In Re Hotel Telephone Charge Antitrust Litigation

341 F. Supp. 771
CourtUnited States Judicial Panel on Multidistrict Litigation
DecidedApril 21, 1972
Docket89
StatusPublished
Cited by6 cases

This text of 341 F. Supp. 771 (In Re Hotel Telephone Charge Antitrust Litigation) is published on Counsel Stack Legal Research, covering United States Judicial Panel on Multidistrict Litigation primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Hotel Telephone Charge Antitrust Litigation, 341 F. Supp. 771 (jpml 1972).

Opinion

OPINION AND ORDER

PER CURIAM.

The complaints in ten actions filed in ten different districts allege a nationwide conspiracy of hotels and motels to increase their room rates, in violation of federal anti-trust law and state common law. It is generally alleged that the increased rates were achieved by the addition of service charges, generally denominated as covering incoming telephone messages or internal communications. The plaintiffs, many of whom are attorneys, seek recovery for themselves and on behalf of all hotel guests similarly charged. Since the filing of the first action in the Central District of California, settlements on behalf of the class have been reached with several defendants and settlement orders setting out terms of the agreements and providing for their submission to the class have been entered in the Northern District of Illinois. 1

On the basis of the briefs and arguments we conclude that, except as to defendants with whom settlement has been reached, all actions must be transferred to the Central District of California for coordinated or consolidated pretrial proceedings. The ten complaints are virtually identical, containing parallel allegations concerning the alleged conspiratorial conduct of the defendants in imposing the telephone charges on their guests. And in each action the plaintiffs will seek to develop a common factual background concerning the formation and terms of any conspiracy, the possible fraudulent concealment of the conspiracy and the methods developed for assessing the charges. In addition, the complaints describe virtually identical classes of hotel guests. Although plaintiffs are apparently cooperating with one another in asserting these claims, we cannot leave the complexities of the overlapping class allegations to the voluntary coordination of the parties. We have frequently held that the possibility of duplicative discovery resulting from common fact questions and the threat of inconsistent judicial decisions of discovery, class and other issues requires transfer of multidistrict litigation to a single judge under Section 1407. In re Refrigerant Gas Antitrust Litigation, 334 F.Supp. 996 (J.P.M.L.1971); In re Master Key Antitrust Litigation, 320 F.Supp. 1404 (J.P.M.L.1971). We do so here.

Several defendants 2 strongly oppose transfer and protest that plaintiffs have merely filed the same complaint, with vague and questionable allegations of a national conspiracy, in different dis *773 triets in order to avoid the venue requirement of the antitrust laws. Similar arguments were advanced in opposition to transfer in the Kauffman Mutual Fund Litigation, 337 F.Supp. 1337 (J.P.M.L.1972) and were rejected by the Panel. Venue is not a criterion in deciding the propriety of transfer under Section 1407. Nor is the alleged lack of merit of the complaints a ground for denial of transfer.

Several additional arguments are advanced by defendants who object to transfer. Some of the pending motions in the transferor courts concern venue and jurisdiction and others are requests for summary judgment by defendants who allegedly made no telephone charges. Defendants stress that decision of these motions will involve individual factual situations and urge that there is little advantage to be gained in assigning them all to a single judge. It is true that some motions will require consideration of individual facts, but their assignment to a single judge will preclude any inconsistency in their decision. In any event, we are confident that the majority of post-transfer proceedings will benefit from assignment to a single judge. Some smaller defendants argue that transfer will be burdensomely expensive, but we must look to the interests of all parties to the litigation and we find that the benefits of transfer outweigh any inconvenience to these parties. In re Children’s Books Antitrust Litigation, 297 F.Supp. 385 (J.P.M.L.1968).

The most suitable transferee district in this litigation is the Central District of California where the first action was filed. Although there is complete disagreement as to whether a majority of involved hotels are located in California, 3 it does appear that a substantial number are there and that California would be the most convenient of all proposed transferee districts. It also appears that some of the initial facts pertinent to plaintiffs’ allegations of conspiratorial action occurred in California. 4

We do not believe, however, that it would advance the just and efficient conduct of the litigation or serve the convenience of the parties or witnesses to transfer the causes of action against those defendants with whom settlement has been reached. Settlement orders have already been entered in the Northern District of Illinois setting out a complex scheme for notice of the settlement to the class, payments from the fund to claiming class members, use of any remaining amounts for the benefit of the class and setting of attorney fees for plaintiffs’ counsel. Effectuation of these settlements under Rule 23, Fed.R. Civ.P., will require continuing judicial supervision and we believe it best to leave that supervision in the hands of the transferor court that entered the initial settlement orders.

It is therefore ordered that the actions listed on the attached Schedule A be, and the same hereby are, transferred to the Central District of California and, with the consent of that court, are assigned to the Honorable Malcolm M. Lucas for coordinated or consolidated pretrial proceedings;

It is further ordered that the plaintiffs’ claims against defendants Hilton Hotels Corp., ITT Sheraton Corp. of America, Loews Corp., Bismarck Hotel Co. be, and are, severed from the remainder of the actions and remanded to the Northern District of Illinois.

*774 SCHEDULE A

Eastern District of Louisiana

William Colson v. Fairmont Hotel Co., Inc., Civil Action et al. No. 71-1883 Sec. B

District of Colorado

William Colson v. Radisson Denver Corp., Civil Action et al. No. C-3237

Northern District of Texas

William Hicks v. Hilton Hotels Corp., et al. Civil Action No. CA-3-4924-C

Northern District of Georgia

William Colson v. Hilton Hotels Corp., et al. Civil Action No. 15347

Southern District of Florida

William Colson v. Hilton Hotels Corp., et al. Civil Action No. 71-1079-Civ-JE

Northern District of Illinois

William Colson v. Hilton Hotels Corp., et al. Civil Action No. 71-C-1590

Southern District of New York

William Colson v. Hilton Hotels Corp., et al. Civil Action No. 71 Civ. 2864

William Colson v. The Hotel Waldorf-Astoria Corp. Civil Action No. 71 Civ. 2943

Central District of California

Herbert Hafif, et al. v. Hilton Hotels Corp., Civil Action et al. No. 71-977-MML

District of Nevada

Herbert Hafif, et al. v. Hilton Hotels Corp., Civil Action et al. No. R-2582

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Bluebook (online)
341 F. Supp. 771, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-hotel-telephone-charge-antitrust-litigation-jpml-1972.