Arizona v. Boise Cascade Corp.

453 F. Supp. 118, 1978 U.S. Dist. LEXIS 16688
CourtUnited States Judicial Panel on Multidistrict Litigation
DecidedJuly 11, 1978
DocketNo. 323
StatusPublished
Cited by4 cases

This text of 453 F. Supp. 118 (Arizona v. Boise Cascade Corp.) is published on Counsel Stack Legal Research, covering United States Judicial Panel on Multidistrict Litigation primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arizona v. Boise Cascade Corp., 453 F. Supp. 118, 1978 U.S. Dist. LEXIS 16688 (jpml 1978).

Opinion

OPINION AND ORDER

PER CURIAM.

On March 3, 1978 the Panel, pursuant to 28 U.S.C. § 1407, transferred twelve actions to the Eastern District of Pennsylvania and, with the consent of that court, assigned those actions to the Honorable Joseph L. McGlynn, Jr. for coordinated or consolidated pretrial proceedings with three actions already pending in that district. In re “Fine Paper” Antitrust Litigation, 446 F.Supp. 759 (Jud.Pan.Mult.Lit.1978).1 Since [119]*119that time, the Panel has transferred twelve tag-along actions to the Eastern District of Pennsylvania for inclusion in the Section 1407 proceedings pending there, and some additional actions have been filed in that district. All the actions in the transferee district were filed as purported class actions. While there are some variations in the descriptions of the classes sought, most are national classes of some group of fine paper purchasers.

The complaints in most of the actions (mill actions) in the transferee district basically allege that from as early as 1965 until 1977 the defendants and various co-conspirators conspired at the mill level, in violation of Section 1 of the Sherman Act, to fix the price of fine paper and to eliminate inter- and intra-brand competition among their wholesaler customers.2 All the complaints in these actions name as defendants only companies (mills) that are engaged in the manufacture and sale of fine paper.

The complaints in seven of the actions in the transferee district, filed by, respectively, the states of Colorado, New Mexico, Nebraska, Oregon, Missouri, Pennsylvania and Arkansas (the merchant house actions) include as defendants most of the mill defendants named in the other actions in the transferee district. These complaints, however, also name two paper trade associations and a variety of “mill-affiliated” and “independent” merchant houses3 as either defendants or co-conspirators. The complaints in these actions include many of the allegations involved in the complaints in the mill actions in the transferee district, and, in addition, the complaints in the merchant house actions allege that the conspiracy in the fine paper industry included concerted action among the merchant house defendants and the mill defendants to fix the price of fine paper, to suppress and eliminate competition from independent merchant houses, and to allocate governmental agency customers and rig bids to these customers.

The four actions presently before the Panel were commenced by, respectively, the states of Arizona, California and Utah and by a private party, as class actions. The state actions are each brought on behalf of a class of all other political subdivisions within the respective state, and the private party in the fourth action basically seeks to represent a national class of all non-governmental purchasers of fine paper. Each complaint names a variety of defendants, including mills, mill-affiliated merchant houses and independent merchant houses. [120]*120Most of these mills, one of these mill-affiliated merchant houses and one of these independent merchant houses are common defendants to all four actions. All these common defendants, plus all the other mills and some of the other mill-affiliated and independent merchant houses named as defendants in these four actions, are also named as defendants in actions in the transferee district. The complaint in the Arizona action also specifically names as co-conspirators the two paper trade associations named as co-conspirators in the merchant house actions in the transferee district and eleven merchant houses not previously involved in any of the actions in the transferee district.

Except for the class action allegations, the allegations of the complaints in the four actions now before the Panel are very similar to those in' the complaints in the merchant house actions now pending in the Eastern District of Pennsylvania.

Because these four actions appeared to involve common questions of fact with the actions in the transferee district, the Panel issued orders conditionally transferring these actions to the Eastern District of Pennsylvania. Two independent merchant house defendants4 have moved the Panel partially to vacate the conditional transfer orders concerning those actions and to order the separation and retention in the transferor districts (or one of them) of the claims asserted in these four actions against the independent merchant house defendants. Two additional independent merchant house defendants5 have similarly moved the Panel with respect to the Arizona action only. Plaintiffs in these four actions favor transfer of all claims in these actions to the Eastern District of Pennsylvania.

We find that the four actions before the Panel share questions of fact with the actions previously transferred to the Eastern District of Pennsylvania and that transfer of these four actions in their entirety to that district under Section 1407 will best serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation.

The defendants that object to inclusion of claims against the independent merchant house defendants in the Section 1407 proceedings pending in the Eastern District of Pennsylvania argue that whatever claims the plaintiffs in the actions now before the Panel may have against these defendants will involve unique questions of fact regarding the conduct of these particular defendants, and that these questions of fact are not involved in the “mill defendant” actions pending in the transferee district. If the claims against the independent merchant house defendants are separated and retained in the districts in which the actions now before the Panel were filed (or in one of those districts), these parties contend, discovery concerning these claims can proceed expeditiously and relatively inexpensively, without being encumbered by the substantially broader pretrial proceedings pending in the transferee district.

The opponents of transfer also argue that inclusion of the claims against them in Section 1407 proceedings would unduly complicate those proceedings and result in prejudice to the independent merchant houses. The opponents of transfer maintain that the independent merchant houses may be included in several of the plaintiff classes which are being sought in the Eastern District of Pennsylvania. These parties assert that independent merchant house defendants, as major buyers of fine paper products, have interests clearly in conflict with the mill defendants and that inclusion of [121]*121the claims against the independent merchant houses in the Section 1407 proceedings would unnecessarily create severe manageability problems for the parties and the transferee judge. Some parties assert that the plaintiffs’ and defendants’ initial organizational efforts in the transferee district already have been severely hamstrung by the presence of claims against the independent merchant houses. Some of the opponents of transfer maintain that any coordination of discovery or other pretrial proceedings that may become necessary involving the claims against the independent merchant houses and the actions pending in the transferee district can be accomplished by appropriate orders issued by the involved courts.

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Related

In re Fine Paper Antitrust Litigation
695 F.2d 494 (Third Circuit, 1982)
In Re Fine Paper Antitrust Litigation. (Ten Cases) the State of Alaska, on Its Own Behalf and on Behalf of Its Cities, Boroughs, and Other Political Subdivisions v. Boise Cascade Corporation, a Delaware Corporation Champion International Corporation, a New York Corporation Crown Zellerbach Corporation, a Nevada Corporation Great Northern Nekoosa Corporation, a Maine Corporation Hammermill Paper Company, a Pennsylvania Corporation International Paper Company, a New York Corporation Kimberly Clark Corporation, a Delaware Corporation the Mead Corporation, an Ohio Corporation Potlatch Corporation, a Delaware Corporation Scott Paper Company, a Pennsylvania Corporation St. Regis Paper Company, a New York Corporation Union Camp Corporation, a Virginia Corporation Wausau Paper Mills Co., a Wisconsin Corporation Westvaco Corporation, a Delaware Corporation Weyerhaeuser Company, a Washington Corporation Blake, Moffitt & Towne, Inc., a Division of Saxon Industries, Inc., a New York Corporation Western Paper Company, a Division of Hammermill Paper Company, a Pennsylvania Corporation and Zellerbach Paper Company, a Division of Crown Zellerbach Corporation, a Nevada Corporation. Appeal of State of Alaska, in No. 81-2341. State of Colorado v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, D/B/A Zellerbach Paper Company, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Weyerhaeuser Company, Butler Paper Company and Dixon Paper Company. Appeal of State of Colorado, in No. 81-2342. State of Washington, on Behalf of Itself and Its Public Entities v. Boise Cascade Corp., Champion International Corporation, Hammermill Paper Company, International Paper Company, Potlatch, Inc., Scott Paper Company, St. Regis Paper Company, Weyerhaeuser Company, Blake, Moffitt & Towne, Inc., a Division of Saxon Industries, Inc., Carpenter-Offutt Paper Company, Inc. A Division of Unisource Corp., Zellerbach Paper Company, a Division of Crown Zellerbach Corporation. Appeal of State of Washington, in No. 81-2343. State of Missouri v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Weyerhaeuser Company Corporation, Butler Paper Company, Graham Paper Company, Bermingham & Prosser Company, Distribix, Inc. Paper Supply Company, and Shaughnessy-Kniep-Hawe Paper Company. Appeal of State of Missouri, in No. 81-2344. The State of Oregon, on Its Own Behalf and on Behalf of Its Cities, Counties, and Other Political Subdivisions v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Weyerhaeuser Company, Blake, Moffitt & Towne, Division of Saxon Industries, Inc., Carpenter-Offutt Paper Company, Division of Unisource Corporation, Western Paper Company, Division of Hammermill Paper Company, and Zellerbach Paper Company, Division of Crown Zellerbach Corporation. Appeal of State of Oregon, in No. 81-2345. The State of California, on Behalf of Itself and All Political Subdivisions, Public Agencies and Districts Within the State Similarly Situated v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Weyerhaeuser Company, Butler Paper Company, an Affiliate of Great Northern Nekoosa Corp., J. C. Paper Company, an Affiliate of Wausau Paper Mills Co., Nationwide Papers, Incorporated, a Division of Champion International Corp., Seaboard Paper Company, an Affiliate of Mead Corp., Zellerbach Paper Company, a Division of Crown Zellerbach Corp., Blake, Moffitt & Towne, a Division of Saxon Industries, Inc., Carpenter-Offutt Paper Company, a Division of Unisource Corp., Ingram Paper Company and Noland Paper Company (Carpenter/offutt Paper Co.). Appeal of State of California, in No. 81-2346. Nebraska, State of v. Boise Cascade Corporation, Champion International Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Co., Westvaco Corporation, Weyerhaeuser Company, Crown Zellerbach Corporation, Kimberly Clark and Western Paper Co., a Division of Hammermill Paper Company. Appeal of State of Nebraska, in No. 81-2347. State of Iowa, by Its Attorney General, Richard C. Turner v. Boise Cascade Corp. Champion International Corporation the Mead Corporation Great Northern Nekoosa Corporation Hammermill Paper Company International Paper Company Potlatch Corporation Scott Paper Company St. Regis Paper Company Union Camp Corporation Wausau Paper Mills Co. Westvaco Corp. And Weyerhaeuser Company. Appeal of State of Iowa, in No. 81-2348. Montana, State of v. Boise Cascade Corp. Champion International Corp. Great Northern Nekoosa Corp. Hammermill Paper Co. International Paper Co. Mead Corp. The Potlatch Corp. Scott Paper Co. St. Regis Paper Co. Union Camp Corp. Wausau Paper Mills Co. Westvaco Corp. Weyerhaeuser Co. Crown Zellerbach Corp. And Kimberly Clark. Appeal of State of Montana, in No. 81-2349. State of Arkansas v. Boise Cascade Corporation, Champion International Corporation, Crown Zellerbach Corporation, Great Northern Nekoosa Corporation, Hammermill Paper Company, International Paper Company, Kimberly Clark Corporation, the Mead Corporation, Potlatch Corporation, Scott Paper Company, St. Regis Paper Company, Union Camp Corporation, Wausau Paper Mills Company, Westvaco Corporation, Western Paper Company, Graham Paper Company. Appeal of State of Arkansas, in No. 81-2350
685 F.2d 810 (Third Circuit, 1982)
Alaska v. Boise Cascade Corp.
685 F.2d 810 (Third Circuit, 1982)

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Bluebook (online)
453 F. Supp. 118, 1978 U.S. Dist. LEXIS 16688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arizona-v-boise-cascade-corp-jpml-1978.