In Re Dynamic Random Access Memory (DRAM) Antitrust Litigation

516 F. Supp. 2d 1072, 2007 WL 2745703
CourtDistrict Court, N.D. California
DecidedJune 1, 2007
DocketM02-1486PJH
StatusPublished
Cited by61 cases

This text of 516 F. Supp. 2d 1072 (In Re Dynamic Random Access Memory (DRAM) Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Dynamic Random Access Memory (DRAM) Antitrust Litigation, 516 F. Supp. 2d 1072, 2007 WL 2745703 (N.D. Cal. 2007).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTIONS FOR JUDGMENT ON THE PLEADINGS

PHYLLIS J. HAMILTON, District Judge.

Defendants’ motions for judgment on the pleadings came on for hearing on December 6, 2006 before this court. Plaintiffs, indirect purchasers (“plaintiffs”), appeared through their counsel, Allan Steyer, Josef D. Cooper, Tracy B. Kirkham, Daniel E. Gustafson, Christopher L. Lebsock, Terry Gross, Michael P. Lehman, Francis 0. Scarpula, Daniel J. Mogin, and Jill M. Manning. Defendants appeared through their counsel, Julian Brew, Kenneth R. O’Rourke, Peter Nemerovski, Joshua Stambaugh, Jonathan Houden, Ronald C. Redcay, Joel S. Sanders, Steven H. Bergman, Andrew P. Deshazo, and Alejandro Steyer. Having read all the papers submitted and carefully considered the relevant legal authority, the court hereby GRANTS the motions for judgment on the pleadings in part and DENIES the motions for judgment on the pleadings in part, for the reasons stated at the hearing and as follows.

BACKGROUND

The actions before the court are part of a larger antitrust MDL action, in which plaintiffs generally allege a horizontal price-fixing conspiracy carried out by numerous defendants, in violation of various state and federal antitrust laws.

Plaintiffs in the instant action before the court allege that they indirectly purchased dynamic random access memory (“DRAM”) from defendants. 1 DRAM is a type of semiconductor chip used in computers and other electronic equipment. Defendants are either foreign corporations, or U.S. subsidiaries of foreign corporations, who manufacture and sell DRAM in the United States. 2

*1083 Specifically, plaintiffs — on behalf of themselves and all others similarly situated — allege that they either (1) indirectly purchased DRAM from one or more of the defendants for use in manufacturing electronic devices for resale; or (2) indirectly purchased DRAM from one or more of the defendants for end use and not for resale. See Petro Class Action Complaint (“Complaint”), ¶¶ 7-17. Regardless whether plaintiffs purchased DRAM for end use or for resale, plaintiffs allege that they were forced to pay artificially high prices for DRAM, as a result of defendants’ unlawful conspiracy and agreement to raise, fix, maintain, and/or stabilize prices for DRAM in the United States. See, e.g., Complaint, ¶¶ 71, 74.

Plaintiffs’ complaint, styled as a class action, alleges five causes of action against defendants: (1) violation of section 1 of the Sherman Act; (2) violation of the California Cartwright Act; (3) violation of California Business and Professions Code §§ 16720 et seq.; (4) violation of various state antitrust and unfair competition laws; and (5) violation of state consumer protection and unfair competition laws. See id. at ¶¶ 70-142. The latter two causes of action, however, are each in turn comprised of numerous individual state law claims: the fourth cause of action alleges violations of 22 states’ antitrust and unfair competition laws, and the fifth cause of action alleges violations of 22 states’ consumer protection and unfair competition laws.

Defendants now move for judgment on the pleadings with respect to plaintiffs’ complaint. They have filed two separate motions: the first seeks judgment on the pleadings with respect to plaintiffs’ second and fourth causes of action. The second seeks judgment on the pleadings with respect to plaintiffs’ fifth cause of action. 3

DISCUSSION

I. Legal Standard

Federal Rule of Civil Procedure 12(c) provides that any party may move for judgment on the pleadings “after the pleadings are closed, but within such time as not to delay the trial.” See Fed. R. Civ. Proc. 12(c). A motion for judgment on the pleadings challenges the legal sufficiency of the opposing party’s pleadings, and the allegations contained therein.

The standard applied by the court in treating a motion for judgment on the pleadings is the same as that applied by the court in considering motions to dismiss under FRCP 12(b)(6). In short, judgment on the pleadings is appropriate when, even if all material facts in the pleading under attack are true, the moving party is entitled to judgment as a matter of law. See, e.g., Hal Roach Studios, Inc. v. Richard Feiner & Co., Inc., 896 F.2d 1542, 1550 (9th Cir.1989). The Supreme Court, in passing on the 12(b)(6) standard in the antitrust context recently, also noted that while a complaint attacked by a motion to dismiss for failure to state a claim upon which relief can be granted does not need detailed factual allegations, a plaintiffs obligation to provide the grounds of his entitlement to relief requires “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” See Bell *1084 Atlantic Corp. v. Twombly, — U.S.-, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Although Twombly dealt with a motion to dismiss a section 1 conspiracy claim, given the similarity in standards to be applied on motions to dismiss and motions for judgment on the pleadings, the court finds Twombly’s language instructive here.

Rule 12(c) does not mention leave to amend; however, courts generally have discretion in granting 12(c) motions with leave to amend, particularly in cases where the motion is based on a pleading technicality. See, e.g., Swanson v. United States Forest Serv., 87 F.3d 339, 343 (9th Cir.1996)(Leave to amend generally within discretion of trial court). There is a strong policy in favor of allowing amendment, unless amendment would be futile, results from bad faith or undue delay, or will unfairly prejudice the opposing party. Kaplan v. Rose, 49 F.3d 1363, 1370 (9th Cir.1994).

Courts also have discretion to grant dismissal on a 12(c) motion, in lieu of judgment, on any given claim. See, e.g., Amersbach v. City of Cleveland, 598 F.2d 1033, 1038 (6th Cir.1979), disapproved on other grounds in Garcia v. San Antonio Metropolitan Transit Authority, 469 U.S. 528, 105 S.Ct. 1005, 83 L.Ed.2d 1016 (1984); see also McGlinchy v. Shell Chemical Co., 845 F.2d 802, 810 (9th Cir.1988)(affirming dismissal of plaintiffs’ antitrust claim by judgment on pleadings).

II. Motion for Judgment on the Pleadings re Second and Fourth Claims for Relief

Defendants bring two motions for judgment on the pleadings.

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516 F. Supp. 2d 1072, 2007 WL 2745703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-dynamic-random-access-memory-dram-antitrust-litigation-cand-2007.