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ARTICLE · 28 MARCH 2018

Food For Thought: Starbucks Defeats Icy Class Action

This decision comes on the heels of another proposed class action that Starbucks defeated in January

United StatesLitigation, Mediation & Arbitration

On March 12, the Ninth Circuit affirmed the dismissal of a proposed class action against Starbucks. The lead plaintiff alleged that Starbucks' method of preparing its iced beverages deceives its customers by misrepresenting the amount of liquid a customer receives when he or she orders an iced drink. The plaintiff brought claims of breach of express warranty, breach of implied warranty, negligent misrepresentation, unjust enrichment, fraud, and violations of California's Consumer Legal Remedies Act, Unfair Competition Law, and False Advertising Law.

The Ninth Circuit held that the plaintiff's claims failed because a "reasonable consumer" would not think that "a 12-ounce 'iced drink'...contains 12 ounces of coffee or tea and no ice." Moreover, the plaintiff's fraud claims failed because he did not show that consumers justifiably relied on Starbucks's representation and "justifiable reliance" is a required element of fraud. Last, the claim for breach of express

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