throbber
Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 1 of 22
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE DISTRICT OF COLUMBIA
`
`FOOD & WATER WATCH,
`
`Plaintiff,
`
`Civil Action No.
`
`v.
`
`SMITHFIELD FOODS, INC.,
`
`
`
`Defendant.
`
`NOTICE OF REMOVAL
`
`PLEASE TAKE NOTICE that, pursuant to 28 U.S.C. §§ 1331, 1332, 1441, and 1446,
`
`Defendant Smithfield Foods, Inc. (“Smithfield”), by its undersigned counsel, hereby invokes this
`
`Court’s jurisdiction and removes the state court action described below from the Superior Court
`
`of the District of Columbia, Civil Division, to the United States District Court for the District of
`
`Columbia based on two independent grounds: (1) diversity jurisdiction pursuant to 28 U.S.C. §
`
`1332(a), and (2) jurisdiction pursuant to the Class Action Fairness Act (“CAFA”), 28 U.S.C. §
`
`1332(d). In this notice of removal, Smithfield provides the required “short and plain statement of
`
`the grounds for removal.” Dart Cherokee Basin Operating Co., LLC v. Owens, 135 S. Ct. 547,
`
`553 (2014). “[A] defendant’s notice of removal need only include a plausible allegation that the
`
`amount in controversy exceeds the jurisdictional threshold.” Id. at 89. That requirement is
`
`satisfied here.
`
`I.
`
`PROCEDURAL HISTORY
`
`1.
`
`On June 16, 2021, Plaintiff Food & Water Watch (“FWW” or “Plaintiff”) filed
`
`this action in the Superior Court of the District of Columbia, Civil Division, in a case captioned
`
`-1-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 2 of 22
`
`
`
`Food & Water Watch v. Smithfield Foods, Inc., Case No. 2021 CA 002020 B (the “State Court
`
`Action”).
`
`2.
`
`Smithfield was served with a copy of the Complaint on June 30, 2021. Pursuant to
`
`28 U.S.C. § 1446(a), a true and correct copy of the summons, Complaint, all documents filed
`
`with the Superior Court of the District of Columbia, and the Superior Court Docket Report are
`
`attached as Exhibit A.
`
`3.
`
`Pursuant to 28 U.S.C. § 1446(a), Smithfield will promptly give written notice of
`
`this Notice of Removal to FWW and file a copy of the same with the Clerk of the Superior Court
`
`of the District of Columbia, Civil Division.
`
`4.
`
`The Complaint alleges violations of the D.C. Consumer Protection Procedures
`
`Act (“CPPA”), D.C. Code § 28-3901 et seq. Specifically, the Complaint alleges that during the
`
`early days of the COVID-19 pandemic, in early 2020, Smithfield made misleading statements
`
`about “the state of the national meat supply chain and the company’s workplace safety
`
`practices.” Compl. at ¶ 1.
`
`5.
`
`For example, the Complaint claims that Smithfield made misrepresentations in
`
`newspaper articles, through social media, and on the internet that “a countrywide meat shortage
`
`was imminent” in order to “juic[e] demand and sales” and to create “a false justification to keep
`
`its slaughterhouses operating at full tilt[.]” Id. at ¶ 4.
`
`6.
`
` Similarly, the Complaint alleges that Smithfield “misrepresented working
`
`conditions in its plants” to allay “concerns for worker safety” and to promote Smithfield’s
`
`“marketing and branding efforts during the pandemic.” Id. at ¶ 5.
`
`7.
`
`The Complaint alleges that “FWW was injured by Smithfield’s conduct” because
`
`it “spent considerable time and resources investigating the truth of Smithfield’s claims” and
`
`-2-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 3 of 22
`
`
`
`“educat[ing] its members, consumers and the general public” about whether there were meat
`
`shortages in 2020 and whether Smithfield was adequately protecting its workers from exposure
`
`to COVID-19 at that time. Id. at ¶¶ 90-102.
`
`8.
`
`The Complaint further alleges that, because Smithfield’s statements are still on
`
`the internet and Smithfield has not retracted those statements, FWW will have to spend
`
`“additional resources correcting the company’s misrepresentations and counteracting the
`
`company’s claims[.]” Id. at ¶¶ 103-05.
`
`9.
`
`The Complaint explicitly identifies no less than nine alleged violations of the
`
`CPPA.1 See id. at ¶ 110(a)-(i) (“Smithfield has violated the CPPA by engaging in the following
`
`unfair and deceptive trade practices…”).
`
`A.
`
`10.
`
`FWW’s Individual Claims and Requests for Relief.
`
`The Complaint alleges that FWW is a “non-profit organization” within the
`
`meaning of D.C. Code § 28-3901(14) and that FWW is bringing an action as a non-profit
`
`organization “on behalf of itself” pursuant to D.C. Code §28-3905(k)(1)(C). Compl. ¶¶ 112-13,
`
`117.
`
`11.
`
`The Complaint seeks a declaration that Smithfield’s statements violated the
`
`CPPA, statutory damages, punitive damages, attorneys’ fees, expert fees, and prejudgment
`
`interest awarded to FWW in its own name, and injunctive relief, including corrective
`
`advertising, intended to prevent ongoing injury to FWW. Id. at ¶¶ 114, 117-18 and Prayer for
`
`Relief.
`
`
`1 Smithfield does not concede, and explicitly denies, that FWW is entitled to any relief. But a
`plaintiff’s claim “whether well or ill-founded in fact, fixes the right of the defendant to
`remove[.]” St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 294 (1938).
`
`-3-
`
`

`

`
`
`B.
`
`12.
`
`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 4 of 22
`
`FWW’s Representative Claims.
`
`The Complaint alleges that FWW, as a non-profit organization, also seeks relief
`
`on behalf of the general public pursuant to D.C. Code § 28-3905(k)(1)(C). Compl. ¶¶ 113, 117.
`
`Although the Complaint does not clearly specify what relief FWW is seeking on behalf of the
`
`general public, the Complaint can be fairly read to seek statutory and punitive damages—in
`
`addition to declaratory and injunctive relief—on behalf of the general public. Id. at ¶ 118 and
`
`Prayer for Relief.
`
`13.
`
`In addition, the Complaint alleges that FWW is a “public interest organization”
`
`within the meaning of D.C. Code § 28-3901(15) and that it seeking to bring a claim on behalf of
`
`“District consumers.” Id. at ¶¶ 112, 116-17. Section 28-3905(k)(1)(D) permits public interest
`
`organizations to bring claims on behalf of a “consumer or class of consumers” if certain criteria
`
`are met. Here, the Complaint purports to assert CPPA claims on behalf of an undefined class of
`
`consumers. Although the Complaint does not specify what relief FWW is seeking on behalf of
`
`this class, the Complaint can be fairly read to seek statutory and punitive damages—in addition
`
`to declaratory and injunctive relief—on behalf of the class. Id. at ¶ 118 and Prayer for Relief.
`
`14.
`
`As explained more fully below, this case is properly removed to this Court
`
`because the Court has diversity jurisdiction over this civil action pursuant to 28 U.S.C. §§
`
`1332(a), 1441, and 1446. Further, to the extent this action seeks damages on behalf of the general
`
`public or a class of consumers, the Court also has jurisdiction over the State Court Action
`
`pursuant to CAFA, such that this action may be removed to this Court under 28 U.S.C. §§
`
`1332(d) and 1441. Furthermore, this removal is proper because this Notice of Removal was
`
`timely filed pursuant to 28 U.S.C. § 1446(b)(3) and Smithfield has satisfied the procedural
`
`requirements for removal.
`
`-4-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 5 of 22
`
`
`
`II. GROUNDS FOR REMOVAL
`
`A.
`
`15.
`
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. § 1332(a).
`
`“[A]ny civil action brought in State court of which the district courts of the United
`
`States have original jurisdiction, may be removed by the defendant…” 28 U.S.C. § 1441(a). This
`
`Court has subject matter jurisdiction over this action pursuant to 28 U.S.C. § 1332(a) in that (1) it
`
`is a civil action between citizens of different states, and (2) the amount in controversy exceeds
`
`the sum or value of $75,000, exclusive of interests and costs.
`
`1. There is complete diversity between the parties.
`
`16.
`
`For purposes of jurisdiction under 28 U.S.C. § 1332(a) and removal under 28
`
`U.S.C. § 1441(a), the diversity of citizenship requirement is met when all persons on one side of
`
`the litigation are citizens of different states from all persons on the other side of the litigation.
`
`Strawbridge v. Curtiss, 7 U.S. 267 (1806).
`
`17.
`
`For diversity purposes, the citizenship of a corporation—including a non-profit
`
`corporation—is the state where the corporation is incorporated and the state where the
`
`corporation has its principal place of business. See Wachovia Bank, N.A. v. Schmidt, 546 U.S.
`
`303, 306 (2006).
`
`18.
`
`According to the Complaint, FWW is, and at the time the Complaint was filed
`
`was, a non-profit corporation incorporated under the laws of Washington D.C. and had its
`
`principal place of business in Washington D.C. See Compl. at ¶ 13. FWW is therefore a citizen
`
`of Washington D.C. for purposes of federal diversity jurisdiction.
`
`19.
`
`Smithfield is, and at the time the Complaint was filed was, a corporation
`
`incorporated under the laws of Delaware and having its principal place of business in Virginia.
`
`-5-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 6 of 22
`
`
`
`See Compl. at ¶ 18. Smithfield is therefore a citizen of Delaware and Virginia for purposes of
`
`federal diversity jurisdiction.
`
`20.
`
`By virtue of the above, there is complete diversity of citizenship between FWW, a
`
`citizen of Washington D.C., and Smithfield, a citizen of Delaware and Virginia.
`
`2. The amount in controversy is satisfied in this case.
`
`21.
`
`Courts consider several categories of relief in determining the amount in
`
`controversy in a CPPA action like this one. These categories of relief include statutory and
`
`punitive damages, attorneys’ fees and expert fees, and the cost of injunctive relief, and such
`
`amounts “should be added together” to determine whether the amount in controversy
`
`requirement has been met. See Bradford v. George Wash. Univ., 249 F. Supp. 3d 325, 334
`
`(D.D.C. 2017) (adding regular damages, treble damages, punitive damages, and attorneys’ fees
`
`to meet amount in controversy requirement in CPPA case); Parker-Williams v. Charles Tini &
`
`Assoc., Inc., 53 F. Supp. 3d 149, 153-54 (D.D.C. 2014); Zuckman v. Monster Beverage Corp.,
`
`958 F. Supp. 2d 293, 297 (D.D.C. 2013); M3 USA Corp. v Haunert, No. 20-cv-3784 (DLF),
`
`2021 WL 1894847 (May 11, 2021); Sloan v. Soul Circus, Inc., 2015 WL 9272838, at *7 (D.D.C.
`
`Dec. 18, 2015).
`
`22.
`
`In this action, FWW purports to seek (1) a declaration that Smithfield’s conduct
`
`violated the CPPA; (2) injunctive relief enjoining Smithfield’s conduct found to be in violation
`
`of the CPPA and requiring Smithfield to engage in corrective advertising; (3) statutory damages;
`
`(4) punitive damages; (5) attorneys’ fees, experts’ fees, and costs; and (6) any other equitable
`
`relief approved by the Court. Compl. at ¶¶ 10, 117-18, Prayer for Relief. For the reasons
`
`explained below, the value of the relief sought in this action by FWW in its own name and/or for
`
`its sole benefit is in excess of $75,000 when the various types of requested relief are added
`
`-6-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 7 of 22
`
`
`
`together.
`
`a. Attorneys’ and Expert Fees.
`
`i. The Total Attorneys’ Fees That FWW Seeks in Its Own Name Will
`Exceed the Amount in Controversy Requirement.
`
`
`The Complaint seeks an award of attorneys’ fees and expert fees to FWW in its
`
`23.
`
`individual capacity. See Compl., Prayer for Relief (seeking an order “granting FWW costs,
`
`including reasonable attorneys’ fees and expert fees”).
`
`24.
`
`FWW does not seek an award of attorneys’ fees or expert fees on behalf of or in
`
`the name of the general public or a class of consumers.
`
`25.
`
`Thus, all attorneys’ fees and expert fees should be allocated to FWW in its
`
`individual capacity. Zuckman , 958 F. Supp. 2d 297, 301 (D.D.C. 2013) (noting that the court
`
`may consider relief “to which [plaintiff] would be personally entitled” in determining the amount
`
`in controversy, including the plaintiff’s “share of the total [attorney’s] fees”); Cf. Breakman v.
`
`AOL LLC, 545 F. Supp. 2d 96, 107 (D.D.C. 2008) (decided under prior version of CPPA and
`
`holding that attorney’s fees in CPPA could only be allocated to plaintiff on a pro rata basis
`
`because “he is not bringing this action in his individual capacity”) (emphasis added)..
`
`26.
`
`27.
`
`In this case, attorneys’ and expert fees alone will exceed $75,000.
`
`CPPA cases of a much smaller scale than this one frequently produce more than
`
`$75,000 in attorneys’ fees alone. See, e.g., Beck v. Test Masters Edu. Serv., Inc., 73 F. Supp. 3d
`
`12, 20 (D.D.C. 2014) (granting fee petition in CPPA case for $854,623.90 in attorneys’ fees); In
`
`re InPhonic, Inc., 674 F. Supp. 2d 273, 290 (D.D.C. 2009) (awarding plaintiffs in CPPA case
`
`$483,753.37 in attorneys’ fees and costs); Williams v. First Gov’t Mortg. & Investors Corp., 225
`
`F. 3d 738, 747 (holding that attorneys’ fee award of $199,340 under the CPPA was reasonable
`
`even though it was disproportionate to the damages award).
`
`-7-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 8 of 22
`
`
`
`28.
`
`Counsel for FWW (Public Justice, formerly known as Trial Lawyers for Public
`
`Justice) also routinely seek attorneys’ fees and expert fees in similar types of cases amounting to
`
`well over $75,000, based on hourly rates ranging from $250 to $550. See Community Assoc. for
`
`Restoration of the Enviro., Inc. v. Cow Palace, LLC, Nos. 13-CV-3016-TOR, 13-CV-3017-TOR,
`
`13-CV-3019-TOR,2016 WL 3582754, at *3, *18 (E.D. Wash. Jan 12, 2016) (Public Justice
`
`seeking attorneys’ fees of $3,587,615.50 and expert fees for $542,088.60, and noting rates of
`
`Washington D.C.-based Public Justice attorneys); Barrett v. West Chester Univ. of Penn. of State
`
`System of Higher Edu., 636 F. Supp. 2d 439, 442 (E.D. Penn. 2009) (Public Justice seeking
`
`attorneys’ fees for $207,609.50 after only nine months of litigation).
`
`29.
`
`Based on the breadth of the allegations in the Complaint, it is a virtual certainty
`
`that FWW’s attorneys’ fees and expert fees will exceed $75,000.
`
`ii. FWW’s Attorneys’ Fees and Expert Fees for Its Organizational CPPA
`Claim Will Exceed the Amount in Controversy Requirement.
`
`
`Courts considering the propriety of removal in CPPA cases consider the impact of
`
`30.
`
`a plaintiff’s role as the initial and seminal plaintiff when bringing a CPPA case in its
`
`representative capacity. In such circumstances, courts consider the plaintiff’s individual, non-
`
`aggregated share of any potential recovery by estimating the portion “properly attributed to [the
`
`plaintiff] in his role as the initial plaintiff.” Zuckman, 958 F. Supp. 2d at 301 (considering the
`
`statutory damages, injunctive relief, and attorney’s fees “to which [plaintiff] would be personally
`
`entitled” in determining the amount in controversy).
`
`31.
`
`32.
`
`Here, FWW is the initial and seminal plaintiff.
`
`Further, FWW is asserting an organizational injury in its own name that is
`
`materially different from the alleged injuries it claims the general public and consumers suffered.
`
`Specifically, FWW alleges the challenged statements injured the organization by “frustrat[ing]
`
`-8-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 9 of 22
`
`
`
`FWW’s mission of increased transparency” and “holding agribusiness organizations
`
`accountable,” which required FWW to “divert staff time and resources away” from other
`
`activities. Compl. at ¶ 103. In contrast, FWW alleges that the challenged statements injured
`
`consumers by influencing them to buy more Smithfield products (i.e. economic harm) and
`
`misleading them about the risk of meat shortages and Smithfield’s work safety practices. Id. at ¶
`
`14. The alleged injuries to consumers are separate and distinct from the alleged injury to FWW.
`
`33.
`
`34.
`
`FWW is not a consumer.
`
`FWW does not allege that it received the challenged statements in the District or
`
`that it was misled by them.
`
`35.
`
`Rather, FWW is asserting a claim in its own name under D.C. Code § 28-
`
`3905(k)(1)(C). This means that FWW is claiming that it suffered an “organizational” injury as a
`
`result of the challenged statements.
`
`36.
`
`To demonstrate standing to assert an organizational injury, FWW must plead and
`
`prove that: (1) a direct conflict exists between Smithfield’s statements and FWW’s mission; (2)
`
`the conduct is inhibiting the organization’s daily operations; and (3) the organization is being
`
`forced to divert resources to counteract the conduct. See Food & Water Watch, Inc. v. Vilsack,
`
`808 F.3d 905, 919-20 (D.D.C. 2015); Am. Soc. for Prevention of Cruelty to Animals v. Feld
`
`Entertainment, Inc., 659 F.3d 13, 25-26 (D.D.C. 2011). FWW must satisfy each of these
`
`elements to bring a cause of action for, or seek relief in, its own name.
`
`37.
`
`FWW’s is not bringing its organizational injury claim on behalf of the general
`
`public. Nor will the public’s interest be affected by the determination of whether or not FWW
`
`suffered an organizational injury.
`
`-9-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 10 of 22
`
`
`
`38.
`
`At a minimum, FWW’s attorneys’ fees and expert fees incurred in litigating its
`
`own organizational injury claim cannot be allocated to the general public or consumers.
`
`39.
`
`FWW’s attorneys’ fees and expert fees incurred in litigating its own
`
`organizational injury claim will exceed $75,000.
`
`40.
`
`41.
`
`This is illustrated by similar CPPA claims brought by FWW’s counsel.
`
`For example, in a case captioned Animal Legal Defense Fund v. Hormel Foods
`
`Corp., Superior Court of the District of Columbia, Civil Division, Case No. 2016 CA 004744 B,
`
`Animal Legal Defense Fund (“ALDF”) asserted organizational injuries and claims similar to the
`
`ones alleged by FWW in this case, by alleging that Hormel’s “Natural Choice” advertising
`
`caused an organizational injury to ALDF.
`
`42.
`
`Although ALDF defeated an initial motion to dismiss based on lack of standing,
`
`upon summary judgment, the D.C. Superior Court dismissed ALDF’s case for lack of standing
`
`because it had failed to present sufficient evidence of its allegations of organizational injury. To
`
`reach that outcome in the case, the parties incurred legal fees doing all of the following:
`
`a. Conducting written discovery, including the production of thousands of
`
`documents related to ALDF’s organizational injury claims, and ALDF’s
`
`preparation and production of a detailed privilege log;
`
`b. Depositions of four ALDF employees and complete a Rule 30(b)(6) deposition of
`
`ALDF; and
`
`c. Filing and responding to detailed cross-motions for summary judgment, which
`
`included creating a significant record and briefing on standing.
`
`43.
`
`In resolving the question of ALDF’s organizational standing, ALDF’s attorneys
`
`were required to devote hundreds of hours of time (or more) to address whether ALDF had
`
`-10-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 11 of 22
`
`
`
`standing to assert an organizational injury (and the court ultimately concluded it did not). Even
`
`applying a conservative estimate of 500 hours spent by ALDF’s attorneys litigating the question
`
`of standing at a rate of $300 per hour, this means ALDF incurred $150,000 in attorneys’ fees
`
`related solely to litigating whether it had standing to assert claims based on an organizational
`
`injury.
`
`44.
`
`Based on the above, Smithfield reasonably believes that similar costs will be
`
`incurred to litigate the question of whether FWW has organizational standing, an issue that has
`
`been raised, litigated, and declared to be lacking, in other cases brought by FWW before this
`
`Court. See, e.g., Food & Water Watch v. Vilsack, 79 F. Supp. 3d 174, 199-200 (D.D.C. 2015)
`
`(concluding that FWW did not have standing to assert claims, similar to the ones made here, of
`
`organizational injury based on FWW’s alleged need “to expend additional resources on activities
`
`such as educating its members and the public”).
`
`45.
`
` These attorneys’ fees that will be spent litigating the organizational standing
`
`question cannot be allocated to the general public or to District consumers because these fees are
`
`attributable solely to litigation activities unique to FWW’s individual claims. Cf. Zuckman, 958
`
`F. Supp. 2d at 301.
`
`46.
`
`Based on FWW’s role as the seminal plaintiff in this case, the clear pattern of
`
`CPPA and Public Justice cases awarding or seeking far more than $75,000, and the FWW-
`
`specific fees that will be amassed based on its allegations of organizational injury and standing
`
`alone, the FWW-specific attorneys’ fees in this case are virtually assured to exceed the
`
`jurisdictional threshold of 28 U.S.C. § 1332(a). See Zuckman, 958 F. Supp. 2d at 301; Dart, 135
`
`S. Ct. at 554 (“a defendant’s notice of removal need include only a plausible allegation that the
`
`amount in controversy exceeds the jurisdictional threshold”).
`
`-11-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 12 of 22
`
`
`
`b. Statutory and Punitive Damages
`
`47.
`
`In addition to attorneys’ fees, FWW is also seeking statutory and punitive
`
`damages. Compl. at ¶¶ 10, 118.
`
`48. With regard to statutory damages, FWW’s individual, non-aggregated statutory
`
`damages amount to at least $13,500. More specifically, D.C. Code indicates that, under the
`
`CPPA, a plaintiff may recover “[t]reble damages, or $1,500 per violation, whichever is greater.”
`
`D.C. Code Ann. § 28-3905(k)(2)(A)(ii) (emphasis added). FWW’s Complaint explicitly
`
`identifies no less than nine alleged violations of the CPPA. See Compl. at ¶ 110(a)-(i)
`
`(“Smithfield has violated the CPPA by engaging in the following unfair and deceptive trade
`
`practices…”); see also Cannon v. Wells Fargo Bank, N.A., 908 F. Supp. 2d 110, 113-14 (D.D.C.
`
`2012) (calculating amount in controversy based on ten violations alleged in complaint multiplied
`
`by $1,500). At $1,500 per violation, FWW’s alleged statutory damages therefore amount to at
`
`least $13,500, which may be added to FWW’s shares of injunctive relief, punitive damages, and
`
`attorney’s fees. Zuckman, 958 F. Supp. 2d at 297 (noting that with regard to statutory damages,
`
`attorney’s fees, injunctive relief, and restitution, “the amounts sought should be added
`
`together.”).
`
`49. Moreover, and based on the statutory-damages calculations above, even a 4:1
`
`ratio of punitive damages to statutory damages would amount to over $60,000 in statutory and
`
`punitive damages specific to FWW alone. It is also likely that FWW will argue that a higher
`
`punitive damages award is appropriate if the statutory damages award is small.
`
`c. Cost of Injunctive Relief
`
`50.
`
`In addition to seeking attorneys’ fees, statutory damages, and punitive damages,
`
`FWW seeks injunctive relief related to corrective advertising.
`
`-12-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 13 of 22
`
`
`
`51.
`
`Jurisdiction exists when the cost to a defendant of complying with the requested
`
`injunction exceeds $75,000. See, e.g., GEO Specialty Chems., Inc. v. Husisian, 951 F. Supp. 2d
`
`32, 39-40 (D.D.C. 2013); Breathe DC v. Santa Fe Natural Tobacco Co., 232 F. Supp. 3d 163,
`
`169 (D.D.C. 2017) (noting that the court was following circuit precedent by considering the cost
`
`of compliance to the defendant). The cost to Smithfield of complying with the corrective
`
`advertising requested by FWW would far exceed $75,000.
`
`52.
`
`Here, FWW is seeking injunctive relief in its own name to prevent FWW from
`
`“expend[ing] additional resources correcting the company’s misrepresentations and
`
`counteracting the company’s claims.” Compl. at ¶ 105. Thus, the sweeping injunctive relief
`
`FWW seeks is uniquely tied to the work FWW alleges to have done including, but not limited to,
`
`“investigating and debunking” Smithfield’s advertising, “correcting the company’s
`
`misrepresentations,” submitting Freedom of Information Act requests, and coordinating “public
`
`messaging efforts.” See id. at ¶¶ 96, 104-05, 114. FWW alone stands to benefit from the
`
`injunctive relief it seeks.
`
`53.
`
`This is particularly true because all of the statements that FWW challenges are
`
`stale. Indeed, the Complaint identifies a minimum of twenty specific messages that FWW alleges
`
`violate the CPPA and should be subjected to corrective advertising. All of the statements FWW
`
`challenges published anywhere from eleven to sixteen months ago or pertain to issues related to
`
`the pandemic during that time frame. These specific messages include: (1) an April 12, 2020
`
`press release; (2) a March 19, 2020 Facebook post; (3) a March 19, 2020 Twitter post; (4) an
`
`April 17, 2020 Facebook post; (5) an April 17, 2020 Twitter post; (6) an August 2, 2020 ad in the
`
`Washington Post; (7) an August 2, 2020 ad in the New York Times; (8) a “COVID Website”
`
`created in September 2020; (9) a “Health & Safety Website;” (10) a “Exports Website;” (11) an
`
`-13-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 14 of 22
`
`
`
`April 25, 2020 Facebook post; (12) an April 25, 2020 Twitter Post; (13) a “Response Website;”
`
`(14) a “PPE Website;” (15) a PPE information-related video available on the “PPE Website;”
`
`(16) an April 30, 2020 Facebook post; (17) an April 30, 2020 Twitter post; (18) a May 12, 2020
`
`Facebook post; (19) a May 12, 2020 Twitter post; and (20) Smithfield’s 2020 Sustainability
`
`Report. See id. at ¶¶ 29-35, 42, 52-54, 59.
`
`54.
`
`These statements generally fall into two categories. First, some of these
`
`statements, made in the spring and summer of 2020, relate to whether the United States would be
`
`at risk of meat shortages if all meat processing plants were shut down due to COVID-19. Given
`
`the widespread availability of vaccines, changing health and regulatory environments, and the
`
`lifting of federal and state restrictions, FWW does not and cannot allege that consumers believe
`
`there is an ongoing risk that meat producers will be shut down or that there will be a resultant
`
`shortage of meat available for purchase. It follows that consumers are not basing purchasing
`
`decisions now and in the future on alleged misunderstandings about past threats to the meat
`
`supply that were based on exceptionally different knowledge and circumstances during that
`
`phase of the pandemic.
`
`55.
`
`A forward-looking injunction requiring Smithfield to retract or correct stale
`
`statements will therefore benefit no one other than FWW, whose alleged organizational injury
`
`stems from “significant time and resources” allegedly expended, and to be expended, by FWW
`
`as an organization “to counteract false narratives peddled by industrial meat production
`
`companies” about whether there was a risk of meat shortages in 2020. Id. at ¶ 17.
`
`56.
`
`Smithfield reasonably believes that it would cost over $75,000 to issue the type of
`
`“corrective advertising” FWW previews in its Complaint related to Smithfield’s’ prior
`
`statements about potential meat shortages. This includes the development of a corrected
`
`-14-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 15 of 22
`
`
`
`message, actual content development, money needed to take out advertisements online and in
`
`print, time and money needed to re-develop already-existing websites, etc. E.g., Breathe DC, 232
`
`F. Supp. 3d at 170 (crediting the defendant’s contention that costs of corrective advertising
`
`would exceed $200,000); Food & Water Watch, Inc. v. Tyson Foods, Inc., 2020 WL 1065553, at
`
`*5 (D.D.C. Mar. 5, 2020) (similar corrective advertising costs to exceed $400,000).
`
`57.
`
`The same principles also apply to FWW’s request for corrective advertising
`
`related to the messaging surrounding the adequacy of Smithfield’s worker safety measures
`
`during the height of the pandemic. At this point in time, vaccines are widely available and have
`
`been widely distributed nationwide, and states have largely eliminated emergency COVID-19
`
`precautions.
`
`58.
`
`FWW does not and cannot allege that Smithfield’s current worker safety practices
`
`related to COVID-19, let alone the messaging associated with such safety practices, are
`
`inadequate. Rather, FWW’s suggestion that consumers are looking up or relying on statements
`
`about worker safety that Smithfield made during the height of the pandemic is grossly
`
`speculative. Thus, once again, FWW’s request for an injunction that orders corrective advertising
`
`on this topic serves to benefit only FWW, which claims that it had to devote resources to
`
`investigating and countering narratives about worker safety during the height of the pandemic.
`
`Id. at ¶ 17.
`
`59.
`
`Based on the above, Smithfield reasonably estimates that it will cost over $75,000
`
`to issue the type of corrective advertising FWW previews in its Complaint related to COVID-19
`
`and worker safety because, as described supra, at paragraph 51, any corrective advertising
`
`campaign would require a substantial amount of time and money to develop a corrected message,
`
`develop actual content, take out advertisements online and in print, and re-develop the workers’
`
`-15-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 16 of 22
`
`
`
`safety-related websites with which FWW takes issue.
`
`60.
`
`Taken in combination with the cost of corrective advertising related to meat
`
`supply shortages discussed above, the cost to Smithfield of injunctive relief amounts to at least
`
`$150,000.
`
`61.
`
`Even if corrective advertising is not limited solely to remedying FWW’s alleged
`
`organizational injuries, the cost of complying with the injunctive relief should be apportioned
`
`accordingly based on the connection between the corrective advertising sought by FWW and the
`
`unique injuries FWW alleges to have sustained. Specifically, the cost of complying with the
`
`injunctive relief requested here should be apportioned in a way that acknowledges the increased
`
`value to FWW of injunctive relief over other District consumers who have not taken any action
`
`to address Smithfield’s messaging. See, e.g., Zuckman, 958 F. Supp. 2d at 301-02
`
`(acknowledging multiple methods for apportioning costs of injunctive relief, and declining to
`
`apportion attorney’s fees pro rata so as to “strike[] a proper balance” that “ensur[es] that
`
`[plaintiff’s] expenditures…are not undervalued or diluted.”).
`
`62.
`
`The cost of attorneys’ and expert fees, statutory and punitive damages, and
`
`injunctive relief that must be allocated to FWW, when added together, exceeds the $75,000
`
`jurisdictional threshold for the reasons discussed above. This amount in controversy requirement
`
`for diversity jurisdiction pursuant to 28 U.S.C. § 1332(a) is therefore satisfied.
`
`63.
`
`Because there is complete diversity amongst the parties in this case and the
`
`amount in controversy exceeds $75,000, this Court has subject matter jurisdiction pursuant to 28
`
`U.S.C. § 1332(a).
`
`-16-
`
`

`

`Case 1:21-cv-02065 Document 1 Filed 07/30/21 Page 17 of 22
`
`
`
`B.
`
`
`64.
`
`Alternatively, the Court has subject matter jurisdiction pursuant to CAFA
`and 28 U.S.C. § 1332(d).
`
`In addition to asserting claims on its own behalf, FWW purports to bring this
`
`action “on behalf of the general public and interests of District consumers.” Compl. at ¶ 117.
`
`65.
`
`In addition to seeking damages for itself, based on FWW’s own allegations, the
`
`Complaint can plausibly be read as seeking damages on behalf of a class of District consumers.
`
`See, e.g., id. at ¶ 10 (noting request for injunctive relief, statutory damages, punitive damages,
`
`fees and costs, and other equitable relief and stating “FWW…brings this case to hold Smithfield
`
`accountable under the CPPA for these consumer deceptions”); ¶¶ 36-37, 47 (alleging that
`
`Smithfield’s messaging affected consumer purchasing); ¶ 118 (generally seeking statutory and
`
`punitive damages).
`
`66.
`
`67.
`
`Thus, in the alternative, this court also has jurisdiction pursuant to CAFA.
`
`The District of Columbia Court of Appeals has held that CPPA actions that seek
`
`damages and are brought on behalf of the general public are subject to the “framework long
`
`established by [Superior Court] Rule [of Civil Procedure] 23 to govern representative suits in the
`
`Superior Court.” Rotunda v. Marriot Intern., Inc., 123 A.3d 980, 982 (D.C. 2015); see also Smith
`
`v. Abbott Laboratories, Inc., No. 16-501 (RJL), 2017 WL 3670194, at *2 (D.D.C. Mar. 31, 2017)
`
`(“Rotunda held that DCCPPA representative actions for money damages must comply with Rule
`
`23”) (emphasis added).
`
`68.
`
`Congress enacted CAFA to “facilitate adjudication of certain class actions in
`
`federal court.” Dart, 135 S

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket