In re New Motor Vehicles Canadian Export Antitrust Litigation

243 F.R.D. 17, 2007 U.S. Dist. LEXIS 44099, 2007 WL 1748470
District Court, D. Maine·Decided June 15, 2007·No. MDL No. 1532·Published·Cited by 3 cases

Opinion

MEMORANDUM ORDER IN SUPPORT OF CLASS CERTIFICATION ORDER

HORNBY, District Judge.

In this complex multidistrict antitrust and consumer protection lawsuit that involves federal law as well as the state laws of many states, there has been extensive motion practice on issues of personal jurisdiction, ability to proceed on federal claims in light of Illinois Brick v. Illinois, 431 U.S. 720, 97 S.Ct. 2061, 52 L.Ed.2d 707 (1977), ability to proceed on state law claims in light of state statutes and caselaw (state-by-state), and most recently the propriety of certifying one or many classes, federal or state.

The defendants have resisted class certification outright. There has also been litigation over the chronological scope of any statewide damage class. Over the course of many months, I have ruled on the class certification issues presented by the parties. Most recently, I directed the plaintiffs to propose a class certification order that both complies with Fed.R.Civ.P. 23 and reflects my rulings. I also allowed the defendants to respond. As a result, I have received competing proposals. The parties have explained some of their differences, but not all.

My concern now is Rule 23(c)(1)(B), which provides, effective December 1, 2003:

An order certifying a class action must define the class and the class claims, issues, or defenses, and must appoint class counsel under Rule 23(g).

The beginning (“define the class”) and end (“appoint class counsel”) of the provision are self-explanatory. It is the middle of the provision that provokes concern: the requirement to define “the class claims, issues, or defenses.”

In any lawsuit, the “claims, issues, or defenses” are a constantly moving target. What they appear to be at the initial scheduling order is usually far different from what they appear to be at the final pretrial order. The trial itself (when there is one, these days) often differs as well. Multiply that uncertainty in a simple civil case many times over for a complex multidistrict antitrust matter.

The Advisory Committee Notes do not provide any explanation for this new requirement in the Rule. Wachtel v. Guardian Life Ins. Co. of America, 453 F.3d 179, 184 (3d Cir.2006). The Standing Committee on Rules of Practice and Procedure reported to the Judicial Conference in proposing the amendment in 2002 that:

[18]*18Such a requirement facilitates application of the interlocutory-appeal provision of Rule 23(f) by requiring that a court must define the class it is certifying and identify the class claims, issues, and defenses.

Report of Standing Committee on Rules of Practice and Procedure (published September 2002) at 11 (found at http://www.uscourts. gov/rules/reports.htm). Thus, its rationale appears to be an assist to appellate judges by providing a written baseline against which to measure the propriety of the certification or noncertification order. In other words, it is a measure of the trial judge’s reasoning capacity in reaching the conclusion on certification. The Third Circuit has pointed to an additional reason: assisting the composition of appropriate notice to the class under Rule 23(c)(2). That seems an unlikely companion to the first goal, however. Crafting notice to laypeople to help them decide whether to remain in a class is quite different from what circuit courts of appeals ask trial judges to provide to make appellate decisionmaking easier. This Third Circuit decision, the only appellate opinion I have found that deals with 23(c)(1)(B), concludes that the new Rule requires “a clear and complete summary of those claims, issues, or defenses subject to class treatment,” and notes that “[cjurrent practice often falls short of that standard.” 453 F.3d at 184:

Although examples of common claims, issues, or defenses presented by the case may be discussed as part of the court’s commonality, typicality, or predominance analysis, certification orders and memoran-da are most often devoid of any clear statement regarding the full scope and parameters of the claims, issues or defenses to be treated on a class basis as the matter is litigated.

Id. at 185 (emphasis added).

There is, of course, a reason for the void. Defendants who do not want a class to be certified at all devote their entire argument to defeating certification. They are not interested in highlighting formulations of the “claims, issues or defenses” that might support certification. Plaintiffs also may have strategic reasons not to reveal “the full scope and parameters” of all the claims, issues or defenses. If the district court rejects the defendants’ arguments against certification, it then composes a certification order based on what has been argued. District judges do have experience composing scheduling orders and final pretrial orders, but those orders’ statements of claims, issues and defenses tend to be abbreviated, designed to move the litigation forward, not the sort of elaboration that appellate judges like to see in reviewing a decision on appeal when matters have come to a halt.

There seem to be only two solutions to help a district court meet the Rule’s requirements as amplified by the Third Circuit, neither of them attractive: (1) require the parties to argue, simultaneously with the issue of certification, what claims, issues and defenses are to be identified in a certification order if certification is granted; or (2) permit a second stage of briefing and argument on that topic after the court has ruled that certification of a class is proper. The first option will be well-nigh impossible in many complex cases, because there are so many permutations and combinations that depend on the scope of the class certified. The second option will prolong what are already drawn-out and expensive proceedings. As the Third Circuit opinion recognizes:

Class actions often present extraordinarily complex factual and legal scenarios, such that a complete list of the claims, issues, or defenses appropriate for class treatment may be difficult to discern or articulate at the time of certification.

Id. at 186 n. 8.

Thus, like many other improvements, this one comes at a substantial cost, and class actions already are infamously costly. In this already aging, complex and expensive multidistrict litigation before me, I am reluctant to order a new round of briefing. I will therefore do the best I can based upon what the parties have filed already.

My accompanying class certification order generally reflects what the parties have agreed to, after exchanging drafts of the proposed certification order. Where they have disagreed, I have made decisions and this is my explanation:

[19]*191. I have deleted from the class exclusion the plaintiffs’ proposed listing of “co-conspirators” and also the substitution of “ToyotaCanada, Inc.; Nissan Canada, Inc.; Mercedes-Benz Canada Inc.; the Canadian Vehicle Manufacturers’ Association; and the Association of International Automobile Manufacturers of Canada.” The Toyota, Nissan and Mercedes-Benz entities are automatically excluded as subsidiaries or affiliates of named defendants; the two associations have never previously been named and I have no record basis upon which to list them as excluded.

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In re New Motor Vehicles Canadian Export Antitrust Litigation, 243 F.R.D. 17, 2007 U.S. Dist. LEXIS 44099, 2007 WL 1748470 (D. Me. 2007).

243 F.R.D. 17 (In re New Motor Vehicles Canadian Export Antitrust Litigation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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