Utah v. American Pipe & Construction Co.

49 F.R.D. 17, 13 Fed. R. Serv. 2d 482, 1969 U.S. Dist. LEXIS 13110, 1970 Trade Cas. (CCH) 73,033
District Court, C.D. California·Decided December 17, 1969·No. No. 69-1964·Published·Cited by 22 cases

Opinion

DECISION ON DEFENDANTS’ MOTION OPPOSING CLASS ACTION

PENCE, District Judge.

On May 13, 1969, the State of Utah filed this “western pipe” Sherman § 1 antitrust action against certain concrete and steel pipe manufacturing companies, seeking treble damages and injunctive relief on its own behalf and in addition, claimed to represent a class described as (1) “those public bodies and agencies of state and local government in the State of Utah who are end users of pipe acquired from the defendants, co-conspirators and others” 1 and (2) those states in the Western Area which have not previously filed a similar action.2

Defendants have moved for an order that the action not be maintained as a class action.

Plaintiff denominated “those states in the Western Area” as being the states of “Wyoming, Nevada and Idaho”, and includes along with them the public bodies and agencies of the states and local governments in those several states and Utah who are end users of pipe acquired from the defendants, etc. Appended to plaintiff’s memorandum in support of its class action allegations is a list of what this court can only determine to be every incorporated whistle-stop, hamlet, village, town, city, county, and water and sewer improvement district in Utah, Nevada, Wyoming and Idaho. The several collections of whistle-stops, etc., total some 300 for Utah, 240 for Idaho, 270 for Wyoming, and 31 for Nevada.3 Plaintiff did not represent that each was actually an end user of pipe — plaintiff just made a list.

As indicated in the chronological history of the western pipe cases set forth in this court’s decision of August 1, 1969, in Maricopa County v. American Pipe and Construction Co. et al., 303 F.Supp. 77 (D.Ariz.1969), the government’s criminal complaint against some of the defendants named in the instant action was filed on March 10, 1964, and on June 23, 1964, the government’s civil actions were started.

As this court held in Maricopa, the government’s criminal and civil actions tolled the statute of limitations until May 24, 1969. Beginning in August 1964, Clayton § 4 treble damage antitrust actions were thereafter filed by the states of Hawaii, California, Oregon, Washington and Arizona against American Pipe and Construction Company, United Concrete Pipe Corp., U. S. Steel, Kaiser Steel, Smith-Scott Inc., and U. S. Industries, all defendants herein, as well as other defendants, charging exactly the same general antitrust conspiracies, etc., as set forth in the Utah complaint. .In each of the complaints of the states of Hawaii, California, Oregon and Washington, and of the United States, as well as in three other of the 100 separate end user actions filed “in the Western Area”, these actions were denominated “class [19] actions” under the old (pre 1966) Rule 23, F.R.Civ.P. This court, treating them as spurious class actions, permitted intervention by all aggrieved public bodies of those several states and gave ample time for joinder. The sum total of the actual parties joining in the class actions, in those four states, plus the state and other public bodies in Arizona, as well as the City of Las Yegas, Nevada, and other private end user actions, totaled some 350 plaintiffs. All of the parties involved in the “class actions” have settled their claims and the actions have been dismissed. The United State Government has also settled its end user claims arising out of the “western pipe” conspiracy, as have all other but some one-half dozen late, late filing individual claimants.

Massive discovery, with depositions in depth of the knowledgeable employees of the major conspirators, together with centralized deposit of thousands of documents relative to the underlying alleged conspiracy, is long since ended. The publicity regarding the suits — covering interim rulings by this court over the past five years, published in CCH Trade Regulation Reports, BNA Law Week, and West’s Federal Supplement, together with newspaper publicity anent filing of suits and settlement sums received by public bodies, has been spread throughout the western states during the past five years.

The court will take judicial notice that in November of 1968 at the conference of the National Association of State Purchasing Agents, held in Honolulu, representatives of the State Purchasing Agents of Nevada and Utah were present when this judge delivered an address covering in depth some of the problems of antitrust litigation in the western pipe cases. This court will also take judicial notice that Lewis Markus, Chief, Economic Section, Antitrust Division, United States Department of Justice, has been, as he himself admits, “somewhat of a fixture on the program of each of the Association’s annual meetings since about 1961,” and has reported to the state purchasing agents on problems of identical bidding and significant antitrust cases brought in each preceding year. The court will also take judicial notice that there is a National Association of Attorneys General which holds annual conventions. The court will also take judicial notice that each of the public bodies who joined in the western pipe litigation actions above indicated, had its own private attorney, although the litigation was headed up in almost every instance through the states’ attorneys general. In those cases, as in this, in most instances, private antitrust counsel was employed to assist the states.4

It is with the above background that the court here approaches the threshold problem facing every court in all Rule 23(b) (3), F.R.Civ.P., problems, viz.: “As soon as practicable after the commencement of an action brought as a class action, the court shall determine by order whether it is to be so maintained.” F.R.Civ.P., Rule 23(c) (1).

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Utah v. American Pipe & Construction Co., 49 F.R.D. 17, 13 Fed. R. Serv. 2d 482, 1969 U.S. Dist. LEXIS 13110, 1970 Trade Cas. (CCH) 73,033 (C.D. Cal. 1969).

49 F.R.D. 17 (Utah v. American Pipe & Construction Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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