Litigation
Many owners of pets stricken after consuming Menu Foods' product have considered filing lawsuits against the company, but are encountering difficulties with the valuation of the deceased pets. While many pet owners consider their pets to be a "part of the family," lost pets have traditionally been treated as property, with the potential liability limited to the retail value of the animal. Some states define the monetary value of a pet for litigation or insurance purposes. Other states have allowed suits for punitive damages and emotional distress suffered in the loss of a pet.
After word of the recall and reports of animal deaths began to spread, Menu Foods was served with several individual law suits over the deaths of affected pets. On 20 March, after the death of her cat, a woman in Chicago, Illinois sued Menu Foods for negligence in delaying the recall. The same day, lawyers for a Knoxville, Tennessee woman filed suit in Federal Court against Menu Foods for $25 million and hoping to attain class action status, citing negligence in testing the food prior to distribution.
As individual lawsuits were filed across the nation, an Ontario, Oregon family filed a class-action lawsuit against Menu Foods, citing emotional damage and economic loss. The lawyers filing the federal law suit noted Washington state, which has jurisdiction, had a history of favorable consumer protection precedents in prior pet-related lawsuits, but finding a set value for the lost pets may be difficult.
On 23 March, Menu Foods said they will reimburse pet owners who can trace their pets' illnesses to the company's products. One estimate is that the cost to owners of treating sickened pets is between $2 million and $20 million.
By 5 April, the 20 March Chicago lawsuit expanded to federal class-action status, with over 200 plaintiffs seeking punitive damages for emotional distress. The plaintiffs have specifically accused Menu Foods of fraud, claiming the company may have known of a problem as early as December.
Menu Foods faces 90 class-action lawsuits as a result of the contamination. U.S. District Court Judge Hillman has ordered Menu Foods to have no contact with plaintiffs unless their attorneys are involved in the discussion, after lawyers from six firms representing pet owners claimed the company illegally attempted to contact their clients directly. Hillman has said "It seems to me that Menu Foods is out to do whatever Menu Foods wants to do in a way that could adversely impact the rights" of the plaintiffs.
Read more about this topic: 2007 Pet Food Recalls