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Consumer Law
Consumers Legal Remedies Act
False Advertising

Joe Ferris v. Sarpes Beverages LLC dba Dream Products LLC

Published: Nov. 26, 2016 | Result Date: Feb. 29, 2016 | Filing Date: Jan. 1, 1900 |

Case number: 37-2011-00097625-CU-BC-CTL Verdict –  Defense

Court

San Diego Superior


Attorneys

Plaintiff

Derrick F. Coleman
(Coleman Frost LLP)

Alex M. Tomasevic
(Nicholas & Tomasevic LLP)


Defendant

Hugh A. McCabe
(Neil, Dymott, Frank, McFall, Trexler, McCabe & Hudson)

Joanna Ryan Bourke


Experts

Plaintiff

Dan A. Oren
(medical)

Defendant

Michael J. Zupancic
(medical)

Facts

Dream Water contains melatonin, GABA, and 5-HTP and is sold in 2.5-ounce bottles as a dietary supplement to help promote sleep and relaxation. Plaintiff Joe Ferris brought an action on behalf of himself and a putative nationwide class against defendant Sarpes Beverages LLC dba Dream Products LLC, claiming Dream Water did not have sleep and relaxation effects as advertised.

Plaintiff's statewide class consisting of all persons who purchased Dream Water in the State of California from the date it was first sold in 2010 through May 2, 2015, the date class notice was disseminated.

Contentions

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged he purchased four bottles of Dream Water on Aug. 8, 2011 and consumed them four nights in a row on Aug. 8-11, 2011.

Plaintiff claimed defendant's advertising was in violation of Civil Code section 1750, the Consumer Legal Remedies Act, Business & Professions Code section 17200, California's Unfair Competition Law, Business & Professions Code section 17500, California's False Advertising Law, Breach of Express Warranty, and Breach of Implied Warranty. Plaintiff eventually filed a third amended complaint brought on behalf of himself and a putative statewide class alleging violations of the CLRA, UCL, and FAL.

DEFENDANT'S CONTENTIONS:
Defendant maintained there were a vast number of scientific studies and literature supporting the use of Dream Water's ingredients for the purposes for which Dream Water is advertised. Defendant also maintained plaintiff did not meet the class action requirements of California Code of Civil Procedure section 382 and failed to demonstrate standing on behalf of himself or the statewide class under the UCL, FAL, and CLRA.

Settlement Discussions

The parties proceeded to mediation following class certification. At mediation, plaintiff's demand was in the millions. Defendant offered approximately $200,000. The parties did not settle.

Result

Verdict for defendant.

Other Information

Defendant filed a memorandum of costs totaling approximately $88,000. The parties then entered into a settlement agreement in which plaintiff agreed to pay $30,000 to defendant as full payment of costs in exchange for plaintiff's waiver of his right to appeal. FILING DATE: Sept. 8, 2011.

Length

five days


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