Boston Pneumatics, Inc. v. Ingersoll-Rand

65 F.R.D. 61, 20 Fed. R. Serv. 2d 145, 1974 U.S. Dist. LEXIS 11806
CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 2, 1974
DocketCiv. A. No. 72-1729
StatusPublished
Cited by7 cases

This text of 65 F.R.D. 61 (Boston Pneumatics, Inc. v. Ingersoll-Rand) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boston Pneumatics, Inc. v. Ingersoll-Rand, 65 F.R.D. 61, 20 Fed. R. Serv. 2d 145, 1974 U.S. Dist. LEXIS 11806 (E.D. Pa. 1974).

Opinion

OPINION

LUONGO, District Judge.

Boston Pneumatics, Inc. (B-P), plaintiff in this treble damage antitrust action, has moved, pursuant to F.R.Civ.P. 23(c)(1), for a determination whether this suit may be maintained as a class action. B-P is engaged in the manufacture 1 and sale of pneumatic tools. Defendant Ingersoll-Rand Company (I-R) is engaged in the manufacture and sale of pneumatic tools and compressors in both domestic and international markets. Suit was instituted under Sections 1 and 2 of the Sherman Act, as amended, 15 U.S.C. §§ 1 and 1px solid var(--green-border)">2, and Section 7 of the Clayton Act, 15 U.S.C. § 18.

In its amended complaint, plaintiff has alleged that I-R and other co-conspirators (named, but not joined as defendants) have, with respect to the manufacture and sale of pneumatic tools and compressors, committed a number of acts in violation of the antitrust laws including, inter alia, engaging in industrial surveillance; interfering with standards of acceptance for sale and use of such products; making malicious and untrue charges of illegal operations, specifically, violations of the Buy American Act;2 dividing markets; curtailing or preventing technological advances; creating and fostering corporate interrelationships artificially to maintain prices and restrict competition; conducting a policy of mergers and acquisitions to create a monopoly; and participating in meetings to fix prices, restrain trade and limit competition.

• In the class action allegations of the amended complaint, plaintiff sought to represent a class consisting of (a) approximately 117,300 state and municipal governments, (b) 35 federal government agencies, and (c) approximately 95,000 building contractors, all purchasers of pneumatic tools and compressors, and (d) some 320 manufacturers of pneumatic tools and compressors. At oral argument on the motion for class action approval, because of the unmanageability of the numbers, and because of the patently diverse and conflicting interests of the alleged buyer-class members as opposed to alleged manufacturer-class members, I advised plaintiff’s counsel to confine his argument to seeking approval for a class consisting of manufacturers only. This discussion of the motion for approval of a class action will be so limited.

Rule 23(a) governing class actions provides, in part:

Rule 23

Class Actions

(a) Prerequisites to a Class Action. One or more members of a class may sue or be sued as representative parties on behalf of all only if (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 interests of the class.

(b) Class Actions Maintainable. An action may be maintained as a class [63]*63action if the prerequisites of subdivision (a) are satisfied, and in addition :

(1) the prosecution of separate actions by or against individual members of the class would create a risk of

(A) inconsistent or varying adjudications with respect to individual members of the class which would establish incompatible standards of conduct for the party opposing the class, or

(B) adjudications with respect to individual members of the class which would as a practical matter be dis-positive of the interests of the other members not parties to the adjudications or substantially impair or impede their ability to protect their interests; or

(2) the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole; or

(3) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy; The matters pertinent to the findings include: (A) the interest of 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; (D) the difficulties likely to be encountered in the management of a class action.

A plaintiff seeking to maintain a class action has the burden to establish the right so to proceed. Demarco v. Edens, 390 F.2d 836, 845 (2d Cir. 1968); B. & B. Investment Club v. Kleinert’s, Inc., 62 F.R.D. 140, 145 (E.D.Pa.1974); Philadelphia Electric Co. v. Anaconda American Brass Co., 43 F.R.D. 452, 457 (E.D.Pa.1968). It is plaintiff’s burden to establish that it meets all of the requirements of Rule 23(a) and in addition, at least one of the requirements of 23(b). Plaintiff in the instant case has made no serious effort to qualify under (b)(1) or (b)(2) and has concentrated its efforts on satisfying the requirements of 23(b)(3).

Although there are substantial questions as to whether plaintiff can meet each of the prerequisites set forth in Rule 23(a), particularly those set forth in subdivisions (2) and (3), it will not be necessary to reach this issue, for it is evident that the requirements of 23(b)(3) cannot be satisfied. Plaintiff has failed to establish that common issues of law and fact predominate over individual issues, or that class action is superior to other methods for adjudication of the controversy between the parties.

The amended complaint contains a number of broad general charges of conduct violative of the antitrust laws. The parties have since, however, pursuant to court order, engaged in extensive discovery relating to the class action motion. From the record thus created, it is apparent that plaintiff’s real complaint is that I-R has improperly interfered with plaintiff’s opportunity to obtain federal government business by (1) falsely charging that B-P violated the Buy American Act; (2) conspiring with government employees to impose testing standards on products sold by B-P, which standards were not required by regulations, and (3) falsely charging that B-P was not a manufacturer of its products, but was instead passing off used products manufactured by I-R as its own. All of these charges, which are at the heart of plaintiff’s complaint, are matters unique to B-P and I-R. There is nothing in the present record to indicate that I-R has engaged [64]*64in similar conduct with respect to any other members of the alleged class. The proofs relating to these charges will involve B-P’s role as a manufacturer and I-R’s justification, or lack of justification, in making charges against B-P, if such charges were made.

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Bluebook (online)
65 F.R.D. 61, 20 Fed. R. Serv. 2d 145, 1974 U.S. Dist. LEXIS 11806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boston-pneumatics-inc-v-ingersoll-rand-paed-1974.