Oregon Laborers-Employers Health & Welfare Trust Fund v. Philip Morris, Inc.

188 F.R.D. 365, 1998 U.S. Dist. LEXIS 15019, 1998 WL 1100083
CourtDistrict Court, D. Oregon
DecidedJune 1, 1998
DocketNo. CV-97-1051-ST
StatusPublished
Cited by6 cases

This text of 188 F.R.D. 365 (Oregon Laborers-Employers Health & Welfare Trust Fund v. Philip Morris, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oregon Laborers-Employers Health & Welfare Trust Fund v. Philip Morris, Inc., 188 F.R.D. 365, 1998 U.S. Dist. LEXIS 15019, 1998 WL 1100083 (D. Or. 1998).

Opinion

[367]*367FINDINGS AND RECOMMENDATIONS

STEWART, United States Magistrate Judge.

INTRODUCTION

Plaintiffs are six union trust funds (employee welfare benefit plans) that provide health care benefits to participants who are employed under various collective bargaining agreements.1 Plaintiffs allege that defendants, including eight leading cigarette and [368]*368smokeless tobacco manufacturers,2 their public relations and lobbying arms,3 and then-advertising agency,4 conspired to deceive the public regarding the addictive nature of nicotine, the adverse health effects associated with tobacco product use,5 and the accuracy of defendants’ “independent” research efforts. Complaint, 112. Additionally, plaintiffs allege that defendants developed sophisticated techniques to manipulate the nicotine delivery of their products so as to create and sustain addiction, conspired to eliminate the development of “safer” cigarettes, mislead the public concerning the amounts of tar and nicotine ingested by smoking “low-tar” or “light” cigarettes, and targeted the marketing of their products at children. Id, H1T2, 183-207.

Plaintiffs allege twelve claims for: (1) violation of the federal and Oregon Racketeer Influenced & Corrupt Organizations Acts (“RICO” and “ORICO”), 18 USC § 1960, et seq. and ORS 166.715-735 (Complaint, 1111217-233,234-251); (2) restraint of trade in violation of the Sherman Antitrust Act, 15 USC § 1 (Complaint, HU 252-270) and ORS 646.725 (Complaint, HH 282-294); (3) conspiracy to monopolize in violation of the Sherman Antitrust Act, 15 USC § 2 (Complaint, 1111271-281) and ORS 646.730 (Complaint, 1111295-304); (4) unlawful trade practices in violation of ORS 646.608(1) (Complaint, 1111304-312); (5) fraudulent misrepresentation and concealment (Complaint, HH 312-325); (6) unjust enrichment (Complaint, 1111326-334); (7) negligence (Complaint, 1111335-341); (8) civil conspiracy (Complaint, HH 342-348); and (9) indemnity (1W 349-354).

Plaintiffs seek to recover funds expended and costs incurred to provide medical treatment to their participants and beneficiaries suffering from tobacco-related illnesses. They also seek: (1) treble damages on their RICO, ORICO, and antitrust claims; (2) punitive damages on their claims for unlawful trade practices, fraudulent misrepresentation and • concealment, and civil conspiracy; and (3) injunctive relief.

Plaintiffs now move to certify a class pursuant to FRCP 23 (docket # 38). The proposed class consists of all Oregon collectively bargained-for health and welfare trusts that have joint trustees. Plaintiffs allege that approximately 50 such health and welfare trusts exist and that each of them are nonprofit trusts, having essentially the same legal structure, operations, functioning, and purpose. Complaint, 1122. Plaintiffs seek class action treatment for all their claims. Defendants oppose the certification request and move to require plaintiffs to present a class action trial plan prior to a ruling on plaintiffs’ certification motion (docket # 110). For the reasons that follow, defendants’ motion to require a class action trial plan should be denied, and plaintiffs’ motion to certify should be granted.

DISCUSSION

I. Overview

This case is one small part of a large political tug-of-war. On one side, plaintiffs [369]*369seek certification, urging this court to follow the December 24, 1997 decision of Judge William L. Dwyer, which certified a class consisting of all jointly-administered collectively bargained-for heath and welfare trusts in the state of Washington who have provided or paid for health care and/or addiction treatment costs or services for employees or other beneficiaries. Northwest Laborers-Employers Health & Security Trust Fund, et al. v. Philip Morris, Inc., et al., C97849WD, USDC 1997 WL 1134971 (WD Wa December 24, 1997).6 On the other side, defendants urge this court to require plaintiffs to present a class action trial plan or to rule on dispositive motions prior to ruling on the certification motion.

Tempting though it is, this court may not avoid performing the rigorous analysis required under FRCP 23 by simply deferring to Judge Dwyer’s ruling. By the same token, this court may not delay a decision on plaintiffs’ motion by erecting needless procedural roadblocks. For the reasons that follow, this court concludes that a ruling on plaintiffs’ motion to certify is appropriate without awaiting the completion of briefing on dispositive motions and without requiring plaintiffs to present a class action trial plan. Moreover, although this court has serious questions about the viability of some of plaintiffs’ claims, it finds that plaintiffs have satisfied the requirements for certification under FRCP 23 and therefore recommends that this case be certified for class action treatment.7

The materials submitted by the parties reveal that the parties’ positions on class certification reduce to two fundamental differences. First, the parties disagree about whether the claims in this case belong to the trust funds themselves, or really are claims belonging to individual tobacco consumers coincidentally joined by virtue of their entitlement to receive benefits under one of the trust funds’ plans. Second, assuming that the trust funds themselves may assert the claims alleged in this case, the parties differ as to whether individual issues overshadow common issues. Defendants maintain that numerous liability, defense, and damages issues require individual proof by each trust fund and thus prohibit class certification. Plaintiffs counter that defendants’ course of conduct presents a multitude of common legal and factual issues amenable to class-wide disposition.

Although the named plaintiffs and proposed class members are trust funds, defendants argue that the individual participants and beneficiaries cannot be ignored because plaintiffs cannot avoid proof about individual fund participants (ie. individual tobacco consumers) to prove their claims. The Complaint itself refers to the participants and beneficiaries numerous times as the target of defendants’ alleged conduct. Thus, defendants believe that plaintiffs’ claims necessarily require an individualized inquiry beyond the trust funds themselves into the knowledge and conduct of the participants and beneficiaries. Plaintiffs, on the other hand, maintain that this case is “not for compensation for personal injuries suffered by smokers. It is a separate injury to Plaintiffs’ property and is wholly distinct from the harms suffered by individuals.” Complaint, 11230.

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Bluebook (online)
188 F.R.D. 365, 1998 U.S. Dist. LEXIS 15019, 1998 WL 1100083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oregon-laborers-employers-health-welfare-trust-fund-v-philip-morris-ord-1998.