In re Mercedes-Benz Antitrust Litigation

213 F.R.D. 180, 2003 WL 556359
CourtDistrict Court, D. New Jersey
DecidedFebruary 19, 2003
DocketNo. CIV.A. 99-4311(AMW)
StatusPublished
Cited by21 cases

This text of 213 F.R.D. 180 (In re Mercedes-Benz Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Mercedes-Benz Antitrust Litigation, 213 F.R.D. 180, 2003 WL 556359 (D.N.J. 2003).

Opinion

OPINION

WOLIN, Senior District Judge.

This matter is opened before the Court upon the motion of plaintiffs for certification of this action as a class action pursuant to Federal Rule of Civil Procedure 23. Defendants have filed a related motion to strike the testimony of plaintiffs’ expert Dr. John C. Beyer pursuant to Federal Rule of Evidence 702, as interpreted by the United States Supreme Court in Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993). The Court has decided these submissions on the written submissions of the parties pursuant to Federal Rule of Civil Procedure 78. For the reasons set forth below, plaintiffs’ motion will be granted and this matter will be certified as a class action pursuant to Rule 23(b)(3). Defendants’ motion to strike the testimony of Dr. Beyer will be denied, without prejudice.

DISCUSSION

Familiarity with the basic facts in this case is assumed. They are set forth in this Court’s opinion reported at 157 F.Supp.2d 355 (D.N.J.2001). In short, plaintiffs allege that Mercedes-Benz USA, the national distributor of Mercedes-Benz automobiles, each of its local dealers in New York City and the southern New York, western Connecticut and northern New Jersey suburbs, and the accountant Sheft Kahn conspired to fix the prices of new automobiles sold or leased by them to consumers from February 1992 to August 1999. The complaint has survived a motion to dismiss. See id. The named plaintiffs now move for an Order certifying this matter as a class action on behalf of all persons similarly situated to them.

Federal Rule of Civil Procedure 23 sets forth a two-part scheme for class certification. The first part, subsection (a), states the threshold requirements for all class actions. The second, subsection (b), sets forth the three varieties of class actions contemplated by the Rule and the special requirements peculiar to each in addition to those of subsection (a). The content of each of the criterion is illuminated by substantial case law.

Rule 23(a) states that a class action may be certified

only if (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 requirements are known familiarly as “numerosity,” “commonality,” “typicality,” and adequacy of representation.

Plaintiffs invoke two of the three alternatives of subsection (b), paragraphs (b)(2) and (b)(3). They argue that certification under Rule 23(b)(2) is appropriate, because “the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final in-junctive relief or corresponding declaratory relief necessary with respect to the class as a whole[.]” Plaintiffs also contend that the Court should certify the class under Rule 23(b)(3), finding that “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 Rule gives a non-exhaustive list of factors that would weigh in favor of such findings and certification under paragraph (b)(3).

The law places the burden of establishing each of these elements on the party seeking class certification. See Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 613-14, 117 S.Ct. 2231, 138 L.Ed.2d 689 (1997). It must be recalled, however, that Rule 23 and [184]*184modern class action practice in the federal courts have their roots in equity, Ortiz v. Fibreboard Corp., 527 U.S. 815, 832-33, 119 S.Ct. 2295, 144 L.Ed.2d 715 (1999), and this Court must exercise its discretion in ruling on a motion to certify. In re Fine Paper Antitrust Litig., 685 F.2d 810, 822 (3d Cir. 1982), cert. denied sub nom., Alaska v. Boise Cascade, 459 U.S. 1156, 103 S.Ct. 801, 74 L.Ed.2d 1003 (1983).

The Third Circuit has held that the “interests of justice require that in a doubtful case ... any error, if there is to be one, should be committed in favor of allowing a class action.” Eisenberg v. Gagnon, 766 F.2d 770, 785 (3d Cir.), cert. denied, 474 U.S. 946, 106 S.Ct. 342, 343, 88 L.Ed.2d 290 (1985). The Eisenberg court made this statement with reference to securities class actions and expressly linked it to the lack of alternatives to enforcing the securities laws. However, this holding of Eisenberg has been relied upon in other areas as well, including antitrust. E.g., In re Flat Glass Antitrust Litig., 191 F.R.D. 472, 476 (W.D.Pa.1999); In re Chlorine & Caustic Soda Antitrust Litig., 116 F.R.D. 622, 624-25 (E.D.Pa.1987); see also In re The Prudential Ins. Co. of Am. Sales Practices Litig., 962 F.Supp. 450, 508 (D.N.J.1997), aff'd, 148 F.3d 283 (3d Cir.1998), cert. denied sub nom., Krell v. Prudential Ins. Co. of Am., 525 U.S. 1114, 119 S.Ct. 890, 142 L.Ed.2d 789 (1999).

Indeed, it has been held that price fixing cases may be well-suited for class certification, in the right circumstances. Alabama v. Blue Bird Body Co., 573 F.2d 309, 322 (5th Cir.1978); Transamerican Refining Corp. v. Dravo Corp., 130 F.R.D. 70, 75 (S.D.Tex. 1990) (“[mjost price-fixing cases are suitable for class action”); Alabama v. Chevron USA, 1980 WL 1808, *1 (M.D.Ala. Jan.ll, 1980) (“widely recognized that antitrust price-fixing cases are particularly suitable for class action treatment”); see Sheldon R. Shapiro, Annotation: Propriety under Rules 23(a)and 23(b) of FedR.Civ.P., as amended in 1966, of class action for violation of federal antitrust laws, 6 A.L.R. Fed. 19, 24 (1971) (“a substantial majority of the cases have held that under the circumstances antitrust class actions were maintainable”). While this Court will not apply a presumption in favor of certification, it must bear in mind that the rationale of Eisenberg with respect to class actions as necessary to enforce the securities laws also applies here, and that the antitrust class action is an important component in the federal scheme for deterring anti-competitive behavior.

1. The 23(a) Requirements

The numerosity requirement is intended to limit the class action device to those cases in which the number of parties makes traditional joinder of parties unworkable.

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213 F.R.D. 180, 2003 WL 556359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-mercedes-benz-antitrust-litigation-njd-2003.