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IN RE ANTIBIOTIC ANTITRUST ACTIONS

February 9, 1971

In Re Coordinated Pretrial Proceedings in Antibiotic Antitrust Actions

Lord, D. J.


The opinion of the court was delivered by: LORD

(Government Entity Class Actions)

LORD, D. J.

 Alleged antitrust violations by five corporate defendants *fn1" in the marketing of broad spectrum antibiotics are the subject of approximately 114 actions filed in this district or transferred here pursuant to 28 U.S.C. § 1407. *fn2" All of these actions were originally assigned to the Honorable Inzer B. Wyatt. Settlement has been reached in a number of these actions. Forty-three states, their governmental subdivisions and individual consumers have accepted a settlement offer from the defendants, as have a national class of wholesaler-retailers. State of West Virginia v. Chas. Pfizer & Co., 314 F. Supp. 710 (S.D.N.Y. 1970). In addition a settlement was recently reached by the defendants and a national class of private hospitals and Blue Cross plans. Recognizing the demanding nature of the task before Judge Wyatt in supervising the settlement proceedings, the Judicial Panel on Multidistrict Litigation reassigned the remaining nonsettling cases to this judge for the completion of pretrial proceedings, In re Antibiotic Drugs Litigation, 320 F. Supp. 586 (J.P.M.L. 1970). Among these nonsettling cases *fn3" are the seven above-captioned actions brought by the states of California, Hawaii, Kansas, North Carolina, Oregon, Utah and Washington.

 These states, like the states which accepted the defendants' settlement offer, make purchases of broad spectrum antibiotics for their own use and similar institutional purchases were made by the counties, cities, public hospitals and other government entities within each state. Each of the states now seeks to represent a class composed of themselves and all other government entities within their jurisdiction similarly situated. *fn4" The court is convinced that the proposed government entity classes, led by the states, satisfy the pre-requisties of Rule 23 and the motions for establishment of these classes are granted.

 I. Requirements of Rule 23(a)

 The proposed classes of government entities within each state are sufficiently numerous that joinder is impracticable, and the claims of each of the states are typical of the class. The states, through their attorneys general, are also the natural representatives of the class and will undoubtedly provide fair and adequate representation to the class. State of Illinois v. Harper & Row Publishers, Inc., 301 F. Supp. 484, 487 (N.D. Ill. 1969); State of Minnesota v. United States Steel Corp., 44 F.R.D. 559, 565-66 (D. Minn. 1968); Philadelphia Elec. Co. v. Anaconda Am. Brass Co., 43 F.R.D. 452, 456 (E.D. Pa. 1968); State of Iowa v. Union Asphalt & Roadoils, Inc., 281 F. Supp. 391, 401-2 (S.D. Iowa 1968). We do not understand defendants to dispute these conclusions.

 II. Requirements of Rule 23(b)(3)5

 This leaves for discussion the requirements that there be questions of law or fact common to the class which predominate over any individual questions and that the class action be superior to other methods of adjudicating the controversy.

 A. Existence and Predominance of Common Questions

 The elements which the plaintiffs must prove to recover from the defendants are: (1) that the defendants did violate the antitrust laws by fixing prices at a higher level than would otherwise have occurred, (2) that plaintiffs were injured by the defendants' price fixing and (3) the amount of damage sustained as a result of the defendants' violations. See Philadelphia Elec. Co. v. Anaconda Am. Brass Co., supra 43 F.R.D. at 457.

 The defendants admit, as they must, that the questions of their violation of the antitrust laws is common to these actions. As we read their arguments, however, they do contend that the question of the fact of damage to the plaintiffs in a treble damage action, as well as the amount of damages suffered by each plaintiff, is an individual question which cannot be tried on a class-wide basis and that common questions of fact cannot be said to predominate. *fn6"

 The case law contradicts the arguments of the defendants. The cases conclude that all aspects of the liability question, including the fact of damage to the plaintiff class, are common questions appropriate for resolution on a class-wide basis. City of Philadelphia v. Emhart Corp., 50 F.R.D. 232, 235 (E.D. Pa. 1970); State of Illinois v. Harper & Row Publishers, Inc., supra 301 F. Supp. at 488-89; State of Minnesota v. United States Steel Corp., supra 44 F.R.D. at 568-71; State of Iowa v. Union Asphalt & Roadoils, Inc., supra 281 F. Supp. at 401-2; Philadelphia Elec. Co. v. Anaconda Am. Brass Co., supra 43 F.R.D. at 457-58. See Gold Strike Stamp Co. v. Christensen, 436 F.2d 791 (10th Cir. 1970) (denying mandamus to stay a class action order after concluding that the question of the effect of an illegal price discrimination on competition under the Robinson-Patman Act was common to the class and litigable through the representative parties). But cf. Chicken Delight, Inc. v. Harris, 412 F.2d 830 (9th Cir. 1969) (granting a writ of mandamus directing the deletion from a Rule 23(c)(2) notice of reference to a resale price maintenance question as one common to the class.) *fn7" These cases also hold that these common liability questions predominate over any remaining individual questions.

 B. Superiority of the Class Action

 Before allowing a class action to proceed, the court must determine that it is "superior to other available methods for the fair and efficient adjudication of the controversy," taking into consideration four criteria listed in the rule as pertinent to this finding. The individual members of the proposed classes have little interest in pressing their relatively small claims in the absence of a class action and it is unlikely these claims could be vindicated in any other manner. And, as was noted in State of Illinois v. Harper & Row Publications, Inc., supra 301 F. Supp. at 489-90, the class action will further promote the "desirable economies of time, effort and expense" begun by the transfer of these cases here under 28 U.S.C. § 1407. The other advantages of class determination of antitrust price fixing questions to both plaintiffs and defendants have been explored elsewhere and are not questioned by the parties, and need not be restated here. State of Illinois v. Harper & Row Publishers, Inc., supra at 489-92; State of Minnesota ...


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