Robert Greer v. Strange Honey Farm
Citation114 F.4th 605
Date Filed2024-09-06
Docket23-5589
Cited36 times
StatusPublished
Full Opinion (html_with_citations)
RECOMMENDED FOR PUBLICATION
Pursuant to Sixth Circuit I.O.P. 32.1(b)
File Name: 24a0213p.06
UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT
â
ROBERT GREER, JEFFREY RIEMER, JANE BARKER,
â
TUCKER GOODMAN, DOLORES BOWERS, and AMBER
â
TURNER, individually and on behalf of themselves and
â
all others similarly situated, > No. 23-5589
Plaintiffs-Appellants, â
â
â
v. â
â
STRANGE HONEY FARM, LLC; GARY STRANGE and â
FONDA STRANGE, owners and members; INGLES â
MARKETS, INC.; K-VA-T FOOD STORES, INC., â
Defendants-Appellees. â
â
Appeal from the United States District Court for the Eastern District of Tennessee at Knoxville.
No. 3:20-cv-00262âKatherine A. Crytzer, District Judge.
Argued: June 13, 2024
Decided and Filed: September 6, 2024
Before: COLE, GRIFFIN, and READLER, Circuit Judges.
_________________
COUNSEL
ARGUED: Matthew G. Norgard, KRISLOV & ASSOCIATES, LTD., Chicago, Illinois, for
Appellants. Gordon Ball, GORDON BALL, LLC, Nashville, Tennessee, for the Strange
Appellees. Mary C. Moffatt, WIMBERLY, LAWSON, WRIGHT, DAVES & JONES, PLLC,
Knoxville, Tennessee, for the Retail Appellees. ON BRIEF: Matthew G. Norgard, Clinton A.
Krislov, KRISLOV & ASSOCIATES, LTD., Chicago, Illinois, Kent A. Heitzinger, KENT
HEITZINGER & ASSOCIATES, Winnetka, Illinois, Al Holifield, HOLIFIELD & JANICH,
PLLC, Knoxville, Tennessee, for Appellants. Gordon Ball, GORDON BALL, LLC, Nashville,
Tennessee, for the Strange Appellees. Mary C. Moffatt, WIMBERLY, LAWSON, WRIGHT,
DAVES & JONES, PLLC, Knoxville, Tennessee, for the Retail Appellees.
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 2
_________________
OPINION
_________________
GRIFFIN, Circuit Judge.
Plaintiffs are consumers who allege Strange Honey made fraudulent claims about its
products. The district court dismissed plaintiffsâ claims against all but one defendant for
pleading fraud-based claims without the specificity required by Federal Rule of Civil Procedure
9(b), and it then denied plaintiffsâ motion for leave to amend. After plaintiffs appealed, the
district court formally dismissed the remaining defendant and entered final judgment. At issue is
whether we possess jurisdiction to consider plaintiffsâ appeal, and, if so, whether the district
court correctly granted the motions to dismiss and denied the motion for leave to amend.
Because we answer both questions in the affirmative, we affirm the district courtâs judgment.
I.
Located in eastern Tennessee, defendant Strange Honey Farm, LLC, produces and
distributes honey products. Plaintiffs are members of a putative class of consumers who
purchased honey from Strange Honey in Tennessee, Illinois, North Carolina, Florida, Virginia,
and Kentucky through certain grocery stores or websites. They allege that Strange Honey
fraudulently markets its honey. According to plaintiffsâ conclusory complaint, although the
labels on Strange Honey jars describe the honey âas 100% raw Tennessee honey,â it is not raw
(because it is cooked when it is processed), it is not 100% honey (because it is diluted with corn
syrup), and it is not from Tennessee (because it is sourced from Vietnam).
Plaintiffs filed their complaint against three groups of defendants: (1) Strange Honey and
its owners, Gary Strange and Fonda Strange (collectively, âStrange Honeyâ); (2) Ingles Markets,
Inc., and K-VA-T Food Stores, Inc., d/b/a Food City (collectively, âthe supermarketsâ); and
(3) Carol Hagen d/b/a Tennessee Artisan Honey (âHagenâ). The complaint asserted a single
claim of fraudulent misrepresentation (Count One) against all defendants. It also raised an
additional four claims against Strange Honey: violation of the Illinois Consumer Fraud and
Deceptive Business Practices Act (Count Two), violation of the North Carolina Unfair and
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 3
Deceptive Trade Practices Act (Count Three), violation of the Florida Uniform Deceptive and
Unfair Trade Practices Act (Count Four), and violation of the Virginia Consumer Protection Act
(Count Five).
Strange Honey and the supermarkets both moved to dismiss for failure to state a claim.
The other defendant, Hagen, did not move to dismiss and instead answered the complaint. The
district court then granted both motions, dismissing all claims against the supermarkets and
Strange Honey.
Plaintiffs then moved for leave to amend their complaint and submitted a proposed
amended complaint. The district court denied that motion. A month and a half later, plaintiffs
entered a stipulation, signed by only plaintiffsâ counsel and Hagenâs counsel, voluntarily
dismissing Hagen from the case. Within 30 days of entering that stipulated dismissal, plaintiffs
filed a notice of appeal, purporting to appeal from the district courtâs earlier grants of the
motions to dismiss and denial of the motion for leave to amend. As a result of that notice, this
appeal was docketed.
In their appellate briefs, both Strange Honey and the supermarkets challenged our
appellate jurisdiction because of plaintiffsâ noncompliance with Federal Rule of Civil Procedure
41(a)(1)(A)(ii) and thus the lack of a âfinal decision[]â from the district court under 28 U.S.C.
§ 1291. Instead of defending their earlier statement that we had jurisdiction over this appeal,
plaintiffs moved to hold the appeal in abeyance âpending issuance of [an] order of dismissal by
the district court.â We granted that motion. The district court then entered an order dismissing
Hagen with prejudice and entered final judgment against plaintiffs. We then returned this appeal
to active status and heard oral argument.
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 4
II.
A.
Several jurisdictional questions arise from this caseâs unusual procedural history. And
because âwe have an independent obligation to assure ourselves of our own jurisdiction,â we
must address them. Kerchen v. Univ. of Mich., 100 F.4th 751, 759 (6th Cir. 2024).
Our appellate jurisdiction is limited to district courtsâ âfinal decisions.â 28 U.S.C.
§ 1291. â[F]or the most part, a district courtâs decision counts as âfinalâ only if it takes care of all claims and all parties in the case.â In re Fifth Third Early Access Cash Advance Litig.,925 F.3d 265, 273
(6th Cir. 2019) (citation omitted). So when there are several defendants and the district
court at first dismisses fewer than all of them, those initial dismissalsâand other interlocutory
decisionsâare generally not immediately appealable. See 16A Charles A. Wright & Arthur R.
Miller, Federal Practice and Procedure § 3950.5 & n.31 (5th ed. 2023).
Plaintiffs seemingly recognized this finality problem and implemented what turned out to
be an imperfect solution (or at least one they did not later try to defend). After the district court
dismissed Strange Honey and the supermarkets and then denied the motion for leave to amend,
plaintiffs stipulated to voluntarily dismiss Hagen, the last remaining defendant, under Federal
Rule of Civil Procedure 41(a)(1)(A)(ii). But only plaintiffsâ counsel and Hagenâs counsel signed
that stipulation. Rule 41 provides that a plaintiff âmay dismiss an action without a court order by
filing . . . a stipulation of dismissal signed by all parties who have appeared.â Fed. R. Civ.
P. 41(a)(1)(A)(ii) (emphasis added). And we have interpreted that rule, albeit in an unpublished
opinion, to mean that a plaintiff seeking to voluntarily dismiss a case must obtain the signatures
of all partiesâeven those previously dismissed. Anderson-Tully Co. v. Fed. Ins., 347 F. Appâx
171, 176 (6th Cir. 2009).
We need not decide whether Anderson-Tully correctly interpreted Rule 41 (and note that
plaintiffs make no argument against it). Rather, we assume that plaintiffsâ stipulated dismissal of
Hagen did not make this case appealable under Anderson-Tully and thus consider whether the
district courtâs eventual entry of final judgment ripened our appellate jurisdiction. That question
involves two issues: (1) whether the premature notice of appeal relates forward to the date of
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 5
eventual entry of judgment such that it was timely filed; and (2) whether the district court
retained jurisdiction after the notice of appeal was filed to enter that eventual judgment.
B.
We begin with whether plaintiffsâ premature notice of appeal was timely filed. â[T]he
timely filing of a notice of appeal in a civil case is a jurisdictional requirement.â Bowles v.
Russell, 551 U.S. 205, 214(2007). Typically, a notice of appeal must be filed âwithin 30 days afterâ the district courtâs final decision is entered. Fed. R. App. P. 4(a)(1)(A) (emphasis added); see also28 U.S.C. § 1291
; Fifth Third,925 F.3d at 273
. So at issue here is whether the
premature notice of appeal (filed June 16, 2023) relates forward to when the district court entered
final judgment (January 8, 2024).
Bonner v. Perry is on point and instructive. 564 F.3d 424(6th Cir. 2009). There, as here, the plaintiff prematurely filed her notice of appeal after the grant of partial summary judgment to fewer than all defendants. At that time, the case was not immediately appealable because another defendant remained in the case and the district court had not certified its decision for immediate appeal.Id.
at 427â28. After she filed the premature notice, however, the district court dismissed the remaining defendant. Under those circumstances, we held that the plaintiffâs premature notice was âsufficient to vest us with jurisdictionâ to decide the appeal of the earlier grant of partial summary judgment.Id. at 429
. We reasoned that when the district court âannounces the disposition of fewer than all claims and a notice of appeal is filed referencing that disposition, the notice can relate forward to effect an appeal from that disposition as encompassed in a subsequent final judgment disposing of all claims against all parties.âId.
(citation omitted).
We have routinely recognized that, in similar âcircumstances,â âpremature notices of
appeal vest this court with jurisdiction when the judgment becomes final prior to disposition of
the appeal.â Allen v. NCL Am. LLC, 741 F. Appâx 292, 295 (6th Cir. 2018); see also, e.g., United States v. $525,695.24, Seized From JPMorgan Chase Bank Inv. Acct. #xxxxxxxx,869 F.3d 429
, 435â36 (6th Cir. 2017); Lane v. Wexford Health Sources (Contreator),510 F. Appâx 385, 387
(6th Cir. 2013). And in so holding, we are in good company: âAuthority from
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 6
multiple circuits supports the view that, in these circumstances, the premature notice relates
forward to the date of entry of the final judgment.â 16A Wright & Miller § 3950.5 & n.31
(collecting cases from the First, Second, Fourth, Fifth, Seventh, Ninth, Tenth, D.C., and Federal
Circuits).
Thus, applying Bonner, we hold that plaintiffsâ premature notice of appeal relates
forward to the date the district court entered final judgment. It thus âis sufficient to vest us with
jurisdiction to hear this appeal.â Bonner, 564 F.3d at 429.
C.
We next turn to a question that Bonner did not explicitly address: whether the district
court had jurisdiction to dismiss the remaining defendant after the notice of appeal was filed. If
the district court lacked jurisdiction to dismiss Hagen, then that order is âwithout effect and
cannot serve as the basis of an appeal.â Peck by Peck v. Lansing Sch. Dist., 148 F.3d 619, 626
(6th Cir. 1998).
Here, when the district court dismissed Hagen after the notice of appeal was filed, it
determined that it had jurisdiction to do so. We review that jurisdictional determination de novo
and may affirm for any reason supported by the record. See S. Side Quarry, LLC v. Louisville &
Jefferson Cnty. Metro. Sewer Dist., 28 F.4th 684, 693(6th Cir. 2022); Sagan v. United States,342 F.3d 493, 500
(6th Cir. 2003).
Our concern about the district courtâs jurisdiction arises from the general rule in Griggs v.
Provident Consumer Discount Co., that â[t]he filing of a notice of appeal is an event of
jurisdictional significanceâit confers jurisdiction on the court of appeals and divests the district
court of its control over those aspects of the case involved in the appeal.â 459 U.S. 56, 58 (1982)
(per curiam). But like many general rules, Griggsâs jurisdiction-divestiture rule has exceptions.
For instance, the district court relied on an exception for a notice of appeal filed from a
âclearly nonappealable order.â See Cochran v. Birkel, 651 F.2d 1219, 1221(6th Cir. 1981). Under that exception, a district court retains jurisdiction if a notice of appeal is filed from an order for which âthere is no serious disputeâ as to its interlocutory nature.Id.
Examples of such No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 7 orders include a discovery ruling, a denial of a jury demand, and an order for sanctions under Rule 11. See id.; see also FirsTier Mortg. Co. v. Invs. Mortg. Ins.,498 U.S. 269, 276
(1991).
This case, however, is a poor fit for the âclearly nonappealable orderâ exception. The
âorderâ appealed from was the stipulated dismissal signed by all then-remaining parties in the
case and our only on-point (unpublished) case suggests there could be serious dispute about the
question. See Anderson-Tully, 347 F. Appâx at 175â76. Indeed, our sister circuits are split on
whether signatures from previously dismissed parties are necessary to effect a dismissal.
Compare City of Jacksonville v. Jacksonville Hosp. Holdings, L.P., 82 F.4th 1031, 1038(11th Cir. 2023) (âWe agree with the Sixth Circuitâs holding in Anderson-Tully that a Rule 41(a)(1)(A)(ii) stipulation also requires the signature of a party that appeared but has already been removed from an action.â), with Natâl City Golf Fin., a Div. of Natâl City Com. Cap. Co. v. Scott,899 F.3d 412
, 415 n.3 (5th Cir. 2018) (âIn a multi-defendant suit, the plaintiff may single
out a party for dismissal; in those cases only the dismissed defendant need sign the stipulation.â).
Because there could be a reasonable dispute about whether the stipulated dismissal was an
appealable final order, the âclearly nonappealableâ exception does not apply here.
But Griggsâs jurisdiction-divestiture rule has other exceptions. Even after a notice of
appeal has been filed, the district court âretains jurisdictionâ to take several types of actions,
including âto proceed with matters that will aid the appellate process.â Williamson v. Recovery
Ltd. Pâship, 731 F.3d 608, 626 (6th Cir. 2013) (citations omitted).
The district courtâs dismissal of Hagen aided the appellate process. To see why, imagine
if the district court had not dismissed Hagen while this appeal was pending. Given Anderson-
Tullyâs interpretation of Rule 41 and plaintiffsâ effective concession that they did not appeal from
a final order, we presumably would have had little choice but to dismiss the appeal and remand
to the district court for lack of appellate jurisdiction. See, e.g., Richard v. Winn, 2022 WL
19520017, at *1 (6th Cir. Nov. 18, 2022) (order) (dismissing appeal for lack of appellate jurisdiction where the order appealed from âdisposed of fewer than all of the claims or partiesâ and the district court did not enter a âfinal decision during the pendency of th[e] appealâ). As explained above, the district courtâs eventual dismissal ripened our appellate jurisdiction and thus aided the appellate process. In this vein, the district court acted within its jurisdiction by No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 8 taking the narrow step of âpatching up the judgment to allow appellate reviewâ by fixing a modest error with the initial stipulation of dismissal. Wis. Mut. Ins. Co. v. United States,441 F.3d 502, 505
(7th Cir. 2006).
To be sure, the category of actions a district court can take in aid of the appellate process
is ânarrowly defined.â United States v. Sims, 708 F.3d 832, 834(6th Cir. 2013). It does not include âactions that alter the case on appeal.â United States v. Carman,933 F.3d 614, 617
(6th Cir. 2019) (quoting Inland Bulk Transfer Co. v. Cummins Engine Co.,332 F.3d 1007, 1013
(6th
Cir. 2003)). But here, the district court did not alter the case on appeal. It merely disposed of a
remaining party resolving an earlier errant filing so that the appealed case could proceed.
Holding that the district court retained jurisdiction to take this action aligns with the
overall purpose of Griggsâs jurisdiction-divestiture rule. As Judge Easterbrook aptly explained:
The rule summarized in Griggs is designed to prevent conflict among tribunals, as
well as to prevent the waste of time and money that occurs if the district court
changes a judgment after an appeal has been briefed. These interests are not
implicated by allowing the district court to enter a proper final decision and thus
permit a pending appeal to go forward.
Wis. Mut. Ins., 441 F.3d at 504â05. âIt would be anomalous, moreover, to adopt a rule that
forecloses such district-court actionâthe seeming result would be that neither the court of
appeals nor the district court has power to act on the order appealed from.â 16A Wright &
Miller § 3949.1 n.47.
Thus, after plaintiffs filed their premature notice of appeal, the district court retained
jurisdiction to dismiss the remaining defendant (Hagen) so that the appeal against the previously
dismissed defendants (Strange Honey and the supermarkets) could proceed. Once that final
order was entered, the notice of appeal then related forward to the judgment date such that it was
timely filed. Accordingly, the district courtâs dismissal of the remaining defendant ripened our
appellate jurisdiction. With these jurisdictional issues resolved, we turn to the merits.
III.
In a diversity case like this one, state law governs substantive issues and federal law
governs procedural issues. Legg v. Chopra, 286 F.3d 286, 289(6th Cir. 2022) (citing Erie R.R. No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 9 Co. v. Tompkins,304 U.S. 64
(1938)). So while state law governs the burden of proving fraud, Federal Rule of Civil Procedure 9(b) governs the standard for pleading it. New London Tobacco Mkt., Inc. v. Ky. Fuel Corp.,44 F.4th 393
, 410 n.10 (6th Cir. 2022). Because plaintiffsâ
substantive state-law claims are grounded in fraud, Rule 9(b)âs pleading standard applies to all of
them.1
A.
The main substantive issue on appeal is whether the district court properly granted
Strange Honeyâs and the supermarketsâ motions to dismiss, or, put differently, whether the
original complaint stated a claim upon which relief could be granted against those defendants.
We review the district courtâs Rule 9(b) analysis de novo. Id. at 411.
We typically analyze whether a pleading has failed to state a claim under the
Twombly/Iqbal framework. United States ex rel. Angelo v. Allstate Ins. Co., 106 F.4th 441, 448(6th Cir. 2024). That is, a plaintiff must âstate a claim to relief that is plausible on its face,â Bell Atl. Corp. v. Twombly,550 U.S. 544, 570
(2007), by âplead[ing] factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged,â Ashcroft v. Iqbal,556 U.S. 662, 678
(2009). The facts alleged, which we assume to be true,
1
For Count One, which alleges common-law fraudulent misrepresentation, it is unclear on which stateâs
law plaintiffs intend to rely. Tennessee courts âapply the most significant relationship test . . . to determine which
state law governs tort claimsâ like fraudulent misrepresentation. See EPAC Techs., Inc. v. Thomas Nelson, Inc., 438
F. Supp. 3d 847, 854 (M.D. Tenn. 2018) (citing Hataway v. McKinley,830 S.W.2d 53, 59
(Tenn. 1992)). But no matter which stateâs substantive law controls, Rule 9(b) governs pleading for this claim. See BiotronX, LLC v. Tech One Biomedical, LLC,465 F. Supp. 3d 797
, 809â10 (M.D. Tenn. 2020) (applying Rule 9(b) to intentional- misrepresentation claim under Tennessee law); Wigod v. Wells Fargo Bank, N.A.,673 F.3d 547, 569
(7th Cir. 2012) (applying Rule 9(b) to fraudulent-misrepresentation claim under Illinois law); TSC Rsch., LLC v. Bayer Chemicals Corp.,552 F. Supp. 2d 534, 543
(M.D.N.C. 2008) (applying Rule 9(b) to claim of fraud, on grounds of misrepresentation, under North Carolina law); Douse v. Bos. Sci. Corp.,314 F. Supp. 3d 1251, 1262
(M.D. Fla. 2018) (applying Rule 9(b) to fraudulent-misrepresentation claim under Florida law); Morris v. Taylor Commcâns Secure & Customer Sols., Inc.,513 F. Supp. 3d 694
, 705 (W.D. Va. 2021) (applying Rule 9(b) to fraudulent- misrepresentation claim under Virginia law), affâd,2023 WL 34267
(4th Cir. Jan. 4, 2023).
And Rule 9(b) applies to plaintiffsâ other claims under the various state deceptive-business-practices
statutes as well. See Camasta v. Jos. A. Bank Clothiers, Inc., 761 F.3d 732, 736â37 (7th Cir. 2014) (applying Rule 9(b) to claim under Illinois Consumer Fraud and Deceptive Business Practices Act); Topshelf Mgmt., Inc. v. Campbell-Ewald Co.,117 F. Supp. 3d 722
, 731â32 (M.D.N.C. 2015) (applying Rule 9(b) to claim underN.C. Gen. Stat. § 75-1.1
, the North Carolina Unfair and Deceptive Trade Practices Act); State Farm Mut. Auto. Ins. v. Performance Orthopaedics & Neurosurgery, LLC,278 F. Supp. 3d 1307
, 1327â28 (S.D. Fla. 2017) (applying Rule 9(b) to claim under Florida Deceptive and Unfair Trade Practices Act); Wynnâs Extended Care, Inc. v. Bradley,619 F. Appâx 216, 220
(4th Cir. 2015) (applying Rule 9(b) to claim under the Virginia Consumer Protection Act). No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 10 âmust be enough to raise a right to relief above the speculative level.â Twombly,550 U.S. at 555
.
But also relevant when a complaint alleges fraud is Federal Rule of Civil Procedure 9(b).
Angelo, 106 F.4th at 448. Under that rule, a party âalleging fraudâ must âstate with particularity the circumstances constituting fraud.â Fed. R. Civ. P. 9(b). Generally, âRule 9(b) requires that the plaintiff specify the âwho, what, when, where, and howâ of the alleged fraud.â Sanderson v. HCA-The Healthcare Co.,447 F.3d 873, 877
(6th Cir. 2006) (citation omitted). âMore specifically, the complaint must â(1) specify the statements that the plaintiff contends were fraudulent, (2) identify the speaker, (3) state where and when the statements were made, and (4) explain why the statements were fraudulent.ââ New London Tobacco, 44 F.4th at 411 (quoting Frank v. Dana Corp.,547 F.3d 564, 570
(6th Cir. 2008)). Further, the complaint âmust describe the fraudulent scheme and the resulting injury.âId.
(internal quotation marks omitted). â[G]eneral allegationsâ that raise the mere âpossibilityâ of fraud will not do; instead, the complaint must âprovide the factual predicates necessary to convince us that [the underlying fraud] in all likelihoodâ occurred. United States ex rel. Hirt v. Walgreen Co.,846 F.3d 879, 882
(6th Cir. 2017) (citations omitted). âThe point of Civil Rule 9(b) is to prevent, not facilitate, casual allegations of fraud.âId.
At bottom, âthe Rule requires that the circumstances of the fraud be pled with enough specificity to put defendants on notice as to the nature of the claim.â Williams v. Duke Energy Intâl, Inc.,681 F.3d 788, 803
(6th Cir. 2012).
Here, plaintiffs make three conclusory allegations of fraudulent statements related to
Strange Honeyâs labels. They allege that, although âStrange Honeyâs labels describe the honey
as 100% raw Tennessee honey,â the honey is, in fact, (1) not raw, (2) not from Tennessee, and
(3) not 100% honey. Yet the complaint fails to adequately allege why these claims on the labels
were false or when these allegedly fraudulent statements were made to plaintiffs.
First, the complaint contains sparse allegations about why the statements on the labels
were fraudulent. Of the three allegations of fraudulent statements, the most detailed is that the
honey is not raw. According to the complaint, the products are not raw because Strange Honey
âheats its honey products above 105 degrees Fahrenheit,â which âdestroys many of the beneficial
compoundsâ of raw honey. The complaint explains that â[o]ne way to determine whether honey
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 11
has been heated is to test its 5-hydroxymethylfurfural (âHMFâ) value.â It alleges that industry
standards dictate that âan HMF value over 40 mg/kg is strong evidence that raw honey was
heated to a high enough temperature for a long enough period of time to break down the
enzymes contained in the raw honey.â The complaint then alleges: âSome of the Strange Honey
samples tested had HMF values of 109, 96, 88 and 122 . . . .â (Emphasis Added).
The complaint gives no explanation of what this alleged âtestingâ entailed. It does not
explain how these samples were tested, who conducted the testing, how many samples were
tested, when or where the samples were purchased, whether any (or how many) samples had
HMF values below 40, or other details that would adequately show why the statements on
Strange Honeyâs labels were false. Indeed, the complaint does not allege that the jars of honey
purchased by plaintiffs were the samples with the high HMF values or even that those jars
purchased by plaintiffs were among the samples tested at all. See Rautu v. U.S. Bank, 557 F.
Appâx 411, 416 (6th Cir. 2014) (affirming grant of motion to dismiss for failure to satisfy Rule
9(b) where the plaintiff failed âto allege the nature of th[e] fraud with sufficient particularity and
[did] not provide any factual details on the substance of the misrepresentationsâ).
Sparser still are the allegations that the honey is neither from Tennessee nor 100% honey.
Again, the crux of these allegations is the same: âSome of the Strange Honey samples tested . . .
test[ed] positive for syrup and with a 100% certainty that the honey was from Vietnam.â
(Emphasis Added). On top of the unspecified testing problems just mentioned, the complaint
never explains how one can determine whether honey is from Tennessee (or Vietnam or
anywhere else) or whether honey contains syrup. Although the complaint alleges Strange
Honeyâs motives for sourcing non-Tennessee honey (to meet consumer demand) and for adding
filler (to cut costs), alleging potential motives for mislabeling is different from alleging facts that
adequately show that Strange Honey mislabeled its products. Thus, the complaint does not
particularly allege why the statements were fraudulent.
The complaint also lacks particularity with respect to when the allegedly fraudulent
statements were made. Without mentioning a single specific date on which the statements were
made to plaintiffs, the complaint concludes that defendants knew the honey did not comply with
the labels â[a]t all relevant times.â Nowhere does the complaint identify the ârelevant timesâ at
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 12
issue. Plaintiffsâ failure to âgive even one date on which an alleged misrepresentation occurredâ
âdoomsâ their âability to allege fraud with particularity.â Am. BioCare Inc. v. Howard &
Howard Attâys Pllc, 702 F. Appâx 416, 422(6th Cir. 2017); see also United States ex rel. Bledsoe v. Cmty. Health Sys., Inc.,501 F.3d 493
, 504â05 (6th Cir. 2007) (holding that pleading was insufficient when the plaintiff failed to, among other things, set forth the dates of any fraudulent statements); Hirt,846 F.3d at 881
(same).
Plaintiffs resist these conclusions, arguing that the complaint specifically pleaded why the
labels were fraudulent and when the statements were made. For instance, plaintiffs assert that,
when studies or tests reveal an advertisement to be false, Rule 9(b) does not require that the
specific product the plaintiff purchased be the one used in the study or test. But the cases they
cite in support of that proposition are nonbinding district court opinions that are distinguishable.
For example, the complaint in Dorfman v. Nutramax Laboratories, Inc. described
âtwenty-two studies that purportedly refute[d]â the defendantsâ allegedly fraudulent
representations about their products. 2013 WL 5353043, *11 (S.D. Cal. Sept. 23, 2013). Those detailed allegations âsuggest[ed] that evidence exists to refute the truth of Defendantsâ representations.âId.
By contrast, the unspecified âtestingâ here makes no such suggestion, leaving one to merely speculate whether the claims on the labels are true or false. Likewise, the complaint in Johnston v. PhD Fitness, LLC cited and described ânumerous examples of clinical studies,â published in scientific journals, that contradicted the defendantâs marketing claims.2018 WL 646683
, *2, *4â5 (E.D. Mich. Jan. 31, 2018); see also First Amended Class Action
Complaint at œœ 52â60 & nn.16â24, Johnston v. PhD Fitness, LLC, No. 16-CV-14152 (E.D.
Mich. March 16, 2017), ECF No. 9. But here, plaintiffsâ complaint contains nothing of the sort.
So neither case helps plaintiffs.
Plaintiffs also argue that Rule 9(b) does not require specific dates, rather, broad
statements like âat all relevant timesâ suffice. But again, the nonbinding district court cases they
rely on are distinguishable because both dealt with ongoing representations made over a discrete
timeframe. For instance, the complaint in Alsbrook v. Concorde Career Colleges alleged that the
defendant college made repeated fraudulent statements, âvia email, in person, and in letters,â
about its accreditation to former students during a readily identifiable timeframeâbetween when
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 13
the plaintiffs graduated and the stated deadline to trigger a tuition refund. 469 F. Supp. 3d 805, 819â20 & n.1, 843â44 (W.D. Tenn. 2020). And the complaint in Carroll v. TDS Telecommunications Corp. alleged that the defendant Internet service provider made fraudulent statements about its data speeds while it provided Internet service to the plaintiffâonce again, a readily identifiable timeframe.2017 WL 6757566
at *1â2, *7 (W.D. Tenn. Dec. 29, 2017).
Here, by contrast, the complaint provides no timeframe at all, and even if it did, the
circumstances of the alleged fraud require more particularity. Plaintiffsâ allegations hinge on
whether certain honey bought by certain consumers in certain places was improperly cooked,
adulterated with other ingredients, or sourced from foreign countries. In this context, specific
dates for when plaintiffs purchased their jars of honey would show not only when the allegedly
fraudulent statements were made to plaintiffs but also why those statements could be proven false
by the later âtesting.â Unlike repeated promises of accreditation or ongoing Internet service, a
jar of honey is a single, discrete product purchased on a particular date. That jar of honey, on the
date it is purchased, either complies with the claims on the label or it does not. Thus, unlike the
circumstances in Alsbrook and Carroll, the nature of plaintiffsâ case here requires more
specificity as to the purchase dates.
Thus, the district court properly granted Strange Honeyâs and the supermarketsâ motions
to dismiss.
B.
Finally, we consider whether the district court properly denied leave to amend the
complaint. The grant or denial of an opportunity to amend is within the district courtâs
discretion. Foman v. Davis, 371 U.S. 178, 182(1962). District courts âshould freely give leave [to amend] when justice so requires.â Fed. R. Civ. P. 15(a)(2). âBut a court need not grant a motion to amend when the reason for amendment is improper, âsuch as undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, futility of amendment, etc.ââ Skatemore, Inc. v. Whitmer,40 F.4th 727, 737
(6th
Cir. 2022) (citation and emphasis omitted).
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 14
The district court denied leave to amend because of both futility and undue prejudice.
Because the proposed amendments were futile, we do not address other potential reasons for
denying leave to amend. See Knight Cap. Partners Corp. v. Henkel AG & Co., KGaA, 930 F.3d
775, 786 n.5 (6th Cir. 2019). â[W]e review de novo the legal conclusion that amendment would be futile because a proposed amended complaint fails to state a claim.â Linden v. City of Southfield,75 F.4th 597, 602
(6th Cir. 2023). An amendment is futile when, after including the proposed changes, the complaint still âcould not withstand a Rule 12(b)(6) motion to dismiss.â Riverview Health Inst. LLC v. Med. Mut. of Ohio,601 F.3d 505, 512
(6th Cir. 2010) (citation
omitted).
Plaintiffsâ proposed amendments are scant. The primary differences between the original
and proposed amended complaints are the addition of dates for when some plaintiffs bought the
honey. For instance, the proposed amended complaint alleges that plaintiff Greer âbought
Strange Honey at Ingles in Tennessee on November 8, 2018â; plaintiff Riemer âbought Strange
Honey at Food City in Nashville, Tennessee on October 28, 2019 and March 19, 2022â; plaintiff
Barker âbought Strange Honey from the Tennessee Artisan Honey website . . . from her home in
Illinois on February 21, 2020â; and plaintiff Bowers âbought Strange Honey in Florida from
Amazon on February 27, 2020.â
The proposed amended complaint further adds that âthe Strange Honey purchased by
Plaintiffs in 2020 that . . . has been tested is from Vietnam,â and âhoney purchased by Plaintiffs
in 2020 that was tested is from Argentina and was cooked when processed.â And it updates the
allegations about HMF values with the following underlined text:
Some of the 2020 Strange Honey samples tested had HMF values of 109, 96, 88
and 122, in addition to testing positive for syrup and with a 100% certainty that
the honey was from Vietnam. The 2022 Strange Honey samples had similarly
high HMF values and tested with 100% certainty that the honey was from
Argentina.
(Emphases Added).
These amendments fail to plead fraud with specificity or raise plaintiffsâ claim for relief
above the speculative level.
No. 23-5589 Greer, et al. v. Strange Honey Farm, et al. Page 15
The added dates hardly help. First, the proposed amended complaint provides no dates
associated with misrepresentations to plaintiffs Turner and Goodman, leaving those claims just
as defective as they were before the proposed amendments. See Am. BioCare, 702 F. Appâx at
421â22. Second, other plaintiffsâ claims fail because the proposed amendments do not connect
their purchases with later testing. Plaintiff Greer bought his Strange Honey in 2018 and plaintiff
Riemer bought some in 2019, yet apparently only samples purchased in 2020 and 2022 were
tested. Third, the proposed amendments do not specify whether the honey plaintiff Riemer
bought in 2022 was part of the â2022 Strange Honey samples tested,â or whether the honey
plaintiffs Bowers and Barker bought in 2020 was part of the âhoney purchased by Plaintiffs in
2020 that was tested.â What is more, the proposed amended complaint provides no additional
details about the nature of the testing, making it just as deficient as the original as to why the
labels were fraudulent.
Because the proposed amended complaint does not cure the original complaintâs
deficiencies, it still does not âstate with particularity the circumstances constituting fraudâ or
âalert defendants to the particulars of the allegations against them so they can intelligently
respond.â See Thompson v. Bank of Am., N.A., 773 F.3d 741, 751â53 (6th Cir. 2014). Thus, we
agree with the district court that the proposed amendments would be futile.
IV.
For these reasons, we affirm the district courtâs judgment.