, Gary Cruse, Margie Harris, Charles Honse, Clinton Hornton, Colin Jass, Christopher Jensen, Shereen Keith, Kelly Keiser, Asher King, Marilyn Komarinski, Jodi Kumpula, Tom Kurtz, Richard Kusick, Mike Lair, Tracy Lee, Kathleen Lelli, Robert Litwin, Linda MacDonald–Lewis, Richard Morelock, Deborah Orrtim Paulson, Richard Peavy, Concetta Schultz, Judy Sell, Harrison Thomas, Dani Weir, Tom Weir, Kyle Wiebe, Vicki Wilson, Timothy Ruggiero, Desire Gudmundson, Jacques–Rene Herbert, Sara Benson, Justin Sproule, Rudolph Miller, Carol Murphy, Francisco Chavez, Joshua Horne, Albert Lopez, Abigail Emmons, and Charlene Blevins.

Charles J. LaDuca, Cuneo Gilbert & LaDuca, LLP, Washington, DC and Melissa Wolchansky, Charles D. Moore, Halunen Law, Minneapolis, Minnesota and Michael Robert Reese, Reese LLP, New York, New York and Nicholas Koluncich, Law Offices of Nicholas Koluncich LLC, Albuquerque, New Mexico, Attorneys for Plaintiff Anthony Dunn

John C. Bienvenu, Bienvenu Law Office, Santa Fe, New Mexico and Mark H. Donatelli, Reed C. Bienvenu, Rothstein Donatelli

[288 F.Supp.3d 1126]

LLP, Santa Fe, New Mexico and Ronald Marron, Law Offices of Ronald A. Marron, San Diego, California, Attorneys for Plaintiffs Ceyhan Haskal, Michael Robinson, Harry Vartanyan, Michael Yang, Doug Pyle, and Nick Vadis

Caleb Marker, Zimmerman Reed, Manhattan Beach, California and Nancy Ruth Long, Long Komer & Associates, P.A., Santa Fe, New Mexico, Attorneys for Plaintiffs Theodore Rothman and C.M. LeCompte

Douglas Gregory Blankinship, Finkelstein Blankinship, Frei–Pearson & Garber, LLP, White Plains, New York, Attorney for Theodore Rothman

Kim Eleazer Richman, Richman Law Group, Brooklyn, New York, Attorney for Theodore Rothman, Danae Grandison, Michael Laboon, and Dave Moyer

Benjamin Michael Lopatin, Eggnatz, Lopatin, & Pascucci, LLP, San Francisco, California, Attorney for Plaintiff Russell Brattain

Daniel L. Warshaw, Alexander R. Safyan, Pearson, Simon & Warshaw, LLP, Sherman Oaks, California and Erika E. Anderson, Law Offices of Erika E. Anderson, Albuquerque, New Mexico, Attorneys for Plaintiff Shannon White

Gretchen Mary Elsner, Elsner Law & Policy, LLC, Santa Fe, New Mexico, Attorney for Plaintiffs Danae Grandison, Michael Laboon, and Dave Moyer

John Allen Yanchunis, Sr., Scott W. Weinstein, Keith R. Mitnik, Marisa Kendra Glassman, Morgan & Morgan, PA, Fort Myers, Florida, Orlando, Florida, Tampa, Florida, Attorneys for Plaintiff Ashley Waldo

Steven William Teppler, Abbott Law Group, P.A., Jacksonville, Florida, Attorney for Plaintiff Timothy Ruggiero

John Russell Bart Pate, J.R. Pate, PC Law Office, St. Thomas, Virgin Islands, Attorney for Plaintiff Desire Gudmundson

Matthew David Schultz, Levin Papantonio Thomas P.A., Pensacola, Florida, Attorney for Plaintiff Scott Johnston

Joel R. Rhine, Rhine Law Firm, P.C., Wilmington, North Carolina, Attorney for Jason Cole and Rachael King

Chad C. Messier, Dudley Topper & Feuerzeig, St. Thomas, United States Virgin Islands and Andrew G. Schultz, Rodey Dickason Sloan Akin & Robb, P.A., Albuquerque, New Mexico, and Peter J. Biersteker, David B. Alden, David M. Monde, Paul Courtney Huck, Jr., Sharyl Reisman, Mark R. Seiden, Charles R. A. Morse, David Craig Kiernan, Michael Fraser Stoer, Jennifer Bunting–Graden, William D. Coglianese, Jon Gregory Heintz, Jordan Von Bokern, Joseph R. Coburn, Noel J. Francisco, Troy A. Fuhrman, Jones Day, San Francisco, California, Washington, DC, Atlanta, Georgia, Miami, Florida, Tampa Florida, New York, New York, Cleveland, Ohio, Attorneys for the Defendants

MEMORANDUM OPINION AND ORDER

James O. Browning, UNITED STATES DISTRICT JUDGE

THIS MATTER comes before the Court on: (i) the Defendants' Request for Judicial Notice in Support of Motion to Dismiss, filed November 18, 2016 (Doc. 71)("First JN Motion"); (ii) Defendants' Second Motion for Judicial Notice in Support of the Motion to Dismiss the Consolidated Amended Complaint, filed February 23, 2017 (Doc. 91)("Second JN Motion"); (iii) Defendants' Third Motion for Judicial Notice in Support of the Motion to Dismiss the Consolidated Amended Complaint, filed May 30, 2017 (Doc. 109)("Third JN

[288 F.Supp.3d 1127]

Motion"); and (iv) the Defendants' Motion to Dismiss the Consolidated Amended Complaint and Incorporated Memorandum of Law, filed February 23, 2017 (Doc. 90)("MTD"). The Court held hearings on June 16, 2017 and July 20, 2017. The primary issues are: (i) whether the Court may consider the items presented in the First JN Motion, the Second JN Motion, and the Third JN Motion without converting the MTD into one for summary judgment; (ii) whether the Court may exercise personal jurisdiction over Reynolds American, Inc. for claims that were not brought in a North Carolina forum; (iii) whether the Federal Trade Commission's Decision and Order, In re Santa Fe Nat. Tobacco Co., No. C–3952, 2000 WL 783979 (FTC June 12, 2000), filed November 18, 2016 (Doc. 71)("Consent Order"), requiring Defendant Santa Fe Natural Tobacco Company, Inc. to use a disclosure that "No additives in our tobacco does NOT mean a safer cigarette" impliedly preempts the Plaintiffs'¹ claims to the extent that the Defendants' advertising misled the Plaintiffs into believing that Natural American cigarettes are safer or healthier than other cigarettes; (iv) whether "natural," "additive-free," and "substantially similar terms" mislead a consumer into believing: (a) that Natural American cigarettes are safer or healthier than other cigarettes, (b) that Natural American's menthol cigarettes do not include any additives; or (c) that Natural American cigarettes undergo fewer engineering processes than other cigarettes; (v) whether the Defendants' use of those descriptors is protected commercial speech under the First Amendment to the Constitution of the United States of America; (vi) whether state law safe harbors shield the Defendants from liability; (vii) whether the Plaintiffs' unjust-enrichment claims fail, because: (a) the descriptors did not deceive consumers, so there is no injustice for equity to correct; (b) the Plaintiffs have an adequate legal remedy under the various state consumer statutes; or (c) state specific law otherwise bars them; (viii) whether the Plaintiffs' breach-of-express-warranty claims are barred, because: (a) the FDA-mandated disclosure and the menthol ingredient modify the warranty such that there is no breach; (b) the Plaintiffs' Consolidated Complaint, filed January 12, 2017 (Doc. 82)("Amended Complaint") does not serve as the requisite pre-litigation notice under California, Florida, Illinois, New Mexico, New York, and North Carolina law; and (...