Backus v. Biscomerica Corp.
Backus v. Biscomerica Corp.
Opinion of the Court
Plaintiff Troy Backus brought this putative class action against Defendant Biscomerica Corporation, claiming that it violated California's Unfair Competition Law ("UCL") by selling packaged cookies that contained partially hydrogenated oil ("PHO"). See First Amended Complaint ("FAC"), Dkt. No. 35. The Court dismissed Backus's original complaint on preemption grounds. See Dkt. No. 32. Backus's amended complaint contains essentially the same allegations, except for alleging a narrower time period. And once again, Backus's claims crumble. Because the Court finds that Backus cannot plead a plausible UCL claim, the Court GRANTS Biscomerica's motion to dismiss without leave to amend.
I. BACKGROUND
A. Plaintiff's Allegations
Biscomerica "manufactures, distributes, and sells a variety of packaged cookies" that contain partially hydrogenated oil. FAC ¶ 4. PHO is an artificial trans fat, a "toxic carcinogen for which there are many safe and commercially viable substitutes." Id. ¶¶ 5-6. Trans fat "causes cardiovascular heart disease, diabetes, cancer, organ damage, and Alzheimer's disease, and accelerates memory damage and cognitive decline." Id. ¶ 17.
Backus "repeatedly purchased and consumed" Biscomerica cookies containing PHO for "personal and household consumption." Id. ¶ 9, 12. Until late 2015, he bought these cookies "approximately once a month from various California stores." Id. ¶¶ 66-67. Backus was injured because he "lost money ... because he purchased products that were detrimental to his health and were unfairly offered for sale in violation of federal and California law" and because he "suffered physical injury when he repeatedly consumed" the cookies. Id. ¶¶ 88-89. He was "unaware" that the cookies were "dangerous" because he "is a busy person and cannot reasonably inspect every ingredient of every food that he purchases for himself and others." Id. ¶ 92.
B. Regulatory and Legislative Background
The Federal Food, Drug, and Cosmetic Act ("FDCA") prohibits, among other things, the "introduction or delivery for introduction into interstate commerce of any food ... that is adulterated."
On November 8, 2013, the federal Food and Drug Administration ("FDA") "tentatively determined that there is no longer a consensus among qualified scientific experts that PHOs ... are safe for human consumption." Tentative Determination Regarding Partially Hydrogenated Oils ("Tentative Determination"),
On June 17, 2015, the FDA confirmed its Tentative Determination, finding that "there is no longer a consensus among qualified experts that partially hydrogenated oils ... are generally recognized as safe (GRAS) for any use in human food." See Final Determination Regarding Partially Hydrogenated Oils ("Final Determination"),
The President then signed the Consolidated Appropriations Act into law on December 18, 2015, which-consistent with the FDA's Final Determination-stated that PHO would not be considered unsafe or adulterated under federal law until the June 18, 2018 compliance date. Consolidated Appropriations Act, 2016, Pub. L. No. 114-113, § 754,
C. Prior Proceedings Before This Court
Backus brought his initial complaint in this Court on July 12, 2016, asserting causes of action under state law, including: (1) California's UCL; (2) nuisance; and (3) the implied warranty of merchantability. See Complaint, Dkt. No. 1 ¶¶ 107-141. He asserted his claims on behalf of himself and a nationwide class of people who had purchased Biscomerica cookies on or after January 1, 2008. See id. ¶ 97.
On March 27, 2017, the Court granted Biscomerica's motion to dismiss. See Dkt. No. 32. First, the Court held that Backus's claim that the use of PHO was unlawful under the UCL failed because his interpretation of California's Sherman Food, Drug, and Cosmetic Law ("Sherman Law") was preempted by Section 754. See id. at 4-6. Second, the Court held that use of PHO was not unfair under the UCL because it was similarly preempted. See id. at 6. Finally, the Court rejected Backus's nuisance and implied warranty of merchantability claims. See id. at 6-8. The Court granted Backus leave to amend his complaint but noted that his "entire theory as to each cause of action currently pled is deficient as a matter of law." Id. at 9.
D. Plaintiff's Amended Complaint
Backus filed an amended complaint on April 17, 2017, asserting two UCL-based causes of action. First, Backus claimed that Biscomerica's use of PHO was unlawful under the UCL because the products were adulterated, thus violating the FDCA and the Sherman Law. See id. ¶¶ 77-84, 107-20. Second, Backus claimed that Biscomerica's *853use of PHO was unfair under the UCL. See id. ¶¶ 71-76, 121-27. He purported to bring his claim on behalf of himself and a nationwide class of people who had purchased Biscomerica cookies containing partially hydrogenated oil between January 1, 2008 and June 16, 2015. See id. ¶ 97.
Biscomerica filed a motion to dismiss the amended complaint on May 5, 2017. See Dkt. No. 38 ("Mot."). Backus opposed on May 19, see Dkt. No. 40 ("Opp."), and Biscomerica replied on June 1, see Dkt. No. 41 ("Reply").
E. The Stay and Ninth Circuit Proceedings
On June 22, 2017, the Court stayed the action, over Biscomerica's opposition, until two cases asserting similar claims were resolved by the Ninth Circuit. See Dkt. No. 45. In the first of those cases, Hawkins v. AdvancePierre Foods, Inc. , the Ninth Circuit assumed, without deciding, that the plaintiff's PHO claims were not preempted by federal law, but the court held that the plaintiff had nonetheless failed to state a claim for violation of the UCL or for breach of the implied warranty of merchantability. See
II. LEGAL STANDARD
Federal Rule of Civil Procedure 8(a) requires that a complaint contain "a short and plain statement of the claim showing that the pleader is entitled to relief[.]" A defendant may move to dismiss a complaint for failing to state a claim upon which relief can be granted under Federal Rule of Civil Procedure 12(b)(6). "Dismissal under Rule 12(b)(6) is appropriate only where the complaint lacks a cognizable legal theory or sufficient facts to support a cognizable legal theory." Mendiondo v. Centinela Hosp. Med. Ctr. ,
In reviewing the plausibility of a complaint, courts "accept factual allegations in the complaint as true and construe the pleadings in the light most favorable to the nonmoving party." Manzarek v. St. Paul Fire & Marine Ins. Co. ,
If dismissal is appropriate under Rule 12(b)(6), a court "should grant leave to amend even if no request to amend the pleading was made, unless it determines that the pleading could not possibly be cured by the allegation of other facts." Lopez v. Smith ,
III. DISCUSSION
Backus asserts that because he purports to represent a class of consumers who *854purchased cookies containing PHO prior to the FDA's Final Determination, "neither the FDA's regulation nor the Appropriations Act can have any preemptive effect on Plaintiff's claims." See Opp. at 1. But Backus's new theory is just as unappetizing as his original theory, because federal law is clear that there was nothing unlawful or unfair about selling cookies containing PHO during the narrowed class period he pled in his amended complaint.
California's UCL prohibits any "unlawful, unfair or fraudulent business act or practice."
A. Unlawful Business Practices
Backus alleges that Biscomerica's use of PHO in its cookies was unlawful under both federal and state law. The Court disagrees.
i. The Use of PHO Was Not Unlawful Under Federal Law
First, Backus contends that PHO was not generally regarded as safe prior to the FDA's Final Determination and thus Biscomerica's use of PHO "rendered its products adulterated" under the FDCA. See FAC ¶ 77; Opp. at 1-3. But Congress was clear that use of PHO was not prohibited until 2018:
No partially hydrogenated oils as defined in the order published by the Food and Drug Administration in the Federal Register on June 17, 2015 (80 Fed. Reg. 34650 et seq.) shall be deemed unsafe within the meaning of section 409(a) and no food that is introduced or delivered for introduction into interstate commerce that bears or contains a partially hydrogenated oil shall be deemed adulterated under sections 402(a)(1) or 402(a)(2)(C)(i) by virtue of bearing or containing a partially hydrogenated oil until the compliance date as specified in such order (June 18, 2018).
§ 754, 129 Stat. at 2284. Recognizing that Section 754 was the basis on which the Court dismissed his original complaint, Backus amended his complaint to "no longer seek[ ] relief for consumers who purchased [Biscomerica's] trans fat cookies after June 16, 2015, before the FDA enacted the compliance period." Opp. at 1. Backus's claim rests on his assertion that neither Section 754 nor the Final Determination have retroactive effect. Opp. at 4-6.
To be sure, there "is a presumption in American law against retroactive legislation." Mtoched v. Lynch ,
Even if Section 754 was not retroactive, two years before it was enacted the FDA recognized that PHOs "have a long history of use as food ingredients" dating back to the 1930s. Tentative Determination,
Because PHO was permitted prior to the 2018 compliance date and the FDA recognized that it was generally regarded as safe, Backus has not pled a plausible claim that Biscomerica violated federal law by selling cookies containing PHO prior to June 17, 2015. Cf. Backus v. Conagra Foods, Inc. , No. C 16-00454 WHA,
ii. The Use of PHO Could Not Have Been Unlawful Under State Law
Second, Backus asserts that Biscomerica's use of PHO during the class period was unlawful under California's Sherman Law. See FAC ¶ 113-15. Once again, the Court finds that "to interpret the Sherman Law's broad prohibition of 'adulterated' food as covering PHO would effectively negate Congress' decision to set the compliance date in June 2018." See Dkt. No. 32 at 5.
The Sherman Law does not specifically prohibit the use of PHO nor completely ban the use of trans fats. Rather, the Sherman Law largely tracks federal law, prohibiting the sale or advertisement of "adulterated" food and food additives. See, *856e.g. ,
As discussed above, the use of PHO in food products was not prohibited by federal law during the class period. Thus, Biscomerica could not have violated
Backus also argues that PHO is a "poisonous and deleterious substance," thus rendering food containing PHO "adulterated" under California law independent of federal law. See Opp. at 3-4. But the Sherman Law could not independently prohibit the use of PHO, because federal law would preempt such a conclusion. In 2013 (during the amended complaint's class period), the FDA noted that there was a changing scientific consensus on the safety of PHOs, which had been generally regarded as safe and used in food products for decades. See Tentative Determination,
B. Unfair Business Practices
Backus also claims that Biscomerica's use of PHO was unfair under the UCL. See FAC ¶¶ 71-76, 121-27. Just as before, this cause of action fails because it is preempted by the FDCA. The FDA recognized that PHO was historically generally recognized as safe and Congress established a compliance date, before which time companies could still use PHO in their products. Backus cannot sidestep these decisions by the federal government by "relabel[ing] the nature of the action as one brought under the unfair competition statute." Cel-Tech ,
IV. CONCLUSION
Backus's allegations in his amended complaint-which, other than the end date of the class period are the same as those in his original complaint-are deficient as a matter of law. Because the Court has already granted Backus leave to amend once before, and any further amendment would *857be futile, the Court GRANTS the motion to dismiss without leave to amend. The Clerk is directed to close the case and enter judgment in favor of Defendant.
IT IS SO ORDERED.
The Court finds that this matter is appropriate for disposition without oral argument. See Civ. L.R. 7-1(b).
Reference
- Full Case Name
- Troy BACKUS v. BISCOMERICA CORPORATION
- Cited By
- 2 cases
- Status
- Published