Van Vranken v. United States Department of Energy

882 F.2d 514, 1989 U.S. App. LEXIS 10483, 1989 WL 72866
CourtTemporary Emergency Court of Appeals
DecidedJune 22, 1989
DocketNo. 9-102
StatusPublished
Cited by7 cases

This text of 882 F.2d 514 (Van Vranken v. United States Department of Energy) is published on Counsel Stack Legal Research, covering Temporary Emergency Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Vranken v. United States Department of Energy, 882 F.2d 514, 1989 U.S. App. LEXIS 10483, 1989 WL 72866 (tecoa 1989).

Opinion

METZNER, Judge.

The appellant, United States Department of Energy (DOE), appeals from an order entered in the Northern District of California, granting appellee, Don Van Vranken’s motion for summary judgment in his action for declaratory relief.

The issue presented is whether DOE can refuse to accept applications for refunds in a proceeding pursuant to section 209 of the Economic Stabilization Act of 1970, 12 U.S.C. § 1904n. (1980), submitted by counsel for a plaintiff class in a section 210 lawsuit. Id.

In 1979 Van Vranken brought a class action against Atlantic Richfield Company (ARCO) pursuant to section 210 seeking treble damages on behalf of ARCO’s wholesale customers for alleged violations of DOE’s oil pricing and allocation regulations from 1976 through 1981.

In 1980 DOE instituted a number of administrative enforcement proceedings alleging similar violations against ARCO [515]*515pursuant to section 209. Its application to stay the section 210 action was granted.

In 1985 a consent order was entered disposing of DOE’s action. ARCO created a $65.7 million fund that was to be distributed by DOE’s Office of Hearings and Appeals (OHA) pursuant to a special refund proceeding. This refund proceeding is governed by the Petroleum Overcharge Distribution and Restitution Act of 1986 (PO-DRA). 15 U.S.C. §§ 4501-4507; see 10 C.F.R. § 205, Subpart V, §§ 205.280-88 (1987).

As a condition of the consent order, ARCO was required to provide OHA with the names and addresses of its injured customers and purchase volume data on each customer. In the fall of 1986, OHA initiated discussions with ARCO in an attempt to obtain customer lists and purchase volume information to facilitate OHA’s refund proceeding. In the course of these discussions, ARCO asked OHA whether it could provide the customer lists and purchase volume data to Van Vranken as certified class representative in the Section 210 action in lieu of providing the information to OHA.

OHA firmly rejected this suggestion by letter dated January 20, 1987, in which it stated that it was not “in a position directly or otherwise to devote any portion of the ARCO consent order fund to a fee for the services of the class representative_” Three weeks later Van Vranken’s counsel responded to this rejection by suggesting that they should be permitted to file a claim in the section 209 action on behalf of the Van Vranken class. Counsel for Van Vranken also indicated that they might attempt to seek the customer list and purchase volume information as part of a settlement of their section 210 action against ARCO.

ARCO persisted in its refusal to supply OHA with the requested information claiming that it might interfere with its litigation with the Van Vranken class. Finally, on April 10, 1987, OHA informed ARCO that the matter was referred to the Department of Justice for enforcement of the terms of the consent decree.

On June 4, 1987, a proposed settlement in Van Vranken’s Section 210 action against ARCO was reached. It contained a condition that ARCO would provide class counsel with customer lists and purchase volume information to be used in making a class application in the DOE section 209 proceeding. On June 17, 1987, Judge Williams preliminarily approved the proposal and the “settlement class.” On June 30, 1987, Rule 23 notice of the proposed settlement was sent to putative settlement class members.

The notice indicated that class counsel would file an aggregate claim on behalf of all class members in the section 209 refund proceeding, and that the court would calculate the amount to be received by each member. Class members need not file individual claims with DOE unless they affirmatively opt out of the settlement class. One thousand of the approximately 36,000 putative class members elected to opt out of the settlement. The notice also stated that any funds collected as a result of this aggregate claim would be subject to charges for administrative costs and attorney’s fees as determined by the court.

Judge Williams was never informed, pri- or to approving the proposed settlement and the contents of the Rule 23 notice, of OHA’s previously expressed opposition to a class refund proposal.

Upon learning of the provisions in the proposed settlement, DOE submitted an amicus memorandum to Judge Williams in opposition to final approval of the settlement, informing the court that it was DOE’s position that it would reject any claims submitted by class counsel on behalf of settlement class members for refunds from the section 209 consent order fund. DOE argued that the proposed settlement purported to give class members something they already had — the right to an individual refund from the section 209 fund based on their purchase volumetric share — while requiring them to pay administrative and attorney’s fees to class counsel to obtain it. This objection to the proposed settlement was overruled by Judge Williams at the January 21,1988, hearing on final approval [516]*516of the settlement. Before the court entered an order approving the settlement, it was withdrawn by the parties, and ARCO did not turn over the customer lists to class counsel.

Meantime, in July 1987, ARCO finally complied with its obligations under the section 209 consent order and supplied OHA with its customer lists and purchase volume information. On January 28, 1988, OHA issued its final order implementing the special refund proceeding for the distribution of the $65.7 million fund created by DOE’s section 209 action.

As part of this proceeding, DOE planned to mail an application form for refunds to approximately 26,000 ARCO customers. The'form included an individualized statement of the claimant’s purchases from ARCO according to ARCO’s records. Most of these customers were members of plaintiff’s proposed class in the section 210 action. Contrary to the Rule 23 notice distributed to class members in June 1987, DOE advised potential claimants that they must file an individual claim with OHA in order to share in the Section 209 consent order fund.

On February 2, 1988, Van Vranken instituted this action against DOE for declaratory relief individually and on behalf of the class he represents in the Section 210 ARCO action. Plaintiff sought: (1) a determination that DOE cannot reject any claims or applications in its special refund proceeding for the distribution of the Section 209 consent order fund on the grounds that they were submitted on behalf of class members by class counsel, and (2) an injunction to prevent DOE from mailing individual notice to class members regarding the refund procedures which advises them to file individual claims to share in the Section 209 consent order fund.

Van Vranken moved for summary judgment on both claims. DOE cross-moved for summary judgment.

As to the first claim, the district court granted plaintiff’s motion and held that OHA’s refusal to accept applications for refunds from class counsel on behalf of the specific class certified in the section 209 proceeding was contrary to section 4502(b) of PODRA, and arbitrary and capricious.. This is the central issue on appeal in this case.

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Cite This Page — Counsel Stack

Bluebook (online)
882 F.2d 514, 1989 U.S. App. LEXIS 10483, 1989 WL 72866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-vranken-v-united-states-department-of-energy-tecoa-1989.