Coleman v. Cannon Oil Co.

141 F.R.D. 516, 1992 U.S. Dist. LEXIS 19905, 1992 WL 38135
CourtDistrict Court, M.D. Alabama
DecidedJanuary 30, 1992
DocketCiv. A. No. 90-T-414-S
StatusPublished
Cited by29 cases

This text of 141 F.R.D. 516 (Coleman v. Cannon Oil Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coleman v. Cannon Oil Co., 141 F.R.D. 516, 1992 U.S. Dist. LEXIS 19905, 1992 WL 38135 (M.D. Ala. 1992).

Opinion

ORDER

MYRON H. THOMPSON, Chief Judge.

Upon consideration of the two recommendations of the United States Magistrate Judge entered on December 9,1991, it is ORDERED:

(1) That all objections to the recommendations be and they are hereby overruled;

(2) That the two recommendations of the United States Magistrate Judge entered on December 9, 1991, be and they are hereby adopted;

(3) That the plaintiffs’ motion for class certification, filed on October 31, 1990, and amended on March 28, 1991, be and it is hereby granted to the extent that a plaintiff class for “damages” is certified, pursuant to Fed.R.Civ.P. 23(a) and (b)(3), consisting of all individuals and entities who made retail purchases of gasoline from defendants in Houston County, Alabama since April 15, 1986; and

(4) That the motion be and it is hereby denied in all other respects.

RECOMMENDATION OF THE MAGISTRATE JUDGE

CARROLL, United States Magistrate Judge.

I. FACTS

Plaintiffs have alleged that defendants, retail sellers of gasoline in the Dothan, Alabama market, engaged in a conspiracy to fix prices in that market. The alleged conspiracy was continuous from April 15, 1986 to the present. Plaintiffs contend that this alleged conspiracy deprived gasoline purchasers of the benefits of free competition, namely, lower prices at the pump. Plaintiffs accordingly seek certification pursuant to Rule 23 of a class consisting of “all individuals and entities who made retail purchases of gasoline from the Defendants in the Houston County, Alabama area since April 15, 1986.”

In the motion for class certification filed October 31, 1990, plaintiffs estimated that there would be well over 10,000 class members actually joining suit. Plaintiffs have proposed to give individual notice, however, to all persons who in 1988 were licensed drivers over the age of 18 in Houston County. There are approximately 54,000 of these persons.1 Additionally, plaintiffs have proposed to publish summary notice in newspapers. Defendants Southeastern Oil, McGee Oil, Sunshine Oil, Sheffield Oil, Cannon Oil, and Metha Jean Cannon have each filed memoranda opposing class certification, assailing plaintiffs’ arguments from every conceivable legal angle. For purposes of this writing, these arguments are treated as though they were set forth by each of the defendants.

Defendants variously assert that class certification would be erroneous for the following reasons: plaintiffs’ proposed class is vague, inadequately defined, or overly broad; that this vagueness or broadness renders this lawsuit unmanageable as a class action; that the class representatives lack standing to sue each of the named defendants because each of the named defendants did not inflict a direct and tangible harm on him, and that the same defect exists as to class members; that the sheer number of people who could be class members renders the suit unmanageable as a class action; that a class action is not superior to other means of resolving the controversy; that common issues of law or fact do not predominate over individual issues; that the class representatives do not satisfy the requirements of Rule 23 as to typicality, ability to as[520]*520sume the costs of notice and vigorous prosecution; that the entire plaintiff class cannot meet the typicality requirement of Rule 23; and that at least one of the named plaintiffs has interests antagonistic to those of the class.

The sole question now before the court is whether a nationwide group with a noticed set of 54,000 persons who in 1988 were licensed drivers over the age of 18 in Houston County would be an appropriate damages class2 for certification in this antitrust conspiracy case under the provisions of Fed.R.Civ.P. 23(a), (b).

The court has carefully studied the cogent arguments advanced by excellent counsel in this case. On the basis of its study, the court finds that the law on the question is mixed but that the practice of many courts of subordinating any speculations about manageability and proof of damages to the policy that animates Rule 23 is to be preferred to premature speculations about draconian case management. Accordingly, the court finds that the class should be certified.

II. DISCUSSION

It is by now a truism that the class-action lawsuit has become a vehicle of citizen and consumer control over the vagaries of political or market forces. Where the class-action lawsuit is combined with a public policy favoring a private attorney general type of action or a clearly articulated federal .policy favoring punishment of wrongdoers for thwarting the common good, Everyman has a potent weapon. A class-action lawsuit in an antitrust case can be such a creature. Where the consuming public is harmed by price-fixing activity, the public interest demands redress, and Congress has clearly decreed that punishment in the form of treble damages is appropriate for violations of the Sherman Act. It may be that a class-action lawsuit is the most fair and efficient means of enforcing the law where antitrust violations have been continuous, widespread, and detrimental to as yet unidentified consumers. Sometimes a class-action lawsuit is the only way in which consumers would know of their rights at all, let alone have a forum for their vindication. This is the position for which the plaintiffs implicitly contend. The court believes that this expresses the best-reasoned view- of the courts, as well, dictating that any doubts are to be resolved in favor of granting certification where the class’ interests coincide with the public interest.

Basic Requirements of Rule 23

“Class certification is proper if plaintiffs can show that they meet the requirements of Fed.R.Civ.P. 23(a) and also come within one of the provisions of 23(b).” Wilcox Devel. Co. v. First Interstate Bank of Oregon, et al., 97 F.R.D. 440, 443 (D.Ore.1983). The burden of proving that all elements for class certification are met is on the plaintiffs, and failure to meet any one of the elements destroys a class action. Wilcox, 97 F.R.D. at 443. Rule 23(a) contains four requirements generally referred to as numerosity, commonality, typicality, and representativeness. Rule 23(b) further requires the plaintiffs to establish that they fall within one of two categories: plaintiffs must establish either that “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 that “questions of law or fact common to the class predominate over any questions affecting only individual class members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy.” Fed.R.Civ.P. 23(b)(2), (3).

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Bluebook (online)
141 F.R.D. 516, 1992 U.S. Dist. LEXIS 19905, 1992 WL 38135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coleman-v-cannon-oil-co-almd-1992.