ASHLEY PELMAN, a child under the age of 18 years, by her Mother and Natural Guardian ROBERTA PELMAN, ROBERTA PELMAN, Individually, JAZLYN BRADLEY, a child under the age of 18 years, by her Father and Natural Guardian ISRAEL BRADLEY, and ISRAEL BRADLEY, Individually, Plaintiffs,
- against -
McDONALD'S CORPORATION, McDONALD'S RESTAURANTS OF NEW YORK, INC., McDONALD'S
1865 BRUCKNER BOULEVARD, BRONX, NEW YORK, McDONALD'S 2630 JEROME AVENUE,
BRONX, NEW YORK, Defendants.
02 Civ. 7821 (RWS)
UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK
January 22, 2003, Decided
DISPOSITION: Complaint was dismissed in its entirely. Leave was granted
to replead all claims except for those based on New York City Administrative
Code, Ch. 5, 20-700 et seq., which were dismissed with prejudice.
COUNSEL: [*1] Attorney for Plaintiffs: SAMUEL HIRSCH & ASSOCIATES,
New York, NY, By: SAMUEL HIRSCH, ESQ. Of Counsel.
Attorneys for Defendants: WINSTON & STRAWN, New York, NY, By: THOMAS
J. QUIGLEY, ESQ., BRADLEY E. LERMAN, ESQ., BRUCE R. BRAUN, ESQ., Of Counsel.
WILDMAN, HARROLD, ALLEN & DIXON, Chicago, IL, By: ANNE G. KIMBALL,
ESQ., SARAH L. OLSON, ESQ., Of Counsel.
JUDGES: ROBERT W. SWEET, U.S.D.J.
OPINIONBY: ROBERT W. SWEET
OPINION: TABLE OF CONTENTS
Prior Proceedings
Facts
Parties
Obesity in Young Persons and Its Effects
Claims
Discussion
I. Diversity Jurisdiction Exists, and the Plaintiffs' Motion To Remand
Is Denied
A. The Outlets
B. McDonalds of New York
C. The Outlets and McDonalds of New York Are Akin To Retailers And Distributors
of McDonalds Corp.'s Products
II. McDonalds' Motion to Dismiss
A. Standard of Review
B. Counts I and II: Plaintiffs Fail to State a Claim Pursuant to N.Y.
Gen. Bus. Law ºº 349 and 350
1. Federal Pre-Emption
2. Requirements of ºº 349 And 350
a. Count I
i. Deceptive Acts
ii. Deceptive Omissions
b. Count II
III. Counts III, IV and V: Negligence Claims
A. Count III: Inherently Dangerous Food
1. Whether McDonalds Had a Duty to Plaintiffs Because [*2] the Dangers
Were Not Within Common Knowledge
a. Allegations Within the Complaint
b. Allegations Outside the Complaint
i. Plaintiffs' Claim that McDonalds' Products are More Dangerous than
the Average Hamburger, Fries and Shake
ii. Allergic Sensitivity
iii. Foreseeable Misuse
iv. The NLEA
2. Proximate Cause
B. Count IV: Failure to Warn of Unhealthy Attributes
IV. Count V: Sale of Addictive Products
V. Leave to Amend is Granted
Conclusion
Sweet, D.J.,
Defendants McDonald's Corporation ("McDonalds Corp."); McDonald's Restaurants
of New York, Inc. ("McDonalds of New York"); McDonald's 1865 Bruckner Boulevard
Bronx, New York ("Bruckner Boulevard outlet"); and McDonald's 2630 Jerome
Avenue, Bronx, New York ("Jerome Avenue outlet") (collectively "McDonalds")
have moved pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure
to dismiss the complaint of class-action plaintiffs Ashley Pelman, Roberta
Pelman, Jazlen Bradley, and Israel Bradley. The plaintiffs have cross-moved
to remand the case to state court.
This action presents unique and challenging issues. The plaintiffs have
alleged that the practices of McDonalds in making and selling their products
are [*3] deceptive and that this deception has caused the minors who have
consumed McDonalds' products to injure their health by becoming obese.
Questions of personal responsibility, common knowledge and public health
are presented, and the role of society and the courts in addressing such
issues.
The issue of determining the breadth of personal responsibility underlies
much of the law: where should the line be drawn between an individual's
own responsibility to take care of herself, and society's responsibility
to ensure that others shield her? Laws are created in those situations
where individuals are somehow unable to protect themselves and where society
needs to provide a buffer between the individual and some other entity
-- whether herself, another individual or a behemoth corporation that spans
the globe. Thus Congress provided that essentially all packaged foods sold
at retail shall be appropriately labeled and their contents described.
The Nutrition Labeling and Education Act of 1990, Pub. L. 101-535, 104
Stat. 2353 (Nov. 8, 1990) (the "NLEA"), 21 U.S.C. º 343(q). n1 Also
as a matter of federal regulation, all alcoholic beverages must warn pregnant
women against [*4] their use. 27 U.S.C. º 215 (forbidding sale of
alcohol unless it bears the following statement: "GOVERNMENT WARNING: (1)
According to the Surgeon General, women should not drink alcoholic beverages
during pregnancy because of the risk of birth defects . . . ."); 27 C.F.R.
º 16.21. Congress has gone further and made the possession and consumption
of certain products criminal because of their presumed effect on the health
of consumers. n2 Other products have created health hazards and resulted
in extensive and expensive class action litigation. E.g., Amchem Products
v. Windsor, 521 U.S. 591, 138 L. Ed. 2d 689, 117 S. Ct. 2231 (1997) (affirming
denial of certification of class of potentially millions who had suffered
injuries as a result of exposure to asbestos); In re Diet Drugs (Phentermine,
Fenfluramine, Dexfenfluramine) Prods. Liability Litig., 282 F.3d 220, 225
(3d Cir. 2002) (class action of six million who took diet drugs (Pondimin
and Redux) that were later linked to valvular heart disease); In re Breast
Implant Cases, 942 F. Supp. 958, 959-60 (S.D.N.Y. 1996) (discussing possibility
[*5] of transfer of thousands of cases alleging injuries from silicone
breast implants). Public health is one, if not the, critical issue in society.
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n1 The NLEA sought "to ensure that consumers have access to information
about food that is scientifically valid, truthful, reliable, understandable
and not misleading. This information will enable consumers to make more
healthful food choices." Marilyn J. Schramm, Constitutional Protection
of Commercial Speech Under the Central Hudson Test as Applied to Health
Claims, 51 Food & Drug L.J. 323 (1996) (citation omitted); Mara A.
Michaels, FDA Regulation of Health Claims Under the Nutrition Labeling
and Education Act of 1990: A Proposal for a Less Restrictive Scientific
Standard, 44 Emory L.J. 319, 327 (Winter 1995) ("Congress believed that
if consumers were informed about the possible health benefits of foods,
they would be better equipped to make appropriate food choices."). To promote
these goals, Section 343(q) requires, inter alia, that non-exempted retail
food be labeled with the following information: (1) the serving size; (2)
the number of servings per container; (3) the total number of calories
derived from any source and derived from fat; (4) the amount of total fat,
saturated fat, cholesterol, sodium, total carbohydrates, complex carbohydrates,
sugars, dietary fiber, and total protein per serving. 21 U.S.C. º
343(q)(1)(A)-(E). [*6]
n2 In the interest of consistency and integrity, it should be noted
that the author of this opinion publicly opposed the criminalization of
drugs. See Stephen Labaton, "Federal Judge Urges Legalization of Crack,
Heroin and Other Drugs," N.Y. Times at A1 (Dec. 13, 1989) ("Judge Sweet
became the first Federal judge to propose publicly that illegal drugs be
made legal . . . ."). This belief is based upon the notion that, as long
as consumers have adequate knowledge about even harmful substances, they
should be entitled to purchase them, and that the issue should be one of
health, rather than of the criminal law. E.g., Robert W. Sweet & Edward
A. Harris, Moral and Constitutional Considerations in Support of the Decriminalization
of Drugs, in How To Legalize Drugs 430, 433 (Jefferson M. Fish, ed. 1998)
("Ultimately, we favor a drug policy that would be comparable to the nation's
current policy and legal framework regulating alcohol, and we suggest that
support for such a policy -- based on a right to self-determination --
may be derived from the Ninth Amendment of the Constitution."). The same
logic must apply in the situation of fast food, which is arguably less
harmful and certainly less demonized than drugs that have been made illegal
-- unless, of course, this case is the opening salvo in the "War on Big
Macs."
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- - - - - - [*7]
This opinion is guided by the principle that legal consequences should
not attach to the consumption of hamburgers and other fast food fare unless
consumers are unaware of the dangers of eating such food. As discussed,
infra, this guiding principle comports with the law of products liability
under New York law. As Sir Francis Bacon noted, "Nam et ipsa scientia potestas
est n3 or knowledge is power. Following from this aphorism, one important
principle in assigning legal responsibility is the common knowledge of
consumers. If consumers know (or reasonably should know) the potential
ill health effects of eating at McDonalds, they cannot blame McDonalds
if they, nonetheless, choose to satiate their appetite with a surfeit of
supersized McDonalds products. On the other hand, consumers cannot be expected
to protect against a danger that was solely within McDonalds' knowledge.
Thus, one necessary element of any potentially viable claim must be that
McDonalds' products involve a danger that is not within the common knowledge
of consumers. As discussed later, plaintiffs have failed to allege with
any specificity that such a danger exists.
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- - - - - -
n3 The phrase, which appeared in De Haeresibus (1597), is literally
translated as "for knowledge itself is power."
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- - - - - - [*8]
McDonalds has also, rightfully, pointed out that this case, the first
of its kind to progress far enough along to reach the stage of a dispositive
motion, could spawn thousands of similar "McLawsuits" against restaurants.
Even if limited to that ilk of fare dubbed "fast food," the potential for
lawsuits is great n4: Americans now spend more than $ 110 billion on fast
food each year, and on any given day in the United States, almost one in
four adults visits a fast food restaurant. Eric Schlosser, Fast Food Nation
3 (2002) (hereinafter "Schlosser"). The potential for lawsuits is even
greater given the numbers of persons who eat food prepared at other restaurants
in addition to those serving fast food. See FDA, Food Labeling; General
Requirements for Health Claims for Food, 58 FR 2478, 2516, 1993 WL 1547
(Jan. 6, 1993) ("Almost half of the American food dollar is spent on food
consumed away from home, and . . . perhaps as much as 30 percent of the
American diet is composed of foods prepared in food service operations.").
In light of these facts, the Court is cognizant of its duty "to limit the
legal consequences of wrongs to a controllable degree and to protect [*9]
against crushing exposure to liability." McCarthy v. Olin Corp., 119 F.3d
148, 157 (2d Cir. 1997) (quoting Strauss v. Belle Realty Co., 65 N.Y.2d
399, 402, 492 N.Y.S.2d 555, 557, 482 N.E.2d 34 (1985)).
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- - - - - -
n4 Indeed, The Economist in its Dec. 21, 2002 issue provided an Orwellian
view from the year 2012 of what the potential success of fast-food lawsuits
would do to the American landscape and culture. "Battling against big food,"
The Economist 108 (Dec. 21, 2002).
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- - - - - -
The interplay of these issues and forces has created public interest
in this action, ranging from reports and letters to the Court to television
satire. n5 Obesity, personal liberty and public accountability affect virtually
every American consumer.
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- - - - - -
n5 Much of the reaction has been negative. Debra Goldman, "Consumer
Republic: common sense may not be McDonald's ally for long," Adweek- E.
Ed. (12/02/02), 2002 WL 103089868 ("In dozens of on-the-street interviews
and Web polls conducted since the suit made news last month, the masses
have expressed their incredulity at and contempt for the litigious kids
-- and parents -- who won't take responsibility for a lifetime of chowing
down Happy Meals. With much tongue-clucking, the vox populi bemoans yet
another symptom of the decline of personal responsibility and the rise
of the cult of victimhood."). See also Sarah Avery, "Is Big Fat the Next
Big Tobacco?" Raleigh News & Observer, at A25, 2002 WL 11733461 (Aug.
18, 2002) ("[A related] lawsuit has brought howls of dissent and derision
-- as yet another example of a litigious society run amok. How, indeed,
could food be considered as addicting and harmful as smoking?"); Neil Buckley,
"Big Food faces grilling over America's obesity 'epidemic,'" Fin. Times
at P20 (11/27/02) (quoting founder of Center for Consumer Freedom, which
gets funding from restaurants and food companies, as stating "The reality
is that anyone with an IQ higher than room temperature will understand
that excessive consumption of food served in fast-food restaurants will
lead to weight gain."); "How did the lawyer keep from laughing?," S. Bend
Trib. (Ind.) (08/13/02) ("The fast-food lawsuit is generally regarded as
a joke . . . ."); Amity Shlaes, "Lawyers get fat on McDonald's," Chicago
Tribune, at 25 (11/27/02) ("Every now and then America draws a cartoon
of herself for the amusement of the rest of the world. Last week's fat
lawsuit against McDonald's is one of those occasions.").
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- - - - - - [*10]
In terms of the pending motion by McDonalds to dismiss the complaint,
these principles require the complaint to be dismissed for lack of specificity,
with leave granted to replead within the limits set forth below.
Prior Proceedings
The plaintiffs commenced suit on August 22, 2002, in the State Supreme
Court of New York, Bronx County. Defendants removed the action to the Southern
District of New York on September 30, 2002, alleging as the basis of removal
that the plaintiffs had fraudulently joined non-diverse parties in order
to defeat diversity jurisdiction pursuant to 28 U.S.C. º 1332.
McDonalds filed the instant motion to dismiss plaintiffs' complaint
(the "Complaint") on October 7, 2002. The plaintiffs cross-moved to remand
and in opposition to the motion on October 25, 2002. Oral argument on both
motions was held on November 20, 2002, and the motions were considered
fully submitted at that time.
Facts
As befits a motion to dismiss, the following facts are drawn from the
allegations in the Complaint and do not constitute findings of fact by
the Court.
Parties
Ashley Pelman, a minor, and her mother and natural [*11] guardian Roberta
Pelman are residents of the Bronx, New York.
Jazlen Bradley, a minor, and her father and natural guardian Israel
Bradley are residents of New York, New York.
The infant plaintiffs are consumers who have purchased and consumed
the defendants' products and, as a result thereof, have become overweight
and have developed diabetes, coronary heart disease, high blood pressure,
elevated cholesterol intake, and/or other detrimental and adverse health
effects as a result of the defendants' conduct and business practices.
Defendant McDonald's Corp. is a Delaware corporation with its principal
place of business at One McDonald's Plaza, Oak Brook, Illinois. It does
substantial business with outlets in the State of New York, as well as
throughout the fifty states and the world.
Defendant McDonalds of New York is a New York State corporation with
a registered agent office located at 80 State Street, Albany, New York.
It does substantial business with outlets and/or franchises in the State
of New York.
McDonalds is the owner, manager, franchisee and operator of defendants
the Bruckner Boulevard and Jerome Avenue outlets. Ashley and Roberta Pelman
purchased and consumed food [*12] products at the Bruckner Boulevard outlet.
Jazlen and Israel Bradley purchased and consumed food products at the Jerome
Avenue outlet. All products, ingredients, promotions and advertisements
sold, provided, utilized, advertised and promoted by the Jerome Avenue
and Bruckner Boulevard outlets were authorized by McDonalds Corp. and McDonalds
of New York.
McDonalds Corp. and McDonalds of New York, through its agents, servants,
and/or employees, operate both company-owned outlets and franchises, and
prescribe their ingredients, qualities and quantities of the food products
served, so as to insure that its food products sold in one state or location
is substantially identical to food products sold elsewhere in the country.
Obesity in Young Persons and its Effects
Today there are nearly twice as many overweight children and almost
three times as many overweight adolescents as there were in 1980. In 1999,
an estimated 61 percent of U.S. adults were overweight or obese and 13
percent of children aged 6 to 11 years and 14 percent of adolescents aged
12 to 19 years were overweight. In 1980, those figures for children were
7 percent for children aged 6 to 11 years and 5 percent [*13] for adolescents
aged 12 to 19 years.
Obese individuals have a 50 to 100 percent increased risk of premature
death from all causes. Approximately 300,000 deaths a year in the United
States are currently associated with overweight and obesity. As indicated
in the U.S. Surgeon General's 2001 Report on Overweight and Obesity, "left
unabated, overweight and obesity may soon cause as much preventable disease
and death as cigarette smoking."
Obesity and overweight classification are associated with increased
risk for coronary heart disease; type 2 diabetes; endometrial, colon, postmenopausal
breast and other cancers; and certain musculoskeletal disorders, such as
knee osteoarthritis.
Studies have shown that both modest and large weight gains are associated
with significantly increased risk of diseases. For example, a weight gain
of 11 to 18 pounds increases a person's risk of developing type 2 diabetes
to twice that of individuals who have not gained weight, while those who
gain 44 pounds or more have four times the risk of coronary heart disease
(nonfatal myocardial infarction and death) of 1.25 times in women and 1.6
times in men. A gain of 22 pounds in men and 44 pounds in women result
[*14] in an increased coronary heart disease risk of 1.75 and 2.65, respectively.
In certain obese women, the risk of developing endometrial cancer is
increased by more than six times. Overweight and obesity are also known
to exacerbate many chronic conditions such as hypertension and elevated
cholesterol and such individuals may also suffer from social stigmatization,
discrimination and poor body image.
In 1995, the total estimated costs attributable to obesity amounted
to an estimated $ 99 billion. In 2000, the cost of obesity was estimated
to be $ 117 billion. Most of the costs associated with obesity arise form
type 2 diabetes, coronary heart disease and hypertension.
Claims
The plaintiffs allege five causes of action as members of a putative
class action of minors residing in New York State who have purchased and
consumed McDonalds products. Counts I and II are based on deceptive acts
and practices in violation of the Consumer Protection Act, New York Gen.
Bus. Law ºº 349 and 350, and the New York City Administrative
Codes, Chapter 5, 20-700 et seq. Count I alleges that McDonalds failed
to adequately disclose the ingredients and/or health effects of ingesting
certain [*15] of their food products with high levels of cholesterol, fat,
salt and sugar; described their food as nutritious; and engaged in marketing
to entice consumers to purchase "value meals" without disclosing the detrimental
health effects thereof. Count II focuses on marketing techniques geared
toward inducing children to purchase and ingest McDonalds' food products.
Count III sounds in negligence, alleging that McDonalds acted at least
negligently in selling food products that are high in cholesterol, fat,
salt and sugar when studies show that such foods cause obesity and detrimental
health effects. Count IV alleges that McDonalds failed to warn the consumers
of McDonalds' products of the ingredients, quantity, qualities and levels
of cholesterol, fat, salt and sugar content and other ingredients in those
products, and that a diet high in fat, salt, sugar and cholesterol could
lead to obesity and health problems. Finally, Count V also sounds in
negligence,
alleging that McDonalds acted negligently in marketing food products that
were physically and psychologically addictive.
Discussion
I. Diversity Jurisdiction Exists, and the Plaintiffs' Motion to Remand
Is Denied [*16]
In order to rule on this motion, this Court must have jurisdiction.
Defendants removed to federal court alleging that diversity jurisdiction
exists pursuant to 28 U.S.C. º 1332.
Section 1332 states, in pertinent part, that:
(a) The district court shall have original jurisdiction of all civil
actions where the matter in controversy exceeds the sum or value of $ 75,000,
exclusive of interest and costs, and is between --
(1) Citizens of different States ... .
28 U.S.C. º 1332. Section 1332 requires complete diversity of citizenship;
therefore no defendant may share citizenship with a plaintiff. Owen Equip.
& Erection Co. v. Kroger, 437 U.S. 365, 373-74, 98 S. Ct. 2396, 2403,
57 L. Ed. 2d 274 (1978). There is no dispute that all of the plaintiffs
are New York residents and that three of the defendants -- McDonalds of
New York, the Bruckner Boulevard outlet, and the Jerome Avenue outlet --
are New York residents. Therefore, unless the three non-diverse defendants
were "fraudulently joined" to defeat jurisdiction, complete diversity does
not exist, and this Court lacks subject matter jurisdiction over the controversy.
[*17]
As an initial matter, although this concept is described as "fraudulent
joinder," suggesting that the determinative issue is one of motive, motive
in fact has nothing to do with it. In re Rezulin Prods. Liability Litig.,
133 F. Supp. 2d 272, 279 (S.D.N.Y. 2001) ("The only issue is whether the
plaintiff has a legitimate claim against the non-diverse or in-state defendant
-- whether, in other words, the plaintiff has a real or direct interest
in the controversy vis-a-vis the non-diverse or in-state defendant . .
. ."). The standard for determining whether a plaintiff's claim against
a defendant is sufficiently substantial to defeat removal jurisdiction
is governed by Pampillonia v. RJR Nabisco, Inc., 138 F.3d 459, 461 (2d
Cir. 1998).
In order to show that a non-diverse defendant was fraudulently joined
to defeat diversity jurisdiction, the defendant must demonstrate, by clear
and convincing evidence, either that there has been outright fraud committed
in the plaintiffs' pleadings, or that there is no reasonable basis, based
on the pleadings, for liability against the non-diverse defendants in light
of the claims alleged. Whitaker v. American Telecasting, Inc., 261 F.3d
196, 207 (2d Cir. 2001) [*18] (quoting Pampillonia, 138 F.3d at 461). The
burden on a removing defendant to meet this standard is a heavy one, and
all reasonable doubts of fact and law are resolved in favor of the plaintiff.
Id. "Nevertheless, the burden is not impossible of satisfaction." In re
Rezulin, 133 F. Supp. 2d at 280.
In order to interpret the legal standards stated above, it is necessary
to look to the "realities of the record." Rose v. Giamatti, 721 F. Supp.
906, 915 (S.D. Ohio 1989). The discussion of whether the plaintiffs have
stated a claim against the outlets and McDonalds of New York necessarily
augurs the discussion, infra, of whether the Complaint should be dismissed.
For ease of reading, this section summarizes the later analysis.
A. The Outlets
Plaintiffs have chosen to join as defendants two of McDonalds' myriad
outlets in New York State --both of which happen to be located in the Bronx,
New York. As an initial matter, it is worth noting that this action is
labeled a statewide class action, and any putative class members will certainly
have eaten at other outlets than the ones named in the Complaint.
With regard to the [*19] claims under the Consumer Protection Act, as
discussed infra, plaintiffs fail to cite any specific advertisements or
public statements that may be considered "deceptive" on the part of any
of the defendants, including the outlets. In addition, while the Complaint
does cite to specific omissions on the part of all defendants -- namely
the failure to include nutritional labeling at points of purchase n6 --
it does not claim that the outlets had any particular knowledge in their
possession and not in the public's possession that would require them to
post such information. Therefore, the plaintiffs have not stated a claim
against the outlets under the Consumer Protection Act.
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- - - - - -
n6 Because the outlets utilize labels presumably created at the national
level, they cannot be responsible for the lack of nutritional labeling
on the packaging itself.
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- - - - - -
Plaintiffs also cannot state the negligence claims against the outlets.
First, plaintiffs have failed to establish that any of the defendants have
produced a product that [*20] was so unhealthy as to be outside a reasonable's
consumer's expectations. A larger problem is raised here with regard to
probable cause than that pointed out later in the discussion of McDonalds'
motion to dismiss. Normally, a products liability action that is brought
against retailers, distributors and manufacturers is premised on an injury
that results from the use of a single item that was purchased from a particular
retailer and distributor. n7 Here, however, the claim is premised on an
over-consumption of products specified and provided by the national defendant,
McDonalds Corp. In order to establish proximate cause, the injury of over-
consumption must somehow be tied to the outlets. Presumably, that would
require, in addition to alleging the facts discussed infra, some allegation
that plaintiffs ate primarily at the particular outlet. In the absence
of such allegations, a claim against the outlets cannot stand.
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- - - - - -
n7 A typical products liability case would involve a fact pattern where
a plaintiff discovers something unsavory or dangerous in a meal purchased
at a McDonalds outlet, such as, for instance, a chicken head. E.g., "You
Deserve a Beak Today," The Wash. Post, at C13 (Dec. 1, 2000) (reporting
that a Newport News, Virginia woman found breaded and fried chicken head
-- including the beak, eyes and comb -- in a box of McDonalds chicken wings).
Such a situation clearly ties in the outlet that sold that particular order
of chicken wings. Of course, New York's specific rules concerning liability
of retailers and distributors also applies, as discussed in Part I.C.
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- - - - - - [*21]
B. McDonalds of New York
The inclusion of McDonalds of New York is more logical than the inclusion
of two of the many McDonalds outlets in New York State. Plaintiffs nonetheless
fail to state a claim for similar reasons discussed above.
First, with regard to the Consumer Protection Act, there is no allegation
of any specific advertisements or public statements arising from McDonalds
of New York. Further, there is no allegation that McDonalds of New York
had in its possession any particular knowledge that consumers did not have
that would require it to promulgate information about the nutritional contents
of the products. Therefore, the deceptive practices claim cannot stand
against McDonalds of New York.
Second, the negligence claims fail for the same reasons discussed above
and in greater detail below. There is no allegation that McDonalds of New
York has produced or distributed a product that is so dangerous that its
danger is outside the reasonable understanding of a consumer. Further,
the proximate cause issues discussed below also inhibit this claim. It
should be noted that the proximate cause issue discussed above -- tying
the injury to a particular outlet -- is [*22] not as damaging against the
claim against McDonalds of New York. However, plaintiffs must allege that
they have eaten primarily, if not wholly, at McDonalds of New York outlets.
In other words, a plaintiff who has lived for merely a year in New York
State -- and thus eaten at outlets run by McDonalds of New York only for
one year -- may have a difficult time in showing causation. The absence
of explicit allegations to this effect provides a further ground for dismissal
of the Complaint as against McDonalds of New York.
C. The Outlets and McDonalds of New York Are Akin to Retailers and Distributors
of McDonalds Corp.'s Products
In addition, because the outlets and McDonalds of New York are akin
to retailers and distributors of a manufacturer's products, the negligence
claims cannot attach to the outlets and McDonalds of New York for the following
reasons.
Under New York law, n8 a wholesaler, retailer or distributor can be
held liable in negligence for the sale of a defective product or for failure
to warn only if it fails to detect a dangerous condition that it could
have discovered during the course of a normal inspection while the product
was in its possession. E.g. [*23] , Sideris v. Simon A. Rented Servs.,
254 A.D.2d 408, 409, 678 N.Y.S.2d 771, 772 (2d Dep't 1998) (holding rental
service not liable for defective condition because satisfied duty to inspect)
(citing Naples v. City of New York, 34 A.D.2d 577, 578, 309 N.Y.S.2d 663,
666 (2d Dep't 1970)); Luckern v. Lyonsdale Energy Ltd. Partnership, 281
A.D.2d 884, 887, 722 N.Y.S.2d 632, 637 (4th Dep't 2001) (failure to warn)
(citing McLaughlin v. Mine Safety Appliances Co., 11 N.Y.2d 62, 70-71,
181 N.E.2d 430, 433, 226 N.Y.S.2d 407, 413 (1962)).
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- - - - - -
n8 As both parties have invoked New York law, there is no need to undertake
a choice of law inquiry. Pampillonia v. RJR Nabisco, Inc., 138 F.3d 459,
461 n.4 (2d Cir. 1998) (citing American Fuel Corp. v. Utah Energy Dev.
Co., 122 F.3d 130, 134 (2d Cir. 1997); Wm. Passalacqua Builders v. Resnick
Developers, 933 F.2d 131, 137 (2d Cir. 1991); Walter E. Heller & Co.
v. Video Innovations, Inc., 730 F.2d 50, 52 (2d Cir. 1984)).
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- - - - - - [*24]
It is unclear whether the defects in question -- high levels of cholesterol,
fat, salt and sugar -- were "discoverable" upon "inspection." n9 Given
McDonalds' common knowledge arguments with regard to the attributes, however,
it may be assumed so. In any case, however, those attributes are later
found insufficient as a matter of law to establish products liability.
In order to state a claim against the outlets and McDonalds of New York,
the plaintiffs must allege that they were in possession of information
that the McDonalds Corp. products that they sold were more dangerous than
a reasonable consumer would expect. Plaintiffs have failed to make such
allegations.
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- - - - - -
n9 By contrast, to return to the example of the fried chicken head (supra
note 7), such defective product clearly should have been discovered upon
inspection.
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This lawsuit is not the typical products liability case because, as
referred to above, the issue is over-consumption of products created, manufactured
and advertised at a national level. A [*25] McDonalds' Big Mac is the same
at every outlet in the Bronx, New York; the same at every outlet in the
State of New York; and the same at every outlet throughout the United States.
Clearly what is at issue in this lawsuit is the national menu and national
policy of McDonalds Corp., and the plaintiffs' real beef is with McDonalds
Corp.
As a result, the motion to remand is denied.
II. McDonalds' Motion to Dismiss
A. Standard of Review
In reviewing a motion to dismiss under Rule 12(b)(6), courts must "accept
as true the factual allegations of the complaint, and draw all inferences
in favor of the pleader." Mills v. Polar Molecular Corp., 12 F.3d 1170,
1174 (2d Cir. 1993) (citing IUE AFL-CIO Pension Fund v. Herrmann, 9 F.3d
1049, 1052 (2d Cir. 1993)). However, "legal conclusions, deductions, or
opinions couched as factual allegations are not given a presumption of
truthfulness." L'Eureopeenne de Banque v. La Republica de Venezuela, 700
F. Supp. 114, 122 (S.D.N.Y. 1988). The complaint may only be dismissed
when "it appears beyond doubt that the plaintiff can prove no set of facts
in support of his claim which would [*26] entitled him to relief." Conley
v. Gibson, 355 U.S. 41, 45-46, 2 L. Ed. 2d 80, 78 S. Ct. 99 (1957). See
also Bernheim v. Litt, 79 F.3d 318, 321 (2d Cir. 1996); Allen v. WestPoint-Pepperell,
Inc., 945 F.2d 40, 44 (2d Cir. 1991).
Review must be limited to the complaint and documents attached or incorporated
by reference thereto. Kramer v. Time Warner, Inc., 937 F.2d 767, 773 (2d
Cir. 1991). In this context, the Second Circuit has held that a complaint
is deemed to "include . . . documents that the plaintiffs either possessed
or knew about and upon which they relied in bringing the suit." Rothman
v. Gregor, 220 F.3d 81, 88 (2d Cir. 2000).
Plaintiffs, however, in their opposition papers rely on facts outside
the pleading. The Court of Appeals has made clear that where a District
Court is provided with materials outside the pleadings in the context of
a 12(b)(6) motion to dismiss, it has two options: the court may exclude
the additional materials and decide the motion on the complaint alone or
convert the motion to one from summary judgment under Fed. R. Civ. P. 56
and afford all parties the opportunity [*27] to present supporting material.
Fed. R. Civ. P. 12(b). Kopec v. Coughlin, 922 F.2d 152, 154 (2d Cir. 1991)
(quoting Fonte v. Board of Managers of Continental Towers Condominium,
848 F.2d 24, 25 (2d Cir. 1988)). The Court has not converted this motion
to one for summary judgment and thus will not consider statements outside
the pleadings in reaching its holding.
B. Counts I and II: Plaintiffs Fail to State a Claim Pursuant to N.Y.
Gen. Bus. Law ºº 349 and 350
Counts I and II allege that McDonalds violated the New York Consumer
Protection Act, N.Y. Gen. Bus. Law ºº 349 and 350, by (1) deceptively
advertising their food as not unhealthful and failing to provide consumers
with nutritional information (Count I) and (2) inducing minors to eat at
McDonalds through deceptive marketing ploys (Count II). n10
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- - - - - -
n10 The Complaint also asserts that such actions violated the City of
New York's Consumer Protection Law, Admin. Code, Chapter 5, 20-700 et seq.
McDonalds argues, and the plaintiffs do not contest, that such actions
may only be brought by the Commissioner of Consumer Affairs. E.g., Galerie
Furstenberg v. Philip Coffaro, 697 F. Supp. 1282, 1292 (S.D.N.Y. 1988).
Therefore, Counts I and II are dismissed to the extent they assert claims
pursuant to the Administrative Code.
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- - - - - - [*28]
Section 349 of New York General Business Law makes unlawful "deceptive
acts or practices in the conduct of any business, trade or commerce or
in the furnishing of any service in this state." N.Y. Gen. Bus. Law º
349(a). n11 Section 350 prohibits "false advertising in the conduct of
any business." N.Y. Gen. Bus. Law º 350. To state a claim for deceptive
practices under either section, a plaintiff must show: (1) that the act,
practice or advertisement was consumer-oriented; (2) that the act, practice
or advertisement was misleading in a material respect, and (3) that the
plaintiff was injured as a result of the deceptive practice, act or advertisement.
E.g., Stutman v. Chem. Bank, 95 N.Y.2d 24, 29, 709 N.Y.S.2d 892, 731 N.E.2d
608 (2000); St. Patrick's Home for Aged and Infirm v. Laticrete Intern.,
Inc., 264 A.D.2d 652, 655, 696 N.Y.S.2d 117, 122 (1st Dep't 1999); BNI
NY Ltd. v. DeSanto, 177 Misc. 2d 9, 14, 675 N.Y.S.2d 752, 755 (N.Y. City
Ct. 1998). See also Berrios v. Sprint Corp., 1998 U.S. Dist. LEXIS 6579,
1998 WL 199842, at *3 (E.D.N.Y. March 16, 1998). The standard for whether
an act or practice is misleading is objective, requiring [*29] a showing
that a reasonable consumer would have been misled by the defendant's conduct.
Marcus v. AT&T, 138 F.3d 46, 64 (2d Cir. 1998); Oswego Laborers' v.
Marine Midland Bank, 85 N.Y.2d 20, 26, 623 N.Y.S.2d 529, 533, 647 N.E.2d
741 (1995). Omissions, as well as acts, may form the basis of a deceptive
practices claim. Stutman, 95 N.Y.2d at 29 (citing Oswego Laborers, 85 N.Y.2d
at 26 (delineating different inquiry in case of claim of deceit by omission)).
Further, traditional showings of reliance and scienter are not required
under the act. Blue Cross and Blue Shield of New Jersey, Inc. v. Philip
Morris, Inc., 178 F. Supp. 2d 198, 231 (E.D.N.Y. 2001) (Weinstein, J.).
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- - - - - -
n11 As indicated by the statute's "expansive" language, section 349
was intended to be broadly applicable, extending far beyond the reach of
common law fraud. Blue Cross and Blue Shield of New Jersey, 178 F. Supp.
2d at 230-31 (upholding claim under section 349 that tobacco companies
engaged in scheme to distort public knowledge concerning risks of smoking);
Gaidon v. Guardian Life Ins. Co. of Am., 94 N.Y.2d 330, 343, 704 N.Y.S.2d
177, 182, 725 N.E.2d 598, 603 (1999) ("In contrast to common-law fraud,
General Business Law º 349 is a creature of statute based on broad
consumer-protection concerns."); Karlin v. IVF Am., Inc., 93 N.Y.2d 282,
291, 690 N.Y.S.2d 495, 498, 712 N.E.2d 662, 665 (1999) ("The reach of this
statute 'provides needed authority to cope with the numerous, ever-changing
types of false and deceptive business practices which plague consumers
in our State.'") (quoting N.Y. Dept. of Law, Mem. to Governor, 1963 N.Y.
Legis. Ann., at 105).
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- - - - - - [*30]
McDonalds argues that plaintiffs' claims under ºº 349 and
350 fail because (1) they are not plead with sufficient specificity, and
(2) acts or practices cannot be deceptive if the consuming public is already
aware of the "concealed" characteristics and therefore is not deceived.
McDonalds also argued for the first time in its reply papers that plaintiffs'
claims are pre-empted by federal law. Although raised last, the pre-emption
argument will be addressed first.
1. Federal Pre-Emption
McDonalds raises for the first time in its reply brief n12 an argument
that its compliance with (or rather, exemption from) the Federal Nutritional
Labeling and Education Act, 21 U.S.C. º 343(q), bars the plaintiffs'
contentions that McDonalds' failure to provide nutritional information
is deceptive. Defs.' Reply Mem. at 24. Section 343(q) requires labels with
specified nutritional values to be attached to all packaged food, but it
specifically exempts restaurants from this requirement. 21 U.S.C. º
343(q)(5)(A)(i) (labeling requirements "shall not apply to food which is
served in restaurants or other establishments in which food is served for
[*31] immediate human consumption or which is sold for sale or use in such
establishments"). McDonalds thus argues that if Congress determined that
restaurants should not have to label their food, McDonalds cannot be made
to do so indirectly, pursuant to a New York State statute.
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- - - - - -
n12 The argument will be addressed although raised tardily because the
plaintiffs had an opportunity to respond in their sur reply brief, because
the ºº 349 and 350 claims are to be dismissed on other grounds
in any case, and because it is held that the claims are not pre-empted.
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- - - - - -
State law that conflicts with federal law is without effect. Cipollone
v. Liggett Group, Inc., 505 U.S. 504, 516, 112 S. Ct. 2608, 2617, 120 L.
Ed. 2d 407 (1992) (citing Maryland v. Louisiana, 451 U.S. 725, 746, 101
S. Ct. 2114, 68 L. Ed. 2d 576 (1981)). However, "the historic police powers
of the States [are] not to be superseded by . . . Federal Act unless that
[is] the clear and manifest purpose of Congress." Id. (brackets [*32] in
original) (quoting Rice v. Santa Fe Elevator Corp., 331 U.S. 218, 230,
67 S. Ct. 1146, 1152, 91 L. Ed. 1447 (1947)).
Section 343-1, the NLEA's pre-emptive provision, provides that no state
may require nutrition labeling for food in interstate commerce that is
not identical to that prescribed by the NLEA. 21 U.S.C. º 343-1(a)(4);
see also Morelli v. Weider Nutrition Group, Inc., 275 A.D.2d 607, 607,
712 N.Y.S.2d 551 (1st Dep't 2000). This provision would seem to support
McDonalds' argument. However, subsection (4) of the pre-emptive provision
specifically permits states to require nutrition labeling of food that
is exempt under subclause (i) or (ii) of 21 U.S.C. º 343(q)(5)(A).
21 U.S.C. º 343-1(a)(4). As noted above, º 343(q)(5)(A)(i) is
the very provision on which McDonalds relies to state that it has "complied"
with federal regulations and that the State of New York cannot make it
do anything more.
Therefore, º 343-1(a)(4) does not expressly bar nutrition labeling
on restaurant foods either directly or, as plaintiffs seek to do in this
action based on a New York state [*33] statute, indirectly. A finding that
a lack of nutritional labeling on McDonalds' products violates ºº
349 and 350 therefore is explicitly not pre-empted by the NLEA. In fact,
in discussing its rules and regulations implementing the NLEA, the Food
and Drug Administration recognized that states could protect their consumers
in this manner. FDA, Food Labeling; General Requirements for Health Claims
for Food, 58 FR 2478, 2517, 1993 WL 1547 (1993) ("States remain free, however,
to ensure under their own consumer protection laws that menus do not provide
false or misleading information."). McDonalds' late-breaking arguments
are accordingly rejected.
2. Requirements of ºº 349 and 350
McDonalds argues that plaintiffs' claims under ºº 349 and
350 fail because (1) they are not plead with sufficient specificity, and
(2) acts or practices cannot be deceptive if the consuming public is already
aware of the "concealed" characteristics and therefore is not deceived.
A plaintiff must plead with specificity the allegedly deceptive acts
or practices that form the basis of a claim under the Consumer Protection
Act. E.g., Weaver v. Chrysler Corp., 172 F.R.D. 96, 100 (S.D.N.Y. 1997)
[*34] ("In pleading a claim under the Consumer Protection Act, a plaintiff
is required to set forth specific details regarding the allegedly deceptive
acts or practices."); Moses v. Citicorp Mortg. Inc., 982 F. Supp. 897,
903 (E.D.N.Y. 1997) ("Conclusory allegations have been held insufficient
to state a claim under section 349."); Grand Gen. Store, Inc. v. Royal
Indem. Co., 1994 U.S. Dist. LEXIS 5251, No. 93 Civ. 3741, 1994 WL 163973,
at *4 (S.D.N.Y. April 22, 1994) (discussing violation of Insurance Law
alleged to be deceptive practice under º 349). See also Small v. Lorillard
Tobacco Co., 252 A.D.2d 1, 9, 679 N.Y.S.2d 593, 600 (1st Dep't 1998) ("plaintiffs
do not point to any specific advertisement or public pronouncement").
For instance, one of the cases on which plaintiffs rely, Blue Cross
and Blue Shield of New Jersey, 178 F. Supp. 2d at 269-70, provides examples
of such specific statements. The case involved a claim under º 349
against cigarette manufacturers, alleging deceptive practices. In the 175-page
complaint, filed on April 29, 1998, the plaintiffs included a number of
specific allegations of deceptive acts and practices, including [*35] the
following:
. a statement that "no causal link between smoking and disease has been
established" (Blue Cross Complaint, P 112);
. a letter to a grade school principal stating that "scientists don't
know the cause or causes of the chronic diseases reported to be associated
with smoking" (Id., P 113);
. testimony under oath by a tobacco executive that he did not believe
that people die from smoking (Id., P 114);
. Congressional testimony by tobacco executives stating that tobacco
companies did not manipulate, add, control or restore nicotine during the
manufacturing process (Id., P 219);
. advertisements denying that tobacco companies believed cigarette smoking
was addictive (Id., P 220); and
. statements in newspaper advertisements that claimed "Phillip Morris
does not believe that cigarette smoking is addictive" (Id., P 221).
Many of the practices were found to have supported liability in the
opinion on which the plaintiffs rely. Blue Cross and Blue Shield of New
Jersey, 178 F. Supp. 2d at 269-70. Because such statements are necessarily
"consumer-oriented" and thus in the public domain, plaintiffs should be
able similarly [*36] to point to the specific statements that form the
basis of their claims pursuant to ºº 349 and 350.
a. ount I
In Count I, plaintiffs allege that McDonalds violated the act both by
commission (e.g., stating that its products were nutritious, encouraging
consumers to "supersize" their meals without disclosing the negative health
effects) and by omission (e.g., failing to provide nutritional information
for products).
i. Deceptive Acts
Because the Complaint does not identify a single instance of deceptive
acts, Count I shall be dismissed to the extent it alleges deceptive practices
of commission in violation of ºº 349 and 350.
Although the Court is limited to allegations in the Complaint for the
purposes of deciding this motion, Kramer, 937 F.2d at 773, it is worth
noting that, even in their opposition papers, the plaintiffs only cite
to two advertising campaigns ("McChicken Everyday!" and "Big N' Tasty Everyday")
and to a statement on the McDonalds' website that "McDonalds can be part
of any balanced diet and lifestyle." These are specific examples of practices,
act or advertisements and would survive a motion to dismiss based on lack
[*37] of specificity. Whether they would survive a motion to dismiss on
the substantive issue of whether such practices, act and advertisements
are deceptive is less clear. The two campaigns encouraging daily forays
to McDonalds and the statement regarding making McDonalds a part of a balanced
diet, if read together, may be seen as contradictory -- a balanced diet
likely does not permit eating at McDonalds everyday. n13 However, the advertisements
encouraging persons to eat at McDonalds "everyday!" do not include any
indication that doing so is part of a well-balanced diet, and the plaintiffs
fail to cite any advertisement where McDonalds asserts that its products
may be eaten for every meal of every day without any ill consequences.
Merely encouraging consumers to eat its products "everyday" is mere puffery,
n14 at most, in the absence of a claim that to do so will result in a specific
effect on health. n15 As a result, the claims likely would not be actionable
if alleged. See Cytyc Corp. v. Neuromedical Sys. Inc., 12 F. Supp. 2d 296,
301 (S.D.N.Y. 1998) ("the sort of subjective claims of product quality
at issue here are nonactionable"); Lipton v. Nature Co., 71 F.3d 464, 474
(2d Cir. 1995) [*38] (finding claim of "thorough" research to be "mere
puffery" and not actionable as false advertising under º 43(a) of
Lanham Act); Chevy's International, Inc. v. Sal de Enterprises, Inc., 697
F. Supp. 110, 112 (E.D.N.Y. 1988) ("that characterization, even if factually
incorrect, was standard industry puffing that does not rise to the level
of consumer deception").
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- - - - - -
n13 Of course, some people manage to eat at McDonalds everyday with
no apparent ill effects. Witness the well-publicized fact that a Wisconsin
man, Don Gorske, has eaten a Big Mac a day for approximately 30 years,
while maintaining his svelte 178-pound, six-foot frame and a modest cholesterol
level. E.g., "Man Eats His 18,000th Big Mac," available at www.click2houston.com/sh/news/stories/nat-news-105595720011106191107.html
(last visited Jan. 6, 2003) (reporting that Gorske set world record for
number of Big Macs eaten while maintaining modest cholesterol level of
155); "Deserving a Break - and Getting It Every Day," AFSCME website, available
at www.afscme.org/publications/public_employee/2002/pejf0221.htm (last
visited Jan. 6, 2003) (noting that Gorske has consumed more than 800 heads
of lettuce, 820 onions, 1,900 whole pickles, 563 pounds of cheese, 100
gallons of special sauce, 14 1/2 cattle, and 6.25 million sesame seeds,
but that he skips breakfast and dinner and only eats lunch of Big Mac,
fries and Coke). [*39]
n14 Puffery is defined as exaggerated general statements that make no
specific claims on which consumers could rely. E.g., Coastal Communs. Corp.
v. Adams/Laux Co., No. 96 Civ. 1369 (JSM), 1996 U.S. Dist. LEXIS 14081,
at *2-*3 (S.D.N.Y. Sept. 24, 1996) (citing Cook, Perkiss & Liehe v.
Northern California Collection Serv., 911 F.2d 242, 246 (9th Cir. 1990)).
n15 For example, one of McDonalds' competitors, SUBWAY Restaurants,
has engaged in just such a campaign, highlighting that it is the "healthier
alternative to fatty fast food." SUBWAY website, press release (Nov. 18,
1999), available at www.subway.com/society/public_rel/pcr_press/111899pr.htm
(last visited Jan. 6, 2003). Furthermore, it has hired as a spokesman Jared
S. Fogle and has widely publicized the results of Mr. Fogle's "SUBWAY diet."
Over the course of less than a year, Fogle went from 425 pounds to 190
pounds by eating his only meals from SUBWAY's low-fat menu. SUBWAY website,
"Jared's Statistics," available at www.subway.com/society/foj/jared_stats.stm
(last visited Jan. 6, 2003). Plaintiffs, however, have not referred the
Court to any similar advertisements by McDonalds.
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- - - - - - [*40]
On December 11, 2002, the Court accepted from plaintiffs a number of
documents concerning actions taken against McDonalds' advertising practices
in the late 1980's by the state attorneys general from several states,
including New York State. While any claim based on the advertisements at
issue likely would be time barred, Morelli v. Weider Nutrition Group, Inc.,
275 A.D.2d 607, 608, 712 N.Y.S.2d 551 (1st Dep't 2000) (three-year limitations
period for deceptive practices actions), a review of those advertisements
and the state attorney generals' analysis of them may assist plaintiffs
in shaping a claim under the Consumer Protection Act. For instance, by
letter dated April 24, 1987 (the "Abrams Letter"), Robert Abrams, the then-Attorney
General of the State of New York, addressed several specific allegedly
deceptive claims in McDonalds advertisements:
1. The advertisement discussing salt (sodium) content in foods says,
"Our sodium is down across the menu." (emphasis added) This is not true.
That same advertisement lists four products (regular fries, regular cheeseburger,
6-piece McNuggets, and vanilla milkshake), none of which have had their
sodium content lowered [*41] in the past year.
2. The advertisement touting the "real" milk in McDonald's shakes says
that they contain "Wholesome milk, natural sweeteners, a fluid ounce of
flavoring, and stabilizers for consistency. And that's all." In fact, that's
not really all. McDonald's own ingredient booklet shows that a typical
shake, such as vanilla or strawberry, actually contains artificial flavor
and sodium benzoate and sodium hexametaphosphate, two chemical preservatives.
This advertisements tells only part of the story.
3. The cholesterol advertisement emphasizes the relatively low (29 milligrams)
cholesterol content of the regular hamburger, but does not even mention
the saturated fat content, a fact much more relevant to those with cause
for concern about heart disease.
Abrams Letter, at 1-2.
ii. Deceptive Omissions
The second subset of Claim I focuses on McDonalds' failure to label
its foods with their nutritional content. Unlike above, the plaintiffs
clearly have outlined the allegedly deceptive practice: the fact that McDonalds
failed to post nutritional labeling on the products and at points of purchase.
However, because this is a purportedly deceptive act based on an [*42]
omission, it is not sufficient for the plaintiffs to point to the omission
alone. They must also show why the omission was deceptive -- a duty they
have shunned.
The New York Court of Appeals has addressed what º 349 requires
in a situation involving an allegedly deceptive omission. Oswego Laborers'
Local 214 Pension Fund v. Marine Midland Bank, 85 N.Y.2d 20, 25-26, 623
N.Y.S.2d 529, 532, 647 N.E.2d 741 (1995) (Kaye, C.J.) involved a claim
that defendant bank acted deceptively in not informing the plaintiff that
for-profit entities would not receive interest on accounts in excess of
$ 100,000. The Court reasoned that in a case involving omissions, "the
statute surely does not require businesses to ascertain consumers' individual
needs and guarantee that each consumer has all relevant information specific
to its situation." Id. It provided an exception, however, "where the business
alone possesses material information that is relevant to the consumer and
fails to provide this information." Id. It was thus held that the plaintiffs
had stated a cause of action, but that liability would turn on whether
the plaintiffs possessed, or could reasonably have obtained, [*43] the
information regarding interest on for-profit entities' accounts in excess
of $ 100,000. Id. at 27; see also Super Glue v. Avis Rent A Car Sys. Inc.,
159 A.D.2d 68, 71, 557 N.Y.S.2d 959, 961 (2d Dep't 1990) (rejecting claim
for deceptive practices based on Avis's failure to disseminate information
that its Collision Damage Waiver insurance duplicated the plaintiffs' own
automobile insurance because Avis had no duty to inform where the customer
with CDW coverage in place was in a far better position to ascertain the
relevant conditions and exclusions relating to his or her coverage than
Avis).
The plaintiffs fail to allege that the information with regard to the
nutritional content of McDonalds' products was solely within McDonalds'
possession or that a consumer could not reasonably obtain such information.
n16 It cannot be assumed that the nutritional content of McDonalds' products
and their usage was solely within the possession of McDonalds.
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- - - - - -
n16 Although the plaintiffs do not allege it as part of Count I or II,
the allegations contained in Count V -- that McDonalds serves addictive
products -- would present a closer question as to a deceptive omission
in violation of the Act, as such information is not available to the public.
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- - - - - - [*44]
b. Count II
Count II, which focuses on representations targeting children, fails
for the same reasons discussed above. The Complaint does not identify a
single specific advertisement, promotion or statement directed at infant
consumers, and Count II must be dismissed in the absence of such specificity.
As with the first subset of Count I, the plaintiffs have attempted to
point out potential specific acts in their opposition papers. They focus
on two specific promotions geared toward minors: (1) a plastic beef steak
figure named "Slugger," accompanied by a nutritional pamphlet encouraging
children to eat two servings a day in the meat group to "make it easier
to do things like climb higher and ride your bike farther," (Pls.' Mem.
at 48-49 n. 53) and (2) promotions of the "Mighty Kids Meal," a souped-up
Happy Meal, that equate eating the larger-portioned meal with being more
grown-up. With regard to the latter, plaintiffs still fail to identify
specific exhortations or promises associated with the Mightier Kids Meals,
and such bare allegations would also be dismissed for lack of specificity
were they included in an amended complaint. In any case, if plaintiffs
are only concerned [*45] about the appellation "Mightier Kids Meal," such
name is seemingly mere puffery, rather than any claim that children who
eat a "Mightier Kids Meal" will become mightier. The former is sufficiently
specific, were it included in the Complaint, to survive a motion to dismiss
for failure to state a claim with sufficient specificity. Of course, plaintiffs
would still have to set forth grounds to establish that the promotion was
deceptive and that they suffered some injury as a result of that particular
promotion.
The plaintiffs also raise for the first time in their opposition papers
an argument that McDonalds has acted duplicitously in claiming that it
is committed to providing nutritional information to its customers. This
argument also fails for lack of specificity; the plaintiffs do not cite
to a particular recent occasion n17 where McDonalds has stated such commitment.
Even if this allegation were to be included in the Complaint, its deceptive
nature is unclear. Plaintiffs admit that McDonalds has made its nutritional
information available online and do not contest that such information is
available upon request. Unless McDonalds has specifically promised to provide
nutritional information [*46] on all its products and at all points of
purchase, plaintiffs do not state a claim.
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- - - - - -
n17 As discussed above, plaintiffs have produced a number of documents
from the late 1980's concerning discussions between McDonalds and state
attorneys general, including the attorney general of the State of New York,
requiring the discontinuance of certain advertising practices. As also
discussed above, any cause of action based on such statements would likely
be barred by the statute of limitations. E.g., Morelli v. Weider Nutrition
Group, Inc., 275 A.D.2d 607, 608, 712 N.Y.S.2d 551 (1st Dep't 2000) (three-year
limitations period for deceptive practices actions). The same is true for
the advertisements plaintiffs cite to from McDonalds v. Steele, No. 1990-M-No.S724,
presented in the United Kingdom, Royal Courts of Justice. Pls.' Mem. at
7.
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- - - - - -
III. Counts III, IV and V: Negligence Claims
The plaintiffs' common law claims against McDonalds sound in negligence,
alleging that McDonalds was negligent [*47] in manufacturing and selling
its products and negligent in failing to warn consumers of the potential
hazards of eating its products. McDonalds argues that each of these claims
fail as a matter of law because (1) the attributes about which plaintiffs
complain were so well-known that McDonalds had no duty either to eliminate
such attributes or to warn plaintiffs about them, and (2) the plaintiffs
cannot establish proximate cause.
A. Count III: Inherently Dangerous Food
1. Whether McDonalds Had a Duty to Plaintiffs Because the Dangers Were
Not Within Common Knowledge
In addition to the allegations in the Complaint with regard to McDonalds'
duty, arguments raised for the first time in the papers on this motion
will be addressed.
a. Allegations Within the Complaint
Count III essentially alleges that McDonalds' products are inherently
dangerous because of the inclusion of high levels of cholesterol, fat,
salt and sugar. McDonalds argues that because the public is well aware
that hamburgers, fries and other fast food fare have such attributes, McDonalds
cannot be held liable. E.g., Olliver v. Heavenly Bagels, Inc., 189 Misc.2d
125, 127, 729 N.Y.S.2d 611, 613 (Sup. Ct. 2001) [*48] ("Where as here a
product by its very nature has a dangerous attribute, liability is imposed
only when the product has an attribute not reasonably contemplated by the
purchaser or is unreasonably dangerous for its intended use.") (quoting
Huppe v. Twenty-First Century Foods, 130 Misc.2d 736, 738, 497 N.Y.S.2d
306 (Sup. Ct. 1985) (citing Robinson v. Reed-Prentice Div. of Mach. Co.,
49 N.Y.2d 471, 479, 426 N.Y.S.2d 717, 720, 403 N.E.2d 440 (1980))).
McDonalds cites to the Restatement (Second) of Torts and claims that
because plaintiffs' claims hinge on injuries resulting from excessive consumption
of food, they face a high bar indeed:
Many products cannot possibly be made entirely safe for all consumption,
and any food or drug necessarily involves some risk of harm, if only from
over-consumption. Ordinary sugar is a deadly poison to some diabetics,
and castor oil found use under Mussolini as an instrument of torture. That
is not what is meant by "unreasonably dangerous" ... . The article sold
must be dangerous to an extent beyond that which would be contemplated
by the ordinary consumer who purchases it, with the ordinary knowledge
common to [*49] the community as to its characteristics. Good whiskey is
not unreasonably dangerous merely because it will make some people drunk,
and is especially dangerous to alcoholics; but bad whiskey, containing
a dangerous amount of fuel oil, is unreasonably dangerous. Good tobacco
is not unreasonably dangerous merely because the effects of smoking may
be harmful; but tobacco containing something like marijuana may be unreasonably
dangerous. n18 Good butter is not unreasonably dangerous merely because,
if such be the case, it deposits cholesterol in the arteries and leads
to heart attacks; but bad butter, contaminated with poisonous fish oil,
is unreasonably dangerous.
Restatement (2d) of Torts, º 402A, cmt. i. n19
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n18 McDonalds, when citing the above passage, did not quote the sentence
concerning "good tobacco." Likely this is because the authors of the Restatement,
writing in the 1960's, did not envision the successful tobacco litigation
and settlements of the 1990's. See Comment, Forcing Round Classes Into
Square Rules: Attempting Certification of Nicotine Addiction-as-Injury
Class Actions Under Federal Rule of Civil Procedure 23(b)(3), 29 U. Tol.
L. Rev. 699, 700-01 (Summer 1998) (discussing failure of tobacco litigation
from the 1950's until 1994 when new theory of addiction-as-injury emerged
based on "'decades-long industry effort to conduct, control, and ultimately
suppress' the results of the industry's extensive research into tobacco's
addiction potential and the industry's ultimately exploitation of this
potential") (citation omitted); Jon D. Hanson & Kyle D. Logue, The
Costs of Cigarettes: The Economic Case for Ex Post Incentive Based Regulation,
107 Yale L.J. 1163, 1169-71 (March 1998) (discussing unsuccessful waves
of litigation up until recently and that recent cases -- as a result, inter
alia, of revelations that tobacco companies knew cigarettes were addictive
and manipulated the addictiveness through controlling nicotine levels --
"pose a considerable threat to the cigarette industry"); see also, e.g.,
Burton v. R.J. Reynolds Tobacco Co., 205 F. Supp. 2d 1253, 1254-55 (D.
Kan. 2002) (noting jury verdict in favor of plaintiff's claims on failure
to warn, negligent testing and research and fraudulent concealment based
on assertions that defendant cigarette manufacturer caused his peripheral
vascular disease and addiction).
This lack of foresight suggests that perhaps the Restatement's vision
concerning over-consumption may be rendered obsolete. Seemingly "good"
products may be manipulated such that they are more akin to fuel-oil contaminated
whiskey and marijuana- laced cigarettes. [*50]
n19 Relevant to Count IV, it also stated that "a seller is not required
to warn with respect to products, or ingredients in them, which are only
dangerous, or potentially so, when consumed in excessive quantity, or over
a long period of time, when the danger, or potentiality of danger, is generally
known and recognized." Id., º 402A, cmt. j; see also Plummer v. Lederle
Labs., 819 F.2d 349, 356 n.4 (2d Cir. 1987).
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When asked at oral argument to distinguish this case from those cases
involving injuries purportedly caused by asbestos exposure, counsel for
the defendants stated that in this case, the dangers complained of have
been well-known for some time, while the dangers of asbestos did not became
apparent until years after exposure. The Restatement provision cited above
confirms this analysis, recognizing that the dangers of over-consumption
of items such as alcoholic beverages, or typically high-in-fat foods such
as butter, are well-known. Thus any liability based on over-consumption
is doomed if the consequences of such over-consumption are common knowledge.
It is worth [*51] noting, however, that the Restatement provision cited
above included tobacco as an example of products such as whiskey and butter,
the unhealthy over-consumption of which could not lead to liability. As
the successful tobacco class action litigation and settlements have shown,
however, the fact that excessive smoking was known to lead to health problems
did not vitiate liability when, for instance, tobacco companies had intentionally
altered the nicotine levels of cigarettes to induce addiction. E.g., Burton
v. R.J. Reynolds Tobacco Co., 205 F. Supp. 2d 1253, 1254-55 (D. Kan. 2002)
(noting jury verdict in favor of plaintiff's claims on failure to warn,
negligent testing and research and fraudulent concealment based on assertions
that defendant cigarette manufacturer caused his peripheral vascular disease
and addiction).
Thus, in order to state a claim, the Complaint must allege either that
the attributes of McDonalds products are so extraordinarily unhealthy that
they are outside the reasonable contemplation of the consuming public or
that the products are so extraordinarily unhealthy as to be dangerous in
their intended use. The Complaint -- which merely alleges [*52] that the
foods contain high levels of cholesterol, fat, salt and sugar, and that
the foods are therefore unhealthy -- fails to reach this bar. It is well-known
that fast food in general, and McDonalds' products in particular, contain
high levels of cholesterol, fat, salt, and sugar, and that such attributes
are bad for one. n20
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n20 E.g., John DeMers, "Fat Chance - Fast-food diet increases odds of
obesity," Houston Chron. at 1, 2001 WL 23635886 (Sept. 27, 2001) ("The
more fast food there was in America, the fatter America became. And the
more likely a segment of the population was to devour fast food regularly,
the more it became fatter than any other segment. Though we are ultimately
responsible for what we eat, fast food was 'making' us fat."); Caroline
Foulkes, "Food & drink - Can't do the cooking? Burger it." Birmingham
Post, at P46 (9/21/02) ("Doctors have been warning us of the dangers of
eating too much fast food since burger outlets first became popular in
Britain in the 1960's. But their advice has gone unheeded."); Mark Kaufman,
Washington Post, Wed. Oct. 16, 2002 ("The fast-food industry generally
argues that its products are a healthful part of a balanced diet, but critics
say that heavy advertising of high-calorie fried foods encourages people
to eat unwisely."); Barbara F. Meltz, "Just Say 'Phooey' to the Food/Fun
Link," Boston Globe, at H6 (11/14/02), 2002 WL 101983569 ("If children
eat fast food once a week, it likely will not contribute to a health problem;
if they eat it three or more times a week, it might.").
Of course, there are competing claims that cholesterol, fat, salt and
sugar may not be so bad after all. E.g., Gary Taube, What If It's All Been
a Big Fat Lie?, New York Times Magazine (July 7, 2002) (arguing that the
high-fat Atkins Diet is more successful than low-fat, high-carbohydrate
diets), available at www.nytimes.com/2002/07/07/magazine/07FAT.html (last
visited Jan. 6, 2003). But see Bonnie Liebman, Big Fat Lies: The Truth
About the Atkins Diet, Nutrition Action Health Letter 1 (November 2002)
(providing point-by-point refutation of Taube's claims).
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This rule makes sense in light of the policy issues discussed at the
outset of this opinion. If a person knows or should know that eating copious
orders of supersized McDonalds' products is unhealthy and may result in
weight gain (and its concomitant problems) because of the high levels of
cholesterol, fat, salt and sugar, it is not the place of the law to protect
them from their own excesses. Nobody is forced to eat at McDonalds. (Except,
perhaps, parents of small children who desire McDonalds' food, toy promotions
or playgrounds and demand their parents' accompaniment. n21) Even more
pertinent, nobody is forced to supersize their meal or choose less healthy
options on the menu.
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n21 See Testimony of Juliet Gellatley, in McDonalds v. Steele (cited
in Pls.' Mem. at 47-48) ("Some younger children openly admitted that they
pester their parents to take them to McDonalds, even if the parent is not
keen.").
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As long as a consumer exercises free choice with appropriate knowledge,
liability for negligence will [*54] not attach to a manufacturer. It is
only when that free choice becomes but a chimera -- for instance, by the
masking of information necessary to make the choice, such as the knowledge
that eating McDonalds with a certain frequency would irrefragably cause
harm -- that manufacturers should be held accountable. Plaintiffs have
failed to allege in the Complaint that their decisions to eat at McDonalds
several times a week were anything but a choice freely made and which now
may not be pinned on McDonalds.
b. Allegations Outside the Complaint
In an attempt to save their common law causes of action, plaintiffs
raise four arguments that are not alleged in the Complaint to show that
McDonalds has a duty toward plaintiffs: (1) McDonalds' products have been
processed to the point where they have become completely different and
more dangerous than the run-of-the-mill products they resemble and than
a reasonable consumer would expect; (2) plaintiffs have an allergic sensitivity
to McDonalds' products; (3) McDonalds should know that consumers would
misuse products (presumably by eating in larger quantities or at greater
frequencies than is healthy); and (4) policy arguments based upon [*55]
the Nutrition Labeling and Education Act. While the Court may only consider
allegations in the Complaint for the purposes of this motion, Kramer, 937
F.2d at 773, these arguments are important in determining whether the plaintiffs
should have the right to amend their complaint, as they point to potentially
viable claims, and thus will briefly be addressed.
i. Plaintiffs' Claim that McDonalds' Products Are More Dangerous Than
the Average Hamburger, Fries and Shake
For the first time in their opposition papers, the plaintiffs attempt
to show that over-consumption of McDonalds is different in kind from, for
instance, over-consumption of alcoholic beverages or butter because the
processing of McDonalds' food has created an entirely different -- and
more dangerous -- food than one would expect from a hamburger, chicken
finger or french fry cooked at home or at any restaurant other than McDonalds.
They thus argue that McDonalds' food is "dangerous to an extent beyond
that which would be contemplated by the ordinary consumer who purchases
it, with the ordinary knowledge common to the community as to its characteristics."
Restatement (Second) Torts º 402A, cmt. i. [*56] If true, consumers
who eat at McDonalds have not been given a free choice, and thus liability
may attach.
The argument is akin to one that might be used in a products liability
case regarding genetically engineered food, n22 should any injuries result
from the excessive consumption thereof. The genetically modified soybean,
potato and ear of corn n23 look exactly like the organically grown soybean,
spud and corn. Yet those plants have been substantively, if subtly, modified
into something else. Any dangers from eating a genetically modified plant
are latent -- and thus not commonly well known -- in the absence of a label
revealing that the object that looks like a soybean is actually a soybean
carrying a brazil nut protein. n24
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n22 Genetic engineering is the process by which scientists make modifications
of the deoxyribonucleic acid (DNA) of an organism by uniting it with plant
or animal genes with particular traits. Heather N. Ellison, Genetically
Modified Organisms: Does the Current Regulatory System Compromise Consumer
Health?, 10 Penn. St. Envtl. L. Rev. 345, 346 (Summer 2002). Recombinant
DNA (rDNA) techniques permit a scientist to identify and copy a specific
gene and introduce the gene copies into recipient organisms, such as a
food crop. Id.; see also Lara Beth Winn, Special Labeling Requirements
for Genetically Engineered Food: How Sound Are the Analytical Frameworks
Used by FDA and Food Producers?, 54 Food & Drug L.J. 667, 668 (1999).
This is done to introduce attributes of the transferor organism into the
transferee organism. Id. Genetic engineering has resulted, for example,
in a tomato that delays softening, an insect-protected potato and a virus-resistant
squash. Jeffrey K. Francer, Frankenstein Foods or Flavor Savers?: Regulating
Agricultural Biotechnology in the United States and European Union, 7 Va.
J. Soc. Pol'y & L. 257, 262 (Winter 2000). In the year 2000, genetically
modified seeds supplied approximately 38 percent of the United States corn
crop, 57 percent of the soybean crop and 70 percent of the canola crop.
Kelly A. Leggio, Limitations on the Consumer's Right to Know: Settling
the Debate Over Labeling of Genetically Modified Foods in the United States,
38 San Diego L. Rev. 893, 905 (Summer 2001). Although genetic engineering
thus far has apparently only been beneficial, there are concerns that genetically
modified foods could have far-reaching health effects that have not been
accounted for, such as causing allergic reactions and creating antibiotic
resistance in consumers. Francer, supra, at 292-294; Leggio, supra, at
903. [*57]
n23 Although not relevant to this case, it is worthwhile to note that
McDonalds has had experience with the fear of genetically modified foods.
In the fall of 1999, protesters dumped manure and rotting vegetables outside
of McDonalds restaurants in France, accusing McDonalds of contaminating
their food with genetically modified crops. Francer, supra, at 258. In
light of the protests, British McDonalds removed genetically modified foods
from the menu that year, id., and in the United States in the spring of
2000, McDonalds informed its french fry suppliers that it would no longer
purchase frozen french fries made from genetically engineered potatoes,
in response to the consumer backlash in Europe. Schlosser, supra, at 269.
n24 Pioneer Hi-Bred International, an Iowa agricultural life sciences
company, added a Brazil-nut protein to soybeans in order to enhance the
soybean's growing power. While completing safety testing, researchers discovered
that the soybean also retained the Brazil nut's human allergenic traits.
Although the soybeans were intended only for use as animal feed, the product
was not marketed due to fears of human consumption. Francer, supra, at
292.
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Similarly, plaintiffs argue that McDonalds' products have been so altered
that their unhealthy attributes are now outside the ken of the average
reasonable consumer. They point to McDonalds' ingredient lists to show
that McDonalds' customers worldwide are getting much more than what is
commonly considered to be a chicken finger, a hamburger, or a french fry.
Schlosser, supra, at 7 ("Foods that may look familiar have in fact been
completely reformulated.").
For instance, Chicken McNuggets, rather than being merely chicken fried
in a pan, are a McFrankenstein creation of various elements not utilized
by the home cook. A Chicken McNugget is comprised of, in addition to chicken:
water, salt, modified corn starch, sodium phosphates, chicken broth
powder (chicken broth, salt and natural flavoring (chicken source)), seasoning
(vegetable oil, extracts of rosemary, mono, di- and triglycerides, lecithin).
Battered and breaded with water, enriched bleached wheat flour (niacin,
iron, thiamine, mononitrate, riboflavin, folic acid), yellow corn flour,
bleached wheat flour, modified corn starch, salt, leavening (baking soda,
sodium acid pyrophosphate, sodium aluminum phosphate, monocalcium [*59]
phosphate, calcium lactate), spices, wheat starch, dried whey, corn starch.
Batter set in vegetable shortening. Cooked in partially hydrogenated vegetable
oils, (may contain partially hydrogenated soybean oil and/or partially
hydrogenated corn oil and/or partially hydrogenated canola oil and/or cottonseed
oil and/or corn oil). TBHQ and citric acid added to help preserve freshness.
Dimethylpolysiloxane added as an anti-foaming agent.
Pls.' Mem. at 23 (citing McDonalds ingredient list). In addition, Chicken
McNuggets, while seemingly a healthier option than McDonalds hamburgers
because they have "chicken" in their names, actually contain twice the
fat per ounce as a hamburger. Schlosser, supra, at 140. It is at least
a question of fact as to whether a reasonable consumer would know -- without
recourse to the McDonalds' website -- that a Chicken McNugget contained
so many ingredients other than chicken and provided twice the fat of a
hamburger.
Similarly, it is hardly common knowledge that McDonalds' french fries
are comprised, in addition to potatoes, of:
partially hydrogenated soybean oil, natural flavor (beef source), dextrose,
sodium acid pyrophosphate (to [*60] preserve natural color). Cooked in
partially hydrogenated vegetable oils, (may contain partially hydrogenated
soybean oil and/or partially hydrogenated corn oil and/or partially hydrogenated
canola oil and/or cottonseed oil and/or corn oil). TBHQ and citric acid
added to preserve freshness. Dimethylpolysiloxane added as an anti-foaming
agent. n25
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n25 Indeed, the taste of McDonalds fries depends largely on what is
added to the fries -- the cooking oil in which they are fried. As Schlosser
reports:
Their distinctive taste does not stem from the type of potatoes that
McDonalds buys, the technology that processes them, the restaurant equipment
that fries them. Other chains buy their french fries from the same large
processing companies, use Russet Burbanks, and have similar fryers in their
restaurant kitchens. The taste of a fast food fry is largely determined
by the cooking oil. For decades [until 1990], McDonalds cooked its french
fries in a mixture of about 7 percent cottonseed oil and 93 percent beef
tallow. The mix gave the fries their unique flavor -- and more saturated
beef fat per ounce than a McDonalds hamburger.
Schlosser, supra, at 120.
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This argument comes closest to overcoming the hurdle presented to plaintiffs.
If plaintiffs were able to flesh out this argument in an amended complaint,
it may establish that the dangers of McDonalds' products were not commonly
well known and thus that McDonalds had a duty toward its customers. The
argument also addresses McDonalds' list of horribles, i.e., that a successful
lawsuit would mean that "pizza parlors, neighborhood diners, bakeries,
grocery stores, and literally anyone else in the food business (including
mothers cooking at home)" (Defs.' Mem. at 3), could potentially face liability.
Most of the above entities do not serve food that is processed to the extent
that McDonalds' products are processed, nor food that is uniform to the
extent that McDonalds' products are throughout the world. Rather, they
serve plain-jane hamburgers, fries and shakes -- meals that are high in
cholesterol, fat, salt and sugar, but about which there are no additional
processes that could be alleged to make the products even more dangerous.
In addition, there is the problem of causation; hardly any of the entities
listed above other than a parent cooking at home serves as many people
regularly [*62] as McDonalds and its ilk. n26
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n26 McDonalds claims to have served "over 99 billion," and each day
services approximately 46 million customers. Pl.'s Mem. at 2. McDonalds,
with approximately 13,000 outlets in the United States, has a 43 percent
share of the United States fast food market. Id.
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In response to this argument, McDonalds claims that, even if true, it
is also a matter of common knowledge that any processing that its foods
undergo serve to make them more harmful than unprocessed foods. Defs.'
Reply Mem. at 12-13. It is premature to speculate as to whether this argument
will be successful as a matter of law if the plaintiffs amend their complaint
to include these allegations, as neither argument has been more than cursorily
presented to the Court and certainly is not properly before it. McDonalds'
argument is insufficient, however, to convince this Court that the plaintiffs
should not have the opportunity to amend their complaint to include these
allegations.
ii. Allergic Sensitivity
Plaintiffs [*63] also argue in their papers, less successfully, that
McDonalds has a duty to plaintiffs because they have an "allergic sensitivity"
to McDonalds fare. E.g., Restatement (Third) Torts: Product Liability,
º 2 (1998).
To state such a claim, however, "the ingredient that causes the allergic
reaction must be one whose danger or whose presence in the product is not
generally known to consumers. When both the presence of an allergenic ingredient
in the product and the risks presented by such an ingredient are widely
known, instructions and warnings about that danger are unnecessary." Id.;
see also Kaempfe v. Lehn & Fink Prods. Corp., 21 A.D.2d 197, 200-01,
249 N.Y.S.2d 840, 845 (1st Dep't 1964) (holding that existence of duty
depends upon manufacturer's actual or constructive knowledge that product
contains ingredient to which substantial number of population is allergic)
(citing Tentative Draft No. 7 of Restatement (Second) Torts).
As noted above, there are no allegations in the Complaint with regard
to this claim. Plaintiffs have not alleged that cholesterol, fat, salt
and sugar -- or any other ingredients in McDonalds products -- are "allergens,"
nor have [*64] they made the case that the existence and effects of such
ingredients are unknown to the public at large. In the absence of such
allegations, the theory fails.
iii. Foreseeable Misuse
Plaintiffs also attempt to ground a duty in a claim that eating McDonalds
with high frequency is a "misuse" of the product of which McDonalds is
aware. Again, such allegation was not in the Complaint, and, in any case,
plaintiffs fail to allege even in their papers that what is at issue is
a misuse "in the sense that it was outside the scope of the apparent purpose
for which the [products] were manufactured." Trivino v. Jamesway Corp.,
148 A.D.2d 851, 852, 539, 539 N.Y.S.2d 123 (3rd Dep't 1989). McDonalds'
products were manufactured for the purpose of being eaten, and the injuries
complained purportedly resulted from the eating of those products. Plaintiffs
cite no case law to support the contention that over-consumption of a food
product may be considered a misuse. If they amend their complaint to include
an allegation based on misuse, they had better be prepared to do so.
A better argument based on over-consumption would involve a claim that
McDonalds' products are unreasonably [*65] dangerous for their intended
use. The intended use of McDonalds' food is to be eaten, at some frequency
that presents a question of fact. If plaintiffs can allege that McDonalds
products' intended use is to be eaten for every meal of every day, and
that McDonalds is or should be aware that eating McDonalds' products for
every meal of every day is unreasonably dangerous, they may be able to
state a claim.
iv. The NLEA
Plaintiffs finally attempt to rely on the NLEA, arguing that any finding
that McDonalds does not have to label its foods would mean that the NLEA
is not worth the paper it is written upon. Plaintiffs' bizarre argument
confuses the instant case -- a common law negligence and state statutory
cause of action -- with any enforcement proceedings by the federal government
to ensure that those covered by the NLEA (from which McDonalds and other
restaurants are exempt, as discussed above) have the nutritional labeling
required by the act. Any determination in this case has nothing to do with
whether Haagen-Daaz must include a label as to the nutritional contents
of a pint of ice cream. Plaintiffs might just as well argue that this case
will affect the labeling of tea [*66] in China.
Because Count III has failed to state a claim, it is dismissed.
2. Proximate Cause
McDonalds also argues that Count III should be dismissed because the
plaintiffs may not as a matter of law allege that the unhealthy attributes
of McDonalds' products were the proximate cause of their obesity and other
health problems. n27
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n27 As an initial matter, plaintiffs object that McDonalds' arguments
as to duty and proximate cause are contradictory and self-serving. They
argue that McDonalds cannot, on one hand, state that it is obvious that
eating McDonalds' food will cause the injuries complained of, and then
argue that plaintiffs have failed to demonstrate that eating McDonalds'
food is the proximate cause of their injuries. McDonalds' point, however,
is not that the plaintiffs became obese necessarily for some reason other
than their diet of foods high in cholesterol, fat, salt and sugar, but
that it is impossible as a matter of law to blame one restaurant chain
-- even one responsible for up to seven meals a week of a plaintiff --
when the plaintiffs were eating other foods (perhaps from other restaurants),
were engaged in a lifestyle that may or may not have included an appropriate
physical regimen, and when their weights were potentially influenced by
a host of other factors, such as heredity, the environment, society, etc.
Plaintiffs must get over this hurdle to survive a motion to dismiss, and,
as discussed infra, the Complaint fails to do so.
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In order to show proximate cause, a plaintiff must establish that the
defendant's conduct was a substantial cause in bringing about the harm.
Elsroth v. Johnson & Johnson, 700 F. Supp. 151, 166 (S.D.N.Y. 1988)
(citing Derdiarian v. Felix Contracting Corp., 51 N.Y.2d 308, 316, 434
N.Y.S.2d 166, 169, 414 N.E.2d 666 (1980)); see also Restatement (2d) of
Torts º 431 (1965). "The word 'substantial' is used to denote the
fact that the defendant's conduct has such an effect in producing the harm
as to lead reasonable [persons] to regard it as a cause, using that word
in the popular sense, in which there always lurks the idea of responsibility,
rather than in the so-called 'philosophic sense,' which includes every
one of the great number of events without which any happening would not
have occurred." Restatement (Second) Torts º 431, cmt. a.
Several factors are considered, including "the aggregate number of actors
involved which contribute towards the harm and the effect which each has
in producing it," and "whether the situation was acted upon by other forces
for which the defendant is not responsible." Transamerica Ins. Fin. Corp.
v. Fireman's Fund Ins. Co., No. 89 Civ. 8625 (PNL), 1992 WL 350800, [*68]
at *9 (S.D.N.Y. Nov. 19, 1992) (quoting Mack v. Altmans Stage Lighting
Co., 98 A.D.2d 468, 470-71, 470 N.Y.S.2d 664, 667 (2d Dep't 1984) (citing
Restatement (Second) of Torts º 433)); see also Elsroth, 700 F. Supp.
at 166 ("We are particularly mindful of Professor Prosser's observation
that 'no case has been found where the defendant's act could be called
a substantial factor when the event would have occurred without it.'")
(quoting W. Prosser, Handbook of the Law of Torts], º 41 at 240 (4th
ed. 1971) (applying New York law)).
The issue of proximate cause may be determined as a matter of law where
no reasonable person could find causation based on the facts alleged in
the complaint. E.g., Smith v. Stark, 67 N.Y.2d 693, 694, 499 N.Y.S.2d 922,
923, 490 N.E.2d 841 (1986) (granting summary judgment where there was no
causation as matter of law in duty to warn context); Howard v. Poseidon
Pools, Inc., 72 N.Y.2d 972, 974, 534 N.Y.S.2d 360, 361, 530 N.E.2d 1280
(1988) (noting that question of legal cause may be decided as a matter
of law where only one conclusion may be drawn from the established facts).
[*69]
No reasonable person could find probable cause based on the facts in
the Complaint without resorting to "wild speculation." Price v. Hampson,
142 A.D.2d 974, 975-76, 530 N.Y.S.2d 392, 394 (4th Dep't 1988) (ruling
on causation as matter of law as jury could find causation only by engaging
in "wild speculation").
First, the Complaint does not specify how often the plaintiffs ate at
McDonalds. n28 The class action proposed by plaintiffs could consist entirely
of persons who ate at McDonalds on one occasion. As a result, any number
of other factors then potentially could have affected the plaintiffs' weight
and health. In order to survive a motion to dismiss, the Complaint at a
minimum must establish that the plaintiffs ate at McDonalds on a sufficient
number of occasions such that a question of fact is raised as to whether
McDonalds' products played a significant role in the plaintiffs' health
problems. While the assignment of such a frequency is beyond the competency
of this Court at this time, it seems like the frequency must be more than
once per week -- a figure cited by plaintiffs' counsel in oral argument
as a potentially not unhealthy figure. n29 Naturally, the [*70] more often
a plaintiff had eaten at McDonalds, the stronger the likelihood that it
was the McDonalds' food (as opposed to other foods) that affected the plaintiffs'
health.
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n28 Plaintiffs have attached affidavits to their opposition papers to
respond to this issue. E.g., J. Bradley Aff. at P 4 ("While on my way to
school and during school lunch breaks, I mostly ate at McDonalds restaurants.");
N. Bradley Aff. at P 5 ("I go to McDonalds once a day for breakfast for
the eggs and sausages and muffins, and I also go for lunch."); S. Bradley
Aff. at P 5 ("While on my way to school and during school lunch breaks,
I mostly ate at McDonalds restaurants."); A. Pelman Aff. at P 6 ("Between
the ages of five and twelve[,] I used to go to McDonalds approximately
three to four times a week."); W. Sgaglione Aff. at P 6 ("Between the ages
of three and twelve[,] I ate at McDonalds three to four times a week.").
n29 Counsel was referring to advertisements run by McDonalds restaurants
in France stating that children should eat at McDonalds at most only once
a week. E.g., McD refutes own French ads, Nation's Restaurant News 3, 2002
WL 102510885 (Nov. 11, 2002) ("The ad, from a campaign in France that promoted
McDonald's meals as a part of a balanced weekly diet, quoted a nutritionist
as saying "there's no reason to abuse fast food or visit a McDonald's more
than once a week . . . .'"); see also Barbara F. Meltz, "Just Say 'Phooey'
to the Food/Fun Link," Boston Globe, at H6 (11/14/02), 2002 WL 101983569
("If children eat fast food once a week, it likely will not contribute
to a health problem; if they eat it three or more times a week, it might.").
McDonalds Corp. issued a statement on October 30, 2002, that the company
"strongly disagreed" with the nutritionist's advice. Restaurant News, at
3.
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Second, McDonalds points out that articles on which plaintiffs rely
in their Complaint suggest that a number of factors other than diet may
come into play in obesity and the health problems of which plaintiffs complain.
E.g., National Institutes of Health, Clinical Guidelines on the Identification,
Evaluation, and Treatment of Overweight and Obesity in Adults, at xi, 27
(1998) (cited in Compl. at 5-6 nn. 6, 8, 13, 14) ("Obesity is a complex
multifactoral chronic disease developing from interactive influences of
numerous factors -- social behavioral, physiological, metabolic, cellular,
and molecular" in addition to cultural and genetic factors); The Surgeon
General's Call to Action to Prevent and Decrease Overweight and Obesity,
at 1 (2001) (citing in Compl. at 4-7, nn. 3, 4, 9, 15, 16) ("Overweight
and obesity are caused by many factors. For each individual, body weight
is determined by a combination of genetic metabolic, behavioral, environmental,
cultural, and socioeconomic influences.").
As a result, in order to allege that McDonalds' products were a significant
factor in the plaintiffs' obesity and health problems, the Complaint must
address these other variables [*72] and, if possible, eliminate them or
show that a McDiet is a substantial factor despite these other variables.
Similarly, with regard to the plaintiffs' health problems that they claim
resulted from their obesity (which they allege resulted from their McDonalds
habits), it would be necessary to allege that such diseases were not merely
hereditary or caused by environmental or other factors. n30
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n30 Because of the possibility of the myriad factors involved in alleging
proximate cause, plaintiffs may well be unable to justify class certification.
A plaintiff seeking class certification bears the burden of demonstrating
that the class satisfies the prerequisites of Rule 23(a) of the Federal
Rules of Civil Procedure: (1) numerosity, (2) commonality, (3) typicality,
and (4) adequacy of representation. E.g., Marisol A. v. Guiliani, 136 F.3d
372, 375 (2d Cir. 1997). Additionally, a plaintiff must demonstrate that
the proposed class action fits within one of the three categories described
Fed. R. Civ. P. 23(b). E.g., Green v. Wolf Corp., 406 F.2d 291, 298 (2d
Cir. 1968). It is difficult to imagine how the typicality requirement would
be satisfied, as any named plaintiff's injuries would necessarily be a
product of the particular variables surrounding the plaintiff, whether
social, environmental or genetic. In addition, it is unclear if plaintiffs
can meet their obligation of showing that the case is manageable as a class
action. E.g., The National Asbestos Workers Med. Fund v. Philip Morris,
Inc., No. 98 Civ. 1492, 2000 U.S. Dist. LEXIS 13562, at *5 (E.D.N.Y. Sept.
20, 2000) (citing Amchem Prods., 521 U.S. at 616, 138 L. Ed. 2d 689, 117
S. Ct. 2231 (finding "difficulties likely to be encountered in the management
of a class action" pertinent to Rule 23(b)(3) analysis); Blyden v. Mancusi,
186 F.3d 252, 271 (2d Cir. 1999) (evaluating the "management issue")).
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Because the Complaint fails to allege that the danger of the McDonalds'
products were not well-known and fails to allege with sufficient specificity
that the McDonalds' products were a proximate cause of the plaintiffs'
obesity and health problems, Count III shall be dismissed.
B. Count IV: Failure to Warn of Unhealthy Attributes
Count IV alleges a failure to warn of the unhealthy attributes of McDonalds'
products. While the cause of action differs from Count III, McDonalds'
arguments that this claim fails because the dangers of its fare were well-known
and that plaintiffs have failed to show proximate cause are nonetheless
applicable.
In Liriano v. Hobart Corp., 92 N.Y.2d 232, 677 N.Y.S.2d 764, 700 N.E.2d
303 (1998), the New York Court of Appeals summarized the current State
of New York law with regard to a manufacturer's liability for failure to
warn in a products liability case:
A manufacturer has a duty to warn against latent dangers resulting from
foreseeable uses of its product of which it knew or should have known.
A manufacturer also has a duty to warn of the danger of unintended uses
of a product provided these uses are reasonably foreseeable [*74] ... .
[A] manufacturer may be liable for failing to warn against the dangers
of foreseeable misuse of the product ... . A manufacturer's superior position
to garner information and its corresponding duty to warn is no less with
respect to the ability to learn of ... misuse of a product ... ."
Id. at 237-41, 677 N.Y.S.2d 764, 700 N.E.2d 303.
The standard for evaluating failure to warn liability is "intensely
fact-specific, including but not limited to such issues as feasibility
and difficulty of issuing warnings in the circumstances . . .; obviousness
of the risk from actual use of the product; knowledge of the particular
product user; and proximate cause." Id. at 243, 677 N.Y.S.2d 764, 700 N.E.2d
303. The factual determination of whether an adequate warning was given
is "often interwoven with the question of whether the defendant manufacturer
has a duty to warn, and if so, to whom that duty is owed." Cooley v. Carter-Wallace,
Inc., 102 A.D.2d 642, 644, 478 N.Y.S.2d 375, 376 (4th Dep't 1984).
In duty to warn cases, New York recognizes two circumstances that would
preclude a finding of proximate cause: (1) obviousness and [*75] (2) the
knowledgeable user. Andrulonis v. United States, 924 F.2d 1210, 1222 (2d
Cir.), vacated502 U.S. 801, 112 S. Ct. 39, 116 L. Ed. 2d 18, and reinstated,
952 F.2d 652 (2d Cir. 1991). McDonalds alleges only the former. n31
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n31 While the plaintiffs argue in opposition to this motion that they,
as infants, cannot be "knowledgeable users," (Pls.' Mem. at 25), McDonalds
relies only on the objective open and obvious defense to support its motion.
Therefore, plaintiffs' knowledgeable users arguments will not be addressed.
The confusion of the two concepts would appear to explain some of the
arguments between the parties as to whether an objective or subjective
standard should be considered. Pursuant to the "knowledgeable user" defense,
proximate cause cannot be found where the plaintiff is a knowledgeable
user who is actually aware of the dangerous nature of the product supplied.
E.g., Andrulonis v. United States, 924 F.2d 1210, 1222 (2d Cir.), vacated502
U.S. 801, 112 S. Ct. 39, 116 L. Ed. 2d 18, and reinstated, 952 F.2d 652
(2d Cir. 1991); In re New York Asbestos Litig., 847 F. Supp. 1086, 1106
(S.D.N.Y. 1994); Belling v. Haugh's Pools Ltd., 126 A.D.2d 958, 511 N.Y.S.2d
732, 733 (App. Div. 1987). The "knowledgeable user" defense thus employs
a subjective standard, Andrulonis, 924 F.2d at 1222, while the "open and
obvious" defense employs an objective standard. Tompkins V. R.J. Reynolds
Tobacco Co., 92 F. Supp. 2d 70, 87 (N.D.N.Y. 2000); see also Kerr v. Koemm,
557 F. Supp. 283, 286-87 (S.D.N.Y. 1983) (distinguishing "obvious danger"
exception from "knowledgable user" exception and explaining that the latter
requires proof of subjective knowledge).
To the extent that plaintiffs are in fact arguing that the "open and
obvious" danger exception should take into consideration the infant plaintiffs'
ages and maturity, they have failed to cite case law in support of this
proposition. By contrast, McDonalds cites several cases involving underage
alcohol consumption that hold that minors should be held accountable for
the same body of common knowledge of risks posed by alcohol consumption.
E.g., Robinson v. Anheuser-Busch, Inc., No. 00-D-300-N, slip op., at 6-7
(M.D. Ala. 2000) ("a minor's age does not neutralize any common knowledge
about the dangers of alcohol consumption").
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- - - - - - [*76]
Pursuant to the "open and obvious" exception, a manufacturer may not
be liable for a failure to warn if the risks were sufficiently obvious
to the user without a warning. Andrulonis v. United States, 924 F.2d 1210,
1222 (2d Cir. 1991) ("The focus of the 'obviousness' inquiry is upon the
objective reasonableness of the supplier's judgment about whether users
will perceive the danger. . . . The danger must be so apparent or so clearly
within common knowledge that a user would appreciate the danger to the
same extent that a warning would provide.") (citations omitted).
The open and obvious defense will not apply "when there are aspects
of the hazard which are concealed or not reasonably apparent to the user
. . . ." Liriano, 92 N.Y.2d at 241-42, 677 N.Y.S.2d 764, 700 N.E.2d 303;
see also Anderson v. Hedstrom Corp., 76 F. Supp. 2d 422, 448 (S.D.N.Y.
1999) (denying summary judgment motion because as a matter of law the danger
of jumping on trampolines was not so obvious that trampoline manufacturer
need not have including warnings (1) that risk-reducing cages were available
on the market and (2) that users should jump only in the center, [*77]
with proper ground covering, or with professional supervision or spotter);
Jiminez v. Dreis & Krump Mfg. Co., 736 F.2d 51, 55 (2d Cir. 1984) (finding
as a matter of law that it was not obvious that injury would result to
operator who had not activated machine at all, even though it was obvious
that injury could result to an operator who had activated, either intentionally
or accidentally, the machine).
Because of the difficulty in administering this test, the question of
whether a danger is open and obvious is usually a jury question unless
only one conclusion may be drawn from the established facts. Liriano, 92
N.Y.2d at 241-42, 677 N.Y.S.2d 764, 700 N.E.2d 303 ("The fact-specific
nature of the inquiry into whether a particular risk is obvious renders
bright-line pronouncements difficult, and in close cases it is easy to
disagree about whether a particular risk is obvious. It is hard to set
a standard for obviousness that it neither under- nor over- inclusive.").
As discussed above, the Complaint fails to allege that the McDonalds'
products consumed by the plaintiffs were dangerous in any way other than
that which was open and obvious to a reasonable [*78] consumer. While the
plaintiffs have presented the outline of a substantial argument to the
contrary in their papers, as discussed supra, their theory is not supported
in their Complaint, and thus cannot save Count IV from dismissal. In addition,
as also discussed above, the Complaint does not allege with sufficient
specificity that the plaintiffs' consumption of McDonalds' products was
a significant factor in their obesity and related health problems. As a
result, Count IV must be dismissed.
IV. Count V: Sale of Addictive Products
The exact basis of Count V is unclear. It appears to be a products liability
claim, i.e., McDonalds' products are inherently dangerous in that they
are addictive. The claim may also be read to allege that McDonalds failed
to warn its customers that its products were addictive.
This claim, unlike the one above based on unhealthy attributes, does
not involve a danger that is so open and obvious, or so commonly well-known,
that McDonalds' customers would be expected to know about it. In fact,
such a hypothesis is even now the subject of current investigations. See
Sarah Avery, "Is Big Fat the Next Big Tobacco?" Raleigh News & Observer,
at A25, 2002 WL 11733461 [*79] (Aug. 18, 2002) ("Researchers are investigating
whether large amounts of fat in combination with sugar can trigger a craving
similar to addiction. Such a finding would go far in explaining why fast-food
sales have climbed to more than $ 100 billion a year . . . despite years
of warnings to limit fats."). Therefore, it does not run into the same
difficulties discussed above with regard to clarifying that the unhealthy
attributes are above and beyond what is normally known about fast food.
While it is necessary to accept as true the allegation in the Complaint
that McDonalds' products are addictive for the purposes of this motion,
such allegation standing alone is, nonetheless, insufficient as overly
vague. The Complaint does not specify whether it is the combination of
fats and sugars in McDonalds products, id., that is addictive, or whether
there is some other additive, that works in the same manner as nicotine
in cigarettes, to induce addiction. Further, there is no allegation as
to whether McDonalds purposefully manufactured products that have these
addictive qualities. In addition, the Complaint fails to specify whether
a person can become addicted to McDonalds' products after [*80] eating
there one time or whether it requires a steady diet of McDonalds in order
to result in addiction. There is also no allegation as to whether plaintiffs,
as infants, are more susceptible to the addiction than adults.
While some of these questions necessarily may not be answered until
discovery (should this claim be replead and survive a motion to dismiss),
and likely then only with the aid of expert witnesses, to allow a complaint
to survive merely because it alleges product liability on the basis of
addiction would be to allow any complaint that alleges product liability
based on the addictive nature of the products to survive dismissal, even
where such addiction is likely never to be proven. As a result, a complaint
must contain some specificity in order to survive a motion to dismiss.
A claim that a product causes addiction and that reasonable consumers
are unaware of that danger must at the very least (1) allege that the plaintiffs
are addicted, with allegations revealing ways in which their addiction
may be observed, and (2) specify the basis of the plaintiffs' belief that
they and others became addicted to the product. n32 Further allegations
addressing questions raised [*81] above would further strengthen the claim.
In the absence of any such specific allegations, Count V must be dismissed.
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n32 Such showings also suggest that plaintiffs will not be able to justify
class certification. See supra note 30.
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In any case, as discussed above, the Complaint fails to allege sufficiently
that the addictive nature of McDonalds' food and the plaintiffs' resulting
ingestion thereof is a proximate cause of the plaintiff's health problems.
As a result, Count V is dismissed.
V. Leave to Amend Is Granted.
Fed. R. Civ. P. 15(a) requires that "leave [to amend] shall be freely
given when justice so requires." Foman v. Davis, 371 U.S. 178, 182, 9 L.
Ed. 2d 222, 83 S. Ct. 227 (1962). When a motion to dismiss is granted,
"the usual practice is to grant leave to amend the complaint." 2A Moore
& Lucas, Moore's Federal Practice P 12.14 at 12-99 (2d ed. 1989); see
also Luce v. Edelstein, 802 F.2d 49, 56 (2d Cir. 1986) (same rule for complaints
dismissed under [*82] Rule 9(b)). Although the decision whether to grant
leave to amend is within the discretion of the district court, refusal
to grant leave must be based on a valid ground. Foman, 371 U.S. at 182.
As a result, the plaintiffs may amend their complaint to address the deficiencies
listed above.
Conclusion
For the foregoing reasons, the Complaint is dismissed in its entirely.
Leave is granted to replead all claims except for those based on New York
City Administrative Code, Ch. 5, 20-700 et seq., which are dismissed with
prejudice. Any amended complaint should be filed within thirty (30) days
of the issuance of this opinion.
It is so ordered.
New York, NY
January 22, 2003
ROBERT W. SWEET
U.S.D.J.
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