Henry Lee Pickett v. Iowa Beef Processors

209 F.3d 1276, 46 Fed. R. Serv. 3d 924, 2000 U.S. App. LEXIS 7208, 2000 WL 430035
CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 20, 2000
Docket99-11694
StatusPublished
Cited by88 cases

This text of 209 F.3d 1276 (Henry Lee Pickett v. Iowa Beef Processors) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henry Lee Pickett v. Iowa Beef Processors, 209 F.3d 1276, 46 Fed. R. Serv. 3d 924, 2000 U.S. App. LEXIS 7208, 2000 WL 430035 (11th Cir. 2000).

Opinion

BARKETT, Circuit Judge:

Iowa Beef Processers, inc. (“IBP”) brings this interlocutory appeal from the district court’s decision to grant the Plaintiffs’ motion to certify this case as a class action under Federal Rule of Civil Procedure 23(b)(3). Henry Lee Pickett, Sam Britt, Paul Horton, Mike Callicrate, Jim Bower, Pat Coggins, Johnny Smith, Stay-ton Weldon, Lovel Blain and David Smith (collectively the “Plaintiffs”) are cattle producers alleging that IBP’s practices violate the Packers and Stockyards Act, 7 U.S.C. § 181 et seq. (1999) (“the Act”) and seeking to sue IBP on behalf of themselves and others similarly situated for damages and injunctive relief. The class certified consists of “all cattle producers who had sold fed cattle directly to IBP” since February 1994.

BACKGROUND

Plaintiffs are cattle producers who sell “fed cattle,” i.e., cattle raised at feedyards *1278 for slaughter, to IBP. 1 Such producers have a narrow window of opportunity in which to sell their fattened cattle while they are at optimum weight. The standard method for purchasing cattle is for packers to inspect pens of cattle at the feedyards and to bid on the cattle for sale. This practice is known as the “spot market,” and sales on the spot market are referred to as “cash sales.” As an alternative to the spot market, producers can also sell their cattle by entering into “forward contracts” or “marketing agreements” with packers. Under a forward contract, the packer and the producer agree on the price to be paid for the cattle weeks or months before the animals are ready for slaughter. Forward contracts offer producers the advantage of locked-in prices and protect them against market fluctuations. Marketing agreements are a more extended version of forward contracts. Under such agreements, a producer promises to sell most of its cattle to a packer at prices determined by a negotiated formula, which can be adjusted after slaughter according to the quality of the beef.

The United States Department of Agriculture defines the cattle that are controlled by or committed to a packer more than two weeks prior to slaughter as “captive supply.” Plaintiffs allege that engaging in forward contracts and marketing agreements in order to establish a captive supply enables IBP to depress the market at strategic times in order to force producers to accept artificially low prices for their fattened cattle. Plaintiffs contend that, because IBP controls a large quantity of cattle through these means, it can slaughter the cattle it controls, or threaten to do so, in order to force producers to choose between selling their cattle at an unacceptably low price or being left without a buyer for their cattle.

Plaintiffs allege that, in the context of the highly concentrated market for beef cattle, IBP’s captive supply practices violate § 202 of the Packers and Stockyards Act, 7 U.S.C. § 192, which provides in relevant part:

It shall be unlawful for any packer ... to:
(a) Engage in or use any unfair, unjustly discriminatory, or deceptive practice or device; or
(b) Make or give any undue or unreasonable preference or advantage to any particular person or locality in any respect whatsoever, or subject any particular person or locality to any undue or unreasonable prejudice or disadvantage in any respect whatsoever....

Plaintiffs argue that forward contracts and marketing agreements are preferential to the producers who sell under such agreements and thus are unjustly discriminatory because they can be used to coerce producers who choose to sell on the spot market into accepting lower prices for their cattle.

Plaintiffs first attempted to bring these claims on behalf of a class consisting of all cattle producers in the country who had “raised, handled, fed and produced livestock and/or cattle for sale on the open market” since January 1994. The district court declined to certify such a class. The district court first noted that, because the proposed class included members who had been disadvantaged by IBP’s captive supply practices as well as those who had derived an advantage from those practices, it could not meet Federal Rule of Civil Procedure 23(a)’s requirements that the named plaintiffs be typical of the class and that they adequately represent the interests of the class. Pickett v. IBP, Inc., 182 F.R.D. 647, 651-55 (M.D.Ala.1998), citing Fed.R.Civ.P. 23(a)(3) and (4). Furthermore, the district court found that Plaintiffs had not met their burden under Rule 23(b)(3) to show that common questions of *1279 law or fact predominate and that the class action provides a superior means of adjudicating the controversy, as the court would be unable to establish a violation of the Act without consideration of individual transactions. Id. at 658-61.

Plaintiffs moved for reconsideration, 2 narrowing the class to include only all cattle producers “who had sold fed cattle directly to IBP” since February 1994. At the hearing on the proposed narrowed class, Plaintiffs presented the testimony of Professor Catherine Durham to demonstrate that the class action procedure could efficiently address the damages claims of each individual producer. Professor Durham testified that an econometric model could be developed that would be capable of demonstrating that IBP’s captive supply practices have a downward effect on prices for fed cattle and could specify the effect of IBP’s captive supply practices on the members of the plaintiff class. However, Professor Durham offered no such model, and she acknowledged that no such model currently exists because no researcher has yet been able to assemble the requisite data. The district court granted the motion for reconsideration and certified the proposed class consisting of “[a]ll cattle producers who sold fed cattle directly to IBP from February 1994 through and including the date of certification,” a class with at least 15,000 members. IPB appeals this determination.

We review a district court’s certification of a class under Rule 23 for abuse of discretion. Jackson v. Motel 6 Multipurpose, Inc., 130 F.3d 999, 1003-1004 (11th Cir.1997). However, to the extent that the issue involves the interpretation of the Federal Rules of Civil Procedure, we review de novo. Armstrong v. Martin Marietta Corp., 138 F.3d 1374, 1388 n. 30 (11th Cir.) (en banc), cert. denied, 525 U.S. 1019, 119 S.Ct. 545, 142 L.Ed.2d 453 (1998).

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

Related

Cajule Cedant v. United States
75 F.4th 1314 (Eleventh Circuit, 2023)
Rensel v. Centra Tech, Inc.
S.D. Florida, 2021
Dix v. RCSH Operations, LLC
M.D. Florida, 2020
A & M Gerber Chiropractic LLC v. GEICO Gen. Ins. Co.
291 F. Supp. 3d 1318 (S.D. Florida, 2017)
Y & J Properties, Ltd. v. United States
134 Fed. Cl. 465 (Federal Claims, 2017)
Herman v. Seaworld Parks & Entertainment, Inc.
320 F.R.D. 271 (M.D. Florida, 2017)
Zuniga v. Bernalillo County
319 F.R.D. 640 (D. New Mexico, 2016)
Bustillos v. Board of County Commissioners
310 F.R.D. 631 (D. New Mexico, 2016)
Abraham v. WPX Production Productions, LLC
317 F.R.D. 169 (D. New Mexico, 2016)
In re Delta/Airtran Baggage Fee Antitrust Litigation
317 F.R.D. 675 (N.D. Georgia, 2016)
Geri Siano Carriuolo v. General Motors Company
823 F.3d 977 (Eleventh Circuit, 2016)
Food Lion, LLC v. Dean Foods Co.
312 F.R.D. 472 (E.D. Tennessee, 2016)
Strawser v. Strange
307 F.R.D. 604 (S.D. Alabama, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
209 F.3d 1276, 46 Fed. R. Serv. 3d 924, 2000 U.S. App. LEXIS 7208, 2000 WL 430035, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henry-lee-pickett-v-iowa-beef-processors-ca11-2000.