Loizon v. SMH Societe Suisse De Microelectronics, Et Horologerie SA

950 F. Supp. 250, 1996 U.S. Dist. LEXIS 19299, 1996 WL 734695
CourtDistrict Court, N.D. Illinois
DecidedDecember 19, 1996
Docket96 C 4287
StatusPublished
Cited by9 cases

This text of 950 F. Supp. 250 (Loizon v. SMH Societe Suisse De Microelectronics, Et Horologerie SA) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loizon v. SMH Societe Suisse De Microelectronics, Et Horologerie SA, 950 F. Supp. 250, 1996 U.S. Dist. LEXIS 19299, 1996 WL 734695 (N.D. Ill. 1996).

Opinion

MEMORANDUM AND ORDER

LINDBERG, District Judge.

Plaintiffs, Carmel Loizon and Patrick Loizon, filed a complaint in the Circuit Court of Cook County, Illinois, against defendants, SMH Societe Suisse de Horologerie, SMH U.S., and C.P.S. Department Stores (“Car-sons”), on behalf of themselves and all other individuals similarly situated. Defendant Carsons removed this action from state court, pursuant to 28 USC § 1446, and based on diversity of citizenship under 28 USC § 1332.

Defendants, who sell or manufacture watches under the name Swatch, manufactured or sold a line of watches that contained a radioactive isotope, tritium. Plaintiffs claim that the tritium-based Swatch watches exposed them to a level of radiation above the recommended safety level set by the International Committee on Radiological Protection. Plaintiffs allege that defendants breached their duties of good faith and fair dealing in failing to disclose, the potential exposure to radiation from the watches. Plaintiffs further allege that defendants en *252 gaged in fraudulent misrepresentation, fraudulent concealment, and negligent misrepresentation under Illinois’ Consumer Fraud and Deceptive Trade Practices Act, 815 ILCS 505/1 et seq. (1992). Plaintiffs request that defendants compensate them for all of plaintiffs’ incurred losses, pay plaintiffs’ costs and attorney fees,-account for all sales of that line of watches, and “inform [all] Plaintiffs that tritium-based Swatch watches cause exposure and absorption of radiation by tritium-based Swatch watches far in excess of the annual skin dose limit for the public and in excess of the maximum level set by the International Committee on Radiological Protection for the public exposure to radiation.”

In order to maintain an action under § 1382, the moving party must show that there is complete diversity among the parties and that the action satisfies the jurisdictional amount in controversy. 28 USC § 1332. None of the parties dispute the existence of complete diversity. Plaintiffs, however, have moved to remand this case to state court, under 28 USC § 1447(c), alleging that the jurisdictional amount in controversy has not been satisfied.

.When removing a case from state court,- the defendants bear the burden to establish, by a .preponderance of the evidence, the requisite amount in controversy. Shaw v. Dow Brands, Inc., 994 F.2d 364, 366 (7th Cir.1993). “Any doubts should be resolved against finding jurisdiction in this court and in favor of remand.” Estrella v. Boots Co. , 1996 WL 490721, 1996 U.S.Dist. LEXIS 12441 at *3 (N.D.Ill. Aug 26, 1996).

In class actions suits, the Supreme Court has stated that to satisfy § 1332, each class member usually must satisfy the amount in controversy. See Snyder v. Harris, 394 U.S. 332, 335, 89 S.Ct. 1053, 1056, 22 L.Ed.2d 319 (1969). The Court did recognize, however, that class members may aggregate their claims where the members “unite to enforce a single title or right in which they have a common and undivided interest.” Id.

A growing trend also allows the federal courts to exercise supplemental jurisdiction over other class members under 28 USC § 1367 if a class member satisfies the amount in controversy. See Stromberg Metal Works, Inc. v. Press Mechanical, Inc., 77 F.3d 928, 930 (7th Cir.1996). Defendants do not argue, however, nor is there evidence to indicate, that any individual class members would satisfy the amount in controversy.

Defendants set forth two arguments in support of this court’s subject matter jurisdiction. Defendants argue that they have satisfied the amount in controversy under McCarty v. Amoco Pipeline Co.’s “either viewpoint” rule, 595 F.2d 389, 393-95 (7th Cir.1979), or because members of the plaintiff class would have a common and undivided interest in part of the relief sought.

Both of defendants’ arguments relate to plaintiffs’ request to inform all putative class members of the possible radiation exposure from the tritium-based Swatch watches. The parties first disagree on defendants’ cost of complying with this injunctive relief. Defendants ask this court also to consider the injunctive relief that plaintiffs requested in a “Petition for Temporary Restraining Order and/or Preliminary Injunction,” which was served on defendants but never filed in state court. While this court may consider information outside the pleadings, it does not have to address that issue because, as indicated below, defendants’ cost of complying with the injunction satisfies the amount in controversy. 1

Because there is no evidence that defendants have any records of who purchased the watches or any way of finding out who has ever worn or will wear the watches, the court may find that publication is the only reasonable method to notify the class of the potential dangers from the watch. Defendants maintain that they have satisfied the amount in controversy because the relief requested would require them to advertise in large national papers. In response, plaintiffs argue that defendants would only need to issue a press release or publish corrective advertis *253 ing in other unnamed national papers. Advertising in two prominent national newspapers, as defendants suggest, may be found to be the best method of informing the putative class members of the potential radiation dangers. Based on the evidence of the advertising costs submitted by defendants, this court agrees with defendants that their cost to satisfy the injunctive relief requested could exceed $50,000. The individual cost to com* ply with the injunctive relief, however, could be minimal to each class member since the class would probably exceed 100,000 members.

Defendants rely on McCarty v. Amoco Pipeline Co.’s “either viewpoint” rule to argue that this court has subject matter jurisdiction because the cost to defendants would exceed $50,000. 595 F.2d 389, 393-95 (7th Cir.1979). In McCarty, the defendant removed a state action under diversity of citizenship. Although the benefit to the plaintiff of the injunctive relief in question did not satisfy the requisite amount in controversy, the Court of Appeals for the Seventh Circuit held that a defendant could satisfy the jurisdictional amount in controversy by showing that either the plaintiffs benefit from the injunctive relief or the defendant’s cost of complying with the injunctive relief satisfied the amount.

McCarty, however, did not involve a class action, and courts have not applied the “either viewpoint” rule to class actions as defendants request.

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Bluebook (online)
950 F. Supp. 250, 1996 U.S. Dist. LEXIS 19299, 1996 WL 734695, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loizon-v-smh-societe-suisse-de-microelectronics-et-horologerie-sa-ilnd-1996.