Monument Builders of Pennsylvania, Inc. v. American Cemetery Ass'n

206 F.R.D. 113, 2002 U.S. Dist. LEXIS 4688, 2002 WL 441965
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 18, 2002
DocketNo. CIV.A.84-3014
StatusPublished

This text of 206 F.R.D. 113 (Monument Builders of Pennsylvania, Inc. v. American Cemetery Ass'n) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monument Builders of Pennsylvania, Inc. v. American Cemetery Ass'n, 206 F.R.D. 113, 2002 U.S. Dist. LEXIS 4688, 2002 WL 441965 (E.D. Pa. 2002).

Opinion

MEMORANDUM

DALZELL, District Judge.

In filing a motion for contempt of the January 31, 1989 Consent Decree in this matter, plaintiff has in consequence raised a question that the Supreme Court reserved in 1997. As will be seen, the procedural posture is unusual, but as the issue involves an important question under Fed.R.Civ.P. 23, as construed against the Due Process Clause of the Fifth Amendment, we analyze that problem, and an antecedent one, at some length.

Procedural Posture

Plaintiff Monument Builders of Pennsylvania, Inc., a trade association, filed this ease on June 20, 1984. Plaintiff sued as representative of a putative class against the American Cemeteries Association and many Pennsylvania cemeteries, alleging that those cemeteries inflated the prices of monuments consumers purchased from independent dealers by charging members of the plaintiff class outrageous and unnecessary fees to install monuments, in the cemeteries. In essence, Monument Builders alleged that the defendant cemeteries and cemetery trade associations were engaging in anticompetitive practices designed to discourage consumers from purchasing cemetery memorials from independent dealers in favor of purchasing them from the cemeteries themselves. Plaintiff alleged that these practices violated the federal antitrust laws.

After four years of litigation, the parties executed a Settlement Agreement. Judge Troutman, who presided over the litigation, had certified a plaintiff class — consisting of “retail grave marker dealers throughout the Commonwealth of Pennsylvania selling retail and/or installing grave memorials of granite or bronze”1 — and a defendant class — consisting of “[a]ll cemeteries and cemetery associations throughout the Commonwealth of Pennsylvania.”2 The Settlement Agreement detailed restrictions regarding what the cemeteries and the independent monument build[115]*115ers were permitted to do about access to the cemeteries, set forth reasonable charges and fees that cemeteries may impose for the use of cemetery services and property, and indeed covered most aspects of the business relationships between members of the plaintiff class and members of the defendant class.

Of particular pertinence to the instant dispute is the Settlement Agreement’s provision as to who is bound by that document. In its second paragraph, it states that “This Settlement Agreement shall be binding upon MBPA, and their officers, directors, employees, successors and assigns, as well as on members of the plaintiff class who do not file a timely election to opt out and upon the settling defendants, the names of which are listed on the attached Exhibit A, and then-officers, directors, employees, successors and assigns, as well as on members of the defendant class who do not file a timely election to opt out.” The cemetery involved in this controversy is said to be a defendant class member and not a listed defendant.

Judge Troutman on January 31, 1989 entered an Order that approved the twenty-page Stipulation and Settlement Agreement and, in its last paragraph, reserved “jurisdiction over the.effectuation of the settlement” without a terminal date. See January 31, 1989 Order at 4. Since Judge Troutman entered that Consent Decree, the plaintiff class has from time to time filed motions for contempt or compliance with the Consent Decree. On June 15, 1998, upon Judge Troutman’s retirement, the Chief Judge reassigned this matter to our docket.

The Current Motions

The instant motion for contempt arose when, some time in early 2001, it came to the plaintiffs attention that Orchard Hills Cemetery and Memorial Park, a cemetery in Shamokin Dam, Pennsylvania, was operating in a way that plaintiff class member Fantini Monuments Co. believed was contrary to the Consent Decree. Fantini, which is also a member of plaintiff, asked plaintiffs’ class counsel to take action, and on March 14, 2001, counsel mailed a bellicose letter to Orchard Hills’s owner, Ms. Cynthia Gee, demanding compliance. Ms. Gee replied a week later, and suffice it to say that the current legal dispute ensued, with Ms. Gee’s company, C GEE, Inc., filing its own cross-motion for contempt against Fantini.3

At the outset, and before reaching the merits of the controversy between these parties, we must address C GEE’s threshold objection that is not subject to the Consent Decree at all. In order to address this defense, we convened a hearing on February 21, 2002 wherein we heard testimony from Ms. Gee and others and received exhibits and heard argument. We have also benefitted from post-hearing document submissions and additional briefing.

The Factual Setting

It is undisputed that C GEE, Inc. did not exist when Judge Troutman signed the Consent Decree. The corporation was formed in Pennsylvania on January 12, 1996, and shortly thereafter, by a deed dated February 8, 1996, C GEE acquired the real estate that consists of a fifty-four acre cemetery now known as Orchard Hills Cemetery and Memorial Park. That cemetery had previously been known — at least at the time Judge Troutman signed the Consent Decree — as West Side Cemetery. A cemetery has existed on that land in the Borough of Shamokin Dam, Snyder County, Pennsylvania, for the past one hundred thirty-one years.

When the Consent Decree became effective, West Side Cemetery was owned by West Side Cemetery Company. This company was apparently controlled by people who sometime after January 31, 1989 allegedly absconded with cemetery trust funds that led to the insolvency of West Side Cemetery [116]*116Company. As a result, on January 7, 1994 a Pennsylvania corporation known as Hepran, Inc. acquired title to the cemetery’s real estate by a Sheriffs Deed, which we received into evidence. Hepran, in turn, sold the real property to C GEE, Inc. on February 8, 1996.

Orchard Hills may fairly be described as a Mom and Pop cemetery sans Pop. Ms. Gee bought the business, through C GEE, including the real property for $90,000. She and her son have operated that business, and have spent much time in the so far unfruitful enterprise of recovering the stolen perpetual care funds.4 She credibly testified that she knew nothing about this litigation, or about the Consent Decree, until she received counsel’s bellicose letter in March of 2001.5

It is far from clear whether West Side Cemetery had actual notice of the 1988 settlement that Judge Troutman approved on January 31 of the following year. His September 14,1988 Order required:

[NJotice of the Pendency of this litigation and the proposed partial settlement thereof ... shall be sent ... to all of the business entities identified as members of the defendant class by individual notice. Such notice shall be mailed by-first class regular mail on or before the 3rd day of October, 1988.

Sept. 14,1988 Order at 116.

More than a little surprisingly, although plaintiffs’ class action counsel caused an affidavit of mailing to the plaintiff class to be filed in advance of Judge Troutman’s January 5, 1989 fairness hearing — an affidavit that identified all of the mailing’s recipients — no such affidavit was filed regarding the mailed notice to the defendant class members.

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Bluebook (online)
206 F.R.D. 113, 2002 U.S. Dist. LEXIS 4688, 2002 WL 441965, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monument-builders-of-pennsylvania-inc-v-american-cemetery-assn-paed-2002.