Yucatan Guacamole Class Action Lawsuit Dismissed Pending FDA Review

A class action lawsuit accusing Yucatan Foods LP of mislabeling its guacamole products as containing “evaporated cane juice” was dismissed on Tuesday, making Yucatan the latest company to escape litigation following the U.S. Food and Drug Administration’s March 5 announcement that it was re-evaluating a 2009 draft guidance about the ingredient.

In his May 20 Order, U.S. District Judge Richard Seeborg deferred to the FDA, whose 2009 guidance indicated to food manufacturers that the term “evaporated cane juice” misleads consumers to believe that products are healthier than they actually are, falsely suggesting that the sweeteners are juice, although evaporated cane juice is essentially sugar. Judge Seeborg dismissed the Yucatan guacamole class action lawsuit without prejudice under the primary jurisdiction doctrine, although a previous decision had allowed the case to go forward.

“Considering the need for uniformity as well as the particular expertise the FDA may bring to bear on this issue in light of its renewed effort to offer guidance on use of the term ‘evaporated cane juice,’ it is appropriate to apply the primary jurisdiction doctrine,” wrote Judge Seeborg in his decision.

A wide number of recent class action lawsuits have been brought by consumers against food manufacturers, claiming deception on the labeling of “evaporated cane juice,” but since the FDA announced it was revising its guidance, many of the evaporated cane juice class action lawsuits have seen dismissal motions. Judge Seeborg considered some other recent rulings, writing, “[i]t is not necessary in this case for the court to maintain jurisdiction. Plaintiffs suggest that statute of limitations concerns might arise if the FDA fails to act in a timely fashion following the renewed comment period, or that difficult tolling questions might arise in any subsequent litigation. Numerous courts within this district, however, have dismissed similar claims without prejudice on primary jurisdiction grounds.”

The Yucatan guacamole class action lawsuit had been brought by lead plaintiffs Mary Swearington and Joshua Ogden, who said they had purchased three Yucatan guacamole products between July 2009 and the date of the filing: Authentic Guacamole, Spicy Guacamole and Ranch Guacamole. Each of these guacamole products contained “evaporated cane juice” according to the label. The plaintiffs had alleged in the Yucatan guacamole class action lawsuit that listing “evaporated cane juice” instead of “sugar” is misleading and violates California’s Sherman Law, for the products purchased by the plaintiffs and for other Yucatan products that list “evaporated cane juice” on the label.

The plaintiffs in the case had sought to represent all consumers in California who had purchased Yucatan guacamole products containing the word “evaporated cane juice” on the label between the FDA’s draft guidance and the present.

In February, Judge Seeborg declined to dismiss the class action lawsuit, denying Yucatan’s claim that the plaintiffs needed to show deception in order to proceed with the case.

The plaintiffs are represented by Ben F. Pierce Gore of Pratt & Associates and by David P. Wilson of Provost Umphrey Law Firm LLP.

The Yucatan Guacamole Class Action Lawsuit is Swearingen, et al. v. Yucatan Foods LP, Case No.  3:13-cv-03544, in the U.S. District Court for the Northern District of California.