Syngenta Seeds, Inc. v. Bunge North America, Inc.
Syngenta Seeds, Inc. v. Bunge North America, Inc.
Opinion of the Court
MEMORANDUM OPINION AND ORDER REGARDING DEFENDANT’S MOTIONS TO DISMISS AND FOR SUMMARY JUDGMENT AND PLAINTIFF’S MOTION TO SUPPLEMENT SUMMARY JUDGMENT RECORD
TABLE OF CONTENTS
I. INTRODUCTION........................................................829
II. LEGAL ANALYSIS......................................................830
A. The Motion For Judgment On The Pleadings ..........................830
1. Applicable standards.............................................830
2. Application of the standards......................................831
a. The USWA claim.............................................831
b. The Iowa warehousing claims.................................831
c. The declaratory judgment claim...............................832
d. The third-party beneñciary contract claim.....................832
3. Summary .......................................................832
B. The Motion For Summary Judgment And The Motion To
Supplement The Summary Judgment Record.........................832
1. Applicable standards.............................................833
2. Application of the standards......................................833
a. The “commercial competition” requirement....................833
b. The “commercial speech” requirement.........................835
3. Summary .......................................................839
III. CONCLUSION..........................................................839
I. INTRODUCTION
This is an action by plaintiff Syngenta Seeds, Inc., the producer of seed for corn with the VipteraTM genetic trait,
II. LEGAL ANALYSIS
A. The Motion For Judgment On The Pleadings
In its first dispositive motion, Bunge asserts that it is entitled to judgment on the pleadings on the four claims at issue as a matter of law for essentially the reasons that I concluded that Syngenta had no likelihood of success on the merits on those claims when I rejected Syngenta’s request for a preliminary injunction. Indeed, most of Syngenta’s Resistance (docket no. 50) is a reassertion of arguments that I rejected in my ruling denying a preliminary injunction. In its Reply (docket no. 54), Bunge points out what it believes are the failings of Syngenta’s few “new” arguments.
1. Applicable standards
“As a general rule, a Rule 12(c) motion for judgment on the pleadings is reviewed under the same standard as a 12(b)(6) motion to dismiss.” Ginsburg v. InBev NV/SA, 623 F.3d 1229, 1233 n. 3 (8th Cir. 2010); accord Gallagher v. City of Clayton, 699 F.3d 1013, 1016 (8th Cir. 2012). Thus,
“To survive a motion to dismiss [or a motion for judgment on the pleadings], 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, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). “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 mis*831 conduct alleged.” Id. While this court must “accept as true all facts pleaded by the non-moving party and grant all reasonable inferences from the pleadings in favor of the non-moving party,” United States v. Any & All Radio Station Transmission Equip., 207 F.3d 458, 462 (8th Cir. 2000), “[a] pleading that offers ‘labels and conclusions’ or ‘a formulaic recitation of the elements of a cause of action will not do.’ ” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (quoting Twombly, 550 U.S. at 555, 127 S.Ct. 1955).
Gallagher, 699 F.3d at 1016. Furthermore, dismissal under Rule 12(b)(6) — and, hence, judgment pursuant to Rule 12(c) — is appropriate when a claim or action is fatally flawed in its legal premises. See Stringer v. St. James R-1 Sch. Dist., 446 F.3d 799, 802 (8th Cir. 2006) (citing Young v. City of St. Charles, 244 F.3d 623, 627 (8th Cir. 2001)).
2. Application of the standards a. The USWA claim
As to Syngenta’s USWA claim in Count II, nothing in Syngenta’s reiterated arguments convinces me that I was wrong in holding that the USWA does not create a private right of action in Syngenta’s favor. See Syngenta, 820 F.Supp.2d at 972-81. Syngenta’s new argument on this issue is even more convoluted, relies on even more strained readings of amendments to the statutes at issue, lacks any support in case law or legislative history, involves insupportable inferential leaps concerning the purpose of amendments to the related regulations, and still runs afoul of the principle that regulations cannot create a private right of action that Congress did not create. See, e.g., Freeman v. Fahey, 374 F.3d 663, 665 n. 2 (8th Cir. 2004). Thus, this claim is fatally flawed in its legal premise, and Bunge is entitled to judgment on the pleadings on the USWA claim in Count II, Cf. Stringer, 446 F.3d at 802.
b. The Iowa warehousing claims
The comparable claim in Count III of violation of Iowa warehouse laws, both statutory and common law, is more problematic. In denying Syngenta’s motion for a preliminary injunction, I concluded that there was no likelihood of success on the merits on this claim, because Bunge presented evidence that all of its warehouses are licensed under the USWA, and state law claims are preempted by the USWA. Syngenta, 820 F.Supp.2d at 982. In its Motion For Judgment On The Pleadings, Bunge asserts that this claim fails as a matter of law, because I so held, and because Bunge’s Licensing Agreement with the Farm Services Agency, USDA, Preliminary Injunction Ex. 2, notes that it applies to all licensed locations in the United States. Bunge asserts that I can consider the Licensing Agreement as part of the pleadings, because Count IX relies upon it. Syngenta counters that it cannot fairly be determined on the pleadings that all of Bunge’s grain facilities are federally-licensed, where Bunge relies on the Licensing Agreement, which does not show that any particular facility (let alone each of them) is federally-licensed.
As I noted in the ruling on Syngenta’s motion for preliminary injunction, any findings that I made in that ruling were “provisional” and “not binding” in subsequent proceedings. Syngenta, 820 F.Supp.2d at 957. Furthermore, as in Ginsburg, the parties have not addressed the effect of the judgment on the pleadings standard, which ordinarily looks at factual pleadings, not matters outside of the pleadings, when a Rule 12(c) motion is timely made after the denial of a plaintiffs motion for a preliminary injunction that generated a substantial record outside of the pleadings. 623 F.3d at 1233 n. 3. Nothing in the pleadings establishes that
c. The declaratory judgment claim
Similarly, it follows from my disposition of the USWA and Iowa warehousing claims that Bunge is entitled to judgment on the pleadings only as to the part of Count IV seeking declaratory judgment of a violation of the USWA. Bunge is not entitled to judgment on the pleadings as to the part of that claim seeking declaratory judgment of a violation of Iowa warehousing laws.
d. The third-party beneñciary contract claim
The last claim on which Bunge seeks judgment on the pleadings is Count IX, which alleges breach of contract as a third-party beneficiary of Bunge’s Licensing Agreement for Grain and Rice Warehouse Operators with the USDA Farm Service Agency (FSA). Despite Syngenta’s renewed attempts to convince me otherwise, I reiterate that I find nothing in the Agreement that directly states or even indirectly hints at an intent to benefit or to allow enforcement by third-party entities such as Syngenta, that is, producers of seeds used by others to grow agricultural products that might ultimately be stored in a licensed warehouse. See Syngenta, 820 F.Supp.2d at 983-84 (citing, inter alia, Astra USA, Inc. v. Santa Clara County, Cal., - U.S. -, -, 131 S.Ct. 1342, 179 L.Ed.2d 457 (2011)). Syngenta’s attempts to evade the authority and reasoning on which I relied are unavailing. Bunge is entitled to judgment on the pleadings on the claim in Count IX,
3. Summary
In summary, Bunge’s Motion For Judgment On The Pleadings is granted in part and denied in part. It is granted as to Count II; denied as to Count III; granted as to the part of Count IV concerning declaratory judgment of a violation of the USWA, but denied as to the part of Count IV concerning declaratory judgment of a violation of Iowa warehousing laws; and granted as to Count IX,
B. The Motion For Summary Judgment And The Motion To Supplement The Summary Judgment Record
In its second dispositive motion, Bunge seeks summary judgment on Count I, Syngenta’s claim of false advertising and/or promotion in violation of the Lanham Act, 15 U.S.C. § 1125(a). Syngenta filed its Motion For Leave To Supplement Summary Judgment Record (docket no. 98) in relation to this dispositive motion. I will grant Syngenta’s Motion For Leave To Supplement, notwithstanding Bunge’s
1. Applicable standards
As I have explained, in greater or lesser detail, on numerous occasions, summary judgment is only appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show that there is no genuine issue of material fact and that the moving party is entitled to a judgment as a matter of law.” Fed. R. Civ. P. 56(c); see Woods v. DaimlerChrysler Corp., 409 F.3d 984, 990 (8th Cir. 2005) (“Summary judgment is appropriate if viewing the record in the light most favorable to the nonmoving party, there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law.”); see generally Celotex Corp. v. Catrett, 477 U.S. 317, 323-24, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); see also Torgerson v. City of Rochester, 643 F.3d 1031, 1042-43 (8th Cir. 2011) (en banc) (explaining how the facts are viewed and each party’s burden on a motion for summary judgment). Summary judgment is particularly appropriate when only questions of law are involved. See, e.g., Cremona v. R.S. Bacon Veneer Co., 433 F.3d 617, 620 (8th Cir. 2006).
2. Application of the standards
In my ruling on Syngenta’s motion for preliminary injunction, I found that Syngenta had no likelihood of success on its Lanham Act claim, because Syngenta was not in “commercial competition” with Bunge, and because the speech in question, in Bunge’s sign stating its policy of refusing Viptera corn, was not “commercial speech.” Syngenta, 820 F.Supp.2d at 986-87. The parties now contest whether or not there are genuine issues of material fact on these and the other elements of Syngenta’s Lanham Act claim, but I find that these two elements are, once again, dispositive.
a. The “commercial competition” requirement
Syngenta resurrects and embellishes its argument that the Eighth Circuit Court of Appeals does not require that the parties be in “commercial competition” for a § 1125(a) claim to lie, again relying on American Association of Orthodontists v. Yellow Book USA, Inc., 434 F.3d 1100 (8th Cir. 2006), as leaving the question open— or, as Syngenta now argues, impliedly eliminating such a requirement. Again, this argument cannot stand for essentially the reasons that I previously stated:
As Bunge asserts, the Eighth Circuit Court of Appeals apparently overlooked in American Association of Orthodontists its prior conclusion, in Aviation Charter, Inc. v. Aviation Research Group/US, 416 F.3d 864 (8th Cir. 2005), that “[f]or a statement to constitute commercial advertising or promotion, it must be made, inter alia, by a defendant who is in commercial competition with the plaintiff,” and its holding in that prior case that the district court had correctly found that the plaintiffs Lanham Act action failed because the defendant was not in commercial competition with the plaintiff. Aviation Charter, 416 F.3d at 871.
Syngenta, 820 F.Supp.2d at 986. Syngenta cites no intervening en banc decision of the Eighth Circuit Court of Appeals or the Supreme Court that dispenses with the “commercial competition” requirement for its § 1125(a) claim.
Syngenta now argues, in the alternative, that if there is such a “commercial competition” requirement, there are genuine issues of material fact on that requirement
Although the case law from this circuit on the question is not extensive, it is clear that the Eighth Circuit Court of Appeals understands the “commercial competition” requirement of a § 1125(a) claim to involve a much less attenuated competitive relationship between the parties than the one on which Syngenta relies. In Aviation Charter, Inc., the Eighth Circuit Court of Appeals affirmed the district court’s find-
ing that defendant ARGUS was not in “commercial competition” with plaintiff Aviation Charter, 416 F.3d at 871, where “ARGUS publishe[d] and s[old] safety ratings of air charter service providers,” and Aviation Charter operated an air charter service. Id. at 866. Similarly, although Syngenta cites American Association of Orthodontists as leaving open the question of whether or not “commercial competition” is a requirement of a § 1125(a) claim, the court in that case nevertheless concluded that “neither AAO nor its members were competitors of the alleged wrongdoer [Yellow Book],” 434 F.3d at 1104, where AAO was “a trade organization represent-
ing orthodontists,” and Yellow Book “publishe[d] ‘yellow pages’ directories that list, by category, businesses and professionals that pay for the listings.” Id. at 1101. The court concluded that the plaintiffs and the defendant were not “competitors,” because “Yellow Book is a publisher, not a competing provider of orthodontic services.” Id. at 1104. Thus, these cases counsel that the “categorical approach,” requiring a § 1125(a) case to be between “commercial competitors,” id. at 1103-04; Aviation Charter, Inc., 416 F.3d at 871 (stating such a categorical requirement), requires that the plaintiff and the defendant be competitors as to the same or similar services, goods, or products in the same market. See also TrafficSchool.com
v. Edriver, Inc., 653 F.3d 820, 827 (9th Cir. 2011) (“Competitors ‘vie for the same dollars from the same consumer group.’ ” (quoting Kournikova v. General Media Commc’ns, Inc., 278 F.Supp.2d 1111, 1117 (C.D.Cal. 2003))); Famous Horse, Inc. v. 5th Ave. Photo, Inc., 624 F.3d 106, 112 (2d Cir. 2010) (noting that its decisions had been read as adopting the “categorical approach,” and describing “commercial competition” as involving businesses offering the buyer “rival commodities”); see also
The evidence on which Syngenta relies does not generate a genuine issue of material fact that it is in “commercial competition” with Bunge in any services, goods, or products. Specifically, it does not undermine my prior conclusion that “Syngenta and Bunge do not compete in either seed production or grain storage.” Syngenta, 820 F.Supp.2d at 986. The fact that Bunge may offer incentives to certain growers in a certain area to grow certain brands of soybeans does not show any competition with regard to com, a different product or commodity, and certainly does not show any competition in seed production, even if the difference in commodities to be grown from the seeds could be overlooked. Syngenta’s arguments that every acre planted pursuant to such an incentive program for soybeans is an acre not planted in Syngenta’s Viptera corn misses what defines “commercial competition,” that is, competition in the same or similar goods, products, or services.
Furthermore, redefining the arena of commercial competition as “promoting seed products,” as Syngenta attempts to do, still leaves Syngenta and Bunge promoting non-competing products, seeds for Viptera corn by Syngenta, and seeds for soybeans with certain traits by Bunge. Moreover, even if Bunge were promoting a different company’s seed products for corn with such an incentive program, Syngenta and Bunge would still be at opposite ends of the grain production process, see Syngenta, 820 F.Supp.2d at 986, because Syngenta is attempting to promote the sale of certain seed products to growers (supply end), while Bunge is seeking to promote the growing of certain seed products by growers for Bunge to purchase (and resell to others) (demand end). Finally, recognizing Syngenta’s “indirect” competition theory would lead to the absurd result that every grain. handling company competes with every seed developer simply by paying more money for delivery of one crop (such as soybeans) over another (such as corn), or even by paying more money for delivery of corn that meets certain requirements (such as having or lacking certain transgenic traits) over other corn that does .not. Does a household consumer “compete” with Sony, a television manufacturer, if he or she is willing to pay more for a Mitsubishi television? Of course not.
Thus, as a matter of law, Syngenta has failed to generate a genuine issue of material fact on the “commercial competition” requirement of its § 1125(a) claim, and Bunge is entitled to summary judgment on Syngenta’s § 1125(a) claim on that basis alone. Fed. R. Crv. P. 56(c) (summary judgment is appropriate when there are no genuine issues of material fact); Woods 409 F.3d at 990 (same); Cremona, 433 F.3d at 620 (summary judgment is particularly appropriate when only questions of law are involved).
b. The “commercial speech” requirement
I also conclude that Syngenta has failed to generate a genuine issue of material fact on the “commercial speech” requirement of its § 1125(a) claim. As I previously explained,
The Eighth Circuit Court of Appeals has recognized that a “threshold requirement for Lanham Act liability” is “commercial speech.” Porous Media Corp. v. Pall Corp., 173 F.3d 1109, 1120 (8th Cir. 1999). “Three factors govern whether speech is commercial: (i) whether the communication is an advertisement, (ii) whether it refers to a specific product or*836 service, and (iii) whether the speaker has an economic motivation for the speech.” Id. To meet the first requirement, an “advertisement” is speech that “ ‘proposed a commercial transaction.’ ” Id. (quoting Cincinnati v. Discovery Network, 507 U.S. 410, 423, 113 S.Ct. 1505, 123 L.Ed.2d 99 (1993)). In Porous Media, the Eighth Circuit Court of Appeals found that the speech in question met this requirement, because it urged readers to buy Pali’s filter and not to buy Porous’s. Id. at 1121.
Syngenta, 820 F.Supp.2d at 986-87. In Porous Media, the Eighth Circuit Court of Appeals concluded that “[t]he presence of all three factors provides ‘strong support’ for the conclusion that the speech in question is commercial.” 173 F.3d at 1120 (quoting Bolger v. Youngs Drug Prods. Corp., 463 U.S. 60, 67, 103 S.Ct. 2875, 77 L.Ed.2d 469 (1983)).
Syngenta argues that “commercial speech” does not require the presence of all three factors identified in Porous Media and, still more specifically, that it does not require an “advertisement” or a proposal of a commercial transaction. Syngenta argues that Bunge’s sign stating its policy clearly satisfies the second and third factors, and that there is a genuine dispute as to the first factor, because the sign stating Bunge’s policy attempts to dictate the terms of a commercial transaction. Syngenta points to evidence that it argues shows that Bunge attempted to incorporate the terms of its sign into farmers’ contracts. Bunge does not dispute the presence of the second and third factors identified in Porous Media, but argues that the test of whether a statement is “commercial speech” is whether it proposes a commercial transaction. Bunge argues that a sign declining to enter into a transaction involving Viptera corn does not implicitly propose another transaction.
In City of Cincinnati v. Discovery Network, Inc., 507 U.S. 410, 113 S.Ct. 1505, 123 L.Ed.2d 99 (1993), the Supreme Court addressed the scope of “commercial speech.” The Court noted that it had first “held that even speech that does no more than propose a commercial transaction is protected by the First Amendment.” City of Cincinnati 507 U.S. at 421, 113 S.Ct. 1505 (citing Virginia State Bd. of Pharmacy v. Virginia Citizens Consumer Council, Inc., 425 U.S. 748, 762, 96 S.Ct. 1817, 48 L.Ed.2d 346 (1976)). As the Court then explained,
In later opinions we have stated that speech proposing a commercial transaction is entitled to lesser protection than other constitutionally guaranteed expression. See Ohralik v. Ohio State Bar Assn., 436 U.S. 447, 455-456, 98 S.Ct. 1912, 1918, 56 L.Ed.2d 444 (1978). We have also suggested that such lesser protection was appropriate for a somewhat larger category of commercial speech — “that is, expression related solely to the economic interests of the speaker and its audience.” Central Hudson Gas & Electric Corp. v. Public Service Comm’n of New York, 447 U.S., at 561, 100 S.Ct., at 2348. We did not, however, use that definition in either Bolger v. Youngs Drug Products Corp., 463 U.S. 60, 103 S.Ct. 2875, 77 L.Ed.2d 469 (1983), or in Board of Trustees of State University of N.Y. v. Fox, 492 U.S. 469, 109 S.Ct. 3028, 106 L.Ed.2d 388 (1989).
In the Bolger case we held that a federal statute prohibiting the mailing of unsolicited advertisements for contraceptives could not be applied to the appellee’s promotional materials. Most of the appellee’s mailings consisted primarily of price and quantity information, and thus fell “within the core notion of commercial speech — ‘speech which does*837 “no more than propose a commercial transaction.” ’ ” Bolger, 463 U.S., at 66, 103 S.Ct., at 2880 (quoting Virginia Pharmacy, 425 U.S., at 762, 96 S.Ct., at 1825, in turn quoting Pittsburgh Press Co. v. Pittsburgh Comm’n on Human Relations, 413 U.S. 376, 385, 93 S.Ct. 2553, 2558, 37 L.Ed.2d 669 (1973)). Relying in part on the appellee’s economic motivation, the Court also answered the “closer question” about the proper label for informational pamphlets that were concededly advertisements referring to a specific product, and concluded that they also were “commercial speech.” 463 U.S., at 66-67, 103 S.Ct., at 2880. It is noteworthy that in reaching that conclusion we did not simply apply the broader definition of commercial speech advanced in Central Hudson — a definition that obviously would have encompassed the mailings — but rather “examined [them] carefully to ensure that speech deserving of greater constitutional protection is not inadvertently suppressed.” 463 U.S., at 66, 103 S.Ct., at 2880. In Fox, we described the category even more narrowly, by characterizing the proposal of a commercial transaction as “the test for identifying commercial speech.” 492 U.S., at 473-474, 109 S.Ct., at 3031 (emphasis added).
City of Cincinnati, 507 U.S. at 422-23, 113 S.Ct. 1505 (emphasis added; footnotes omitted).
Thus, City of Cincinnati undermines Syngenta’s argument that “commercial speech” does not necessarily have to “propose a commercial transaction.” Indeed, Supreme Court decisions regarding “commercial speech” “have ‘recognized the “commonsense” distinction between speech proposing a commercial transaction, which occurs in an area traditionally subject to government regulation, and other varieties of speech.’ ” Bolger, 463 U.S. at 64, 103 S.Ct. 2875 (quoting Ohralik v. Ohio State Bar Assn’n, 436 U.S. 447, 455-56, 98 S.Ct. 1912, 56 L.Ed.2d 444 (1978)). Syngenta also draws the wrong inference from statements in Porous Media and Bolger that the presence of all three factors is “strong evidence” or “support” for the conclusion that the speech is “commercial,” and from the statement in a footnote in Bolger that the Court did not “mean to suggest that each of the characteristics present in this case must necessarily be present in order for speech to be commercial,” 463 U.S. at 67 n. 14, 103 S.Ct. 2875, which Syngenta argues suggest that the “proposal of a commercial transaction” factor is not required. Plainly, if one of the factors is entirely missing, the suggestion that the speech is “commercial” is necessarily weakened. Furthermore, in the footnote in Bolger, the Court continued, “For example, we express no opinion as to whether reference to any particular product or service is a necessary element of commercial speech,” citing a Senate committee report concerning “corporate image” advertising. Id. (citing U.S. Senate, Comm, on the Judiciary, 95th Cong., 2d Sess., Sourcebook on Corporation Image and Corporate Advocacy Advertising 1149-1337 (1978), which was a FTC Memorandum concerning corporate image advertising). Thus, while speech might still be “commercial” notwithstanding the lack of a reference to a particular product or service, id., nothing in Bolger suggests that speech can be “commercial” if it does not propose a commercial transaction, thus distinguishing it from other varieties of speech. Id. at 64, 103 S.Ct. 2875.
Syngenta argues that, even if it is required to prove that Bunge’s sign “proposed a commercial transaction,” it has generated genuine issues of material fact that the sign did, indeed, do so. Syngenta argues that, through its sign, Bunge is trying to dictate the terms of the proposed
In concluding that Syngenta had no likelihood of success on its Lanham Act claim, I did conclude that, “[wjhile Bunge’s sign stating its Policy certainly relates to commercial transactions, it does not propose any transaction with Bunge (or any rejection of any transaction with Syngenta); rather, it is a statement that Bunge will not enter into transactions for delivery of Viptera corn.” Syngenta, 820 F.Supp.2d at 987 (emphasis in the original). Syngenta has not convinced me that there are genuine issues of material fact that suggest a contrary conclusion. Under Bunge’s grower contracts, growers were prohibited from delivering, and Bunge had the right to refuse, corn containing transgenic traits that were not approved for all United States export markets. See Syngenta’s Supplemental Appendix at 424 (deposition testimony of Laura Bolte); id. at 436 (deposition testimony of Laura Bolte); id. 332 (deposition testimony of Norman Kendrick); see also Defendant’s Preliminary Injunction Exhibit A, Bunge Purchase Contract, General Terms and Conditions, ¶ 2 (“Seller shall not deliver, and Buyer has the right to reject delivery of, Goods containing transgenic genes/traits that are not approved for sale in Japan, Mexico, The European Union and other U.S. export markets.” (emphasis added)), quoted in Syngenta, 820 F.Supp.2d at 964. Also, as Bunge points out, at the time that it posted the sign stating its policy on July 5, 2011, growers subject to contract had already planted their crops and would have been under contract with Bunge for the upcoming harvest not' to deliver corn with unapproved transgenic traits, so that the sign did not change the terms of their contract or propose a transaction on different terms.
In other words, Syngenta mischaraeterizes the undisputed facts: The sign was not a proposal of a term of a contract (or a proposal of a transaction on certain terms), nor was compliance with the policy stated in the sign made a term of any contract, the sign simply reiterated a term of an existing contract. As to farmers delivering corn without a prior contract, the sign was not a proposal of a commercial transaction, but notice that Bunge would not enter into a transaction involving delivery of Viptera corn. I conclude that, as a matter of law, a statement of refusal to enter into a certain transaction, standing alone, is not a proposal of any transaction, and, hence, is not “commercial speech.” See City of Cincinnati, 507 U.S. at 422-23, 113 S.Ct. 1505; Bolger, 463 U.S. at 64, 103 S.Ct. 2875. The conclusion might be different, however, if the statement promoted or urged selection of another product over
3. Summary
Bunge’s Motion For Summary Judgment on Syngenta’s Lanham Act claim pursuant to § 1125(a) is granted. “Commercial competition” and “proposal of a commercial transaction” are required elements of such a claim as a matter of law, and Syngenta has failed to generate genuine issues of material fact on those elements. FED. R. CIV. P. 56(c) (summary judgment is appropriate when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law); Woods 409 F.3d at 990 (same); Cremona, 433 F.3d at 620 (summary judgment is particularly appropriate when only questions of law are involved).
III. CONCLUSION
Upon the foregoing,
1. Bunge’s October 14, 2011, Motion For Judgment On The Pleadings (docket no. 48) is granted in part and denied in part, as follows:
a. The motion is granted as to Count II;
b. The motion is denied as to Count III;
c. The motion is granted as to the part of Count IV concerning declaratory judgment of a violation of the USWA, but denied as to the part of Count IV concerning declaratory judgment of a violation of Iowa warehousing laws; and
d. The motion is granted as to Count IX,
2. Syngenta’s September 25, 2012, Motion For Leave To Supplement Summary Judgment Record (docket no. 98) is granted,
3. Bunge’s November 21, 2011, Motion For Summary Judgment (docket no. 56) is granted,
This matter will proceed on Count III, the part of Count IV pertaining to declaratory judgment on Iowa warehousing claims, and Counts V through VIII,
IT IS SO ORDERED.
. Syngenta has developed a genetic trait called MIR162 (or VIP 3A), sold under the Agrisure® VipteraTM trademark, which controls insects and reduces the development of fungus and mycotoxins in stored corn.
. If Bunge’s dispositive motions are granted, this case will proceed only on Syngenta’s claims in Count V (intentional interference with contractual relationships), Count VI (interference with prospective business advantage), Count VII (business defamation, libel per se, or slander per se), and Count VIII (violation of Minn.Stat. § 325D.44 and other states’ codifications of the Uniform Deceptive Trade Practices Act).
Reference
- Full Case Name
- SYNGENTA SEEDS, INC. v. BUNGE NORTH AMERICA, INC.
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- 1 case
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