In re Anthracite Coal Antitrust Litigation

78 F.R.D. 709, 26 Fed. R. Serv. 2d 744
CourtDistrict Court, M.D. Pennsylvania
DecidedMay 26, 1978
DocketMDL No. 293; Civ. A. No. 77-867
StatusPublished
Cited by19 cases

This text of 78 F.R.D. 709 (In re Anthracite Coal Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Anthracite Coal Antitrust Litigation, 78 F.R.D. 709, 26 Fed. R. Serv. 2d 744 (M.D. Pa. 1978).

Opinion

OPINION

MUIR, Judge.

I. Introduction.

This antitrust action brought by the Commonwealth of Pennsylvania (the Commonwealth or Pennsylvania) against the Defendants alleges that the Defendant anthracite coal companies between 1961 and 1977 fixed the price and supply of anthracite coal in violation of the antitrust laws of the United States. This case is one of several which have been transferred to the undersigned judge for consolidated pre-trial proceedings. In this Court’s pre-trial order of September 30, 1977, the Court directed that discovery be completed on all class issues by December 23, 1977 (¶ 12.2). That Order specifically required in ¶ 12.3 that all motions seeking class action determination together with all supporting briefs and substantiating documents be filed by the Plaintiffs no later than January 20, 1978. Pennsylvania has filed a motion for class action certification accompanied by a supporting brief. The Defendants have filed a brief in opposition to that motion. Pennsylvania seeks to represent two distinct classes, a public entity class and a class consisting of homeowners and apartment house owners. Pennsylvania defines the public entity class as “All cities, counties, boroughs, municipalities, school districts, political subdivisions and public authorities or agencies that have purchased anthracite coal from one of the defendants or co-conspirators for their own use in heating buildings.” The Commonwealth defines the consumer class as “All home and apartment owners in the Commonwealth that purchased anthracite coal directly from the Defendants for their own use in heating their homes and apart[713]*713ments.” Commencing on May 3, 1978 and ending on May 9, 1978, the Court held a hearing on the motions of Pennsylvania and four other Plaintiffs to represent various classes pursuing antitrust claims against the Defendants. The following are the Court’s findings of fact, discussion, and conclusions of law concerning the motion of Pennsylvania to represent a public entity class and a consumer class.

II. Findings of Fact.

1. Pennsylvania has filed a Complaint and an Amended Complaint (C.A. 77-867) alleging that Defendants combined and conspired to fix the price of anthracite coal and to limit anthracite coal production. (Undisputed)

2. Pennsylvania seeks to represent both a public entity class and a consumer class. (Undisputed)

3. Pennsylvania desires to represent a public entity class defined as follows:

“All cities, counties, boroughs, municipalities, school districts, political subdivisions and public authorities or agencies that have purchased anthracite coal from one of-the defendants or co-conspirators for their own use in heating buildings.”

(Undisputed)

4. Pennsylvania desires to represent a consumer class defined as follows:

“All home and apartment building owners in the Commonwealth that purchased anthracite coal directly from the defendant for their own use in heating their homes and apartments.”

5. Pennsylvania has failed to prove that it directly reimbursed homeowners for their purchase prices of anthracite coal during its claim period.

6. There were 141 public entities in Pennsylvania which purchased anthracite coal directly from the corporate Defendants in the period 1966 through 1974. (Undisputed)

7. There were approximately 1000 homeowners and apartment house owners in Pennsylvania who purchased anthracite coal directly from the corporate Defendants in the period 1966 through 1974. (Undisputed)

8. Pennsylvania imposes specifications relating to the quality, type, and size of anthracite coal which it desired separately for each of the state institutions covered by its master contract. Among the special requirements imposed by Pennsylvania were regulations regarding the origin of the anthracite coal, treatment of coal delivered by rail in the winter, applicable water allowances, sizing requirements, specifications regarding moisture, ash, BTU, ash softening temperature, sulphur content, and other chemical and physical properties, vendor source (mine) regulations and detailed sampling and testing provisions. (Undisputed)

9. In addition to these detailed requirements, Pennsylvania also reserved the right to cancel any coal supply contract for any using institution if the ordered coal failed to work “efficiently” with the using institution’s fuel burning equipment, even if the coal met the precise analytical specifications established in the Commonwealth’s bid invitation.

10. In addition to establishing specific requirements regarding the quality, type, and size of anthracite coal supplied to state institutions, Pennsylvania also imposed a number of terms and conditions of supply. These included the requirement that the successful vendor(s) supply the complete requirements of each using institution, even though those requirements might exceed those estimated by the institution; the requirement (through April 30, 1974) that a firm, fixed price be charged by the successful vendor on an annual basis, without escalation, precise visitation requirements mandating the successful vendor to visit the using institution at least three times during the contract year, and provisions regarding the weighing and testing of anthracite coal supplied to each using institution.

11. Comparison of Pennsylvania’s specifications with those imposed by other public entities reveals significant differences relating, inter alia, to pricing, vendor source, [714]*714delivery, and chemical and physical qualities.

12. The Shamokin School District in Pennsylvania obtained its anthracite coal requirements at a price some ten dollars a ton lower than the price paid contemporaneously by the Commonwealth.

13. Pennsylvania made at least four “spot” purchases of anthracite coal to supply state park rangers, several of these purchases being made pursuant to a bid procedure.

14. The sealed bid and spot purchasing procurement practices of Pennsylvania have not been shown by it to resemble the procedures followed by homeowners in Pennsylvania who purchased anthracite coal directly during the claim period from any of the named Defendants.

15. Pennsylvania claims total anthracite coal purchases in excess of $80,000,000 over its claim period. (Undisputed)

16. The sealed bid prices submitted to Pennsylvania by its various vendors were not uniform and varied one from the other over the years involved in this lawsuit.

17. Prior to May 1, 1974, Pennsylvania’s requirements were supplied on an annual firm, fixed-price basis, without escalation even though the circular prices of .certain of the Defendants changed at least four times during any given year.

18. Effective with the 1974-1975 contract year, Pennsylvania included an escalator clause affecting initial bid prices to Pennsylvania, based upon the average of certain cost factors of four of the Defendants as those factors were reported in “The Black Diamond” magazine.

19. Pennsylvania’s special counsel in this case are excellent and experienced antitrust lawyers. (Undisputed)

20. Individual public entities, and individual homeowners, within Pennsylvania may institute separate lawsuits against these Defendants. (Undisputed)

21.

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78 F.R.D. 709, 26 Fed. R. Serv. 2d 744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-anthracite-coal-antitrust-litigation-pamd-1978.