McGee v. S-L Snacks National, No. 17-55577 (9th Cir. 2020)
Annotate this CaseThe Ninth Circuit affirmed the district court's dismissal for lack of constitutional Article III standing of a putative class action brought by a plaintiff, a consumer of Pop Secret popcorn. Plaintiff contends that Diamond engaged in unfair practices, created a nuisance, and breached the warranty of merchantability by including partially hydrogenated oils (PHOs) as an ingredient in Pop Secret. Plaintiff also alleges that PHOs, the primary dietary source of industrially produced trans fatty acids (also known as artificial trans fat), are an unsafe food additive that causes heart disease, diabetes, cancer, and other ailments. The panel held that plaintiff has not plausibly alleged that, as a result of her purchase and consumption of Pop Secret, she suffered economic or immediate physical injury, or that she was placed at substantial risk of adverse health consequences. Therefore, the district court properly dismissed the action based on lack of standing.
Court Description: Article III Standing. The panel affirmed the district court’s dismissal for lack of constitutional Article III standing of a putative class action brought by a plaintiff-consumer who alleged claims arising when Diamond Foods, Inc. included partially hydrogenated oils as an ingredient in Pop Secret popcorn. The panel held that the plaintiff did not plausibly allege that, as a result of her purchase and consumption of Pop Secret, she suffered economic or immediate physical injury, or that she was placed at substantial risk of adverse consequences. Concerning plaintiff’s alleged economic injury, the panel held that plaintiff had not alleged that she was denied the benefit of her bargain. Although plaintiff may have assumed that Pop Secret contained only safe and healthy ingredients, her assumptions were not included in the bargain, particularly given the labeling disclosure that the product contained artificial trans fat. The panel also held that plaintiff failed to allege an economic injury based on an overpayment theory. Plaintiff did not allege that Pop Secret contained a hidden defect, or that Pop Secret was worth objectively less than what she paid for it. Concerning plaintiff’s alleged present physical injury, the panel held that plaintiff had not plausibly alleged that she MCGEE V. S-L SNACKS NATIONAL 3 suffered physical injuries due to her consumption of Pop Secret. Concerning plaintiff’s alleged future physical injury, the panel held that plaintiff had not plausibly alleged that her consumption of Pop Secret substantially increased her risk of disease.
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