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CONFIDENTIAL

May 21, 1994

Business Law
Unfair Competition
Negligence

Confidential

Settlement –  $99,500

Court

L.A. Superior Central


Attorneys

Plaintiff

Leslie A. Hanke

Thomas A. Papageorge
(Office of the San Diego District Attorney)


Defendant

Robert B. Ryder


Facts

In early 1993, Defendant bottling company installed a high-speed hot-fill line for new tea products. During routine inspections at the plant, investigators for Plaintiff state noticed excessive glass breakage throughout the plant. Warnings were issued and Defendant bottler was told that the glass had to be removed immediately. There were six complaints between January and July 1993 by consumers who found glass in bottled beverages. There were 14 additional consumer complaints during that same time period involving other foreign matter including ants and mold.

Settlement Discussions

Plaintiff state contends it demanded a civil penalty of $2,500 for each and every bottle or can packaged under conditions which "could" lead to adulteration under Business and Professions Code section 17206; no offer was disclosed.

Other Information

Defendant bottling company agreed to terms of an injunction that prohibits it from manufacturing or distributing any product that has been produced under circumstances that might lead to adulteration or contamination. These include random plant audits and inspections by an approved independent quality control firm, and monthly random sampling of more than 20,000 bottles of beverages. This case was settled before Commissioner Murray Gross in Department 1-A.


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