Piggly Wiggly Clarksville, Inc. v. Interstate Brands Corp.

215 F.R.D. 523, 2003 WL 21347294
CourtDistrict Court, E.D. Texas
DecidedJune 6, 2003
DocketCivil Action No. 3:96-CV-51
StatusPublished
Cited by6 cases

This text of 215 F.R.D. 523 (Piggly Wiggly Clarksville, Inc. v. Interstate Brands Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Piggly Wiggly Clarksville, Inc. v. Interstate Brands Corp., 215 F.R.D. 523, 2003 WL 21347294 (E.D. Tex. 2003).

Opinion

MEMORANDUM OPINION AND ORDER DENYING PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION

SCHELL, District Judge.

This matter is before the court on “Plaintiffs’ Motion for Class Certification” filed on February 2, 1998 (Dkt.# 27).1 A hearing on class certification was held on April 15, 1998. Subsequently, additional briefing in support and in opposition was filed. Upon consideration of the briefing, hearing, and applicable law, the court is of the opinion that the motion for class certification should be DENIED.

I. Background

This is a civil antitrust class action in which Piggly Wiggly Clarksville, Inc. (“Piggly Wiggly”), Abraham’s Food Town, Inc., Staggers Oil Company of Texas, and Staggers Oil Company of Louisiana (“the class representatives”), on behalf of themselves and all others similarly situated, allege that Interstate Brands Corporation (“Defendant” or “Interstate”) through its predecessor Continental Baking Company (“CBC”), conspired with its competitors in the bakery industry to fix the prices of bread and cake products in the State of Texas and designated areas of Louisiana. The facts and procedural history of this case are outlined in Piggly Wiggly Clarksville, Inc. v. Interstate Brands Corp., 83 F.Supp.2d 781 (E.D.Tex.2000).

The Plaintiffs’ claim advanced in this case is that Interstate violated § 1 of the Sherman Antitrust Act, Title 15 U.S.C. § 1, by conspiring with its competitors to fix the prices of bread and cake products throughout Texas and various parts of Louisiana.2 Plaintiffs also assert that Interstate fraudulently concealed its illegal activities to avoid detection. The price-fixing conspiracy allegedly began in January 1977 and continued through March 1993. Plaintiffs have filed this motion for class certification in which they seek to represent a class of direct purchasers of cake products in Texas and bread and cake products in Louisiana.

a. Class Certification History

Plaintiffs initially filed their motion for class certification on February 2, 1998. In the Motion for Class Certification, Plaintiffs sought to certify a class consisting of:

All individuals and entities (including independent school districts, state, county and city independent school districts, and local governmental entities, but excluding all other state and federal governmental entities, and Interstate, Mrs. Baird’s, Campbell Taggart and Flowers and/or other Bread Products producers and their respective subsidiaries and affiliates) who purchased Bread Products3 in the State of Texas and contiguous market areas, including the cities and surrounding market[525]*525ing areas of Shreveport, Louisiana; Texarkana, Arkansas; Roswell, New Mexico; and Hugo and Lawton, Oklahoma,4 directly from Interstate and any co-conspirators and any distributor,5 subsidiary or affiliate thereof, at any time during the period from and including January 1, 1977 to and including March 28, 1996 (the “Class Period”) and/or asserted or could have asserted claims against Interstate or any co-conspirators based on purchases of Bread Products during the Class Period.

Since the time this motion was filed, much has happened that has affected the class definition and the class certification issues. After numerous briefs were filed and the class certification hearing was held in which additional briefing was ordered, this case came before the court on a motion for summary judgment. The Defendant moved for summary judgment claiming that all of Plaintiffs’ claims were barred by res judicata and/or collateral estoppel. That motion was granted in part and denied in part by order of this court on February 10, 2000. See Piggly Wiggly, 83 F.Supp.2d at 800-801. Subsequent to that order, the parties filed additional briefing on the class certification issues and Plaintiffs filed a motion to amend the class definition in order to comply with the summary judgment order and the discussions during the class certification hearing. In their Motion to Amend the Class Definition, the Plaintiffs now seek to certify a class consisting of:

All direct purchasers of cake products (including all sweet goods, snack cakes, pies, doughnuts, and danishes) in the State of Texas and bread and cake products (including all white bread, wheat bread, variety or specialty breads, hot dog buns, hamburger and other sandwich buns, rolls, sweet goods, snack cakes, pies, doughnuts, and danishes) in the Shreveport, Louisiana area (limited to6 the parishes of Bossier, Caddo, Clairborne, Desoto, Webster, Union, Lincoln, Morehouse, Ouachita, Franklin and Red River) from Interstate Brands Corporation, Continental Baking Company, Cotton Holsum Baking Company, Mrs. Baird’s Bakeries, Inc., Flowers Baking Co. of Texas (including its distributors) or Campbell Taggart Baking Companies, Inc. (including their predecessors, successors, subsidiaries and affiliates) at any time during the period January 1, 1977 to March 31, 1993. Excluded from this class definition are federal governmental entities, thrift store purchasers, Interstate Brands Corporations, Continental Baking Company, Cotton Holsum Baking Company, Mrs. Baird’s Bakeries, Inc., Flowers Baking Co. of Texas, and Cambell Taggart Baking Companies, Inc. (including their predecessors, successors, subsidiaries and affiliates and assigns).

This amended class definition removes Plaintiffs’ claim as to bread products in Texas, all claims of New Mexico, Arkansas, and Oklahoma purchasers, shortens the class period from 1996 to 1993, and removes claims as to thrift store purchasers. The amended class definition, in accordance with the court’s summary judgment order, leaves remaining viable claims as to cake products in Texas and bread and cake products in Louisiana, limited to the parishes contained in the class definition (including wholesale price list and bid purchasers).

Prior to the class certification hearing, Defendant filed a notice of position on class certification. In the notice, Defendant con[526]*526ceded that it would not object to the following class of plaintiffs:

All entities and persons (excluding purchasers from thrift stores, independent school districts, governmental entities, Interstate Brands Corporation, Continental Baking Company, and other producers of Bread Products) in the State of Texas who purchased Bread Products7 directly from Continental Baking Company, Mrs. Baird’s Bakeries Inc., Campbell Taggart, Inc., Flowers Baking Co. or Flowers Baking Co. of Tyler pursuant to commercial wholesale price lists at any time during the period of January 1,1986 to March 31,1993.8

After comparing the Plaintiffs’ proposed class definition and the class definition filed by the Defendant, the points of contention between the parties can be easily recognized. The disputed issues, in addition to Defendant’s remaining arguments against class certification, are as follows:

1) Customers that purchased through a bidding process (including school districts and local government entities);
2) The class period (whether the class should begin in 1977 or 1986);
3) Cake products; and

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Bluebook (online)
215 F.R.D. 523, 2003 WL 21347294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/piggly-wiggly-clarksville-inc-v-interstate-brands-corp-txed-2003.