In re Potash Antitrust Litigation

159 F.R.D. 682, 1995 U.S. Dist. LEXIS 12108, 1995 WL 67100
CourtDistrict Court, D. Minnesota
DecidedJanuary 12, 1995
DocketCiv. No. 3-93-197; MDL Docket No. 981
StatusPublished
Cited by106 cases

This text of 159 F.R.D. 682 (In re Potash Antitrust Litigation) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Potash Antitrust Litigation, 159 F.R.D. 682, 1995 U.S. Dist. LEXIS 12108, 1995 WL 67100 (mnd 1995).

Opinion

MEMORANDUM OPINION AND ORDER

KYLE, District Judge.

I. Introduction

This matter is before the Court on Plaintiffs’ Motion for Class Certification pursuant to Rule 23 of the Federal Rules of Civil Procedure. Plaintiffs, fertilizer producers in the United States, allege that beginning in April 1987, Defendant potash1 producers violated Section 1 of the Sherman Act, 15 U.S.C. § 1, by combining and conspiring to raise, fix, maintain, and stabilize the wholesale price of potash; and that as a result of such acts, they and members of the class they seek to represent have been injured by paying an artificially high price for potash. Plaintiffs bring this action seeking treble damages, costs, attorneys fees and injunctive relief pursuant to Sections 4 and 16 of the Clayton Act, 15 U.S.C. §§ 15, 26.

II. Background

The factual background of this litigation is set out in this Court’s December 8, 1993 Memorandum Opinion and Order.2 For the purposes of this Motion, however, a brief factual review is appropriate.

This litigation presently consists of twelve individual lawsuits consolidated and transferred to this Court on August 19, 1993, by the Judicial Panel on Multidistrict Litigation.

The named Plaintiffs, on behalf of themselves and the class they seek to represent, are as follows: John Peterson d/b/a Almelund Feed & Grain, a sole proprietorship with its principal place of business in Almelund, Minnesota; Hahnaman Albrecht, Inc., [687]*687an Illinois corporation with its principal place of business in Dixon, Illinois; James River Farm Service, Inc., a Virginia corporation with its principal place of business in Cartersville (Cumberland County), Virginia; AG Network, Inc., a New York corporation with its principal place of business in LeRoy, New York; and Laing-Gro, Inc., a New York corporation with its principal place of business in Eden, New York. The named Plaintiffs purchased potash between April 1987 and July 8, 1994.

The Defendants are engaged in the production and sale of potash. The Defendants3 named in this case are: Potash Corporation of Saskatchewan, Inc. (“PCS Inc.”), a Saskatchewan corporation with its principal place of business in Saskatoon, Saskatchewan, Canada;4 Potash Corporation of Saskatchewan Sales Limited (“PCS Sales”), a Saskatchewan corporation with its principal place of business in Arlington Heights, Illinois; 5 Potash Company of America, Inc., a Canadian corporation with its principal place of business in Darien, Connecticut; IMC Fertilizer Group, Inc., a Delaware corporation with its principal place of business in Northbrook, Illinois; Rio Algom, Limited, an Ontario corporation with its principal place of business in Toronto, Canada; PPG Canada Limited, a Canadian corporation with its principal place of business in Toronto, Canada; PPG Industries, Inc., a Pennsylvania corporation with its headquarters in Pittsburgh, Pennsylvania; Kalium Chemicals, Ltd., a Delaware corporation with its principal place of business in Rolling Meadows, Illinois; Kalium Canada, Ltd., a Canadian corporation with its principal place of business in Regina, Saskatchewan, Canada; Noranda Minerals Inc., an Ontario corporation with its principal place of business in Toronto, Canada; Central Canada Potash Company, Limited6 (“Central Potash”); Noranda Sales Corporation, Ltd., an Ontario corporation with its principal place of business in Toronto, Canada; Comineo, Ltd., a British Columbia corporation with its principal place of business in Vancouver, British Columbia, Canada; Comineo American Incorporated, a Washington corporation with its principal place of business in Spokane, Washington; Eddy Potash, Inc., a Delaware corporation with its principal place of business in Carlsbad, New Mexico; and New Mexico Potash Corporation, a New Mexico corporation with its principal place in Hobbs, New Mexico.

Although discussed in greater detail in the Court’s December 8, 1993 Memorandum Opinion and Order, the substance of Plaintiffs’ allegations consists of the following. Plaintiffs contend that beginning at least as early as April 1987, and continuing through the filing of Plaintiffs’ TAC on July 8, 1994, the Defendants conspired and engaged in a concert of action to fix, stabilize, and maintain potash prices. Plaintiffs further allege that as a result of such agreement and action, price competition in the sale of potash among Defendants and their co-conspirators has been restrained; prices for potash sold by the Defendants and their co-conspirators have been raised, fixed, maintained and stabilized at artificially high and noncompetitive levels throughout the United States; and purchasers of potash from the Defendants and their co-conspirators have been deprived the benefit of free and open competition. (TAC ¶ 55.)

[688]*688In addition to Plaintiffs’ price-fixing claim, Plaintiffs further allege that they and members of the class they seek to represent had no knowledge that Defendants were violating the law, and that they could not have discovered such violation because the Defendants fraudulently concealed their conspiracy. (Id. ¶ 56.)

Based upon the price-fixing allegations contained in Plaintiffs’ TAC, on October 24, 1994, the Plaintiffs moved to certify the following class:

all purchasers (excluding governmental entities, defendants, subsidiaries and affiliates of defendants, co-conspirators of defendants, and other producers of potash and their subsidiaries and affiliates) in the United States of potash directly from defendants or any subsidiary or affiliate thereof at any time during the period April 1987 to and including the date of filing of this Complaint.7

(TAC ¶ 32.) Plaintiffs maintain that certification of this class is warranted because: (1) class members are so numerous and geographically dispersed that joinder is impracticable; (2) their claims involve the same issues of law and fact common to the class, and these common issues predominate over individual issues unique to any class member or members; (3) their claims are typical of the class they seek to represent; (4) they will fairly and adequately protect the interests of the class; and (5) a class action is the most efficient method for resolving their claims. (TAC ¶¶ 32-35.)

Defendants oppose class certification. Defendants make a variety of arguments which are individually addressed in the Court’s discussion below. In general terms, however, Defendants contest certification of the proposed class because a significant majority of potash purchases were made by a limited number of high-volume purchasers, who qualified for special price discounts and incentives, while the named Plaintiffs purchased potash in comparatively smaller quantities and were unable to employ special purchasing techniques. Defendants also claim that potash is not a fungible, standardized commodity.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stephens v. Farmers Restaurant Group
District of Columbia, 2019
Little v. Washington Metropolitan Area Transit Authority
249 F. Supp. 3d 394 (District of Columbia, 2017)
Bustillos v. Board of County Commissioners
310 F.R.D. 631 (D. New Mexico, 2016)
Abraham v. WPX Production Productions, LLC
317 F.R.D. 169 (D. New Mexico, 2016)
Anderson Living Trust v. WPX Energy Production, LLC
306 F.R.D. 312 (D. New Mexico, 2015)
In re Polyurethane Foam Antitrust Litigation
314 F.R.D. 226 (N.D. Ohio, 2014)
Karsjens v. Jesson
283 F.R.D. 514 (D. Minnesota, 2012)
In re Flonase Antitrust Litigation
284 F.R.D. 207 (E.D. Pennsylvania, 2012)
Kottaras v. Whole Foods Market, Inc.
281 F.R.D. 16 (District of Columbia, 2012)
In re Florida Cement & Concrete Antitrust Litigation
278 F.R.D. 674 (S.D. Florida, 2012)
Allen v. Dairy Farmers of America, Inc.
279 F.R.D. 257 (D. Vermont, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
159 F.R.D. 682, 1995 U.S. Dist. LEXIS 12108, 1995 WL 67100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-potash-antitrust-litigation-mnd-1995.