Philadelphia Electric Co. v. Anaconda American Brass Co.

43 F.R.D. 452, 11 Fed. R. Serv. 2d 594, 1968 U.S. Dist. LEXIS 10005, 1968 Trade Cas. (CCH) 72,359
CourtDistrict Court, E.D. Pennsylvania
DecidedJanuary 23, 1968
DocketCiv. A. Nos. 41734, 41827-41829, 41831, 41835
StatusPublished
Cited by207 cases

This text of 43 F.R.D. 452 (Philadelphia Electric Co. v. Anaconda American Brass Co.) 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
Philadelphia Electric Co. v. Anaconda American Brass Co., 43 F.R.D. 452, 11 Fed. R. Serv. 2d 594, 1968 U.S. Dist. LEXIS 10005, 1968 Trade Cas. (CCH) 72,359 (E.D. Pa. 1968).

Opinion

[456]*456OPINION ■

FULLAM, District Judge.

J Ten related private actions for treble damages for alleged violations of the antitrust laws have been instituted in this district, against the same group of thirteen defendants. All of these suits stem from the indictments returned against most of the defendants in the United States District Court for the District of Connecticut in 1962. United States v. Anaconda American Brass Co. et al., Criminal No. 10,725 (September 12, 1962); and cf. United States v. Anaconda American Brass Co. et al., Civil No. 9543 (filed December 4, 1962).

[ Five of the ten lawsuits purport to be class actions, brought on behalf of three classes of plaintiffs. The question now before the court, under Fed.R.Civ.P. 23 (c) (1), is whether they may be maintained as class actions.

As alleged in the complaint the classes comprise those legal entities which have purchased the products specified (brass pipe, copper pipe, copper tubing, and condenser tubing; all designated generally under the label “brass mill tube and pipe”) during the period in suit, and have suffered damage thereby as a result of the alleged conspiracy. The complaints divide these legal entities into the following three categories:

(1) “All state and municipal governments, governmental authorities and sub-divisions in the United States. * * *” (Nos. 41827 and 41829.) [Hereinafter referred to as the “Governmental” class.]
(2) “Non-profit cooperative membership corporations engaged in the supplying of electricity to their members in rural areas who receive their financing through the Rural Eleetrification Administration of the United States of America, an agency of the Department of Agriculture. * * * The said cooperative corporations are members of the National Rural Electric Cooperative Association. * * ”
(No. 41831.) [Hereinafter referred to as the “REA” class.]
(3) “Approximately 16,000 [later revised to 18,000] builders of home and apartment dwellings throughout the United States * * * who are in main, either individually or by their officers, parent, subsidiary, or affiliated corporations, builder members of the National Home Builders Association.” (Nos. 41828 and 41835.) [Hereinafter referred to as the “Builders” class.]

These three proposed classes will be considered seriatim.

I.

The Governmental class

Rule 23(a) prescribes four “pre-requisites to a class action”, namely,

“[that] (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.”

The first of these requirements is undoubtedly met in the Governmental class; the membership of the alleged class is so numerous that joinder of all members in this action would be not only impracticable, but inconceivable.

Nor is there any present difficulty with the fourth requirement. The named plaintiffs include the cities of Philadelphia, Detroit, Buffalo, San Antonio, Austin (Texas), Brownsville (Texas), Lubbock (Texas), Bryan (Texas), and Garland (Texas); the Philadelphia Housing Authority, the General State Authority of Pennsylvania, the State Public School Building Authority of Pennsylvania, and Wayne County, Michigan. Applications to intervene have been filed on behalf of many other governmental bodies, including the States of Alaska, Michigan, Oregon and Wisconsin, [457]*457and still others have expressed an active interest in the matter. The named plaintiffs are represented by able counsel, thoroughly familiar with antitrust litigation. There is no reason to doubt that the interests of the class will be fairly and adequately protected. Any problems which may arise in this respect can be handled under Rule 23(d) (2) and (3), or by subsequent order under Rule 23(c) (1).

The remaining pre-requisites specified by Rule 23(a) are that “(2) there are questions of law or fact common to the class” and “(3) the claims or defenses of the representative parties are typical of the claims or defenses of the class.” In addition, Rule 23(b) (3) provides that an action may not be maintained as a class action unless

“(3) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy. The matters pertinent to the findings include: (A) the interest of members of the class in individually controlling the prosecution or defense of separate actions; (B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class; (C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum; (D) the difficulties likely to be encountered in the management of a class action.”

Thus, it is necessary to decide whether there are factual and legal issues common to the class and typified by the assertions of the named plaintiffs, and if so, whether these common questions predominate over those applicable only individually; and finally, whether a class action is superior to other possible devices.

A. The existence and predominance of issues common to the class j

The burden is on the plaintiffs to establish their right to maintain a class action. Polakoff v. Delaware Steeplechase and Race Ass’n, 264 F.Supp. 915 (D.Del.1966); Carroll v. Associated Musicians of Greater New York, 206 F.Supp. 462, 470 (S.D.N.Y.1962), aff’d 316 F.2d 574 (2d Cir.1963); Underwood v. Maloney, 14 F.R.D. 222, 227 (E.D.Pa.1953). But this does not mean, as some of the defendants’ argument seems to imply, that the plaintiffs must finally establish their entire case before a preliminary determination of the class-action question can be made.

In order to succeed in this action, plaintiffs will have to prove (1) that there was a conspiracy to fix prices in violation of .the antitrust laws; (2) that prices were fixed pursuant thereto; and (3) that plaintiffs purchased products at prices which, as a result of the conspiracy, were higher than they should have been. All of these issues except the actual purchases by the various plaintiffs seem almost certain to be largely common to the entire class.

The defendants point out that the products mentioned in the complaint include “at least twelve separate groups of products which are separately priced and have distinct end uses”; that plaintiffs may have purchased like products from other manufacturers, at prices not shown to have been affected by the alleged conspiracy; that during the period covered by the alleged .conspiracy there were dozens of price changes in each product-line; and that there were wide variations in methods of purchase and in prices actually paid.

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43 F.R.D. 452, 11 Fed. R. Serv. 2d 594, 1968 U.S. Dist. LEXIS 10005, 1968 Trade Cas. (CCH) 72,359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philadelphia-electric-co-v-anaconda-american-brass-co-paed-1968.