In Re Milk Purchaser Antitrust Litigation

588 N.W.2d 772
CourtCourt of Appeals of Minnesota
DecidedFebruary 9, 1999
DocketC9-98-1604
StatusPublished
Cited by7 cases

This text of 588 N.W.2d 772 (In Re Milk Purchaser Antitrust Litigation) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Milk Purchaser Antitrust Litigation, 588 N.W.2d 772 (Mich. Ct. App. 1999).

Opinion

588 N.W.2d 772 (1999)

In re MILK INDIRECT PURCHASER ANTITRUST LITIGATION.
Penny Miller, Appellant,
v.
Marigold Foods, Inc., et al., Land O'Lakes, Inc., Geo. Benz & Sons, Inc., d/b/a Oak Grove Dairy, Schroeder Milk Company, Inc., K & P Co., Inc., et al., Respondents.

No. C9-98-1604.

Court of Appeals of Minnesota.

February 9, 1999.

*773 Stewart C. Loper, Mary F. Seymour, Loper & Seymour, P.A., St. Paul, and Shawn M. Perry, Stewart R. Perry, Shane C. Perry, Perry, Perry & Perry, Minneapolis, for appellant.

Todd Wind, Jerome B. Pederson, Fredrikson & Byron, P.A., Minneapolis, for respondents Marigold Foods, Inc., et al.

Alan H. Maclin, Briggs & Morgan, P.A., St. Paul, for respondent Geo. Benz & Sons, Inc., d/b/a Oak Grove Dairy.

James L. Volling, Faegre & Benson, L.L.P., Minneapolis, for respondent Schroeder Milk Co., Inc.

Gary A. Hansen, William L. Sippel, Steven G. Mahon, Doherty, Rumble & Butler, P.A., Minneapolis, for respondent Land O'Lakes, Inc.

Joseph M. Sokolowski, Parsinen, Kaplan, Levy, Rosberg & Gotlieb, Minneapolis, for respondents K & P Co., Inc., et al.

Peter E. Moll, Howrey & Simon, Washington, D.C., for respondent Land O'Lakes, Inc.

Considered and decided by DAVIES, Presiding Judge, KLAPHAKE, Judge, and AMUNDSON, Judge.

OPINION

DAVIES, Judge.

Appellant argues that her second amended class-action complaint, dismissed by the district court for failure to state a claim, sets forth a legally sufficient claim for relief under the state antitrust statute and that it pleads fraudulent concealment with sufficient particularity to avoid summary judgment on statute-of-limitation grounds. Appellant also argues that the district court erred by applying an incorrect pleading standard to her antitrust claims. We reverse and remand.

FACTS

Appellant Penny Miller filed a class-action complaint alleging that respondents Marigold Foods, Inc. (Marigold), Marigold Venture, Inc. d/b/a Franklin Foods, Land O'Lakes, Inc., Geo. Benz & Sons, Inc. d/b/a Oak Grove Dairy, Inc., Schroeder Milk Co., Inc., and K & P Company, Inc. d/b/a Polka Dot Dairy, Inc., conspired to fix the price of milk and milk products in violation of the state antitrust statute and that they fraudulently concealed the conspiracy from the public, thus tolling the statute of limitations.

Appellant amended her complaint to incorporate a sworn statement from John Doyle, a retired Marigold vice-president. Doyle stated that Marigold regularly conspired with the other respondents to: (1) establish a common price to be paid to suppliers of raw *774 milk after monthly federal milk marketing orders were issued; (2) set a minimum price to charge retailers for processed milk; (3) allocate customers in a noncompetitive manner; and (4) threaten any conspirator that attempted to "break ranks" with the others.

The district court dismissed the first amended complaint without prejudice, holding that antitrust claims must be pleaded with greater specificity than is normally required by the liberal "notice pleading" rule, Minn. R. Civ. P. 8.01. The court noted that, while appellant alleged that various employees of respondents illegally agreed to fix the price of milk, she did not specifically allege "who did what or specifically how * * * [or] when the alleged activities took place." In addition, the court held that appellant's claims of fraudulent concealment in this first amended complaint were not pleaded with sufficient particularity to defeat the statute-of-limitations defense.

Just four days after the dismissal of the first amended complaint, appellant filed a second amended complaint, which the district court also dismissed, this time with prejudice. Adhering to his view that antitrust claims must be pleaded with greater specificity than other claims, the court held that appellant's second amended complaint still did not contain sufficiently detailed allegations of illegal activity within the statutory period to meet the required standard.

The court noted that the statute-of-limitations issue was moot because the complaint had been dismissed on other grounds, but nonetheless commented (without ruling on the issue) that the second amended complaint contained "sufficient allegations to support the claim of fraudulent concealment." This appeal followed.

ISSUES

I. Did the district court err in holding that antitrust allegations must be pleaded with greater specificity than is generally required by Minn. R. Civ. P. 8.01?

II. Did the district court err by dismissing appellant's second amended complaint for failure to state a legally sufficient claim for relief under the antitrust statute?

III. Was the district court's comment regarding appellant's fraudulent concealment claim a reviewable decision?

ANALYSIS

I.

Pleadings generally must consist of "a short and plain statement of the claim showing that the pleader is entitled to relief." Minn. R. Civ. P. 8.01; see also id. 8.05 (pleadings must be "simple, concise, and direct"). Pleadings that fail to state a claim upon which relief can be granted must be dismissed. Id. 12.02(e).

The district court held that antitrust claims must be pleaded with greater specificity than is otherwise required by rule 8.01 and dismissed appellant's complaint because it "failed to allege her [antitrust] cause of action with sufficient particularity." We review de novo the purely legal issue of whether antitrust claims are subject to a heightened standard of specificity in pleading. See Frost-Benco Elec. Ass'n v. Minnesota Pub. Utils. Comm'n, 358 N.W.2d 639, 642 (Minn.1984) (legal issues reviewed de novo).

This is an issue of first impression in Minnesota. But "Minnesota antitrust law is interpreted consistently with federal caselaw developed under the Sherman [Antitrust] Act," so federal court decisions constitute controlling authority on this issue. State by Humphrey v. Road Constructors, Inc., 474 N.W.2d 224, 225 n. 1 (Minn.App.1991), review denied (Minn. Oct. 31, 1991). In federal court, notice pleading is sufficient for all causes of action unless otherwise specified in the rules of civil procedure. Leatherman v. Tarrant County Narcotics Intelligence and Coordination Unit, 507 U.S. 163, 168-69, 113 S.Ct. 1160, 1163, 122 L.Ed.2d 517 (1993); see also Nagler v. Admiral Corp., 248 F.2d 319, 322-23 (2d Cir.1957) ("[T]he federal rules contain no special exceptions for antitrust cases."). There are no special requirements for Minnesota antitrust claims under the rules of civil procedure. See, e.g., Minn. R. Civ. P. 9.01-9.08 (listing special matters subject to heightened pleading standard).

*775 From our review of federal caselaw, we conclude that antitrust claims are not subject to a heightened standard of specificity in pleading. See Quality Foods de Centro Am., S.A. v. Latin Am. Agribus. Dev. Corp.,

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Bluebook (online)
588 N.W.2d 772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-milk-purchaser-antitrust-litigation-minnctapp-1999.