In re Delta/Airtran Baggage Fee Antitrust Litigation

317 F.R.D. 675, 2016 WL 3770957, 2016 U.S. Dist. LEXIS 184456
CourtDistrict Court, N.D. Georgia
DecidedJuly 12, 2016
DocketCIVIL ACTION FILE No. 1:09-md-2089-TCB
StatusPublished
Cited by4 cases

This text of 317 F.R.D. 675 (In re Delta/Airtran Baggage Fee Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Delta/Airtran Baggage Fee Antitrust Litigation, 317 F.R.D. 675, 2016 WL 3770957, 2016 U.S. Dist. LEXIS 184456 (N.D. Ga. 2016).

Opinion

[677]*677ORDER

Timothy C. Batten, Sr., United States District Judge

The factual allegations giving rise to this multidistriet litigation have been described at length in the Court’s prior orders and will be restated here only briefly. In December 2008, Defendants AirTran Airways, Inc. and Air-[678]*678Tran Holdings, Inc. (collectively, “AirTran”)1 and Defendant Delta Air Lines, Inc. began charging a fee to passengers for a first checked bag. Plaintiffs filed thirteen class-action complaints alleging that this first-bag fee was the product of a price-fixing conspiracy between Defendants that violated § 1 of the Sherman Act.2 According to Plaintiffs, neither airline could unilaterally impose the fee in an open and competitive market without losing customers to the other, so Defendants “used their earnings calls (and other channels) to communicate and coordinate pricing behavior” to ensure that both airlines could impose the fee without losing any market share. Defendants maintain that there was no collusion and that they independently arrived at the decision to impose a first-bag fee.

The thirteen member cases were consolidated into this multidistrict litigation, and the seven remaining Plaintiffs now move for class certification [123] and to exclude the class-certification testimony of four of Defendants’ experts [616, 618, 621, 630]. Defendants oppose Plaintiffs’ motions and have filed their own motion to exclude the class-certification testimony of Plaintiffs’ expert economist [399], In order to provide the necessary context for the analysis of the eviden-tiary motions, this Order will begin by reviewing the legal framework governing class certification and the legal standards of the three certification criteria that are most contested in this case. The Court will then analyze the admissibility of the challenged expert testimony, which turns on the relevance of offsetting benefits, and the extent to which Defendants are permitted to raise reimbursement as a defense. Once those recurring issues are resolved, the Court will address each of the Rule 23 requirements in turn to determine whether this case may proceed as a class action.

I. Governing Legal Standards

A. Overview of the Class Certification Framework

Pursuant to Federal Rule of Civil Procedure 23, a class action may be maintained only if two conditions are satisfied: the named plaintiffs must be “qualified to represent the members of the class in accordance with the four prerequisites of Rule 23(a), and the action must be one of the three types Rule 23(b) identifies.” Griffin v. Dugger, 823 F.2d 1476, 1482 (11th Cir.1987) (internal footnote omitted). Rule 23(a) requires Plaintiffs to show that

(1) the class is so numerous that joinder of all members is impracticable;
(2) there 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.

“These four requirements commonly are referred to as the prerequisites of numerosity, commonality, typicality, and adequacy of representation, and they are designed to limit class claims to those fairly encompassed by the named plaintiffs’ individual claims.” Piazza v. Ebsco Indus., Inc., 273 F.3d 1341, 1346 (11th Cir.2001) (internal punctuation omitted).

If Plaintiffs can establish that Rule 23(a)’s four requirements are satisfied, they must then show that at least one of the requirements set forth in Rule 23(b) is met. Vega v. T-Mobile USA Inc., 564 F.3d 1256, 1265 (11th Cir.2009).3 Plaintiffs rely on Rule [679]*67923(b)(3), which provides in pertinent part that a class action may be maintained where it is shown that “questions of law or fact common to class members predominate over any questions affecting only individual members, and that a class action is superior to other available methods for fairly and efficiently adjudicating the controversy.”

In addition to these express requirements of Rule 23, there is an implicit but firm requirement that Plaintiffs must satisfy. “Before a district court may grant a motion for class certification, a plaintiff seeking to represent a proposed class must establish that the proposed class is adequately defined and clearly ascertainable.” Little v. T-Mobile USA Inc., 691 F.3d 1302, 1304 (11th Cir. 2012) (internal punctuation omitted).

Courts must perform a “rigorous analysis” to ensure that Rule 23’s requirements are satisfied before certifying a class. Gen. Tel. Co. v. Falcon, 457 U.S. 147, 161, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982). This is so even where some of the requirements are not in dispute, Valley Drug Co. v. Geneva Pharm., Inc., 350 F.3d 1181, 1188 (11th Cir. 2003), or where it requires the Court to decide disputed questions of fact that bear on the inquiry, Brown v. Electrolux Home Prods., Inc., 817 F.3d 1225, 1233-34 (11th Cir.2016). See also Dukes, 564 U.S. at 350, 131 S.Ct. 2541 (“Rule 23 does not set forth a mere pleading standard.”); Comcast Corp. v. Behrend, — U.S. —, 133 S.Ct. 1426, 1432-33, 185 L.Ed.2d 515 (2013) (reversing certification where district court abstained from considering certain arguments that pertained to both Rule 23 and the merits determination).4 Nevertheless, “Rule 23 grants courts no license to engage in free-ranging merits inquiries at the certification stage,” and thus merits questions may be considered “only to the extent” they pertain to the Rule 23 analysis. Amgen Inc. v. Conn. Retirement Plans & Tr. Funds, — U.S. —, 133 S.Ct. 1184, 1194-95, 185 L.Ed.2d 308 (2013).

Finally, it is well settled that the party seeking certification bears the burden of proving that it is appropriate, and there is no presumption in favor of certification, even in antitrust cases, “A district court that has doubts about whether the requirements of Rule 23 have been met should refuse certification until they have been met.” Electrolux, 817 F.3d at 1233-34 (internal punctuation omitted).

Before examining the evidence and arguments as to each of Rule 23⅛ express and implied requirements, the Court will review the legal standards governing the three criteria that are most contested by the parties: the implied requirement of ascertainability, Rule 23(a)(4)’s adequacy requirement, and predominance under Rule 23(b)(3).

B. Legal Standard: Ascertainability

“Although not explicit in Rule 23(a) or (b), courts have universally recognized that the first essential ingredient to class treatment is the ascertainability of the class.” Grimes v. Rave Motion Pictures Birmingham, L.L.C., 264 F.R.D.

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317 F.R.D. 675, 2016 WL 3770957, 2016 U.S. Dist. LEXIS 184456, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-deltaairtran-baggage-fee-antitrust-litigation-gand-2016.