Dale v. Deutsche Telekom AG

CourtDistrict Court, N.D. Illinois
DecidedOctober 7, 2022
Docket1:22-cv-03189
StatusUnknown

This text of Dale v. Deutsche Telekom AG (Dale v. Deutsche Telekom AG) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dale v. Deutsche Telekom AG, (N.D. Ill. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ANTHONY DALE, BRETT JACKSON, JOHNNA FOX, BENJAMIN BORROWMAN, ANN LAMBERT, ROBERT ANDERSON, and No. 22 C 03189 CHAD HOHENBERY, on behalf of themselves and all others similarly Judge Thomas M. Durkin situated,

Plaintiffs,

v.

DEUTSCHE TELEKOM AG, et al.,

Defendants.

MEMORANDUM OPINION AND ORDER Plaintiffs filed this suit under the federal antitrust statutes challenging the 2020 merger between T-Mobile and Sprint. Defendant T-Mobile US, Inc. (the only defendant that has been served thus far) has moved to transfer the case to the Southern District of New York (“SDNY”).1 For the reasons stated below, T-Mobile’s motion is denied. Background On April 29, 2018, wireless service providers T-Mobile and Sprint announced their intention to merge. Fourteen states and the District of Columbia sued to block the merger. The case proceeded to trial in December 2019 before the Honorable Judge

1 The Court may resolve this motion even though not all parties have been served yet. See Rivers v. Union Pac. R.R., 2017 WL 379447, at *3 (M.D. La. Jan. 26, 2017) (“A federal court may consider a transfer motion before all of the parties are joined.”). Victor Marrero of SDNY. During the two-week bench trial, the parties presented extensive evidence and testimony regarding the potential pro- or anti-competitive effects of the merger. See New York v. Deutsche Telekom AG, 439 F. Supp. 3d 179,

187-88 (S.D.N.Y. 2020) (“Together, counsel and experts amass documentary and testimonial records for trial that can occupy entire storage rooms to capacity.”). Judge Marrero ultimately ruled against the complaining States, saying he was “not persuaded” by their prediction that the new company formed by the merger would pursue anticompetitive behavior. Id. at 189. He also disagreed with the States’ contention “that Sprint, absent the merger, would continue operating as a strong

competitor in the nationwide market for wireless services.” Id. Finally, he rejected the States’ argument that DISH Network Corp. was unlikely to enter the wireless services market as a viable competitor post-merger. Id. After Judge Marrero issued his decision, T-Mobile and Sprint settled with twelve of the State Attorneys General. The settlement included commitments by the merged company to provide low-cost plans to residents of those states and nationwide broadband access for educational purposes to qualifying households. In exchange, the

States agreed to forgo an appeal of Judge Marrero’s decision and to refrain from publicly opposing the merger. The settlement agreement remains in force through April of 2025, and all disputes arising out of the agreement are to be heard in the Southern District of New York. The merger closed on April 1, 2020. In T-Mobile’s characterization, the results have been emphatically pro-consumer. T-Mobile points to its roll out of wireless plans targeted at low-income and prepaid customers and an expanded network that competes with home internet providers. T-Mobile also lauds DISH as a rising competitor in the wireless service market, emphasizing DISH’s achievement of FCC-

imposed milestones for building out its own 5G network. Plaintiffs, naturally, espouse a dimmer view. They claim that post-merger, the downward trend in wireless service plan prices has reversed, with the big three wireless carriers (T-Mobile, Verizon, and AT&T) instead raising rates, on top of customers facing higher taxes, fees, and surcharges. Plaintiffs also allege that T- Mobile has exploited the post-merger reduction in competition by enrolling its

customers in a program that sells their data to advertisers. And contrary to T- Mobile’s rosy description of DISH’s place in the market, Plaintiffs bemoan the would- be competitor’s performance, noting that DISH remains primarily a “virtual” network that resells access to the networks of other carriers. Against the backdrop of these competing pictures of the commercial wireless service environment, Plaintiffs bring antitrust claims under Section 7 of the Clayton Act (15 U.S.C. § 18) and Section 1 of the Sherman Act (15 U.S.C. § 1). Purporting to

represent a nationwide class of AT&T and Verizon wireless customers, Plaintiffs allege that the reduction in competition has caused the class members to pay billions of dollars more than they otherwise would have absent the merger. In this action, they seek to unwind the T-Mobile-Sprint merger, create a viable fourth competitor in the marketplace, and recover damages for the overcharges they sustained. Delving into the merits of Plaintiffs’ claims is a task for a later date, however. In the transfer motion presently before the Court, the question is simply where those issues should be litigated. The named Plaintiffs claim they chose the Northern

District of Illinois (“NDIL”) because it is the most convenient for them, and that the case should remain here. Of the seven, one resides in this District, three others reside in Illinois, and the remaining three reside in Indiana. T-Mobile contends the case belongs back in SDNY because it has the closest connection to the material events and is more convenient in other relevant regards. Discussion “For the convenience of parties and witnesses, in the interest of justice, a

district court may transfer any civil action to any other district or division where it might have been brought.”2 28 U.S.C. § 1404(a). Section 1404(a) “‘permits a flexible and individualized analysis’ and affords district courts the opportunity to look beyond a narrow or rigid set of considerations in their determinations.” Research Automation, Inc. v. Schrader-Bridgeport Int’l, Inc., 626 F.3d 973, 978 (7th Cir. 2010) (quoting Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29 (1988)). The party seeking transfer

“has the burden of establishing, by reference to particular circumstances, that the transferee forum is clearly more convenient” than the transferor. Coffey v. Van Dorn Iron Works, 796 F.2d 217, 220-21 (7th Cir. 1986). The task of weighing the relevant factors “is committed to the sound discretion of the trial judge.” Id. at 219.

2 Plaintiffs do not dispute that jurisdiction and venue would be proper in SDNY. A district court considering a transfer motion “must evaluate both the convenience of the parties and various public-interest considerations.” Atl. Marine Constr. Co. v. U.S. Dist. Court, 571 U.S. 49, 62 (2013). Relevant private interest

factors include the plaintiff’s choice of forum, the situs of the material events, the convenience of the parties and witnesses, and the relative ease of access to evidence. See Amoco Oil Co. v. Mobil Oil Corp., 90 F. Supp. 2d 958, 960 (N.D. Ill. 2000). The public interest analysis “focuses on the efficient administration of the court system, rather than the private considerations of the litigants. Id. at 961 (quoting Espino v. Top Draw Freight Sys., Inc., 713 F. Supp. 1243, 1245 (N.D. Ill. 1989). Considerations

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

Related

Gulf Oil Corp. v. Gilbert
330 U.S. 501 (Supreme Court, 1947)
United States v. Scophony Corp. of America
333 U.S. 795 (Supreme Court, 1948)
Van Dusen v. Barrack
376 U.S. 612 (Supreme Court, 1964)
Leroy v. Great Western United Corp.
443 U.S. 173 (Supreme Court, 1979)
Stewart Organization, Inc. v. Ricoh Corp.
487 U.S. 22 (Supreme Court, 1988)
In Re: National Presto Industries, Inc.
347 F.3d 662 (Seventh Circuit, 2003)
Espino v. Top Draw Freight System, Inc.
713 F. Supp. 1243 (N.D. Illinois, 1989)
Rose v. Franchetti
713 F. Supp. 1203 (N.D. Illinois, 1989)
Jaramillo v. DineEquity, Inc.
664 F. Supp. 2d 908 (N.D. Illinois, 2009)
Georgouses v. NaTec Resources, Inc.
963 F. Supp. 728 (N.D. Illinois, 1997)
Amorose v. C.H. Robinson Worldwide, Inc.
521 F. Supp. 2d 731 (N.D. Illinois, 2007)
Schmid Laboratories, Inc. v. Hartford Accident & Indemnity Co.
654 F. Supp. 734 (District of Columbia, 1986)
Star Lines, Ltd. v. Puerto Rico Maritime Ship. A.
442 F. Supp. 1201 (S.D. New York, 1978)
Hanley v. Omarc, Inc.
6 F. Supp. 2d 770 (N.D. Illinois, 1998)
Greater Yellowstone Coalition v. Bosworth
180 F. Supp. 2d 124 (District of Columbia, 2001)
Amoco Oil Co. v. Mobil Oil Corp.
90 F. Supp. 2d 958 (N.D. Illinois, 2000)

Cite This Page — Counsel Stack

Bluebook (online)
Dale v. Deutsche Telekom AG, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dale-v-deutsche-telekom-ag-ilnd-2022.