Midwestern Machinery v. Northwest Airlines, Inc.

211 F.R.D. 562, 2001 U.S. Dist. LEXIS 15677, 2001 WL 34049897
CourtDistrict Court, D. Minnesota
DecidedJanuary 18, 2001
DocketCiv. No. 97-1438 (DWF/AJB)
StatusPublished
Cited by13 cases

This text of 211 F.R.D. 562 (Midwestern Machinery v. Northwest Airlines, Inc.) 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
Midwestern Machinery v. Northwest Airlines, Inc., 211 F.R.D. 562, 2001 U.S. Dist. LEXIS 15677, 2001 WL 34049897 (mnd 2001).

Opinion

MEMORANDUM OPINION AND ORDER

FRANK, District Judge.

Introduction

The above-entitled matter came on for hearing before the undersigned United States District Judge on September 15, 2000, pursuant to Plaintiffs’ Motion for Class Certification, Plaintiffs’ Motion to Strike the Affidavit of Mary Kay Kane, and Defendant’s Motion to Strike a Portion of the Expert Report of Dr. John C. Beyer. For the reasons set forth below, Plaintiffs’ and Defendant’s respective Motions to Strike are denied, and Plaintiffs’ Motion for Class Certification is granted in part.

Background

In January 1986, Northwest Airlines and Republic Airlines announced a merger. In August 1986, the two airlines merged with the approval of the U.S. Department of Transportation (DOT), despite opposition by the Antitrust Division of the U.S. Department of Justice (DOJ). DOJ argued that “the combination of two directly competing air carriers at a single hub would have substantial anti-competitive effects.”

The Administrative Law Judge (ALJ) recommended and the DOT decided, however, to approve the acquisition based on the “theory of contestable markets,” which posited the likelihood or threat of new entry as sufficient “discipline” for the Northwest/Republic market power. The DOT did not, however, grant antitrust immunity as the airlines requested, thus allowing for Plaintiffs’ current suit.

At the time of the merger, both Northwest and Republic were headquartered in Minneapolis-St. Paul. They were, respectively, the eighth and ninth largest airlines in the United' States and the first and second largest and principal competitors at Minneapolis-St. Paul Airport (MSP). In 1985, Northwest serviced forty-three percent of MSP passengers. In 1987, the year following the merger, Northwest accounted for seventy-nine percent of passenger service at MSP, and it has retained its position as the dominant carrier at MSP to date.

In their complaint, Plaintiffs assert that, prior to the merger, customers benefitted from competition between the two airlines by way of “quality ... service” at “relatively low prices.” Plaintiffs allege, however, that, subsequent to the merger, Northwest has dominated air travel into and out of MSP, resulting in “a substantial lessening of competition in violation of § 7 of the Clayton Act, 15 U.S.C. § 18” and a systemic practice of over[565]*565charging customers.1 Plaintiffs seek to certify a class defined as:

All persons who purchased tickets for scheduled passenger air service from defendant Northwest Airlines, Inc., which involved travel within the Relevant Markets during the period from June 16, 1993 to the present date. Excluded from the class are defendant Northwest Airlines, Inc., its parents, subsidiaries, and affiliates, and their employees and immediate family members.

“Relevant markets” is defined by the Plaintiffs as “the MSP Hub Market, the Individual City-Pair Markets, and the Certain Connecting City Pair Markets.” The “MSP Hub Market” consists of non-stop and certain one-stop passenger flights within the other two identified market types. “Individual City Pair Markets” are comprised of nonstop flights between MSP and certain other cities, such as MSP-Boston and Boston-MSP. “Certain Connecting City Pair Markets” refer to connections through MSP to a city for which there is no alternative non-stop service, such as Chicago-MSP-Duluth. It is these markets that Plaintiffs have identified as having been affected by Northwest’s monopoly.

Discussion

1. Motions to Strike

a. In General

Two issues presently before the Court involve the testimony of an expert for each party. Both experts present testimony relevant to the qualification of the current suit

for class certification. The Court will address the parties’ respective motions to strike the other’s expert affidavit/report before reaching the issue of class certification because it finds the testimonial evidence at issue relevant to its determination of whether class certification should be granted.

The admissibility of expert testimony, whether in the form of an affidavit or a report, is governed in part by Rules 702 and 704 of the Federal Rules of Evidence. Rule 702 provides a standard of “helpfulness” which requires that expert testimony “assist the trier of fact to understand the evidence or to determine a fact in issue.” Rule 704 provides that “testimony ... otherwise admissible is not objectionable because it embraces an ultimate issue to be decided by the trier of fact.”

The scope of the Rules has been illustrated by the Supreme Court’s decisions in Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993) and Kumho Tire Co., Ltd. v. Carmichael, 526 U.S. 137, 119 S.Ct. 1167, 143 L.Ed.2d 238 (1999). Daubert established factors to be considered when evaluating the principles and methodology of a scientific expert for validity, relevance, and ultimately, admissibility, and it held that general acceptance within the field was not a necessary precondition for admissibility. Kumho Tire extended the holding of Daubert to apply to non-scientific experts qualified by their experience, education, skill, or expertise in other fields.

The application of the Daubert test, however, is somewhat limited at the stage of class [566]*566certification. Daubert is helpful to the extent that it can assist the Court in preventing the entrance of methodology so apparently flawed. See In re Visa Check/Mastermoney Antitrust Litig., 192 F.R.D. 68, 76-77 (E.D.N.Y.2000); In re Potash, 159 F.R.D. at 695-98 (finding that plaintiffs are required only to make a “threshold showing” of whether proof will be “sufficiently generalized”). It would be inappropriate, however, for a court to look beyond the methodology and critique the prospective results of its application to a complete set of data. Id. A party and its experts should not be expected to have fully evaluated all data at the preliminary stage of class certification.

b. Defendant’s Motion to Strike a Portion of the Expert Report of Dr. John C. Beyer

Plaintiffs have offered the expert report of Dr. John C. Beyer, an economist, to present a common method of proving damages to class members. Defendant moves the Court to strike Dr. Beyer’s report to the extent that it relates to class-wide impact. The Court declines to do so.

Dr. Beyer holds several graduate degrees in economics, including a Ph.D. from the Fletcher School of Law and Diplomacy. He is currently the president of Nathan Associates, an economic consulting firm based in Arlington, Virginia. Dr. Beyer has 30 years of experience in applied micro-economics analysis in the United States, including service as an expert witness in antitrust matters such as In re Domestic Air Transportation Antitrust Litigation, 137 F.R.D. 677 (N.D.Ga.1991); In re Catfish Antitrust Litigation, 826 F.Supp. 1019 (N.D.Miss.1993), and

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

Related

Dover v. British Airways, PLC (UK)
321 F.R.D. 49 (E.D. New York, 2017)
In re Delta/Airtran Baggage Fee Antitrust Litigation
317 F.R.D. 675 (N.D. Georgia, 2016)
Romero v. Allstate Insurance
52 F. Supp. 3d 715 (E.D. Pennsylvania, 2014)
Burch v. Qwest Communications International, Inc.
677 F. Supp. 2d 1101 (D. Minnesota, 2009)
In re Ready-Mixed Concrete Antitrust Litigation
261 F.R.D. 154 (S.D. Indiana, 2009)
In re Sulfuric Acid Antitrust Litigation
235 F.R.D. 646 (N.D. Illinois, 2006)
Foster v. St. Jude Medical, Inc.
229 F.R.D. 599 (D. Minnesota, 2005)
Mehl v. Canadian Pacific Railway, Ltd.
227 F.R.D. 505 (D. North Dakota, 2005)
Blades v. Monsanto Co.
400 F.3d 562 (Eighth Circuit, 2005)
Blades v. Monsanto Company
400 F.3d 562 (Eighth Circuit, 2005)
Sample v. Monsanto Co.
218 F.R.D. 644 (E.D. Missouri, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
211 F.R.D. 562, 2001 U.S. Dist. LEXIS 15677, 2001 WL 34049897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/midwestern-machinery-v-northwest-airlines-inc-mnd-2001.