In re Folding Carton Antitrust Litigation

75 F.R.D. 727, 23 Fed. R. Serv. 2d 1033, 1977 U.S. Dist. LEXIS 14962
CourtDistrict Court, N.D. Illinois
DecidedJuly 15, 1977
DocketNo. MDL 250
StatusPublished
Cited by64 cases

This text of 75 F.R.D. 727 (In re Folding Carton Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Folding Carton Antitrust Litigation, 75 F.R.D. 727, 23 Fed. R. Serv. 2d 1033, 1977 U.S. Dist. LEXIS 14962 (N.D. Ill. 1977).

Opinion

PRETRIAL ORDER NO. 20

MEMORANDUM AND ORDER

ROBSON, Senior District Judge and WILL, District Judge.

Certain defendants1 have moved to amend this court’s class action certification order, Pretrial Order No. 13, nunc pro tunc, to certify it for interlocutory appeal pursuant to the provisions of 28 U.S.C. § 1292(b). For the reasons hereinafter stated, the motion is denied and the class heretofore certified is amended as provided herein.

BACKGROUND

Subsequent to the United States’ filing of a criminal action and a companion civil action, more than 50 private treble damage suits alleging antitrust violations were filed throughout the country. Almost all of the complaints allege that, at least as early as 1960, defendants and various named and unnamed co-conspirators have conspired in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1, to fix, maintain, and stabilize the prices of folding cartons. Many of the complaints also allege monopolization in violation of Section 2 of the Sherman Act, 15 U.S.C. § 2. These actions are brought un[729]*729der Section 4 of the Clayton Act, 15 U.S.C. § 15, and 28 U.S.C. § 1337. Pursuant to orders of the Judicial Panel on Multidistrict Litigation, these civil actions, captioned “In Re Folding Carton Antitrust Litigation,” were transferred to this court to be coordinated for pretrial proceedings. On April 19, 1977, we granted plaintiffs’ motion for certification of a class action. Following are the relevant portions of our Memorandum and Order, Pretrial Order No. 13:

“All parties have been given ample opportunity to address the class certification issue. The matter was briefed extensively with supporting affidavits attached. Defendants have filed numerous objections to the maintenance of these suits as a class action under Rule 23. After considering the pleadings, the memoranda and arguments of counsel, the affidavits and exhibits filed, and the established legal principles, the court finds that:
1. The prerequisites of a class action as required by Rule 23(a) have been met.
2. The requirements of Rule 23(b)(3) are satisfied in that for the class here certified
(a) the nationwide price fixing conspiracy asserted presents questions of law and fact common to the class members which predominate over any questions affecting only individual members;
(b) the class offers a superior method for the fair and efficient adjudication of the controversy over any other available methods.

The court hereby determines that the following class shall be, and is hereby certified:

All persons in the United States (excluding Defendants, their subsidiaries, affiliates or agents), who purchased folding cartons manufactured by any of the Defendants in these actions, (a) directly, or indirectly as first users, for their own business or commercial use, or, (b) directly, for resale as such, during the period from January 1, 1960 to December 31, 1974.”

THE MOTION

Defendants, other than Container Corporation, have moved to amend Pretrial Order No. 13, nunc pro tunc2 to certify it pursuant to 28 U.S.C. § 1292(b).3 They contend that the Court of Appeals for the Seventh Circuit has expressly endorsed the use of § 1292(b) for interlocutory review of class action determinations. Anschul v. Sitmar Cruises, Inc., 544 F.2d 1364 (7th Cir.), cert. denied, 429 U.S. 907, 97 S.Ct. 272, 50 L.Ed.2d 189 (1976). They argue that certification is appropriate here because there are six controlling questions of law [discussed infra ] as to which there are substantial grounds for difference of opinion. In their reply memorandum, they submit, for the first time, that interlocutory review may materially advance the ultimate termination of this litigation.

It should first be noted that the Anschul case is substantially different from the one at bar. That action was brought by a passenger on a pleasure cruise on behalf of himself and all other passengers, based upon the allegation that the cruise did not make all the stops announced on its itinerary. It was not an antitrust action, and class certification was denied by the District Judge. Moreover, plaintiff appealed [730]*730pursuant to § 1291, not § 1292(b), and the appeal was dismissed.

Defendants’ reliance on Anschul for the proposition that interlocutory review of the class action determination here is appropriate is misplaced. In its dictum discussion of § 1292(b), the Court concluded that “[t]he § 1292(b) procedure does not require that every time a trial judge makes a determination on class status that the question must be certified for appeal.” Id. at 1369. In fact, the Court suggested that § 1292(b) certification may be appropriate only in those few instances where the parties and the court agree that the decision is unprecedented and difficult. As stated at 1368:

[o]ur judicial system is built in large part on the studied discretion of the individual trial judge. Consequently we are not shocked nor disturbed by the fact that the trial judge alone must make the ‘big decision.’ The problem, of course, is the case wherein the parties and the court are in agreement that the class decision is unprecedented and difficult. Thus in these few instances where the question of class status is a very close decision a certification under § 1292(b) might be appropriate. (Footnotes omitted)

Accordingly, § 1292(b) is only to be used in those limited situations wherein the trial court “determines that there is a substantial ground for difference of opinion on the question of class status and that an immediate appeal may materially advance the ultimate termination of the case.” Id. at 1369.

NO CONTROLLING QUESTION OF LAW/NO SUBSTANTIAL GROUND FOR DIFFERENCE OF OPINION

As indicated, defendants contend that certification is appropriate in this case because there are six controlling questions of law as to which there are substantial grounds for difference of opinion. We have examined these alleged questions — although not in the order presented by defendants — and for the reasons hereinafter stated, conclude that there is no controlling question of law on the class action determination as to which there is a substantial ground for difference of opinion.

Questions 2 and 4 — Specific Findings4

Defendants argue that a class cannot be certified unless this court makes specific findings with regard to the superiority of the class proceeding and other findings allegedly required by Rule 23(b)(3), Fed.R.Civ.P.

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Bluebook (online)
75 F.R.D. 727, 23 Fed. R. Serv. 2d 1033, 1977 U.S. Dist. LEXIS 14962, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-folding-carton-antitrust-litigation-ilnd-1977.