Bill Minielli Cement Contracting, Inc. v. Richter Concrete Corp.

62 F.R.D. 381, 1973 U.S. Dist. LEXIS 12922
CourtDistrict Court, S.D. Ohio
DecidedJune 29, 1973
DocketNo. 8547
StatusPublished
Cited by9 cases

This text of 62 F.R.D. 381 (Bill Minielli Cement Contracting, Inc. v. Richter Concrete Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bill Minielli Cement Contracting, Inc. v. Richter Concrete Corp., 62 F.R.D. 381, 1973 U.S. Dist. LEXIS 12922 (S.D. Ohio 1973).

Opinion

OPINION

PORTER, District Judge:

This is a private antitrust case in which plaintiffs charge defendants conspired to fix prices of ready-mix concrete and also discriminated in such prices. Plaintiffs requested that the case be designated as a class action pursuant to Rule 23 Fed.R.Civ.P.

The defendants strongly oppose this motion. They do so on, the ground that there is no proof the class is too numerous to make joinder impracticable, common questions of law and fact do not predominate, and plaintiffs are not suitable representatives of the class anyhow.

[383]*383The question about predominance of common issues of law and fact which arises because the proposed class would include indirect as well as direct purchasers is one on which there is conflict in the law, and which, as far as we have been able to determine, has not yet been addressed by the Sixth Circuit. Because of that and the importance of the question presented, that particular question merits full discussion and a rather full description of the pleadings and proceedings is in order.

I.

On August 23, 1972, Bill Minnielli Cement Contracting, Inc., filed a complaint naming Richter Concrete Corporation, Hilltop Concrete Corporation, six cement companies, one John Doe ready-mix concrete company and one John Doe cement company as defendants. The complaint charged these defendants with engaging in a conspiracy to fix prices in violation of § 1 of the Sherman Act, 15 U.S.C. § 1. The conspiracy was alleged to have begun in 1967 and continued to the present. In the complaint Minnielli alleged that it represented a class under Rule 23(a) and (b)(3) Fed.R.Civ.P. consisting of all those entities .and persons situated within the Cincinnati area— Butler, Hamilton, Warren and Clermont Counties — -who had purchased ready-mix concrete directly or indirectly from the defendants during the relevant time period. The purchaser category was broken down into the following subclasses:

“(l)(a) All general and paving contractors in the Cincinnati area who have purchased ready-mix concrete during the period in suit, and have sustained, damage as a result of the combination and conspiracy in violation of the antitrust laws hereinafter alleged.
“(b) All consumers, including builder-owners and/or builder developers and/or operations of industrial, commercial and/or residential construction and all state, county and local governments and political subdivisions in the Cincinnati area, who have purchased, directly or indirectly, ready-mix concrete during the period in suit and have sustained damages as a result of the combination and conspiracy in violation of the antitrust laws hereinafter alleged.” [Emphasis added.]

Plaintiff went on to allege the requirements provided by Rule 23(a), (b)(3) for maintaining a class action are met. Plaintiff also alleged it had no knowledge of the alleged conspiracy or any facts which might have led to its discovery until November 17, 1970, and claimed that it could not have discovered the conspiracy on any earlier date through the exercise of due diligence because of deceptive practices and techniques of secrecy employed by the defendants and their co-conspirators to avoid detection and to fraudulently conceal the combination and conspiracy.

On September 28, 1972, plaintiff filed an amended complaint adding Debbie, Inc., as a party-plaintiff and adding a claim of price discrimination under the Clayton Act, 15 U.S.C. § 13(a). In the amended complaint there is the same allegation of fraudulent concealment as appeared in the original.

On September 28, 1972, plaintiff also filed a motion (document 20) to have this action certified as a class action and a memorandum in support of that motion. Additionally, on September 28, 1972, a stipulation of dismissal was, at the request of the plaintiff, entered as to four of the cement companies. After the stipulation of dismissal the remaining defendants were Richter Concrete Corporation, Hilltop Concrete Corporation, Michael Concrete Products, Inc., Crew Builders Supply Co., John Doe Ready Mix Concrete Co. and John Doe Cement Co.

On October 26, 1972, the defendants filed a response to plaintiffs’ class action motion along with a supporting memorandum, and on November 3, 1972, an evidentiary hearing was held on the [384]*384class action question. At this hearing two witnesses gave oral testimony, portions of several depositions were designated, and affidavits were offered and admitted.

On November 15, 1972, the Court received the plaintiffs’ reply memo on the class action issue, and on November 30, 1972 the defendants’ supplemental memorandum. Thus the class action question stands submitted on the amended complaint, the oral testimony, depositions and affidavits, together with extensive briefs.

II.

The first issue is whether the class which plaintiffs seek to represent is so numerous as to make joinder of all members impracticable. The burden of showing that the prerequisites of a class action exist under Rule 23(a) — including membership so large, etc. — is on the party who seeks to represent a class. Cash v. Swifton Land Corporation, 434 F.2d 569 (6 Cir., 1970); Demarco v. Edens, 390 F.2d 836 (2 Cir., 1969); Kinzler v. New York Stock Exchange, 53 F.R.D. 75 (S.D.N.Y.1971); City of Philadelphia v. Emhart Corporation, 50 F.R.D. 232 (E. D.Pa., 1970); Philadelphia Electric Co. v. Anaconda American Brass Co., 43 F. R.D. 452 (E.D.Pa., 1968).

To sustain their burden on this issue plaintiffs submitted the affidavit of their counsel in which he stated that through a process of cross-referencing the Directory of the Ohio Contractors Association to the Yellow Pages of the telephone directories of Hamilton, Cler-mont, Butler and Warren Counties, he found 500 to 600 general contractors and 150 to 200 cement and concrete contractors and paving contractors. Plaintiffs’, counsel admitted overlap in the listings of general contractors and concrete and paving contractors. He also admitted that not all entities listed had purchased ready-mix.

In reference to the “consumer” subclass, in his affidavit plaintiffs’ counsel stated that in consulting Volume 2 of the 1972 Directory of Ohio Manufacturers, 27th Ed., pp. 879, et seq., he found the four counties involved in the suit and 70 municipalities located within the counties.

William J. Minnielli stated there are four other people in the area whose business is from 80% to 90% concrete paving (Minnielli deposition, p. 63). Obviously, if the class is limited to paving contractors it is not so numerous as to make joinder impracticable and, of course, the defendants urge that the class be limited to paving contractors. In this connection, defendants argue that plaintiffs should be bound by Min-nielli’s deposition that there are four other companies whose business is 80%-90% paving work.

If it is not so limited and includes all contractors and/or entities, there is no evidence from which the Court can determine exactly how many of such contractors or entities bought ready-mix from the four defendants and how many from other ready-mix companies in the Cincinnati area.

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Bluebook (online)
62 F.R.D. 381, 1973 U.S. Dist. LEXIS 12922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bill-minielli-cement-contracting-inc-v-richter-concrete-corp-ohsd-1973.