State Wholesale Grocers v. Great Atlantic & Pacific Tea Co.

24 F.R.D. 510, 2 Fed. R. Serv. 2d 380, 1959 U.S. Dist. LEXIS 4045
CourtDistrict Court, N.D. Illinois
DecidedSeptember 8, 1959
DocketNo. 56 C 418
StatusPublished
Cited by7 cases

This text of 24 F.R.D. 510 (State Wholesale Grocers v. Great Atlantic & Pacific Tea Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Wholesale Grocers v. Great Atlantic & Pacific Tea Co., 24 F.R.D. 510, 2 Fed. R. Serv. 2d 380, 1959 U.S. Dist. LEXIS 4045 (N.D. Ill. 1959).

Opinion

CAMPBELL, Chief Judge.

On remand of this ease from the Court of Appeals, plaintiffs have moved for a ruling on the so-called “spurious class” suit issue left undecided both by this Court and the Court of Appeals. State Wholesale Grocers v. Great Atlantic & Pacific Tea Company, D.C.N.D.Ill.E.D., 154 F.Supp. 471; 7 Cir., 258 F.2d 831. Since the pertinent facts appear in each of these reported decisions, I shall not repeat them, in detail here.

■ Plaintiffs consist of twenty retail grocers and two wholesale grocers located in the Chicago Metropolitan Area. They seek to bring into this action the retail and wholesale grocers similarly situated who accept their invitation to join. Defendants, General Foods Corporation, Hunt Foods, Inc., and Morton Salt Company oppose the propriety of the class suit contending 1) that plaintiffs have not shown that they are entitled to bring a spurious class suit and, 2) in the alternative, that it is too late at this stage of the instant proceeding for the intervention of additional parties plaintiff.

Rule 23(a) (3) of the Federal Rules of Civil Procedure, 28 U.S.C.A., which governs spurious class suits, provides as follows:

“a. Representation. If persons constituting a class are so numerous as to make it impracticable to bring them all before the court, such of them, one or more, as Will fairly insure the adequate representation of all may, on behalf of áll, sue or be sued, when the character of the right sought- to be enforced for or against the class is ******
(3) several, and there is a common question of law. or fact affecting the several'rights and a common relief is sought

Whether Plaintiffs Are Entitled To Bring A Class Suit

Defendants contend that neither the retail grocer nor. the wholesale grocer class has been adequately identified. I do not agree. As to the plaintiff retailers, I think it has been clearly established that the class consists of retail grocers situated in the Chicago Metropolitan Area who, during the period pertinent to this suit, resold products of the defendant suppliers in competition with at least one store of the favored retailer, A. & P., and to whom proportionately equal treatment Was not made available. The wholesaler class consists of all wholesale grocers situated in the same area who, during that period, sold the defendant suppliers’ products to members of the retailer class. I attach little significance to the fact that there may be certain differences between the various members of either class so long as there is a question of fact or law common to all members within that particular class.

The propriety of the class suit is also challenged on the ground that common relief is not sought against the defendants Counsel for' defendants interpret the requirement of “common relief” as provided in Rule 23(a) (3) to mean that the claims of the plaintiffs must emanate from the same original source, citing Kainz v. Anheuser-Busch, Inc., 7 Cir., 194 F.2d 737, in support of their position. Defendants take the position that inasmuch as it is not claimed here that the three defendant suppliers have joined or acted together, the several claims of the plaintiffs emanate from three, separate and distinct sources, thus destroying the element of common relief.

A reading of the pertinent portion of the Court of Appeals’ opinion in the Kainz case, supra, might prove helpful; In rejecting the contention that the phrase “common relief” means “joint re-r lief”, - as that phrase is used in Rule [512]*51223(a) (3), the court'stated, at page 743 of 194 F.2d:

“ * * * ‘Common relief’ for persons having separate causes of action who may recover only several judgments, it seems to us, must mean, in order to give life to the purpose of the rule, relief emanating from the same original source, either by way of grant, contract, tort or statute, where the claims of all beneficiaries flow from the same fountain but are allowed not in a joint judgment but in several judgments. Strictly speaking, this may not be common relief in many senses, but it is separate relief for each growing out of a common source of right to recover. The same character of right to recover exists in several; in that sense, when there are common issues of fact and law, we think, the relief is common within the meaning of the rule. To hold otherwise is to destroy the so-called spurious class entirely, for, if the relief to be recovered by several members of the class in separate judgments must be a common or joint judgment, then the whole provision is meaningless. The rule clearly contemplates, we think, relief in the form of separate similar judgments, emanating from the same source in law and grounded upon common questions of fact.”

In view of the language of the Kainz case, I think the Rule is satisfied where, as here, it is charged that the same, but separate, action by defendants of equal standing (that is, suppliers who have favored one customer over others) violated the same section of a statute, and that the unlawful action of each defendant damaged each of several plaintiffs in separate, different amounts.

Defendants also urge the Court to hold that the plaintiffs do not adequately represent the members of either of the two classes for whom this suit is brought. An examination of the entire record of this case convinces me that this contention is without merit.

Whether The Proposed Intervention Is Untimely.

It is argued that intervention at this point of the instant proceeding would be untimely since it comes at a time more than 3% years after the suit was instituted and 2i/2 years after the proofs have been closed on the issue of liability. Defendants contend that it would be fundamentally unfair to them to allow intervention at this juncture of the case and caution that objectional procedural consequences might develop if such a practice is permitted.

Of course, defendants’ contentions might be true in most cases. In the instant; case, however, the issues of liability and damages were separated for purposes of trial. Trial of the issue of liability has been concluded. There is, at least, one element of the liability facet of this case which remains for decision. I think it clear that the joining of additional parties plaintiff at any earlier stage of the present case would have at that time served no useful purpose and might well have hampered, or at least delayed, the orderly and expeditious fashion in which the issue of liability was tried. With the separation of the issues of liability and damages for purposes of trial, Rule 23(a) (3) afforded the Court, as well as s the parties, with an excellent mechanism whereby a handful of persons with a standing sufficient to complain might, on behalf of all such persons similarly situated, test the legality of the defendants’ activity which affected all such persons. That activity having been branded as unlawful by the Court of Appeals, the time is now ripe for the intervention of all wronged parties.

A rule of procedure must possess a certain quality of usefulness.

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24 F.R.D. 510, 2 Fed. R. Serv. 2d 380, 1959 U.S. Dist. LEXIS 4045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-wholesale-grocers-v-great-atlantic-pacific-tea-co-ilnd-1959.