In re Commercial Tissue Products

183 F.R.D. 589, 1998 U.S. Dist. LEXIS 17614, 1998 WL 663341
CourtDistrict Court, N.D. Florida
DecidedJuly 22, 1998
DocketNo. GCA 97MDL1189 MMP
StatusPublished
Cited by25 cases

This text of 183 F.R.D. 589 (In re Commercial Tissue Products) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Commercial Tissue Products, 183 F.R.D. 589, 1998 U.S. Dist. LEXIS 17614, 1998 WL 663341 (N.D. Fla. 1998).

Opinion

[590]*590 ORDER GRANTING CONDITIONAL CLASS CERTIFICATION

PAUL, Senior District Judge.

This matter is before the court on the plaintiffs’ motion for class certification, to which the defendants have responded. Having reviewed the pleadings and evidence, and having heard argument of counsel, the court concludes that this cause should proceed as a class action. The plaintiffs’ motion is therefore GRANTED.

I. Analysis

A. The class

Pursuant to Rule 23(a), (b)(2) and (b)(3) of the Federal Rules of Civil Procedure, the named plaintiffs have filed a motion to certify a class action on the behalf of:

[A]ll Persons in the United States (excluding defendants and their co-conspirators; their respective parents, subsidiaries, and affiliates; and federal, state and local governmental entities and political subdivisions) who purchased Commercial Tissue Products directly from defendants, or their respective parents subsidiaries or affiliates, at any time during the Class Period.

B. Rule 23

Rule 23, in pertinent part, provides as follows:

(a) Prerequisites to a Class Action. One or more members of a class may sue or be sued as representative parties on behalf of all only if (1) the class is so numerous that joinder of all members is impracticable, (2) [591]*591there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are- typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.
(b) Class Actions Maintainable. An action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied, and in addition:
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(2) 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 •
(3) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy. The matters pertinent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; (D) the difficulties likely to be encountered in the management of a class action.

The Rule is clear that Plaintiffs’ action may be certified as a class action only if the court finds that it meets all requirements of Rule 23(a)(1) — (4)—“numerosity,” “commonality,” “typicality,” and “adequacy” — as well as Rule 23(b)’s additional requirements. With regard to Rule 23(b), the plaintiffs must also show either (1) that common questions of law and fact predominate over individual ones such that class certification is the superior method for the fair and efficient adjudication of the controversy, or (2) respecting plaintiffs’ requests for injunctive relief, that certification is appropriate for purposes of awarding or denying injunctive relief with respect to the class as a whole.

C. Preliminary Matters

Before turning to the individual elements of Rule 23, we must begin with some basic principles of law that guide our discussion. First, in ruling upon a motion for class certification, the substantive allegations contained in plaintiffs’ complaint are accepted as true. In re Infant Formula Antitrust Litigation, 1992 WL 503465 at *3 (M.D.Fla. Jan. 13, 1992); Shelter Realty Corp. v. Allied Maintenance Corp., 574 F.2d 656, 661 n. 15 (2nd Cir.1978). Moreover, the court will consider the allegations of the plaintiffs’ consolidated amended complaint, rather than the allegations found in superseded pleadings, or pleadings of non-class members, to determine the nature of the claims the putative class plaintiffs are now presenting to this court.

The defendants, however, point out that several of the class plaintiffs and the State of Florida alleged in their original complaints that “at least some distributors — entities who would otherwise be class members — are actually co-conspirators who must be excluded from the class.” The defendants argue that these initial pleadings should not be ignored, even though the consolidated amended complaint does not include allegations of distributor involvement. Defendants conclude that if distributors are involved, this case involves a vertical conspiracy like the one in the Agricultural Chemicals case, where this court found that too much “sweat and calculation” would be involved in determining who fit in the proposed class and who did not.

The defendants rely on footnote 5 of White v. ARCO/Polymers, Inc., 720 F.2d 1391, 1396 n. 5 (5th Cir.1983) for the “unassailable legal point” that plaintiffs’ earlier allegations stand as evidentiary admissions and cannot and must not be ignored. However, the defendants ignore the first clause of the sentence they cite from in footnote 5 in the ARCO/Polymers. The full sentence states the actual rule: “Admissions made in superseding pleadings are as a general, rule considered to lose their binding force, and to have value only as evidentiary admissions.” [592]*592Id. (citing 3 Moore’s Federal Practice & Procedure ¶ 15.08[7] at 15-128 (1982)).

In the instant case, therefore, the plaintiffs are not bound by the allegations in the original complaints. Instead, they are bound by the allegations of the consolidated amended complaint, which are assumed to be true for class certification purposes. The practical effect of this is twofold. First, this order granting class certification is conditioned on the assumption that the plaintiffs may not now attempt to prove the conspiracy using evidence of involvement by distributors. If the plaintiffs at a future date attempt to offer proof that distributors were involved in the conspiracy, the court will re-examine this conditional grant of class certification. Second, the prior allegations of distributor involvement in the conspiracy stand as eviden-tiary admissions, which the defendants may offer to show that plaintiffs’ theory of the conspiracy has changed. Thus, while the prior allegations do not bind the plaintiffs for class certification purposes, they may be used to contradict plaintiffs’ theory of the case on the merits.

This brings us to the second guiding principle of law. When ruling upon a motion for class certification, the court does not delve into the merits of plaintiffs’ substantive claims. Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 177, 94 S.Ct.

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Cite This Page — Counsel Stack

Bluebook (online)
183 F.R.D. 589, 1998 U.S. Dist. LEXIS 17614, 1998 WL 663341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-commercial-tissue-products-flnd-1998.