For Settlement, Company to Shell Out 201K Eggs for Food Banks

A company that branded its out-of-state eggs as “California Ranch Fresh” is ending a consumer protection lawsuit by shelling out an unusual settlement: 201,240 eggs donated to San Diego food banks.

The San Diego City Attorney’s office filed the suit against Luberski, Inc., and its brand Hidden Villa Ranch, whose products are sold at local Costco stores. 

An investigation revealed the company would label its eggs as “California Ranch Fresh” and “A Product of Hidden Villa Ranch, Fullerton CA.” However, the eggs actually came from out-of-state plants, according to city attorney spokesman Gerry Braun.

However, Hidden Villa Ranch CFO Donald Lawson told NBC 7 in an email that the labeling in question -- put on eggs through 2012 -- was approved by the USDA and complied will both the California Department of Agriculture Regulations and the USDA/FDA's regulations.

"Though confident the labeling was proper, to accommodate the City's concerns, Hidden Villa Ranch immediately and voluntarily changed its labeling," Lawson wrote in part. "The city has acknowledged that the revised labeling fully complies with all applicable statutes and regulations."

To settle the lawsuit, both sides hatched a plan that would cut into the company’s bottom line while helping needy San Diegans. Hidden Villa Ranch will donate $50,000 worth of eggs to Feeding American San Diego and the Jacobs & Cushman San Diego Food Bank, while also paying $53,517 in penalties and investigation costs.

Braun said City Attorney Jan Goldsmith does not typically take settlements that are not U.S. currency, but his office tries to cook up ways for defendants to give back to the community.

“This was a creative resolution, and a win-win for San Diego,” Goldsmith said in a news release. “Our food banks get $50,000 in eggs to help the needy. Our office enforces the law, and Hidden Villa Ranch is held accountable.”

Concern over the branding rose when farms outside California recalled their eggs due to salmonella poisoning. Braun said people who mistakenly believed their eggs were from California would not check to see if their food was part of the recall.

The San Diego Food Bank’s President and CEO James Floros said food donations are slow during the summer months, while demand is up from students who can’t get school meals.

“The timing of this donation could not be better,” Floros said in the release, adding that eggs are a tough commodity to come by.

Because they are so fragile, they are rarely given to food banks, which need them as a good source of protein.

“Thanks to this valuable donation, we’ve been able to distribute more than 400 cases of eggs at our school pantries across San Diego County,” Jenny Seneor, the Director of Programs for Feeding America San Diego, said in the release. “Our clients consistently share how important it is for them to be able to put healthy meals on the table for their growing children.”

To see where your eggs come from, check the egg plant’s code number, printed on the carton, at the USDA’s website.

If you have a consumer complaint, call the city Consumer & Environmental Protection Unit’s hotline at 619-533-5600.

More of Lawson's statement is below: 

"Hidden Villa Ranch is proud of its history of providing the best product to the citizens of San Diego and the entire State of California. It has long been recognized for its ethics in its business operations. Hidden Villa Ranch is pleased to give back to the citizens in San Diego, who are most affected by the effects of Prop. 2 and other events that have caused the price of eggs to rise from $0.88 per dozen to over $3 per dozen. Hidden Villa Ranch looks forward to continuing to serve the consumers of San Diego."

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