Township of Susquehanna v. H & M, Inc.

70 A.L.R. Fed. 480, 98 F.R.D. 658, 1983 U.S. Dist. LEXIS 15473
CourtDistrict Court, M.D. Pennsylvania
DecidedJuly 14, 1983
DocketCiv. No. 82-0514
StatusPublished
Cited by9 cases

This text of 70 A.L.R. Fed. 480 (Township of Susquehanna v. H & M, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Township of Susquehanna v. H & M, Inc., 70 A.L.R. Fed. 480, 98 F.R.D. 658, 1983 U.S. Dist. LEXIS 15473 (M.D. Pa. 1983).

Opinion

OPINION

MUIR, District Judge.

I. Introduction.

Plaintiff Township of Susquehanna, individually and on behalf of others similarly situated, filed this action as a proposed class action on April 23, 1982. The complaint named as Defendants H & M, Inc., RSE, Inc., Jack D. Murphy, William H. Quigley, Jr., D. Robert Rimmer, and Walter E. Rimmer. The complaint alleged that the Defendants engaged in a combination and conspiracy in unreasonable restraint of trade in violation of Section 1 of the Sherman Antitrust Act, 15 U.S.C. § 1, et seq. The Township of Susquehanna alleged that the Defendants violated the antitrust laws by conspiring to fix prices in the “motopaving” industry in Dauphin, Cumberland, Perry, and Lebanon Counties, Pennsylvania. “Motopaving” is the process of building, surfacing, or paving of public roads using a mobile asphalt plant to mix stone and liquid bituminous material at the job site.

On June 3,1982, Defendants H & M, Inc., Jack D. Murphy, and William H. Quigley, Jr. filed a motion to dismiss the complaint. On June 30, 1982, Defendants RSE, Inc., D. Robert Rimmer, and Walter E. Rimmer, filed a parallel motion to dismiss. The Defendants, in their motions to dismiss, argued principally that the four-year statute of limitations under the Sherman Antitrust Act barred the present action. By order of August 30, 1982, the Court found that the Township of Susquehanna had failed to allege sufficient facts to take this case outside of the four-year statute of limitations. Therefore, the Court granted the Defendants’ several motions to dismiss the complaint. The Township of Susquehanna was granted leave to file an amended complaint which alleged with specificity why the four-year statute of limitations under the Sherman Act should not bar this suit.

On September 20, 1982, an amended complaint was filed. The amended complaint was virtually identical to the original complaint with certain additions presented as an attempt by the Township of Susquehanna to allege why the four-year statute of limitations should not bar this suit. In particular, Paragraph 20 of the amended complaint alleged that the Defendants engaged in an ongoing conspiracy continuing at least through the Summer of 1978. Also, in the amended complaint at Paragraphs 24 through 29, the Township of Susquehanna elaborated on its claim that this case is not barred by the applicable statute of limitations because the Defendants engaged in fraudulent concealment.

During the months of October through December of 1982, a spate of motions addressed to the amended complaint were filed by the Defendants. In opinions of November 29,1982 and January 5,1983, the undersigned found all of these motions to be lacking in merit and the motions were accordingly denied.

On November 8, 1982, the Township of Susquehanna filed a motion for class certification of a Plaintiff class consisting of “All individuals, proprietorships, governmental entities, corporations and other business entities which have purchased motopaving services from one or more of the Defendants.” Also on that date, the Plaintiffs filed a brief in support of their motion. On November 15, 1982, Defendants H & M, Inc., William H. Quigley, Jr., and Jack D. Murphy filed a memorandum of law in opposition to the motion for class certification. The Township of Susquehanna filed a reply memorandum on December 17, 1982. The case was placed on the Court’s April 1983 [661]*661list for trial for disposition of the motion for class certification.

On February 2, 1983, as a result of the death of Defendant Murphy, Martha J. Murphy for the Estate of Jack D. Murphy was substituted as a party.

By order of March 10,1983, the Township of Susquehanna was granted leave to file a second amended complaint to add certain corporations as Defendants. The second amended complaint was filed on March 14, 1983, and is identical to the amended complaint with the exception that three new parties, William S. Hammaker, Inc., East Shore Materials Co., and Baltimore Tar Corp. are added as Defendants.

On May 19, 1983, the Township of Susquehanna filed a motion voluntarily to dismiss its claims against Defendants RSE, Inc., D. Robert Rimmer and Walter E. Rimmer pursuant to Rule 41(a) of the Federal Rules of Civil Procedure. By order of July 13, 1983, the motion was granted and RSE, Inc., D. Robert Rimmer and Walter E. Rimmer were dismissed as parties to this action.

As a result of the unanticipated and unprecedented length of the trial of United States v. Gleneagles, et al., Civil No. 80-1424 (M.D.Pa.1980), which was ongoing from November 2, 1982, the motion for class certification was not heard until June 17, 1983. At the June 17, 1983 hearing, the Court heard testimony from Miles A. Caughey. Thereafter, certain exhibits were entered into the record and the deposition testimony of Albert F. Kane was read.

On July 1, 1983, upon the uncontested motion of the Township of Susquehanna and by order of this Court, the proposed Plaintiff class was redefined to constitute “All governmental entities, including municipalities and townships, but excluding the Commonwealth of Pennsylvania, within the Four County area, which have purchased motopaving services by bid from one or more of the Defendants or their co-conspirators during the time period of January 1, 1967 to December 31, 1978.”

Following are the Court’s findings of fact, discussion, and conclusions of law on the motion of the Township of Susquehanna for class certification.

II. Findings of Fact.

1. On or about March 24,1982, the United States Government indicted H & M, Inc., RSE, Inc., Jack D. Murphy, William H. Quigley, Jr., D. Robert Rimmer and Walter E. Rimmer with respect to a conspiracy under Section 1 of the Sherman Act (15 U.S.C. § 1), the purpose of which was to allocate customers, rig bids, and fix prices for motopaving projects in the “Four County area” for the period of 1967 to at least September, 1977. (Undisputed, hereafter “U”)

2. “Motopaving” means the building, rebuilding, surfacing, resurfacing, paving or repaving of public roads using a mobile asphalt plant to mix stone and liquid bituminous material in a cold mix process at the job site and to place the material on the roadbed. (U)

3. “Four County area” means the four county area within the Commonwealth of Pennsylvania comprising Dauphin, Cumberland, Perry, and Lebanon Counties. (U)

4. On or about July 27,1982, Defendants H & M, Inc., RSE, Inc., Jack D. Murphy, William H. Quigley, Jr., D. Robert Rimmer and Walter E. Rimmer were found guilty of the charges alleged in the government’s indictment. (U)

5. On March 14, 1983, Plaintiffs herein filed a second amended complaint. The initial Complaint was filed on or about April 23, 1982.

6. The second amended complaint names the following persons as defendants: H & M, Inc., RSE, Inc., Jack D. Murphy, William H. Quigley, Jr., D. Robert Rimmer, Walter E. Rimmer, William S. Hammaker, Inc., East Shore Materials Co., and Baltimore Tar Corp.

7. RSE, Inc., D. Robert Rimmer and Walter E. Rimmer are no longer parties to this action.

8.

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70 A.L.R. Fed. 480, 98 F.R.D. 658, 1983 U.S. Dist. LEXIS 15473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/township-of-susquehanna-v-h-m-inc-pamd-1983.