Butt v. Allegheny Pepsi-Cola Bottling Co.

116 F.R.D. 486, 1987 U.S. Dist. LEXIS 13848
CourtDistrict Court, E.D. Virginia
DecidedMay 22, 1987
DocketCiv. A. No. 86-795-N
StatusPublished
Cited by12 cases

This text of 116 F.R.D. 486 (Butt v. Allegheny Pepsi-Cola Bottling Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Butt v. Allegheny Pepsi-Cola Bottling Co., 116 F.R.D. 486, 1987 U.S. Dist. LEXIS 13848 (E.D. Va. 1987).

Opinion

MEMORANDUM ORDER

MacKENZIE, District Judge.

Plaintiff William Butt (“Butt”), t/a Larkspur Texaco, filed this suit as a class action against defendant Allegheny Pepsi-Cola Bottling Company (“Allegheny”) and The Mid-Atlantic Coca-Cola Bottling Company, Inc. (“Mid-Atlantic”). Plaintiff alleg[487]*487es, on behalf of himself and all others similarly situated, that Allegheny and Mid-Atlantic conspired, by means of promotional-letter pricing agreements, to fix and raise soft-drink prices in violation of Section 1 et seq. of the Sherman Act, 15 U.S.C. § 1 et seq. Plaintiff seeks treble damages and injunctive relief.

This matter comes before the Court on plaintiffs amended motion for class certification under Fed.R.Civ.P. 23. The issue was argued before the Court on April 3, 1987.

Plaintiff is an individual who owns a service station in Virginia Beach, Virginia. He purchases small quantities of soft drinks from the defendants for vending machine sale to the traveling public.

Defendant Allegheny, a Maryland corporation, is a unit of PepsiCo Inc. Defendant Mid-Atlantic, a Delaware corporation, is affiliated with Coca-Cola. Both defendants sell soft drinks in the Norfolk and Richmond areas of Virginia.

Plaintiff seeks certification of the following class:

[A]ll individuals, proprietorships, partnerships, corporations, and other entities within the area served by the Norfolk and Richmond, Virginia divisions of defendants Allegheny Pepsi-Cola Bottling Company and The Mid-Atlantic Coca-Cola Bottling Co., Inc., who have, during the period February 1983 through September 1984, purchased soft drinks directly from either of the defendants, their respective subsidiaries, and affiliates. Excluded from the proposed Class are defendants Allegheny Pepsi-Cola Bottling Company and The Mid-Atlantic Coca-Cola Bottling Co., Inc., their respective subsidiaries and affiliates, and coconspirators. (Plaintiffs Amended Motion for Class Certification.)

Thus, plaintiff seeks to represent a class of customers including supermarkets, convenience stores, liquor stores, military commissaries, bars/taverns, drugstores, service stations, restaurants, schools, businesses, third-party vendors, and special events like fairs and sporting events. A number of these customers are chain stores.

For the reasons which follow, the Court deems it inappropriate to certify the proposed class.

Rule 23(a)

The prerequisites to a class action are set forth in Rule 23(a), which provides as follows:

(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.

With respect to each requirement, the Court concludes as follows:

Numerosity

According to affidavits submitted by defendants, Allegheny had over 14,000 customers in 1983-84 who might qualify for membership in the proposed class; Mid-Atlantic had over 8000. Even if there exists a high degree of overlap between the two groups of customers, the total number would still exceed 14,000.

Defendants explained in their affidavits, however, that some chain stores (supermarkets, convenience stores, drugstores, service stations, and others) have multiple outlets, each of which is treated by defendants as a separate customer. Because each outlet may transact business on an individual basis with defendants, separate treatment appears appropriate for business-accounting purposes. For purposes of possible joinder in this law suit, however, a given chain store should be counted as one corporate customer, not as multiple outlets. Consequently, the actual number of customers who may qualify as separate mem[488]*488bers of the proposed class is somewhat fewer than 14,000.

Although neither plaintiff nor defendants indicate precisely what this number is, the Court can take judicial notice of the fact that hundreds, and probably thousands, of entities in Richmond and Norfolk bought Pepsi and Coke products directly from the defendants in 1983-84. Therefore, the Court has no difficulty in finding that the proposed class is so numerous that joinder would be impracticable. The Rule 23(a)(1) requirement of numerosity is thus satisfied.

Commonality

Rule 23(a)(2) requires that there be a question of either law or fact common to the members of the class. A number of courts have found that allegations concerning the existence, scope, and efficacy of an alleged antitrust conspiracy present questions adequately common to class members to satisfy this commonality requirement. See, e.g., Brown v. Cameron-Brown Co., 92 F.R.D. 32, 37-38 (E.D.Va.1981).

All the claims in the present suit do, in fact, relate to an alleged conspiracy on the part of defendants to fix and raise soft-drink prices by means of promotional-letter pricing agreements. These common claims are sufficient to satisfy the commonality requirement. This is not to say, however, that common issues predominate over individual questions peculiar to individual class members. The question of predominance will be addressed with reference to Rule 23(b)(3).

Typicality

Rule 23(a)(3) provides that a class action is proper only if “the claims or defenses of the representative parties are typical of the claims or defenses of the class.” It has been held that

... typicality refers to the nature of the claims of the class representative and not necessarily to the specific facts from which the case arose____ Where the class representatives’ claims are such that they will have to prove the same elements as the remainder of the class, then typicality should be found notwithstanding factual differences between various members of the class.

Brown v. Cameron-Brown Co., 92 F.R.D. at 38 (cites omitted). The typicality requirement can be met in an antitrust case even though there are many products sold at varied prices and conditions, essentially because all class members will seek to prove the same elements: that there was a conspiracy to fix prices in violation of the antitrust laws, that the prices were fixed pursuant thereto, and that the plaintiffs purchased products at prices which, as a result of the conspiracy, were higher than they would have been in a free market. See 3 H. Newberg, Newberg on Class Actions § 18.10 (2d ed. 1985), and cases cited therein.

In the present antitrust suit, all class members would seek to prove the elements of price fixing reiterated above. Because the claims asserted by the class representative are virtually the same as the claims of the class, the Court is satisfied that the typicality requirement has been met.

Adequacy of Representation

Rule 23(a)(4) requires that the class representative fairly and adequately protect the interests of the class.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Daskalea v. the Washington Humane Society
275 F.R.D. 346 (District of Columbia, 2011)
Lemon v. Harlem Globetrotters International, Inc.
437 F. Supp. 2d 1089 (D. Arizona, 2006)
Exhaust Unlimited, Inc. v. Cintas Corp.
223 F.R.D. 506 (S.D. Illinois, 2004)
Flippo v. L.L. Bean, Inc.
Maine Superior, 2001
Paper Systems Inc. v. Mitsubishi Corp.
193 F.R.D. 601 (E.D. Wisconsin, 2000)
Pickett v. IBP, Inc.
182 F.R.D. 647 (M.D. Alabama, 1998)
Peoples v. American Fidelity Life Insurance
176 F.R.D. 637 (N.D. Florida, 1998)
In re Workers' Compensation
130 F.R.D. 99 (D. Minnesota, 1990)
Meredith v. Mid-Atlantic Coca Cola Bottling Co.
129 F.R.D. 130 (E.D. Virginia, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
116 F.R.D. 486, 1987 U.S. Dist. LEXIS 13848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butt-v-allegheny-pepsi-cola-bottling-co-vaed-1987.