Missildine v. Ideal Baking Co.

86 F.R.D. 407, 30 Fed. R. Serv. 2d 944, 1980 U.S. Dist. LEXIS 10734
CourtDistrict Court, M.D. Louisiana
DecidedApril 2, 1980
DocketMDL No. 282
StatusPublished
Cited by52 cases

This text of 86 F.R.D. 407 (Missildine v. Ideal Baking Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Missildine v. Ideal Baking Co., 86 F.R.D. 407, 30 Fed. R. Serv. 2d 944, 1980 U.S. Dist. LEXIS 10734 (M.D. La. 1980).

Opinion

CHARLES SCHWARTZ, JR., District Judge.

This litigation consists of three 1 private antitrust actions consolidated for pre-trial purposes by the Judicial Panel on Multidistrict Litigation under 28 U.S.C. § 1407 and transferred to this District.2 Plaintiffs James L. Missildine and McDonald’s of Baton Rouge, Inc., in their original complaints alleged that the defendant wholesale baking companies engaged from March 25, 1971, to November 5, 1976, in a combination or conspiracy to restrain trade in and fix prices of bakery products and that defendants implemented the alleged conspiracy by fixing wholesale prices, rigging bids, eliminating or reducing discounts, and by allocating customers and territories. All of the original named defendants except Wolf Baking Co., Inc., have entered into settlement agreements.3 Counsel for McDonald’s have acknowledged that there is no legal entity called “McDonald’s of Baton Rouge, Inc.” Therefore, McDonald’s is an inadequate representative under Rule 23(a)(4)4 and thus cannot represent the class.5

The Court has before it the motion of plaintiff, pursuant to Rule 23, F.R.C.P., for certification of these consolidated cases as a class action. The class sought to be represented by plaintiff is that of all persons who purchased bakery products from any defendant bakery company in a geographic area described by plaintiff as the “defined relevant market” at any time during the period from March 25, 1971 to March 25, 1975.6 After consideration of the motions, the supporting and opposing memoranda submitted by the parties, and the oral arguments presented at a hearing concerning the class certification motion, the Court is of the opinion that these cases are suitable for class action treatment, that plaintiff Missildine is a proper class representative, and that the class should be certified.

I. THE “DEFINED RELEVANT MARKET”

Plaintiff’s complaints were framed to include claims of attempted monopolization and monopolization, but these claims were not pursued by plaintiff in his submitted memoranda, and, at a hearing on the motion to certify, the class plaintiff acknowledged that this is a price fixing case and not one of monopolization. This characterization of the case obviates any objection that plaintiff’s use of the phrase [412]*412“defined relevant market” in his definition of the class sought to be certified requires him to demonstrate a relevant market in the antitrust monopolization sense of the phrase. This is so because a “relevant market” in an antitrust monopolization sense need not be shown in a price fixing claim. Plaintiff apparently intended to use the phrase “defined relevant market” to indicate only the geographic boundary of the proposed class. Plaintiff does not claim that the defined relevant market is a geographic or product market in an economic or antitrust sense.

Defendant distinguishes ' from this defined relevant market several trade areas and relevant geographic markets. A “relevant market,” defined on the basis of geographical boundaries, would be determined by the “reasonable interchangeability of use or the cross-elasticity of demand between the product itself and substitutes for it”; there might also exist sub-markets constituting product markets for antitrust purposes. Brown Shoe Co. v. United States, 370 U.S. 294, 325, 82 S.Ct. 1502, 1523, 24, 8 L.Ed.2d 510 (1962). The boundaries of such a sub-market will be determined by such factors as “industry or public recognition of the submarket as a separate economic entity, . unique production facilities, distinct customers, distinct prices, sensitivity to price changes, and specialized vendors.” Id. See Heatransfer Corp. v. Volkswagenwerk, A. G., 553 F.2d 964, 979-81 (5th Cir. 1977), cert, denied, 434 U.S. 1087, 98 S.Ct. 1282, 55 L.Ed.2d 792 (1978). A relevant geographic market for bakery products would consist, typically, of a metropolitan area and a rural urban fringe. A trade area, as defined by defendant, is an area characterized by maintenance of prices different from those in nearby geographic areas for comparable products where a group of bakeries was in competition. Defendant states that within plaintiff’s defined relevant market there existed numerous trade areas as well as several geographic markets.

The differentiation and delineation of several distinct and particular market areas is not material in an antitrust and monopolization sense because in this price fixing case the question before the Court is whether there was price fixing throughout the entire area for which plaintiff seeks-to certify the class. The “defined relevant market” as used by plaintiff was apparently meant as the geographical or spatial analogue to the relevant time period of the alleged price-fixing.

II. THE BAKERY INDUSTRY

An analysis of the industry and an examination of the products, sellers, and buyers are required in order to decide correctly a Rule 23 class certification motion in an antitrust action. Alabama v. Blue Bird Body Company, Inc., 573 F.2d 309, 312 (5th Cir. 1978) (Blue Bird). The discussion herein of the bakery industry is drawn from the comprehensive memoranda submitted by the parties, “Defendants’ Joint Statement,” and the record.

In the bakery industry there is variety among types of products and customers, purchasing methods, pricing arrangements, distribution methods, and geographic markets. Plaintiff defines bakery products, for the purposes of this litigation, as “all products ordinarily produced and/or sold by wholesale bakers,” including “white sliced bread, whole wheat and other varieties of bread, rolls, buns, specialty items, cakes, sweet rolls and other confectionaries.” There are several basic bakery product classifications: white bread and its components or types, including buns and rolls; private label breads; secondary label breads; and varieties of sweet goods, including cakes and wheat and rye breads. Private label products are those marketed under a label owned by the purchaser, typically a large store or chain of stores. Secondary label products are those marketed under an unadvertised label owned by a bakery. Other products were sold under trade names or premium labels owned and advertised by the bakeries. Within the basic product classifications there were numerous different items: in the aggregate, the bakery companies each sold hundreds of different items. The principal production items were white bread, buns and rolls.

[413]*413The “defined relevant market” refers to that geographic area constituting the geographic definition or delineation of the proposed class. Wolf sold its products throughout parts of Louisiana, eastern Texas, and southeastern Arkansas, which constituted only part of the entire defined market. The bakeries had multiple baking facilities and no single facility produced all of the products distributed. The basic method of distribution was delivery by truck by route salesmen who delivered fresh bread obtained at a bakery or distribution center and then picked up stale goods.

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86 F.R.D. 407, 30 Fed. R. Serv. 2d 944, 1980 U.S. Dist. LEXIS 10734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/missildine-v-ideal-baking-co-lamd-1980.