Al Barnett & Son, Inc. v. Outboard Marine Corp.

64 F.R.D. 43
CourtDistrict Court, D. Delaware
DecidedAugust 13, 1974
DocketCiv. A. No. 4453
StatusPublished
Cited by44 cases

This text of 64 F.R.D. 43 (Al Barnett & Son, Inc. v. Outboard Marine Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Al Barnett & Son, Inc. v. Outboard Marine Corp., 64 F.R.D. 43 (D. Del. 1974).

Opinion

OPINION AND ORDER

LATCHUM, Chief Judge.

Plaintiffs’ motion presently before the Court seeks an order pursuant to Rule 23(c)(1), F.R.Civ.P., to maintain this case as a class action.

This private antitrust suit charges the defendant with violations of Section 1 of the Sherman Act, 15 U.S.C. § 1, and Section 3 of the Clayton Act, 15 U.S.C. § 14. Jurisdiction is based on Sections 4 and 16 of the Clayton Act, 15 U.S.C. §§ 15 and 15/26" style="color:var(--green);border-bottom:1px solid var(--green-border)">26. The plaintiffs seek to recover treble damages, suit costs, including reasonable attorney fees, and to obtain injunctive relief for alleged injuries to the business and property of the plaintiffs and the members of the class they purport to represent.

Specifically, the second amended complaint charges the defendant with restraining trade in certain marine accessory products by illegally tying the sales of those marine products to the sales of defendant’s Evinrude and Johnson outboard motors. The marine accessory products involved are: (1) remote control cables used for steering and throttling outboard motors, (2) propellers of various sizes and configurations which are attached to outboard motors in order to drive boats through the water, (3) fuel tanks set or placed in boats and connected to the outboard motors by flexible tubing and (4) two types of remote control boxes, viz., electrical shift control boxes and hydraulic shift control boxes.1

The three named plaintiffs are: A1 Barnett & Son, Inc. (“Barnett”), a New York corporation with its principal place of business in Farmingdale, New York; Marine Wholesale, Inc. (“Marine Wholesale”), an Oregon corporation with its principal office in Portland, Oregon; and Tri-State Marine, Inc. (“Tri-State”), a New Jersey corporation with its principal office in Carlstadt, New Jersey. The complaint alleges that the named plaintiffs are independent wholesale marine distributors who sell one or more of the marine accessory products involved which are capable of being used v/ith defendant’s outboard motors but are manufactured by others than the defendant.

The defendant is Outboard Marine Corporation (“OMC”) a Delaware corporation with its place of business at Waukegan, Michigan. OMC, which manufactures Evinrude and Johnson outboard motors, sells such motors and marine accessories to its franchised marine dealers. The plaintiffs claim that by [47]*47various marketing devices and practices OMC has effectively tied the sales of the marine accessory products involved to the sales of its outboard motors by requiring its marine franchised dealers to purchase the tied products from OMC with the consequence that the plaintiffs have been practically precluded from selling their competing marine accessories to OMC dealers.

The named plaintiffs allege that they represent a class composed of independent marine distributors who sell at wholesale one or more of the marine accessories involved that are usable with OMC outboard motors but are manufactured by entities other than OMC. Contending that all the requirements of Rule 23(a), F.R.Civ.P., have been satisfied, the plaintiffs urge the Court to permit the case to be maintained as a class action under Rule 23(b)(3) because questions of law and fact common to the members of the class predominate over any questions affecting only individual members and that the class action is superior to all other available methods for the fair and efficient adjudication of the controversy.

The National Marine Distributors Association (“NMDA”), a non-profit association of some fifty-four marine distributor members, was granted leave to file a brief as amicus curiae in support of plaintiffs’ position that the suit should be maintained as a class action. OMC vigorously resists the certification of the case as a class action.

1. REQUIREMENTS FOR MAINTENANCE OF CLASS ACTION.

Subdivision (a) of Rule 23 sets forth four mandatory prerequisites to the maintenance of any suit as a class action: “(1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interest of the class.”

In addition to meeting the four conjunctive requirements of 23(a), a class action must also qualify under one of the three subdivisions of 23(b). The plaintiffs contend the action is maintainable under 23(b)(3).2 That subdivision requires the Court to determine whether “questions of law or fact common to the members of the class predominate over any questions affecting only individual members” and whether “a class action is superior to other available methods for the fair and efficient adjudication of the controversy.” In resolving the issue concerning the propriety of a suit under 23(b)(3), the Court is required to assess various factors, including among others “(A) the interest of the members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum;” and “(D) the difficulties likely to be encountered in the management of the class action.”

In order for this case to qualify for class action treatment, the plaintiffs have the burden of showing that each of the four prerequisites of Rule 23(a) are satisfied and, in addition, that the two [48]*48additional requirements of 23(b)(3) are met. City of Philadelphia v. Emhart Corp., 50 F.R.D. 232 (E.D.Pa.1970); Weisman v. MCA Inc., 45 F.R.D. 258 (D.Del.1968); Philadelphia Electric Co. v. Anaconda American Brass Co., 43 F.R.D. 452 (E.D.Pa.1968).

With these principles in mind, the Court first turns to consider whether the four mandatory prerequisites of Rule 23(a) have been met so that this case may be certified for class action.

II. RULE 23(a) REQUIREMENTS.

The parties do not appear to be in sharp disagreement with respect to the questions whether the requirements of Rule 23(a)(2) and (3) have been met. OMC apparently concedes3 that there are some issues of law and fact, for example, OMC’s marketing practices of the marine products involved and OMC’s market power, are common to the defined class, although it denies these common issues predominate as required by Rule 23(b) (3). As to whether the claim of the class representatives are “typical” of the class as mandated by 23(a)(3), the parties have devoted very little argument. This lack of discussion may have been due to doubt of the precise meaning of that clause, Minnesota v. United States Steel Corp., 44 F.R.D. 559, 566 (D.Minn. 1968), or because many courts have equated the “typical” requirement with the 23(a)(2) requirement that common questions exist. American Airlines, Inc. v. Transport Workers Union, 44 F.R.D.

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Bluebook (online)
64 F.R.D. 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/al-barnett-son-inc-v-outboard-marine-corp-ded-1974.