Peterson v. BASF Corp.

12 F. Supp. 2d 964, 1998 U.S. Dist. LEXIS 11356, 1998 WL 420563
CourtDistrict Court, D. Minnesota
DecidedJune 30, 1998
DocketCiv. 98-47 (JRT/RLE)
StatusPublished
Cited by14 cases

This text of 12 F. Supp. 2d 964 (Peterson v. BASF Corp.) 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
Peterson v. BASF Corp., 12 F. Supp. 2d 964, 1998 U.S. Dist. LEXIS 11356, 1998 WL 420563 (mnd 1998).

Opinion

ORDER

TUNHEIM, District Judge.

The above-entitled matter comes before the Court upon the Report and Recommendation of United States Magistrate Judge Raymond L. Erickson, dated June 8, 1998. No objections have been filed to the Report and Recommendation in the time period" permitted.

Based upon the Report and Recommendation of the Magistrate Judge, and all of the files, records and proceedings herein,

IT IS HEREBY ORDERED that:

1. Plaintiffs’ Motion to Remand this matter to the Minnesota District Court for Norman County [Docket No. 13] is granted, and the Clerk of Court is directed to do so forthwith.

2. Defendant’s Motion to Dismiss [Docket No. 6] is denied, as moot.

ORDER and REPORT AND RECOMMENDATION

ERICKSON, United States Magistrate Judge.

I. Introduction

This matter came before the undersigned United States Magistrate Judge pursuant to a general assignment, made in accordance with the provisions of Title 28 U.S.C. § 636(b)(1)(A) and (B), upon the Plaintiffs’ Motion to Remand this matter to the Minnesota District Court for Norman County, and upon the Defendant’s Motions to Dismiss and to Bifurcate and Delay Discovery.

A Hearing on the Motions was conducted on May 19, 1998, at which time the Plaintiffs appeared by Robert K. Shelquist and Douglas J. Nill, Esqs., and the Defendant appeared by Winthrop A. Rockwell, John P. Mandler, and Mark J. Carpenter, Esqs.

For reasons which follow, we recommend that the Motion to Remand be granted 1 and, therefore, we recommend that the Defendant’s Motion to Dismiss be denied, and we deny its Motion to Bifurcate and Delay Discovery, as being moot. 2

II. Factual and Procedural Background

The Plaintiffs in this putative class action are fourteen farmers, who reside in the States of Minnesota, North Dakota, South Dakota, and Montana. The Defendant BASF Corporation (“BASF”) is incorporated under the laws of Delaware, and is headquartered in New Jersey. Among BASF’s various enterprises, it markets and sells herbicides in the national, agricultural market. Two of these herbicides, which are labeled a “Poast” and “Poast Plus,” are sold for use in *967 raising crops such as flax, beans, sugar beets, sunflowers, alfalfa, and potatoes.

On December 15, 1997, the Plaintiffs filed suit in Minnesota State Court, on behalf of themselves and a class of similarly situated farmers, claiming that BASF marketed Poast Plus in such a way as to lead purchasers to believe that it had not been registered with the EPA for use with minor crops, even though it had, in order to cause farmers to purchase the more expensive Poast for use on minor crops. Amended Compl. ¶ 29. The Plaintiffs claim that Poast Plus, which is the cheaper of the two herbicides, was conceived to help BASF compete in the more cutthroat major crop market. Id. ¶ 11. However, the Plaintiffs suggest that, because BASF retained dominance in the minor crop market, it schemed to prevent minor crop growers from purchasing the less expensive Poast Plus, by not informing them that Poast Plus was EPA-approved for their use. Id. The Plaintiffs claim that BASF violated the Minnesota Consumer Fraud Act, Minnesota Statutes Section 325F.69; the Minnesota Deceptive Trade Practices Act, Minnesota Statutes Section 325D.44, et seq.; the Minnesota False Advertising Statute, Minnesota Statute Section 325F.67; the New Jersey Consumer Fraud Act, N.J.Rev.Stat. §§ 56:8-1, et seq.; the Delaware Consumer Fraud and Deceptive Trade Practices Act, Del.Code Title 6, §§ 2513 and 2583(a); and that it had engaged in common law fraud and misrepresentation. The Plaintiffs request compensatory relief, including treble damages under the New Jersey Consumer Fraud Act, but they do not specify, in either their original or Amended Complaint, the amount of damages being requested.

On January 9, 1998, BASF removed the action to this Court, pursuant to Title 28 U.S.C. § 1441, on the basis of diversity jurisdiction. See, Title 28 U.S.C. § 1382. In support of its claim for an amount in controversy in excess of $75,000, BASF relies upon the claimed damages of Hector Farms, which is a member of the putative class of Plaintiffs, but which is not one of the named Plaintiffs in the Amended Complaint. Hector Farms, which is a farming partnership that is located in Hector, Minnesota, purchased 1,090 gallons of Poast, during the period from 1992 to 1996, from the Cenex Land-O-Lakes Agronomy. Johnson Aff. ¶2-3. A BASF officer, Bryan S. Wilson, attests that, during the period from 1992-1996, “the weighted average price differential between the two products * * * was approximately $4.00 per acre.” Wilson Aff. ¶2. Therefore, BASF contends, as one gallon of Poast will cover eight acres of farmland, Hector Farms would have overpaid $34,880 during the period in question, see, Def’s Mem. at 3 — 4, which, if trebled, would easily exceed the $75,000 jurisdictional threshold.

The Plaintiffs contend that, .even if accepted as an appropriate basis for establishing the amount in controversy, the evidence relating to Hector Farms’ purchases would not yield an overpayment of $34,880. Robert Burner, the General Manager of Farmers Union Oil in Climax, Minnesota, has explained that, while Poast covers eight acres per gallon, Poast Plus covers only 5.33 acres per gallon, which would lower Hector Farms’ compensatory damages to $11,641.20. Burner Aff., ¶4-6. BASF insists that Wilson accounted for the differing application rates of the two herbicides when he calculated the weighted average price differential of approximately $4.00 per acre, and that he has prepared a precise damage calculation. See, Stipulation of BASF Corporation ¶ 2, Ex. A. 3

*968 Additionally, BASF has shown that, in a similar class action involving only North Dakota residents, a settlement was reached, in which approximately $738,000 was allocated to the class members, and the plaintiffs’ attorneys recovered $1,250,000 in fees. Meis-ter Ajf. ¶ 4-5. BASF suggests that, if successful, these Plaintiffs and their attorneys would recover an amount of similar kind. In contrast, in moving to remand the case to Minnesota State Court, the Plaintiffs contend that BASF has not established the existence of diversity jurisdiction by a preponderance of the evidence. '

III. Discussion

A. Standard of Review.

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Bluebook (online)
12 F. Supp. 2d 964, 1998 U.S. Dist. LEXIS 11356, 1998 WL 420563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peterson-v-basf-corp-mnd-1998.