Sample v. Monsanto Co.

218 F.R.D. 644, 2003 U.S. Dist. LEXIS 17352, 2003 WL 22282503
District Court, E.D. Missouri·Decided September 30, 2003·No. No. 4:01CV65RWS·Published·Cited by 10 cases

Opinion

MEMORANDUM AND ORDER

SIPPEL, District Judge.

This matter is before the Court on plaintiffs’ motion for class certification. Because I granted summary judgment on the tort claims, only the antitrust claims are before me in this case. Following extensive briefing and a two-day hearing held on April 28-29, 2003, I must deny plaintiffs’ motion for class certification. My analysis follows.

Introduction

In this putative class action, corn and soybean farmers claim that defendants Monsanto, Pioneer and Syngenta conspired to fix, raise, maintain, or stabilize prices on genetically modified (GM) Roundup Ready soybean seeds and Yieldgard corn seeds in violation of the Sherman Act, 15 U.S.C. § 1. According to the complaint, they did so by agreeing to impose a surcharge or “premium” on all purchases of Roundup Ready soybean seeds and Yieldgard corn seeds.

Plaintiffs also claim that, in furtherance of this conspiracy, Monsanto entered into an agreement with defendant Aventis to restrict the output of its Liberty Link soybean seeds, another type of herbicide-resistant soybean seed that would have competed with Roundup Ready soybeans. Plaintiffs allege that this second conspiracy was necessary to prevent the first one from being undermined.

The Proposed Classes

Plaintiffs seek to certify two antitrust classes. Based on the antitrust claims set forth in Counts I through IV of the First Amended Complaint, plaintiffs seek to certify the following class:

Class One: The Roundup Ready Soybean Seed Farmer Antitrust Class
All persons and entities (excluding Defendants and their co-conspirators, their officers, directors, and employees, and government entities) who purchased Roundup Ready soybean seeds in the United States, at any time from January 1, 1996 to the present. For purposes of this class definition, the term “Roundup Ready soybean seeds” means the seeds and permission to grow those seeds. This class includes only farmers, who purchased Roundup Ready soybean seeds (other than as distributors) or the right to grow the seeds, directly from one of the defendants.

Based on the antitrust claims set forth in Counts V and VI of the First Amended Complaint, plaintiffs seek to certify the following class:

Class Two: The Yieldgard Com Seed Farmer Antitrust Class
All persons and entities (excluding Defendants and their co-conspirators, their offi[647] cers, directors, and employees, and government entities) who purchased Roundup Ready soybean seeds in the United States, at any time from January 1, 1996 to the present. For purposes of this class definition, the term “Yieldgard corn seeds” means the seeds and permission to grow those seeds. This class includes only farmers, who purchased Yieldgard corn seeds (other than as distributors) or the right to grow the seeds, directly from one of the defendants.

I will refer to these proposed classes jointly as the antitrust classes.

Class Action Standard

Federal Rule of Civil Procedure 23(a) allows one or more individuals to sue as representative parties on behalf of a class “only if (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law and 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.” Fed.R.Civ.P. 23(a); see also Alpern v. Utili-Corp United, Inc., 84 F.3d 1525, 1539 (8th Cir.1996); Morgan v. United Parcel Service of America, Inc., 169 F.R.D. 349, 354 (E.D.Mo.1996). Plaintiffs have the burden to establish each of the four prerequisites: numerosity, commonality, typicality and adequacy of representation. General Telephone Co. of Southwest v. Falcon, 457 U.S. 147, 156, 102 S.Ct. 2364, 72 L.Ed.2d 740 (1982). Rule 23(a) requirements must also be met with respect to each subclass. Roby v. St. Louis Southwestern Railway Co., 775 F.2d 959, 961 (8th Cir.1985).

The court must engage in a “rigorous analysis” to determine whether all the prerequisites of Rule 23(a) are satisfied. Falcon, 457 U.S. at 161, 102 S.Ct. 2364. “To determine whether the requirements of Rule 23(a) have been satisfied, the court must examine the factual basis for the plaintiffs claims and may examine not only the pleadings but also the evidentiary record, including any affidavits and results of discovery.” Sanft v. Winnebago Indust., Inc., 214 F.R.D. 514, 519 (N.D.Iowa 2003) (citing Newton v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 259 F.3d 154, 165 (3rd Cir.2001)). The court should not, however, decide the merits of the case. See In re Buspirone Patent Litigation, 210 F.R.D. 43, 56-57 (S.D.N.Y.2002). In Szabo v. Bridgeport Machs., Inc., 249 F.3d 672, 675 (7th Cir.2001), the Seventh Circuit Court of Appeals chastised the district court for accepting the allegations of the complaint as true when deciding whether to certify a class:

The proposition that a district judge must accept all of the complaint’s allegations when deciding whether to certify a class cannot be found in Rule 23 and has nothing to recommend it. The reason why judges accept a complaint’s factual allegations when ruling on motions to dismiss under Rule 12(b)(6) is that a motion to dismiss tests the legal sufficiency of a pleading. Its factual sufficiency will be tested later — by a motion for summary judgment under Rule 56, and if necessary by trial. By contrast, an order certifying a class usually is the district judge’s last word on the subject; there is no later test of the decision’s factual premises (and, if the case is settled, there could not be such an examination even if the district judge viewed the certification as provisional). Before deciding whether to allow a case to proceed as a class action, therefore, a judge should make whatever factual and legal inquiries are necessary under Rule 23. This would be plain enough if, for example, the plaintiff alleged that the class had 10,000 members, making it too numerous to allow joinder, see Rule 23(a)(1), while the defendant insisted that the class contained only 10 members. A judge would not and could not accept the plaintiffs assertion as conclusive; instead the judge would receive evidence (if only by affidavit) and resolve the disputes before deciding whether to certify the class.

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Sample v. Monsanto Co., 218 F.R.D. 644, 2003 U.S. Dist. LEXIS 17352, 2003 WL 22282503 (E.D. Mo. 2003).

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