Meredith v. Mid-Atlantic Coca Cola Bottling Co.

129 F.R.D. 130, 1989 U.S. Dist. LEXIS 15777, 1989 WL 159166
CourtDistrict Court, E.D. Virginia
DecidedDecember 29, 1989
DocketCiv. A. Nos. 89-00302-R, 89-00525-R
StatusPublished
Cited by2 cases

This text of 129 F.R.D. 130 (Meredith v. Mid-Atlantic Coca Cola Bottling Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Meredith v. Mid-Atlantic Coca Cola Bottling Co., 129 F.R.D. 130, 1989 U.S. Dist. LEXIS 15777, 1989 WL 159166 (E.D. Va. 1989).

Opinion

MEMORANDUM

MERHIGE, District Judge.

On December 8, 1989 this matter came before the Court on Plaintiffs’ Motions for Class Certification pursuant to Fed.R. Civ.P. 23(b)(3). The matter had been fully briefed and argued and was ripe for disposition. Jurisdiction is based on 15 U.S.C. §§ 15 and 15/26" style="color:var(--green);border-bottom:1px solid var(--green-border)">26 and 28 U.S.C. § 1337.

These cases stem from an alleged price-fixing conspiracy between certain Coca-Cola and Pepsi-Cola Bottling Companies that operated from approximately 1982 until 1985. James Harford, President of Mid-Atlantic, was convicted of illegal price-fixing in May 1988. Mid-Atlantic itself pled guilty to price-fixing in October 1987. James Sheridan, President of Allegheny, also pled guilty to price-fixing. Morton Lapides, Allegheny’s principal owner and board chairman, Armand Gravely, Allegheny’s Richmond Division Manager, and Allegheny itself were tried and convicted of price-fixing. The two instant cases concern the Richmond and Norfolk divisions of the defendant companies. Related class actions in Maryland and Washington, D.C. were settled by Defendants.

Background

Plaintiffs are operators of small food markets that purchased colas from the defendants at allegedly inflated prices during the conspiracy. They are seeking to recover the difference between the prices they paid and the market prices that they contend would have existed had it not been for the alleged conspiracy. Each plaintiff seeks class certification under Fed.R.Civ.P. 23(b)(3), albeit of slightly different classes. The class proposed by the Merediths consists of all those who purchased the Defendants’ products under letter promotions or at promotional letter prices in Richmond and Norfolk during the period of the conspiracy. The class proposed by the Bangs is larger, consisting of all of the Defendants’ soft drink customers in those areas during that time. Thus the Bangs do not limit their proposed class to the promotional price recipients.

Defendants’ primary objection to class certification is their contention that Plaintiffs have not met the requirements of Rule 23. Specifically, Defendants maintain that Plaintiffs are not typical of the class, that they will not adequately represent the class, that issues of fact or law common to the class do not predominate, and that class certification is an inferior and unmanageable method of adjudicating the class’ claims.

Discussion

Class certification under Rule 23 involves a two-step analysis. The action first must meet all four of the requirements set forth in subsection (a) of the Rule. These are that: (1) the class is so numerous that joinder of all members is impractical; (2) there are questions of law or fact common to the class; (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class; and (4) the representative parties will fairly and adequately protect the interests of the class. Fed.R.Civ.P. 23(a). Once these are met, the action must qualify under one of the three categories of actions set forth in subsection (b) of the Rule. The Plaintiffs seek certification as a Rule 23(b)(3) action. That category requires that the questions of law or fact common to the class predominate over any questions affecting only individual class members, and that a class action be superior to other available methods of adjudication. Fed.R.Civ.P. 23(b)(3).

Rule 23(a) Requirements

1. Numerosity

Plaintiffs estimate that there are thousands of class members in the Rich[133]*133mond and Norfolk area who purchased cola products from Defendants. Defendants do not contest this estimate. The numerosity requirement of Rule 23(a) is therefore met by Plaintiffs’ actions.

2. Commonality

Furthermore, each class member must prove the existence of a conspiracy and its effectiveness before proceeding to prove damages. The requirement that there be questions of law or fact common to the class is therefore also met by Plaintiffs’ actions.

3. Typicality

There is some dispute over whether the claims of the Merediths and the Bangs are typical of the classes they seek to represent. Both the Merediths and the Bangs operate small, single location grocery stores that never received promotional letters or volume discounts from Defendants. Defendants claim that the Merediths and the Bangs are therefore not typical of the larger stores that are included in both of the proposed classes. Plaintiffs contend that their size is irrelevant because the promotional letter prices serves as de facto list prices from which the prices paid by all of the Defendants’ customers were set.

Courts in other price-fixing actions have held that the claims of named plaintiffs need not be identical to those of the other class members in order to satisfy typicality requirement. Typicality exists so long as the claims are based on the same legal or remedial theory and no conflict of interest exists between the named plaintiff and the class members. See, e.g., Eisen v. Carlisle & Jacquelin, 391 F.2d 555, 563 (2d Cir.1968); Susquehanna Township v. H and M, Inc., 98 F.R.D. 658, 665 (D.Pa.1983); In re South Cent. States Bakery Prods. Antitrust Litigation, 86 F.R.D. 407 (M.D.La.1980). Factual variations between claims will not defeat typicality. South Cent. States Bakery Prods., 86 F.R.D. at 415. Plaintiffs and the members of the proposed classes here were all allegedly harmed by the same conduct of Defendants, i.e., by the illegal conspiracy to fix prices. The variance between the size of the class members’ operations and the prices they paid therefore does not serve as a bar to class certification,

4. Adequacy of Representation

The parties also dispute whether the Plaintiffs will adequately protect the interests of the classes they propose. Defendants claim that the Plaintiffs lack sufficient knowledge and understanding of the actions to be adequate representatives of the class. Specifically, Defendants cite the deposition testimony of Mr. Meredith and Mr. Bang, which indicates that those gentlemen do not understand that they are supposedly seeking to represent a class of plaintiffs rather than just themselves, and that they think the actions concern price discrimination against small retailers. Plaintiffs counter with the deposition testimony of Mrs. Meredith, who apparently is well aware that a class action is proposed and has expressed a willingness to bear all necessary costs.

The Supreme Court rejected insufficient knowledge of the named plaintiff as a basis for denying class certification in Surowitz v.

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Bluebook (online)
129 F.R.D. 130, 1989 U.S. Dist. LEXIS 15777, 1989 WL 159166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meredith-v-mid-atlantic-coca-cola-bottling-co-vaed-1989.