In re Packaged Seafood Prods. Antitrust Litig.
Opinion
Hon. Janis L. Sammartino, United States District Judge
Presently before the Court is Defendants StarKist Co., Dongwon Industries, Co., Bumble Bee Foods LLC, Del Monte Corporation, Tri-Union Seafoods LLC d/b/a Chicken of the Sea International Inc., and Thai Union Group PCL's ("Defendants") Joint Motion to Dismiss, ("MTD," ECF No. 983). Also before the Court are Plaintiff the Cherokee Nation's Opposition to, ("Opp'n," ECF No. 1267), and Defendants' Reply in Support of, ("Reply," ECF No. 1284), the Motion. The Court heard oral argument on July 30, 2018. Having considered the parties' arguments and the law, the Court rules as follows.
BACKGROUND
This case concerns an alleged conspiracy to fix the prices of packaged seafood throughout the United States. Plaintiff the Cherokee Nation is a federally recognized sovereign Indian nation and brings this action in its proprietary capacity and under its parens patriae authority against Defendants as part of a broader multi-district litigation ("MDL") currently pending before this Court. (First Am. Compl. ("FAC"), ECF No. 823, ¶¶ 11-12.)1 This particular aspect of the MDL concerns whether the Court has subject matter jurisdiction over Plaintiff's claims.
In 2015, various plaintiffs across the country brought civil suits concerning defendants StarKist, Chicken of the Sea, and Bumble Bee's conduct. The several civil actions relating to this alleged conspiracy were consolidated in an MDL and the judicial panel on MDLs centralized pretrial proceedings to this Court on December 9, 2015, (see Transfer Order, ECF No. 1). The Cherokee Nation was a latecomer to this litigation and filed suit on November 16, 2017, (see No. 17-CV-2332, ECF No. 1), which was then consolidated with the MDL. Plaintiff originally requested the Court create a track solely for itself, (ECF No. 751-1, at 3), but later amended its motion to request placement in the indirect End Purchaser Payer ("EPP") track, while also maintaining its own complaint, (ECF No. 798-1, at 2). On February 5, 2018, Plaintiff filed a First Amended Complaint, (ECF No. 823), and on February 23, 2018, the Court granted Plaintiff's amended motion *1087and assigned Plaintiff to the EPP track, (ECF No. 859).
Plaintiff's amended Complaint sets forth detailed allegations concerning alleged price-fixing schemes in the packaged seafood industry, which has resulted in a Department of Justice investigation into Defendants' activities and guilty pleas by several packaged seafood executives. (FAC ¶¶ 213, 221-28.) Defendants are major producers of packaged seafood. The complaint presents allegations of increased packaged seafood prices resulting from anticompetitive behavior on the part of Defendants. (See id. ¶¶ 205, 208-10.) Plaintiff's citizens, members of the Cherokee Nation, are indirect purchasers of packaged tuna. (Id. ¶ 10.) Plaintiff alleges that Defendants' anticompetitive behavior has resulted in fixed or higher prices of packaged seafood, that indirect purchasers of packaged seafood have been deprived of free and open competition, and that indirect purchasers paid artificially inflated prices. (Id. ¶ 229.)
Plaintiff's amended Complaint brings the following claims. First, Plaintiff asserts a cause of action under section 1 of the Sherman Act,
LEGAL STANDARD
I. Rule 12(b)(1)
A motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1) challenges a court's subject matter jurisdiction. Federal district courts are courts of limited jurisdiction that "may not grant relief absent a constitutional or valid statutory grant of jurisdiction" and are "presumed to lack jurisdiction in a particular case unless the contrary affirmatively appears." A-Z Int'l v. Phillips ,
Rule 12(b)(1) motions may challenge jurisdiction facially or factually. Safe Air for Everyone v. Meyer ,
*1088Savage
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Hon. Janis L. Sammartino, United States District Judge
Presently before the Court is Defendants StarKist Co., Dongwon Industries, Co., Bumble Bee Foods LLC, Del Monte Corporation, Tri-Union Seafoods LLC d/b/a Chicken of the Sea International Inc., and Thai Union Group PCL's ("Defendants") Joint Motion to Dismiss, ("MTD," ECF No. 983). Also before the Court are Plaintiff the Cherokee Nation's Opposition to, ("Opp'n," ECF No. 1267), and Defendants' Reply in Support of, ("Reply," ECF No. 1284), the Motion. The Court heard oral argument on July 30, 2018. Having considered the parties' arguments and the law, the Court rules as follows.
BACKGROUND
This case concerns an alleged conspiracy to fix the prices of packaged seafood throughout the United States. Plaintiff the Cherokee Nation is a federally recognized sovereign Indian nation and brings this action in its proprietary capacity and under its parens patriae authority against Defendants as part of a broader multi-district litigation ("MDL") currently pending before this Court. (First Am. Compl. ("FAC"), ECF No. 823, ¶¶ 11-12.)1 This particular aspect of the MDL concerns whether the Court has subject matter jurisdiction over Plaintiff's claims.
In 2015, various plaintiffs across the country brought civil suits concerning defendants StarKist, Chicken of the Sea, and Bumble Bee's conduct. The several civil actions relating to this alleged conspiracy were consolidated in an MDL and the judicial panel on MDLs centralized pretrial proceedings to this Court on December 9, 2015, (see Transfer Order, ECF No. 1). The Cherokee Nation was a latecomer to this litigation and filed suit on November 16, 2017, (see No. 17-CV-2332, ECF No. 1), which was then consolidated with the MDL. Plaintiff originally requested the Court create a track solely for itself, (ECF No. 751-1, at 3), but later amended its motion to request placement in the indirect End Purchaser Payer ("EPP") track, while also maintaining its own complaint, (ECF No. 798-1, at 2). On February 5, 2018, Plaintiff filed a First Amended Complaint, (ECF No. 823), and on February 23, 2018, the Court granted Plaintiff's amended motion *1087and assigned Plaintiff to the EPP track, (ECF No. 859).
Plaintiff's amended Complaint sets forth detailed allegations concerning alleged price-fixing schemes in the packaged seafood industry, which has resulted in a Department of Justice investigation into Defendants' activities and guilty pleas by several packaged seafood executives. (FAC ¶¶ 213, 221-28.) Defendants are major producers of packaged seafood. The complaint presents allegations of increased packaged seafood prices resulting from anticompetitive behavior on the part of Defendants. (See id. ¶¶ 205, 208-10.) Plaintiff's citizens, members of the Cherokee Nation, are indirect purchasers of packaged tuna. (Id. ¶ 10.) Plaintiff alleges that Defendants' anticompetitive behavior has resulted in fixed or higher prices of packaged seafood, that indirect purchasers of packaged seafood have been deprived of free and open competition, and that indirect purchasers paid artificially inflated prices. (Id. ¶ 229.)
Plaintiff's amended Complaint brings the following claims. First, Plaintiff asserts a cause of action under section 1 of the Sherman Act,
LEGAL STANDARD
I. Rule 12(b)(1)
A motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1) challenges a court's subject matter jurisdiction. Federal district courts are courts of limited jurisdiction that "may not grant relief absent a constitutional or valid statutory grant of jurisdiction" and are "presumed to lack jurisdiction in a particular case unless the contrary affirmatively appears." A-Z Int'l v. Phillips ,
Rule 12(b)(1) motions may challenge jurisdiction facially or factually. Safe Air for Everyone v. Meyer ,
*1088Savage ,
Alternatively, in a facial challenge, the defendant asserts the insufficiency of the complaint's allegations to invoke federal jurisdiction as a matter of law. Whisnant v. United States ,
II. Rule 12(b)(6)
Federal Rule of Civil Procedure 12(b)(6) permits a party to raise by motion the defense that the complaint "fail[s] to state a claim upon which relief can be granted," generally referred to as a motion to dismiss. The Court evaluates whether a complaint states a cognizable legal theory and sufficient facts in light of Federal Rule of Civil Procedure 8(a), which requires a "short and plain statement of the claim showing that the pleader is entitled to relief." Although Rule 8"does not require 'detailed factual allegations,' ... it [does] demand more than an unadorned, the-defendant-unlawfully-harmed-me accusation." Ashcroft v. Iqbal ,
In order to survive a motion to dismiss, "a complaint must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.' "
Where a complaint does not survive 12(b)(6) analysis, the Court will grant leave to amend unless it determines that no modified contention "consistent with the *1089challenged pleading ... [will] cure the deficiency." DeSoto v. Yellow Freight Sys., Inc. ,
ANALYSIS
I. The Cherokee Nation's Standing to Bring a Parens Patriae Action
Plaintiff brings its claims as parens patriae on behalf of its citizens harmed by Defendants' alleged conduct. Defendants challenge Plaintiff's standing to bring a parens patriae civil action. Article III of the Constitution vests federal courts with the authority to hear "Cases" and "Controversies." U.S. Const., art. III, § 2. "Standing to sue is a doctrine rooted in the traditional understanding of a case or controversy." Spokeo, Inc. v. Robins , --- U.S. ----,
One particular aspect of the standing doctrine is parens patriae3 standing. States or Indian nations asserting parens patriae standing must establish Article III standing and meet the "unique requirements" of the parens patriae doctrine. Missouri ex rel. Koster v. Harris ,
A. Parties' Arguments
Defendants advance three arguments why Plaintiff does not have parens patriae standing.4 First, the Cherokee *1090Nation does not have a quasi-sovereign interest because the alleged price fixing at issue in this case does not have anything to do with the health, safety, or welfare of the Cherokee Nation, nor is there sufficient allegations concerning protecting the Cherokee Nation's economy. (See MTD 15-16.)5 Second, Defendants contend that the Cherokee Nation cannot assert parens patriae claims under the law of other states because it cannot bring claims under those states' laws. (See id. at 17.) Third, the Cherokee Nation has not alleged injury to a substantial segment of their population. (See id. at 17-18.)
Plaintiff contends that it does not need to meet the two requirements-interest apart from private parties and quasi-sovereign interest-for parens patriae standing. (Opp'n 17.) Instead, Plaintiff argues that the Cherokee Constitution and Cherokee Code creates the requisite parens patriae standing. (Id. (citing 51 CNCA § 105.B.14 (2015); 12 CNCA § 13; and Washington v. Chimei Innolux Corp. ,
In the alternative, Plaintiff states that it has alleged the requisite harm to its population, as well as expressed a quasi-sovereign interest in the economic well-being of its citizens. (Id. at 18 (citing FAC ¶¶ 10, 340, 350, 355, 360, 365, 370, 376; and New York ex rel. Spitzer v. Saint Francis Hosp. ,
In reply, Defendants argue Plaintiff confuses Article III standing with statutory standing. (Reply 5.) Defendants assert that Snapp 's parens patriae requirements reflect Article III standing requirements, rather than requirements that can be replaced by Congress. (Id. ) They would distinguish Plaintiff's cases; Chimei Innolux required a quasi-sovereign interest, despite Plaintiff's characterization of Chimei Innolux as relieving Plaintiff of such a requirement. (See id. at 5-6.) Next, Burch only stands for the proposition that state attorneys general have authority to proceed parens patriae in suits for injunctive relief under section 16 of the Clayton Act, but does not relieve them of the parens *1091patriae requirements. (Id. at 6.) Finally, Defendants contend that Mid-Atlantic Toyota is distinguishable solely because it is a 35-year-old out-of-circuit case that is contrary to binding authority. (Id. ) Defendants reiterate their earlier position that Snapp applies and Plaintiff cannot meet the Snapp requirements. (See id. at 6-7.)
A. Parens Patriae Standing Under the Antitrust Improvements Act
The parties differ sharply on whether Plaintiff's parens patriae standing requirements are constitutional or prudential. If the requirements are prudential then Congress generally can expand standing to reach the full limits of Article III. See Gladstone, Realtors v. Vill. of Bellwood ,
In 1976, Congress passed and President Ford signed into law the Hart-Scott-Rodino Antitrust Improvements Act,
Thus, Congress has expressly authorized state attorneys general to bring suit under the Antitrust Improvements Act and Plaintiff need not demonstrate prudential standing, so long as it brings a claim for monetary relief under § 15c. But here is the critical point: Plaintiff does not bring an action under § 15c. Its amended Complaint clearly states that it only seeks injunctive relief under the Sherman Act, (FAC ¶ 252); § 15c only allows monetary relief. To the extent it seeks monetary relief, Plaintiff does so under Cherokee Nation law. (Id. , Prayer for Relief, ¶ b.) Logically, Plaintiff cannot rely on § 15c to provide standing when it has no claim under that section.
Nonetheless, the Nation argues that the Antitrust Improvements Act, codified in § 15c, provides standing to bring a non-monetary, i.e., injunctive, relief claim. (See Opp'n 18-19.) Plaintiff's reading of the law in incorrect. The Antitrust Improvements Act did not amend section 16 of the Clayton Act, codified at
Plaintiff cites dicta in Burch , where the Fourth Circuit said that "the congressional intent regarding the Hart-Scott-Rodino Antitrust Improvements Act of 1976 disclosed congressional recognition that state attorneys general suing as parens patriae clearly have standing to seek injunctive relief under Section 16 of the Clayton Act."
B. Parens Patriae Standing Under Cherokee Nation Law
The Cherokee Nation advances a second ground by which it has standing to assert a parens patriae action under both federal and state law without meeting the Snapp test. It argues that the Nation's Attorney General has authority to initiate a civil action on behalf of the citizens of the Cherokee Nation under 51 CNCA § 105.B.28 and under the Cherokee Constitution, Article VII, § 13, which authorizes the Attorney General to represent the Nation in all civil actions "wherein the Cherokee Nation is named as a party." (Opp'n 17.) Plaintiff also argues the Cherokee Nation Attorney General has standing to bring a parens patriae civil action under the laws of other states. (Id. at 31.) To that end, recently enacted Cherokee Nation law provides that:
The Cherokee Nation Attorney General acting as parens patriae, may bring a civil cause of action in any district court of the United States ... having jurisdiction over a defendant, to secure monetary or injunctive relief based on any applicable federal statute, common law, or the laws of any state.
12 CNCA § 7 (2018) (emphasis added). Similarly, 51 CNCA § 105.B.2 authorizes the Attorney General to "initiate or appear ... in any action in which the interests of the Nation or the People of the Nation are at issue." Thus, the issue is whether these constitutional and statutory sections allow the Cherokee Nation to displace the general rule articulated in Snapp .
The Court reads the foregoing Cherokee Nation provisions as authorizing the Attorney General to bring a suit under applicable substantive law, whether federal or state. That is half the equation; the other half is what constitutes "applicable" law. Can the Cherokee Nation Attorney General bring suit as if he is the Kansas attorney general simply because Cherokee Nation law authorizes parens patriae but the Kansas legislature does not explicitly do so? Plaintiff cites no authority for such a proposition. The proper inquiry is whether the Nation's Attorney General is within the scope of the cause of action authorized by Congress or a state legislature. See D.R. Ward Const. Co. v. Rohm & Haas Co. ,
In sum, it is not enough that Cherokee Nation law authorizes the Attorney General to bring suit; the Nation must also demonstrate that it meets the prudential standing requirements of the state or federal substantive law in question, i.e., that it is within the class of persons who can sue under a statute. The Court will shortly discuss Plaintiff's standing under section 16 of the Clayton Act, see infra section I.C, to request declaratory relief, see infra section I.D, and standing under various state substantive law, see infra section II.
C. Parens Patriae Standing Under Section 16 of the Clayton Act
Plaintiff's amended Complaint seeks injunctive relief for violation of section 1 of the Sherman Act. (FAC ¶ 252.) Injunctive relief is governed by section 16 of the Clayton Act, which provides "[a]ny person, firm, corporation, or association shall be entitled to sue for and have injunctive relief, in any court of the United States having jurisdiction over the parties, against threatened loss or damage by a violation of the antitrust laws."
1. The Parties' Arguments
Defendants state that Plaintiff's only federal claim is for an injunction under the Sherman Act. (MTD 22 (citing FAC Prayer for Relief, ¶ d;
Plaintiff argues that jurisdictional dismissal is warranted only "where the alleged claim under the Constitution or federal statutes clearly appears to be immaterial and made solely for the purpose of obtaining jurisdiction or where such a claim is wholly insubstantial and frivolous." (Opp'n 12 (quoting Bell v. Hood ,
Defendants respond that they only seek dismissal of Plaintiff's injunctive relief claim because the Nation fails to plead facts to support a claim. (Reply 2.) That is, they do not seek dismissal on jurisdictional *1095grounds; thus Bell v. Hood and its progeny are inapplicable. (Id. )
2. Parens Patriae Standing for Injunctive Relief
Thus far in the analysis, Plaintiff's federal antitrust claim has not cleared the first hurdle-standing. Is § 15c sufficient to confer standing for injunctive relief? The answer is no. Does Cherokee Nation law confer standing: yes, but only if the substantive law in question, state or federal, allows standing by a parens patriae plaintiff. This section deals with the question of whether Plaintiff may proceed with a federal antitrust injunctive relief claim under parens patriae standing.
The Supreme Court's decisions, in particular Georgia v. Pennsylvania Railroad and Snapp , demonstrate that a parens patriae plaintiff must meet the two-part test outlined in Snapp . In Pennsylvania Railroad , the state of Georgia alleged that twenty railroad companies conspired to fix freight rates in violation of federal antitrust laws. See
More than thirty years later, the Court revisited the requirements for parens patriae in Snapp . The question presented was whether Puerto Rico could maintain a parens patriae action seeking injunctive and declaratory relief based on harm to migrant workers who had been recruited to work an apple harvest in the continental United States. See Snapp ,
This summary of the case law involving parens patriae actions leads to the following conclusions. In order to maintain such an action, the State must articulate an interest apart from the interests of particular private parties, i.e. , the State must be more than a nominal party. The State must express a quasi-sovereign interest.
This view was implicitly recognized by a district court considering similar issues in New York v. Microsoft Corp. ,
It cannot, therefore, be said that this is a case where the "primary thrust of an alleged wrong is injury to a narrowly limited class of individuals, and the harm to the economy as a whole is insignificant by comparison." At a minimum, this is a case where "the direct impact of the alleged wrong [is] felt by a substantial majority, though less than all, of the state's citizens, so that the suit can be said to be for the benefit of the public."
This Court sees no reason to depart from the general rule articulated in Snapp . Plaintiff must demonstrate the parens patriae standing requirements outlined in Snapp to bring a section 16 claim.
3. Applying Snapp's Framework to Plaintiff's Amended Complaint
Because section 16 does not explicitly confer Plaintiff standing to bring an injunctive relief claim, Plaintiff must demonstrate it meets the standing requirements outlined by the Supreme Court in Snapp . See
The Court agrees with Defendants. While the Supreme Court "has not attempted to draw any definitive limits on the proportion of the population of the State that must be adversely affected by the challenged behavior," the Court does require that "more must be alleged than injury to an identifiable group of individual residents." Snapp ,
One could imagine a case where the line between a significant proportion and an insignificant proportion of a population is a close call. This is not one of those cases. The Court cannot adjudicate whether Plaintiff has alleged injury to a significant proportion of its population because Plaintiff has not alleged facts about any proportion of its population. Rather, Plaintiff states, in conclusory fashion, that its citizens "have overpaid for Packaged Tuna." (Id. ¶ 10.) In an effort to fend off this conclusion, Plaintiff argues that it cannot allege with more specificity the magnitude of the injury or the number of citizens injured because of Defendants' fraudulent concealment of their anticompetitive scheme. (Opp'n 18 n.8 (citing FAC ¶¶ 231-46).) Those fraudulent concealment allegations concern actions by Defendants to conceal their own activities; such activities *1097do not prevent Plaintiff from gathering and alleging information about its own population. If Plaintiff cannot explain how Defendants have injured a significant portion of the Cherokee Nation then perhaps the proper recourse is for individual consumers to join putative class actions against Defendants or bring their own claims.
By way of comparison, in the Microsoft case, the district court found that "millions of citizens of, and hundreds, if not thousands, of enterprises in each of the United States and the District of Columbia utilize PCs running on Microsoft software."
The Court does not determine whether Plaintiff has a quasi-sovereign interest because Plaintiff's amended Complaint fails the first element of the Snapp standing test. The Court finds Plaintiff fails to meet its burden to demonstrate it has standing to bring an injunctive relief claim under federal antitrust law.
D. Parens Patriae Standing Under the Declaratory Relief Act
Plaintiff also contends that this Court has jurisdiction to hear its claims under the Sherman Act because it seeks declaratory relief. (Opp'n 13 (citing FAC Prayer for Relief ¶ a).) To that end, Plaintiff cites several cases where courts have held that a declaratory relief action under the Sherman Act is sufficient to provide federal question jurisdiction. (Id. at 14 (citing, e.g., S. Side Theatres, Inc. v. United W. Coast Theatres Corp. ,
Defendants respond that a declaratory relief claim must satisfy Article III's standing requirements. (Reply 2 (citing, e.g., Thomas v. Anchorage Equal Rights Comm'n ,
A court may grant declaratory relief "[i]n a case of actual controversy within its jurisdiction."
Declaratory relief is a remedy and does not modify standing requirements. In order for Plaintiff to seek declaratory relief, it must still meet the parens patriae requirements outlined in Snapp . Indeed, the respondent in Snapp "sought declaratory relief with respect to the past practices of petitioners" and the Court applied the two-part test to the declaratory relief claim.
The Court finds that Plaintiff does not have standing to seek declaratory relief. Plaintiff has no basis for standing under the Sherman Act. Accordingly, the Court GRANTS IN PART Defendants' Motion and DISMISSES WITHOUT PREJUDICE Plaintiff's first cause of action under the Sherman Act.
E. Parens Patriae Standing Under Laws of Other States
Plaintiff brings substantive claims not just under
Defendants argue that California, Oklahoma, Colorado, and Florida law only allow parens patriae actions pursuant to statutory grants of authority and the relevant authority in each state only allows that state's attorney general to bring a claim under state law. (MTD 17.) As to the remaining states-Kansas, Arizona, and New Mexico-Defendants cite California v. Infineon Technologies AG ,
As discussed, Plaintiff argues that the Cherokee Nation's Attorney General has statutory authority to bring a parens patriae action on behalf of all Nation citizens. (Opp'n 19.) It acknowledges that the Nation does not seek to represent its citizens of other states, but the Nation would represent citizens who reside in other states and hold dual citizenship with both the Cherokee Nation and the state in which they reside. (Id. at 20.) Plaintiff advances two arguments concerning Infineon . First, Infineon held that if there is legal authority in a state that expressly authorized a parens patriae action, then courts presume *1099the existence of such authority, and, here, the Cherokee Nation Attorney General has such authorization under Cherokee Nation law. (Id. (citing Infineon ,
Defendants respond by arguing Plaintiff ignores Infineon 's reasoning that prohibits foreign attorneys general from bringing claims under the laws of states that limit parens patriae authority to their own attorneys general. (Reply 5 (citing Infineon ,
1. California
Plaintiff's second cause of action is for violation of the California Cartwright Act, which is the State's antitrust statute. (FAC ¶ 254.) The Act specifically authorizes the California Attorney General to bring suit on behalf of the people of California. See
This provision could not be plainer: where the Attorney General is empowered to bring a damages action seeking relief for violation(s) of the Cartwright Act, it is only the California [ex rel. Van de Kamp v. Texaco, Inc. ,46 Cal.3d 1147 ,252 Cal.Rptr. 221 ,762 P.2d 385 (1988) ] Attorney General who is so empowered, and on behalf of California residents only. The out-of-state Attorneys General therefore have no parens patriae authority under the Act.
The Court agrees with the Infineon court; the plain language of the Cartwright Act belies no statutory authorization for a foreign attorney general to bring a parens patriae suit under California antitrust law. The plain language of the statute only discusses a singular attorney general, i.e., the attorney general. This is different from statutory language that authorizes multiple attorneys general. Cf. 15 U.S.C. § 15c ("Any attorney general of a State...."). Thus, only the California Attorney General can bring suit under section 16760.
Plaintiff argues that it is not bringing a claim under California Business and Profession Code § 16760, but is instead bringing a claim under § 16570(a), which supplies a cause of action to "any person" who is injured. (Opp'n 30.) Thus, the Cherokee Nation seeks to represent those persons, living in California, but having dual citizenship with the Cherokee Nation, who would have a cause of action under § 16570(a).
This is an interesting argument considering dicta in the Supreme Court's opinion in Hawaii v. Standard Oil Co. of Cal. , states: "Hawaii plainly qualifies as a person under both sections [4 and 16] of the [Clayton Act], whether it sues in its proprietary capacity or as parens patriae."
Plaintiff also brings a cause of action under California's Unfair Competition Law,
Finally, Plaintiff brings a cause of action under California law for "unjust enrichment." (See FAC ¶¶ 338-42.) "[I]n California, there is not a standalone cause of action for 'unjust enrichment,' which is synonymous with 'restitution.' " Astiana v. Hain Celestial Grp., Inc. ,
Because no statute authorizes standing to bring an unjust enrichment claim, Plaintiff must demonstrate it meets the prudential standing requirements outlined by the Supreme Court in Snapp . See
2. Kansas
Plaintiff's fourth cause of action is for violation of the Kansas Restraint of Trade Act,
Plaintiff also argues that Cherokee Nation citizens are persons as defined by the Act, (Opp'n 33 (citing
The Court agrees with Defendants. Kansas law allows the Kansas attorney general to bring a representative action.
Finally, Plaintiff points to a harmonization provision in Kansas law that requires the Act to be "construed in harmony with ruling judicial interpretations of federal antitrust law by the United States supreme court."
Plaintiff's thirteenth cause of action is for unjust enrichment under Kansas law. (FAC ¶¶ 343-47.) In Kansas, unjust enrichment is an equitable doctrine, a "modern designation for the older doctrine of quasi-contracts." Haz-Mat Response, Inc. v. Certified Waste Servs. Ltd. ,
3. Arizona
Plaintiff's fifth cause of action is for violation of the Arizona Uniform State *1102Antitrust Act. (FAC ¶ 277.) The Arizona Uniform State Antitrust Act,
Plaintiff also argues that it could bring a cause of action under section 44-108, which provides a cause of action to any "person threatened with injury or injured" by a violation of the Act. (Opp'n 36 (quoting
Thus, the Arizona Uniform State Antitrust Act provides no authorization for a foreign attorney general to bring a parens patriae suit and the Court finds Plaintiff cannot bring a parens patriae claim for violation of the Arizona Uniform State Antitrust Act.
Plaintiff also alleges a cause of action for unjust enrichment under Arizona law. (FAC ¶¶ 348-52.) In Arizona, unjust enrichment is a form of restitution to enforce contract rights when there exists no valid contract. See Murdock-Bryant Const., Inc. v. Pearson ,
4. Colorado
Plaintiff's sixth cause of action is for violation of section 6-4-104 of the Colorado Antitrust Act of 1992. (FAC ¶ 283.) Colorado law explicitly authorizes a parens patriae civil action, but only "[t]he attorney general may bring" such an action.
*1103Plaintiff's fifteenth cause of action is for unjust enrichment under Colorado law. (FAC ¶¶ 353-57.) Unjust enrichment is a judicially-created remedy under Colorado law. Lewis v. Lewis ,
5. New Mexico
Plaintiff's seventh cause of action is for violation of section 57-1-1 of the New Mexico Antitrust Act. (FAC ¶ 289.) The Act states "[t]he attorney general may bring an action in the name of the state against any person."
This is a novel argument based on the unique language in the New Mexico statute; indeed, no other statute examined in this order mentions any governmental entity. However, a critical distinction should not be overlooked. The Nation's Attorney General, who would qualify as the "governmental entity," is not the party who was injured. It is his fellow Cherokee citizens who are injured and are the "persons" as defined by the Act. Those persons have a cause of action under section 57-1-3 ; the New Mexico attorney general has a cause of action under section 57-1-8. No provision or authority demonstrates that a foreign attorney general may use either cause of action. Accordingly, the Court finds Plaintiff cannot bring a parens patriae action under the New Mexico Antitrust Act.
Plaintiff's sixteenth cause of action is for unjust enrichment under New Mexico law. (FAC ¶¶ 358-62.) Under New Mexico law, unjust enrichment is a form of restitution cutting across contract and tort law. See Hydro Conduit Corp. v. Kemble ,
6. Oklahoma
Plaintiff's ninth cause of action is for violation of the Oklahoma Consumer Protection Act. (FAC ¶ 302.) In its Opposition brief, Plaintiff states that it agrees to withdraw its ninth cause of action. (Opp'n 35.) Even if the Court were to consider, the Consumer Protection Act, it states "[t]he attorney general or a district attorney may bring an action."
Plaintiff's eighteenth cause of action is for unjust enrichment under Oklahoma law. (FAC ¶¶ 368-73.) Oklahoma treats unjust enrichment as an equitable remedy, not based in statute. See French Energy, Inc. v. Alexander ,
*11047. Florida
Plaintiff's tenth cause of action is for violation of the Florida Deceptive and Unfair Trade Practices Act. (FAC ¶ 314.) Unlike other states, Florida's Deceptive and Unfair Trade Practices Act does not empower the state attorney general; instead, the Act authorizes "[t]he enforcing authority" to bring various remedies. See
Plaintiff argues, however, that it is availing itself of the section of the Act whereby "anyone aggrieved by a violation of this part may bring an action." (Opp'n 33 (quoting
Plaintiff's seventeenth cause of action is for unjust enrichment under Florida law. (FAC ¶¶ 363-67.) As with other states, Florida treats unjust enrichment as an equitable remedy. See Henry M. Butler, Inc. v. Trizec Props., Inc. ,
F. Standing Conclusion
In sum, injunctive relief under federal antitrust law requires a quasi-sovereign interest and an interest apart from the interests of particular private parties. Plaintiff does not meet this requirement and has no standing under federal law. With respect to Plaintiff's state statutory causes of action, no State explicitly authorizes an out-of-state attorney general to bring an action in a federal court pursuant to out-of-state law. This same observation was made by the court in Infineon and Judge Hamilton's reasoning is worth noting:
Not a single source relied on by plaintiffs expressly provides or even implies that a representative action by an Attorney General may be brought pursuant to another state's laws, .... [E]ven the most expansive of the general empowerment statutes relied on by plaintiffs, while recognizing the Attorney General's ability to bring actions in out-of-state courts, stops short of actually authorizing the Attorney General to bring actions in out-of-state jurisdictions pursuant to out-of-state laws.
II. Supplemental Jurisdiction
The only remaining claims are Plaintiff's eighth and eleventh causes of action for a violation of the Cherokee Nation's Unfair and Deceptive Practices Act, 12 CNCA § 21 et seq. and its nineteenth cause of action for unjust enrichment under Cherokee Nation law. (See FAC ¶¶ 296, 328, 375.) Neither cause of action arises under federal law. Further, Plaintiff has confirmed that it is not bringing a class action and it has not argued this Court's diversity jurisdiction applies. (Opp'n 15 n.4.) Thus, the only remaining basis for jurisdiction is under the Court's supplemental jurisdiction,
Defendants contend that the Court should decline to exercise supplemental jurisdiction over Plaintiff's pendent claims. (MTD 13.) They cite cases where other courts have declined to exercise supplemental jurisdiction in similar factual situations. (Id. (citing, e.g., Bass v. Cnty. of San Diego , No. 08-cv-2135-MMA (NLS),
Plaintiff argues that Court should retain supplemental jurisdiction even if it dismisses Plaintiff's Sherman Act claims. (Opp'n 15.) Plaintiff argues that the pendency of this case, the Court's familiarity with the issues, the overlap between Plaintiff's federal and non-federal claims, and judicial economy all weigh in favor of retaining pendent jurisdiction over Plaintiff's non-federal claims. (See
"In Gibbs , the [Supreme] Court stated that "if federal claims are dismissed before trial ... the state claims should be dismissed as well." " Carnegie-Mellon Univ. v. Cohill ,
In light of the foregoing, the Court DECLINES to exercise its discretion to retain jurisdiction over the supplemental claims and DISMISSES WITHOUT PREJUDICE Plaintiff's eighth, eleventh, and nineteenth causes of action.
III. Leave to Amend
Pursuant to Federal Rule of Civil Procedure 15(a), a plaintiff may amend its complaint once as a matter of course within specified time limits. Fed. R. Civ. P. 15(a)(1). "In all other cases, a party may amend its pleading only with the opposing party's written consent or the court's leave. The court should freely give leave when justice so requires." Fed. R. Civ. P. 15 (a)(2).
While courts exercise broad discretion in deciding whether to allow amendment, they have generally adopted a liberal policy. See United States ex rel. Ehmcke Sheet Metal Works v. Wausau Ins. Cos. ,
Here, the Court GRANTS Plaintiff leave to amend its federal antitrust causes of action and its state unjust enrichment causes of action. However, the Court finds that Plaintiff cannot amend its complaint with regard to state statutory causes of action-Plaintiff's attorney general does not have authority under foreign state law to assert a parens patriae cause of action. This is a legal issue that cannot be cured by additional factual allegations. The only remaining question is whether the Court should permit amendment to Plaintiff's claims based on Cherokee Nation law.
Generally "a proposed amendment is futile only if no set of facts can be proved under the amendment to the pleadings that would constitute a valid and sufficient claim or defense." Miller v. Rykoff-Sexton, Inc. ,
Here, the Court acknowledges that Defendants raise challenges to the retroactivity and legislative jurisdiction of Cherokee Nation law. At this stage, it is not clear that the Cherokee Nation Code causes of action are futile such that no set of facts could constitute a valid cause of action. Because the Court will allow amendment of the Cherokee Nation's complaint, the factual allegations regarding the Cherokee Nation Code may shift and is better suited to a briefing on a future motion to dismiss. Accordingly, the Court GRANTS leave to amend the Cherokee Nation causes of action.
CONCLUSION
In light of the foregoing, the Court GRANTS Defendants' Motion, (ECF No. 983), and DISMISSES WITHOUT PREJUDICE Plaintiff's First Amended Complaint, except to the extent that Plaintiff seeks to bring parens patriae claims under state law, such claims are DISMISSED WITH PREJUDICE . The Court GRANTS LEAVE TO AMEND Plaintiff's Complaint; Plaintiff MAY FILE an amended Complaint within thirty (30) days of the date on which this Order is electronically docketed.
IT IS SO ORDERED.
338 F. Supp. 3d 1079 (In re Packaged Seafood Prods. Antitrust Litig.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.