Hood Ex Rel. Mississippi v. Microsoft Corp.

428 F. Supp. 2d 537, 2006 U.S. Dist. LEXIS 26948, 2006 WL 1075475
CourtDistrict Court, S.D. Mississippi
DecidedApril 16, 2006
Docket3:04 CV 800WS
StatusPublished
Cited by19 cases

This text of 428 F. Supp. 2d 537 (Hood Ex Rel. Mississippi v. Microsoft Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hood Ex Rel. Mississippi v. Microsoft Corp., 428 F. Supp. 2d 537, 2006 U.S. Dist. LEXIS 26948, 2006 WL 1075475 (S.D. Miss. 2006).

Opinion

ORDER GRANTING REMAND

WINGATE, Chief Judge.

Before this court are the following: (1) a motion by defendant Microsoft Corporation (“Microsoft”) asking this court to stay all proceedings pending transfer by the Judicial Panel on Multidistrict Litigation (“Judicial Panel”), said motion filed pursuant to Title 28 U.S.C. § 1407 1 [docket # 2]; (2) a motion by plaintiff Jim Hood, Attorney General ex rel. State of Mississippi (“Hood”) to remand this proceeding to State court, submitted under Title 28 U.S.C. § 1447(e) 2 [docket # 6]; and (3) a motion by plaintiff Hood for an expedited hearing on his motion to remand, pursuant to Uniform Local Rule 7.2(H) 3 [docket # 8]. As this court heard oral argument on this matter on a previous date, Hood’s motion for an expedited hearing is hereby terminated as moot. Additionally, for reasons set out in the court’s detailed opinion, this court hereby denies Microsoft’s motion to stay and grants Hood’s motion to remand. On an earlier date, this court announced the above findings, stated that later the court would file a lengthier opinion, and meanwhile instructed the Clerk of Court not to transfer this case to the MDL District Court of Maryland.

Facts and Procedural Posture

This case is related to, but different from, other lawsuits filed against Microsoft nationwide following United States v. Microsoft Corp., 84 F.Supp.2d 9 (D.D.C.1999), aff'd in part, rev’d in part, and vacated, 253 F.3d 34 (D.C.Cir.), cert. denied, 534 U.S. 952, 122 S.Ct. 350, 151 L.Ed.2d 264 (2001). On April 25, 2000, the Judicial *540 Panel issued an order establishing multidistrict litigation in the District of Maryland, with the Honorable Frederick Motz, Chief Judge, presiding over the matter. In re Microsoft Corp. Windows Operating Sys. Antitrust Litig., No. 1332, 2000 WL 34448877, 2000 U.S. Dist. LEXIS 5559 (J.P.M.L. Apr. 25, 2000). In the aforementioned multidistrict litigation, that court is confronted with questions of market definition, the existence of Microsoft’s monopoly power, the fact and significance of Mircrosoft’s alleged anti-competitive conduct, and the existence and scope of any antitrust injury suffered by the parties to the multidistrict litigation. Id. at *4.

Plaintiff Hood, the Attorney General of the State of Mississippi, filed this case in the Circuit Court of Hinds County, Mississippi, on August 31, 2004. The complaint seeks relief for the following: (1), injuries allegedly suffered by Mississippi in its purchase of software directly and indirectly from Microsoft at unlawfully inflated prices; and (2), injuries allegedly suffered by Mississippi citizens who purchased Microsoft products at inflated prices. Hood’s complaint calls for damages and penalties under §§ 75-21-9 4 and 75-24-15 5 of the Mississippi Code for injunctive relief for Mississippi and its citizens, and a refund of any and all illegal overcharges for software purchased by Mississippi and its citizens, under a State-law claim of unjust enrichment.

Microsoft removed this action to this federal forum on September 30, 2004, asserting that this court has diversity-of-citizenship subject matter jurisdiction pursuant to the authority of Title 28 U.S.C. § 1332. 6 The next day, defendant filed a notice of “tag-along action” before the Judicial Panel on October 1, 2004, which lists this case as a potential tag-along action transferable to the multidistrict litigation court under Rule 7.5(e) of the Judicial Panel on Multidistrict Litigation Rules of Procedure. 7 Now, in its motion to stay, *541 Microsoft argues that a stay of all proceedings in this case would conserve judicial resources and prevent inconsistent pretrial rulings. Plaintiff Hood, on the other hand, contending that this is a parens patriae action, argues that this court lacks subject-matter jurisdiction over this case and is presumably without authority to enter Microsoft’s requested stay.

Law and Application

Motion to Stay

A district court has the inherent power to stay its proceedings. This power to stay is “incidental to the power inherent in every court to control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants.” Landis v. N. Am. Co., 299 U.S. 248, 254, 57 S.Ct. 163, 81 L.Ed. 153 (1936); Petrus v. Bowen, 833 F.2d 581 (5th Cir.1987). This power is best accomplished by the “exercise of judgment, which must weigh competing interests and maintain an even balance.” Landis, 299 U.S. at 254-55, 57 S.Ct. 163.

In the instant case, Microsoft has moved for a stay of proceedings while the Judicial Panel considers its motion for transfer and consolidation. Rule 1.5 of the Rules of the Judicial Panel on Multidistrict Litigation states the following:

The pendency of a motion, order to show cause, conditional transfer order or conditional remand order before the Panel concerning transfer or remand of an action pursuant to 28 U.S.C. § 1407 does not affect or suspend orders and pretrial proceedings in the district court in which the action is pending and does not in any way limit the pretrial jurisdiction of that court.

In other words, a district judge should not automatically stay discovery, postpone rulings on pending motions, or generally suspend further rulings upon a party’s motion to the Judicial Panel for transfer and consolidation. Manual For Complex Litigation (Fourth) § 20.131 (2004). Granting a stay is within the court’s discretion and a stay is appropriate when it serves the interests of judicial economy and efficiency. 15 Charles Alan Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice And Procedure § 3866, at 612 (3d ed. 1998 & Supp.2004). This court is persuaded to deny Microsoft’s motion to stay this proceeding; instead, this court will move on Hood’s motion to remand this case to State court.

Motion to Remand/SubjecP-Matter Jurisdiction

Standard of Review

“Federal courts are courts of limited jurisdiction ...

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Cite This Page — Counsel Stack

Bluebook (online)
428 F. Supp. 2d 537, 2006 U.S. Dist. LEXIS 26948, 2006 WL 1075475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hood-ex-rel-mississippi-v-microsoft-corp-mssd-2006.