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7/25/2019 Townsend and Seils v. Templeton Rye
1/9
1N THE
IOWA
ISTRICT COURT
N AND
FOR
POLK
COUNTY
Ryan
Townsend
and
Timothy e i l s ,
on
behalf
of
hemselves and l l persons
i m i l a r l y
s i t u a t e d ,
P l a i n t i f f s ,
v s .
TEMPLETON
RYE
PIRITS,LLC,
Defendant.
Case No.
PETITIONAT
L W
PARTIESANDB CKGROUND
FACTS
1 .
P l a i n t i f f
Ryan
Townsend s and
a t l l
times
m a t e r i a l h e r e t o
has
been a
e s i d e n t
of
Pol k County,
Iowa.
2.
P l a i n t i f f
Timothy
S e i l s
i s and a t
l l
times m a t e r i a l h e r e t o
has
been
a
r e s i d e n t
of
Warren
County,Iowa.
3 .
Defendant Templ eton
Rye
p i r i t s ,
LLC
Templ eton )
s
a
o r p o r a t i o n
organized
under
h e
laws
of
h e s t a t e of owa, i t h
i t s
home
f f i c e
i n
Templeton,
a r r o l l County, owa.
4.
J u r i s d i c t i o n and
venue r e a p p r o p r i a t e i n t h i s county, s
Templ eton does b u s i n e s s
i n Polk
County
and P l a i n t i f f Ryan
Townsend a t a
minimum) urchased
r y e
whiskey
t h a t was
s o l d i n
Polk County.
5 .
Templeton
markets t s rye
whiskey
claiming
h a t i t
i s
produced b y
Templeton Rye
S p i r i t s ,
LLC, empleton,
Iowa.
Templeton's rye
whiskey
l a b e l and
o t h e r
marketing m a t e r i a l s
prominently
e a t u r e
t h e r y e s
PROHIBITIONERA ECIPE . Those l a i m s a r e
l l
made
on
h e
b o t t l e l a b e l
and
i n
o t h e r
marketing m a t e r i a l s of Templeton,
i n c l u d i n g on
i t s
w e b s i t e .
Those
claims
r e
f a l s e .
1
7/25/2019 Townsend and Seils v. Templeton Rye
2/9
6 .
Templeton's w e b s i t e c o n t a i n s r e p e a t e d
r e f e r e n c e s t o
t h e above
d e s c r i b e d
f r a u d u l e n t
r e p r e s e n t a t i o n s .
As
an example,
o n Templeton's
TOURS
age,
t h e r e i s a
l i n k t o a
TOUR
VIDEO . That v i d e o
i s
n i n e
m i n u t e s
and f i f t y two seconds i n
l e n g t h .
t
i n d i c a t e s i t
wa s
uploaded
o n
February
25, 2009, and remains o n
t h e
s i t e a s
o f t h e d a t e
o f t h e
f i l i n g
o f
t h i s
P e t i t i o n .
That v i d e o i s s h o t a t t h e Templeton f a c i l i t y
i n Templeton,
Iowa,
and
walks
through
t h e
e n t i r e
p u r p o r t e d
d i s t i l l a t i o n
p r o c e s s
of Templeton
r y e
whiskey a s
t a k i n g
p l a c e
i n
Templeton,
Iowa, w i t h n o
r e f e r e n c e
o r
s u g g e s t i o n
t h a t
any d i s t i l l a t i o n
t a k e s
p l a c e e l s e w h e r e .
T h e
v i d e o
i s
c l e a r l y
d e s i g n e d
t o g i v e
an y
viewer
t h e b e l i e f t h a t
Templeton
r y e whiskey
i s
d i s t i l l e d
b y
Templeton
i t s e l f
a t
t s
Templeton,
Iowa
a c i l i t y .
7 .
T e m p l e t o n
a l s o c l a i m s
o n
t s r y e whiskey
a b e l
and
o t h e r
m a r k e t i n g m a t e r i a l s
t h a t
i t s
r y e i s
a
SMALL BATCH RYE WHISKEY.
hat
term
i s
a l s o
m i s l e a d i n g
g i v e n t h e
a c t u a l
m a s s p r o d u c t i o n
m e t h o d o f h e
whiskey, s
d e s c r i b e d
below.
8 .
T e m p l e t o n r y e
i s n o t
d i s t i l l e d o r produced i n Iowa.
9 .
T e m p l e t o n
r y e
i s
n o t
d i s t i l l e d
a c c o r d i n g t o
a
p r o h i b i t i o n
e r a
r e c i p e
1 0 .
Given
t h e
p r o d u c t i o n
m e t ho d
o f
Templeton
r y e ,
a s
s h ow n below,
t
i s
m i s l e a d i n g
t o l a b e l i t
a s a
small
batch
y e whiskey.
1 1 . Templeton
r y e
whiskey i s
d i s t i l l e d
and
aged by
a l a r g e s c a l e
producer o f
whiskeys,
MGP
n g r e d i e n t s ,
I n c . ,
which
o p e r a t e s a d i s t i l l e r y i n
Lawrenceburg,
I n d i a n a ,
(which
o p e r a t i o n
wa s
formerly
o w n e d
a t t i m e s
m a t e r i a l t o
t h i s
P e t i t i o n
by
Lawrenceburg
D i s t i l l e r s
I n d i a n a ,
LLC).
MGP
roduces t h e s a m e r y e whiskey f o r
s a l e
t o m a n y
o t h e r companies,
s o l d
under
a b e l s
d i f f e r e n t from
Templeton's l a b e l .
1 2 .
MGP, s o f
t s m o s t
r e c e n t annual
r e p o r t
(lOk),
l i s t e d 2013
s a l e s
o f d i s t i l l e r y
p r o d u c t s o f
264,098,000.
7/25/2019 Townsend and Seils v. Templeton Rye
3/9
1 3 .
MGP s
e b s i t e , a t t h e
homepage
of ~ ~ ~ ~ - ~ r . m
7
i r
r r e < : i i e n t s . c o i ~ i l i s t s
on
t s
h i s t o r y
page a
d e s c r i p t i o n
of
i t s a c q u i s i t i o n of
Lawrenceburg D i s t i l l e r s I n d i a n a ,
LLC
( LDI )
i n
December
of
2011.
t
l i s t s
t h e a s s e t s MGP
c q u i r e d from LDI a s
i n c l u d i n g ,
LDI's
d i s t i l l a t i o n
o p e r a t i o n s ,
bulk
b a r r e l
warehousing,
a n k
farm and g r a i n s t o r a g e
f a c i l i t i e s .
1 4 .
I n
i t s
p r o d u c t
l i s t
shown
on
t s
w e b s i t e , a s of
h e time of
i l i n g t h i s s i t
MGP
i s t s
1 9
i f f e r e n t
beverage a l c o h o l s i t p r o d u c e s ,
12
food
g r a d e
i n d u s t r i a l p r o d u c t s ,
and t h a t
MGP l s o
produces u e l
g r a d e
a l c o h o l
a s
a
i s t i l l e r y
co
- p r o d u c t . MGP s e b s i t e ,
under
key a c t s ,
n o t e s
t h a t
i t s food
g r a d e
i n d u s t r i a l a l c o h o l i s s o l d f o r use
i n
m u l t i p l e
a p p l i c a t i o n s ,
i n c l u d i n g
v i n e g a r ,
f l a v o r i n g s ,
hand s a n i t i z e r s ,
o r a l
a n t i s e p t i c s ,
p e r s o n a l
c a r e p r o d u c t s ,
p h a r m a c e u t i c a l
p r o d u c t s
and
household
c l e a n i n g
s o l u t i o n s .
1 5 .
Templeton's r y e whiskey
l a b e l ,
w e b s i t e ,
and
o t h e r marketing
m a t e r i a l s ,
prominently
f e a t u r e
a
s t o r y
of ho w
Templeton
r y e whiskey i s
produced
a c c o r d i n g t o an
o l d
family
r e c i p e
t h a t
s u r v i v e d
because t
was
k nown
t o
an i n d i v i d u a l ,
Mr.
K e r k h o f f ,
and
t h a t t h e
r e c i p e was
used
d u r i n g
t h e
p r o h i b i t i o n
e r a
t o
d i s t i l l r y e
t h a t
was h e
f a v o r i t e of
Al
Capone.
Those
c l a i m s
s u g g e s t i n g
d i s t i l l a t i o n
a c c o r d i n g
t o t h a t o l d f a m i l y
r e c i p e
a r e f a l s e .
1 6 . Templeton's
P r e s i d e n t ,
S c o t t
Bush, and
i t s
Chairman,
Vern
Underwood, were
i n t e r v i e w e d
b y
a r e p o r t e r from t h e Des Moines R e g i s t e r , and on
August 29,
2014,
t h e
Des
Moines
R e g i s t e r
p u b l i s h e d
an
a r t i c l e t h a t
i n c l u d e d s t a t e m e n t s
made
b y
Mr. Bush and
Mr.
Underwood.
That a r t i c l e
remains a v a i l a b l e
i n
t h e
a r c h i v e s of
t h e Des
Moines
R e g i s t e r
a t
w w w . d e s m o i n e s r e g i s t e r . c o t n .
1 7 .
Mr. Bush
and
Mr.
Underwood made c e r t a i n
a d m i s s i o n s
r e l e v a n t
t o
t h i s
s u i t
i n c l u d i n g
t h a t
Templeton Rye i s d i s t i l l e d a c c o r d i n g t o
a
s t o c k
r e c i p e
from MGP and
n o t
one
from t h e
o l d
f a m i l y / p r o h i b i t i o n
r e c i p e , a s
r e p r e s e n t e d
i n Templeton's
m a r k e t i n g ,
and t h a t
key t o
7/25/2019 Townsend and Seils v. Templeton Rye
4/9
Templeton s marketing
i s
t h e s t o r y
o f t s
c l a i m e d
r e l a t i o n
t o Iowa
and t h e
t o w n o f
Templeton,
r a t h e r
t h a n
t h e
whiskey
i t s e l f T ho s e a d m i s s i o n s m a k e
c l e a r t h e
r e l a t i o n s h i p
between
t h e
f r a u d u l e n t
m i s r e p r e s e n t a t i o n s
and
t h e
a b i l i t y
o f
Templeton
t o
s e l l i t s r y e
whiskey a t t h e
p r i c e s
c h a r g e d .
1 8 .
Templeton s
f r a u d u l e n t m a r k e t i n g
c l a i m s
have
a l l o w e d i t
t o
s e l l
m o r e
r y e
whiskey
o
Io wa e s i d e n t s ,
a t
h i g h e r
p r i c e s
t h a n i t would have
a b s e n t
t h o s e
c l a i m s .
1 9 .
P l a i n t i f f s
r e l i e d
o n
t h e m a r k e t i n g
r e p r e s e n t a t i o n s i d e n t i f i e d
a bove
i n
m a k i n g
t h e i r
d e c i s i o n t o
purchase
Templeton
r y e whiskey.
20.
Templeton s
r y e whiskey
l a b e l s
d o
n o t
i d e n t i f y t h a t t h e whiskey
w a s d i s t i l l e d
i n
I n d i a n a
o r
b y
M P
21.
At l l t i m e s m a t e r i a l
t o t h i s s u i t ,
Templeton
wa s
e q u i r e d ,
p u r s u a n t t o
f e d e r a l
law,
2 7
C.F.R
5.36(d)
e f f e c t i v e
Mar c h 31,
2006),
t o
have
t h e
l a b e l
o n t s
r y e whiskey
i d e n t i f y t h e
s t a t e i n
which
t h e
whiskey
wa s
d i s t i l l e d . Templeton v i o l a t e d
- t h a t
r e q u i r e m e n t
b y
n o t
l i s t i n g
I n d i a n a
a s t h e
s t a t e
o f
i s t i l l a t i o n .
22.
At
a l l
t i m e s m a t e r i a l
t o
t h i s
s u i t , p u r s u a n t t o
f e d e r a l law, 2 7
C.F.R
5 . 4 2 ( a ) ( 1 )
( e f f e c t i v e
M a r c h 31,
2006),
t
wa s
a p r o h i b i t e d p r a c t i c e f o r Templeton t o
p l a c e
a
s t a t e m e n t
o n
a
l a b e l
o f
t s
whiskey t h a t
wa s
f a l s e
o r u n t r u e
i n
an y p a r t i c u l a r , o r t h a t ,
i r r e s p e c t i v e o f
a l s i t y ,
d i r e c t l y , o r
b y
a m b i g u i t y ,
o m i s s i o n ,
o r
i n f e r e n c e ,
o r
b y t h e
a d d i t i o n
o f
r r e l e v a n t ,
s c i e n t i f i c o r
t e c h n i c a l
m a t t e r ,
t e n d s
t o c r e a t e
a m i s l e a d i n g
i m p r e s s i o n . Templeton s l a b e l s v i o l a t e
t h a t l aw
f o r
t h e
r e a s o n s
a nd i n t h e
w a y s c i t e d i n
t h e p a r a g r a p h s a b o v e .
23.
Templeton s v i o l a t i o n
o f t h e
above d e s c r i b e d
f e d e r a l laws,
d e m o n s t r a t e s
t h e
l e n g t h s t o which
i t w a s
w i l l i n g
t o g o i n
o r d e r
t o
p e r p e t u a t e t h e
f r a u d u l e n t
m a r k e t i n g
a s s e r t i o n s
c i t e d
above.
T o c o n c e a l t h e t r u e p r o d u c e r
o f Templeton s
r y e
whiskey i s
d e m o n s t r a t i v e
o f
7/25/2019 Townsend and Seils v. Templeton Rye
5/9
7/25/2019 Townsend and Seils v. Templeton Rye
6/9
g .
Whether t h e
d i s t i l l a t i o n
p r o c e s s
o r r e c i p e f o r
Templeton
r y e
whiskey i s
unique n any
w a y o
Templeton
r y e
whiskey;
h . Whether
Templeton s
c l a i m
t h a t i t s
r y e
whiskey
s
produced
by
Templeton
Rye
S p i r i t s , LLC n
Templeton Iowa,
i s f a l s e
and
m i s l e a d i n g
t o
Iowa
r e s i d e n t
p u r c h a s e r s ;
i
Whether
Templeton s c l a i m
t h a t
i t s
r y e
whiskey s
produced
a c c o r d i n g
t o
a
r o h i b i t i o n e r a r e c i p e
i s
f a l s e and
m i s l e a d i n g
t o
Iowa
e s i d e n t
p u r c h a s e r s ;
j . Whether
Templeton s
c l a i m
t h a t i t s
r y e
i s
a s m a l l
b a t c h
whiskey i s
f a l s e
and
m i s l e a d i n g t o Iowa e s i d e n t p u r c h a s e r s ;
k .
Th e d d i t i o n a l
amount p e r
b o t t l e
Templeton
was
and
i s
a b l e t o
c h a r g e
d u e
t o
any
marketing
c l a i m s
m a d e
n
v i o l a t i o n
of
owa s
consumer r a u d s t a t u t e ;
and
1
Whether
Templeton s
marketing
m i s r e p r e s e n t a t i o n s , a s
i d e n t i f i e d
above,
were
m a d e
with
w i l l f u l
and wanton d i s r e g a r d f o r
t h e r i g h t s
of
l a i n t i f f s
and o t h e r C l a s s
Members
l l o w i n g
f o r
enhanced
damages
under Iowa
Co de
e c t i o n
7 1 4 H . 5 ( 4 ) .
30.
T y p i c a l i t y . P l a i n t i f f s
c l a i m s
a r e
t y p i c a l
of h e
C l a s s s c l a i m s ,
a s t h e
P l a i n t i f f s
claims
r e l a t e s t o t h e p u r c h a s e of o t t l e s of
Templeton
r y e whiskey
o l d
w i t h
t h e
s am e
m a r k e t i n g
c l a i m s a s would
be s s o c i a t e d
w i t h
each
b o t t l e
of empleton
r y e
whiskey o l d .
31.
Adequacy. P u r s u a n t t o
I . R . C . P . 1 . 2 6 2 ( 2 ) (c ) and
1 . 2 6 3 ( 2 ) ,
P l a i n t i f f s
and
t h e
u n d e r s i g n e d c o u n s e l
meet
t h e
r e q u i r e m e n t of
adequacy,
a s
t h e
P l a i n t i f f s
w i l l
f a i r l y and
a d e q u a t e l y
p r o t e c t t h e i n t e r e s t s of t h e C l a s s ,
and
t h e
u n d e r s i g n e d
c o u n s e l
a r e q u a l i f i e d ,
e x p e r i e n c e d and a b l e t o r e p r e s e n t P l a i n t i f f and t h e C l a s s .
32. Predominance.
P u r s u a n t t o
I . R . C . P . 1 . 2 6 3 ( 1 ) ( e ) ,
q u e s t i o n s
of aw o r f a c t
common
t o
t h e
C l a s s
Members predominate
over any q u e s t i o n s
a f f e c t i n g only
i n d i v i d u a l
members.
T he
marketing
claims a s s o c i a t e d
w i t h
each b o t t l e
of
Templeton
r y e
whiskey
c a r r y
f a c t u a l and
l e g a l
i s s u e s
common o
a l l
C l a s s Members.
33.
S u p e r i o r i ~ . P u r s u a n t t o
I . R . C . P . 1 . 2 6 2 ( 2 ) ( b ) and
1 . 2 6 3 ( 1 ) , a c l a s s
a c t i o n i s
s u p e r i o r
t o a l l
o t h e r
a v a i l a b l e
methods f o r
t h e f a i r and
e f f i c i e n t
a d j u d i c a t i o n of h i s
c o n t r o v e r s y .
Th e
f a c t u a l and l e g a l
i s s u e s a r e
common
c r o s s a l l
C l a s s
Members,
numbering
l i k e l y i n
e x c e s s
7/25/2019 Townsend and Seils v. Templeton Rye
7/9
of
0,000
Class
Members, i t h each b o t t l e a t i s s u e
c o s t i n g
on average e s s
than $40,
which
does
not
o n s t i t u t e a u f f i c i e n t amount o r claims o be d j u d i c a t e d
i n d i v i d u a l l y .
34. I n d i v i d u a l
C o n t r o l . The n t e r e s t s of n d i v i d u a l
C l a s s
Members
r e b e s t
s e r v e d by
a
l a s s
a c t i o n .
Class Members' n d i v i d u a l a c t u a l dama ges due t o
t h e i n f l a t e d
p r i c e s p a i d
f o r
each
b o t t l e
of
Templeton
rye whiskey
would
not
u s t i f y t h e c o s t
t h a t
would be
i n c u r r e d
i n
p r o s e c u t i n g
a n
a c t i o n
r e l a t i n g
t o
t h a t
p u r c h a s e .
I n
t h e absence
of
a
c l a s s
a c t i o n
i n d i v i d u a l Class
Members
would l i k e l y
be
unable
t o s u c c e s s f u l l y a d j u d i c a t e claims
r e l a t i n g t o
t h e
f r a u d u l e n t marketing
c l a i m s .
35.
This Court w i l l not
e x p e r i e n c e
any m a t e r i a l d i f f i c u l t i e s
i n t s
a d m i n i s t r a t i o n
of
t h i s a c t i o n
as
a
c l a s s a c t i o n . The Class c o n s i s t s of a d i s c r e t e
group
of
h o s e Iowa
r e s i d e n t s
who,
s i n c e July 1,
2009, ave purchased
one
or
more o t t l e s
of
Templeton
rye whiskey,
nd t h a t
group
maybe dequately
reached by u b l i c a t i o n n o t i c e o r o t h e r w i s e
a s
t
r e l a t e s t o t h i s
a c t i o n .
IOWA S PRIVATE
RIGHT
OF CTIONFOR ONSUMER
FRAUDS ACT
36.
P l a i n t i f f
r e
- a l l e g e s and
i n c o r p o r a t e s
by t h i s
r e f e r e n c e
t h e
s t a t e m e n t s c o n t a i n e d
i n
paragraphs 1-35 above.
37.
P l a i n t i f f s a r e consumers w i t h i n t h e
meaning
of S e c t i o n
714H.2(3) of h e Iowa
Code, and
Templeton rye whiskey
i s consumer
merchandise
w i t h i n t h e
meaning of
S e c t i o n
714H.2(4).
38.
Defendant
has engaged
i n
a c t s
and p r a c t i c e s t h a t were
l i k e l y
t o mislead a
s u b s t a n t i a l
number of onsumers s
t o
m a t e r i a l
f a c t s
r e l a t i n g
t o
t h e
whiskey
39.
P l a i n t i f f s
a s
consumers,
have u f f e r e d
a n a s c e r t a i n a b l e
l o s s
of
money
r p r o p e r t y
as
h e
r e s u l t
of efendant's
r o h i b i t e d p r a c t i c e s and a c t s
i n
v i o l a t i o n
of hapter
7 1 4H .
7/25/2019 Townsend and Seils v. Templeton Rye
8/9
40.
P l a i n t i f f s
and
t h e C l a s s a r e
e n t i t l e d
t o
r e c o v e r
a c t u a l
damages a s a
r e s u l t
of
Defendant s
v i o l a t i o n
of
hapter
714H,
s p r o v i d e d
i n
S e c t i o n
7 1 4 H . 5 ( 1 ) .
41.
P l a i n t i f f s
and
t h e C l a s s
a r e
e n t i t l e d
t o
r e a s o n a b l e
a t t o r n e y s f e e s
a s a
r e s u l t of
Defendant s
v i o l a t i o n
of hapter
714H,
s p r o v i d e d
i n
S e c t i o n 7 1 4 H . 5 ( 2 ) .
42.
D e f e n d a n t s
v i o l a t i o n of
Chapter
714H
was
i n
w i l l f u l
and
wanton
d i s r e g a r d
f o r
t h e
r i g h t s of
P l a i n t i f f s
and
l l
C l a s s
Members, e n t i t l i n g
P l a i n t i f f
and
t h e
C l a s s
t o s t a t u t o r y
damages of
up
o
t h r e e t i m e s t h e amount of
c t u a l
damages,
s
p r o v i d e d
i n S e c t i o n
7 1 4 H . 5 ( 4 ) .
43.
P u r s u a n t t o Iowa
Co de S e c t i o n
714H.7,
l a i n t i f f s
have
r e c e i v e d
a p p r o v a l f o r
t h e
f i l i n g
of
h i s p et i t i o n from t h e o f f i c e of h e Iowa A t t o r n e y
G e n e r a l .
WHEREFORE
l a i n t i f f s
and t h e
C l a s s s e e k
r e c o v e r y
of
l l
damages a l l o w a b l e
under
Iowa
C ode Chapter
714H, o g e t h e r
w i t h
l l
i n t e r e s t
and
a t t o r n e y s
f e e s
allowed
t h e r e u n d e r , and
l l o t h e r
r e l i e f a s t h e Court deems p p r o p r i a t e .
BRADY
PRESTON
BROWN C
/ s / Brad J .
B r ady
B r a d J.
Brady,
AT0001138
BBrady@BradyPrestonBrown. om
/ s /
Matthew
L. r e s t o n
M a t t h ew
L . reston,
AT0006314
2735
l
s Avenue
SE
Cedar
R a p i d s ,
IA
52402
Phone: 319/866-9277
Fax:
319/866-9280
MPreston@BradyPrestonBrown. om
PEDDICORD WHARTON
PENCER
HOOK
ARRON
EGMAN
LP
/ s /
R andv
.
W i l h a r b e r
R a n d y .
Wilharber AT0008505
Randy.
Adam
.
Bates
AT0010677
Adam.Bates@Peddicord-law. om
7/25/2019 Townsend and Seils v. Templeton Rye
9/9
6800
Lake Drive
u i t e
125
West D es
Moines IA
50266
Phone:
515/243-2100
Fax:
515/243-2132
Randy.
ilharber@Peddicord-law. om
TTORNEYS
FOR
LAINTIFFS