In re Urethane Antitrust Litigation

235 F.R.D. 507, 2006 WL 1359932
District Court, D. Kansas·Decided April 14, 2006·No. No. 04-MD-1616-JWL·Published·Cited by 9 cases

Opinion

MEMORANDUM AND ORDER

LUNGSTRUM, District Judge.

This multidistrict litigation consists of numerous putative class action lawsuits in which plaintiffs claim that defendants engaged in unlawful price fixing conspiracies with respect to urethane chemical products in violation of the Sherman Act, 15 U.S.C. § 1. The court has consolidated two separate sets of cases—the Polyester Polyol Cases and the Polyether Polyol Cases. This Memorandum and Order relates to the Polyether Polyol Cases, in which the Polyether Polyol Plaintiffs (hereinafter, plaintiffs) are allegedly direct purchasers of certain polyester po-lyol urethane products that the Polyether Polyol Defendants (hereinafter, defendants) allegedly sell and manufacture. This matter is presently before the court on plaintiffs’ motion for leave to amend (doc. #206) and the non-settling defendants’ motion to dismiss time-barred claims (doc. #239). On March 27, 2006, the court heard oral argument on these motions and took the matters under advisement. After thoroughly considering the parties’ arguments, the court is now prepared to rule. For the reasons explained below, plaintiffs’ motion to amend will be granted and defendants’ motion to dismiss will be denied.

[512]*512BACKGROUND

Plaintiffs’ complaint alleges that defendants engaged in a price-fixing conspiracy with respect to certain polyether polyol products from January 1, 1999, to the present. Plaintiffs Seegott Holdings, Inc. and Industrial Polymers, Inc. purchased these products directly from one or more of the defendants. Defendants Bayer AG, Bayer Corporation, Bayer MaterialScience LLC (collectively, Bayer), BASF AG, BASF Corporation (collectively, BASF), The Dow Chemical Company (Dow), Huntsman Corporation, Huntsman LLC (collectively, Huntsman), and Lyondell Chemical Company (Lyondell) allegedly manufactured and sold these products.

Plaintiffs have now filed a Motion for Leave to Amend Consolidated Complaint (doc. # 206). Therein, plaintiffs seek leave to make four substantive revisions to their complaint: (1) removing RBX Industries, Inc. as a named plaintiff; (2) substituting the correct Huntsman entity for the Huntsman entities that were previously named as defendants; (3) inserting a specific end date for the proposed class period; and (4) changing the relevant product definition. Defendants BASF, Dow, Huntsman, and Lyondell filed a memorandum in response to plaintiffs’ motion to amend. They state that they do not oppose the first three amendments described above; therefore, those aspects of plaintiffs’ motion are granted as unopposed. They do, however, oppose plaintiffs’ proposed amendment with respect to the definition of the term “Polyether Polyol Products,” which are the products that are the subject of the alleged price-fixing conspiracy in this consolidated set of eases. Plaintiffs and Bayer entered into a settlement agreement dated January 31, 2006, and plaintiffs’ proposed amendment of the product definition was precipitated by that settlement. Plaintiffs’ proposed amendment tracks the product definition contained in the Bayer settlement agreement.

The non-settling defendants also ask the court to dismiss plaintiffs’ allegations of fraudulent concealment to toll the statute of limitations. This aspect of plaintiffs’ complaint is in a different procedural posture than the issue concerning the relevant product definition. By way of background, the court entered a Memorandum and Order on January 18, 2006, which, among other things, granted in part defendants’ motion to dismiss with respect to plaintiffs’ fraudulent concealment allegations on the grounds that plaintiffs had failed to plead fraudulent concealment with particularity as required by Fed. R.Civ.P. 9(b). See In re Urethane Antitrust Litig., 409 F.Supp.2d 1275, 1284-85 (D.Kan.2006). The court granted this aspect of defendants’ motion, however, without prejudice to plaintiffs filing a first amended consolidated complaint which set forth the circumstances constituting the alleged fraud with greater particularity. In the first amended consolidated complaint which is attached to plaintiffs’ motion for leave to amend, plaintiffs have sought to accomplish this. Because of the court’s prior ruling on this issue, the court has already granted plaintiffs leave to amend their complaint in this respect. Consequently, rather than defendants filing a response opposing this aspect of plaintiffs motion to amend, they have filed a motion to dismiss this aspect of plaintiffs’ complaint. Defendants contend that plaintiffs’ fraudulent concealment allegations should be dismissed because they still fail to plead the circumstances constituting the alleged fraudulent concealment with the requisite degree of particularity.

MOTION TO AMEND

Plaintiffs’ complaint alleges a price-fixing conspiracy with respect to “Polyether Polyol Products.” Plaintiffs’ consolidated amended complaint eui'rently defines this term to include polyether polyols, MDI, and TDI, which are the three main building block components of polyether polyol products in general. Plaintiffs now seek to amend their complaint to expand this product definition to include not only these three stand-alone products, but also all polyether polyol “systems” which are comprised of various blends of polyether polyols, TDI, MDI, and/or other ingredients.

A. Standard for a Motion to Amend

The Federal Rules of Civil Procedure provide that a party may amend his or [513]*513her pleading once as a matter of course or, after a responsive pleading has been filed, “only by leave of court or by written consent of the adverse party; and leave shall be freely given when justice so requires.” Fed. R.Civ.P. 15(a). The decision whether to grant leave to amend is within the discretion of the district court. Hayes v. Whitman, 264 F.3d 1017, 1026 (10th Cir.2001). The court may justifiably refuse leave to amend on the grounds of undue delay, undue prejudice to the opposing party, bad faith or dilatory motive, repeated failure to cure deficiencies by amendments previously allowed, or futility of the proposed amendment. Foman v. Davis, 371 U.S. 178, 182, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962); Frank v. U.S. West, Inc., 3 F.3d 1357, 1365 (10th Cir.1993).

B. Discussion

Defendants oppose the broadened product definition because it would vastly expand the scope and substance of this litigation. They contend that plaintiffs’ proposed product definition would violate the court’s no-encroachment order by allowing the claims in the Polyether Polyol Cases to encroach on the claims in the Polyester Polyol Cases. They also argue that the proposed amendment is untimely and that they would be prejudiced by the proposed amendment. Additionally, they contend that the proposed amendment would be futile because adding polyether po-lyol “systems” would make this litigation unsuitable for a class action.

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In re Urethane Antitrust Litigation, 235 F.R.D. 507, 2006 WL 1359932 (D. Kan. 2006).

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