Wainwright v. Kraftco Corp.

58 F.R.D. 9
CourtDistrict Court, N.D. Georgia
DecidedFebruary 6, 1973
DocketCiv. A. No. 12278
StatusPublished
Cited by31 cases

This text of 58 F.R.D. 9 (Wainwright v. Kraftco Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wainwright v. Kraftco Corp., 58 F.R.D. 9 (N.D. Ga. 1973).

Opinion

ORDER

EDENFIELD, District Judge.

The above-styled case is submitted to the court on the following four matters:

(1) Plaintiffs’ and defendant Better Maid Dairy Products, Inc.’s [“Better Maid”] joint motion, filed September 14, 1972, to approve a settlement between the plaintiff class and defendant Better Maid pursuant to Rule 23(e), Fed.R.Civ. P.;

(2) Plaintiffs’ motion, filed September 19, 1972, to amend their complaint pursuant to Rule 15(a), Fed.R.Civ.P.;

(3) Defendant Inúndale Dairies, Inc.’s [“Inúndale”] objections, filed November 30, 1972, to some of the rulings on discovery made by the Special Master in his Seventh Report which was filed November 20, 1972; and

(4) Defendant Kraftco Corporations’ motion for continuance of the trial date, filed January 11, 1973.

Hearings were held and reported on all but the fourth matter.

(1) The Proposed Settlement

Essentially, the proposed settlement between the plaintiff class and Better Maid, the terms of which are discussed in a “Covenant Not to Sue” which is on file with the court, provides that Better Maid shall be dismissed from this action upon payment of $40,000 to the plaintiff class. The settlement fund of $40,000 would be used to reimburse the Atlanta Board of Education for expenses incurred by it in prosecuting this litigation on its own behalf and on behalf of the class, with any remainder to be apportioned among the members of the class at the termination of the litigation. The “Covenant” states that the $40,000 is not related to or computed on the basis of Better Maid’s sales of fluid milk to the plaintiff class and is only partial and incomplete compensation for the damages attributable to Better Maid’s sales, and that the plaintiff class reserves the right to include in the ultimate relief sought in this action all damages attributable to Better Maid.

At the hearing held on the settlement the court indicated its tentative approval of the terms and on January 3, 1973, pursuant to Rule 23(e), ordered a notice sent to the members of the class about the settlement. The Clerk of the Court received responses to the notice from four members of the class, all of whom expressed their approval of the settlement. None of the class members have indicated to the court any opposition to the settlement.

The role of the court in this matter is to make certain that the interests of the class have been sufficiently protected. To this end the court must determine whether the settlement was reached as a result of fraud or collusion and whether it is fair, adequate, and reasonable. Wainwright v. Kraftco Corp., 53 F.R.D. 78, 80 (N.D.Ga.1971). In making these determinations the court must not reach any dispositive conclusions on the unsettled legal issues in the case, but at the same time the court must “attempt to arrive at some evaluation of the points of law on which the settlement is based.” West Virginia v. Chas. Pfizer & Co., 440 F.2d 1079, 1086 (2d Cir. 1971).

The court finds no evidence of fraud or collusion in connection with the settlement. Accordingly, the only determination left to be made is whether it is fair, adequate, and reasonable with respect to the class considering the points of law on which it is based.

It is well settled that an antitrust action is a tort action, Chattanooga Foundry & Pipe Works v. City of Atlanta, 203 U.S. 390, 27 S.Ct. 65, 51 L.Ed. 241 (1906), and that in multi-defendant antitrust actions the co-conspirator joint tortfeasors are jointly and severally liable for the entire amount of damages caused by their acts. E. g., Washington v. American Pipe & Construction Co., [12]*12280 F.Supp. 802 (S.D.Cal.1968). Thus an antitrust plaintiff may choose to sue but one of several co-conspirators, Walker Distributing Co. v. Lucky Lager Brewing Co., 323 F.2d 1, 8 (9th Cir. 1963), and that one co-conspirator will be responsible for the entire amount of damages caused by all. See Washington v. American Pipe & Construction Co., supra, 280 F.Supp. 804-805. Of course an antitrust plaintiff may not recover double payment, and if during a case an antitrust plaintiff recovers an item of damage from one co-conspirator through a release he may not recover that same item later from another co-conspirator still in the case. Zenith Radio Corp. v. Hazeltine Research, Inc., 401 U.S. 321, 348, 91 S.Ct. 795, 28 L.Ed.2d 77 (1971). This does not, however, diminish the responsibility of each co-conspirator for the entire amount of damages. Thus if an antitrust plaintiff sues four co-conspirators alleging $100,000 damages, and during the suit three of the co-conspirators are released upon a total payment of $50,000, and the jury returns a verdict assessing damages at $100,000, as a matter of computation the remaining co-conspirator is liable for the entire amount of damages trebled — $300,000— and his defense of payment will result only in a deduction of $50,000 from the trebled amount, leaving him with a liability of $250,000. Flintkote Co. v. Lysfjord, 246 F.2d 368, 397-398 (9th Cir.), cert. denied, 355 U.S. 835, 78 S.Ct. 54, 2 L.Ed.2d 46 (1957).

Keeping these principles in mind, the court concludes that the settlement does not work to the prejudice of the class. Since the remaining defendants named in this action will still be responsible for the entire amount of damages caused by Better Maid, if any, the class will sustain no economic loss by settling with Better Maid now. Indeed, if all the defendants but one settled with the class, that remaining defendant would still be liable for the damages caused by all. Since Better Maid has agreed to open its files to the plaintiff class upon settlement, the class will not suffer any discovery loss either. Although it is unlikely that, aside from the Atlanta Board of Education, any of the members of the plaintiff class will receive any portion of the $40,000 settlement fund, the fund will be used to further the interests of the class, and the court has heard no objections from the class as to the use of the fund. In sum, the settlement with Better Maid appears to the court fair, adequate, and reasonable as far as the plaintiff class is concerned.

(2) The Amendment of the Complaint

Plaintiffs wish to accomplish two things through their proposed amended complaint which are contested:

1. They wish to extend the liability period of defendants, which in their current complaint runs from 1964 through 1968, back four years to include the period from 1960 through 1964; and
2. They wish to add Dairymen, Inc. as a party defendant.

Turning to the first issue, the court notes that a Rule 15(a) motion to amend a complaint is addressed to the sound discretion of the court, and that in deciding whether to permit such an amendment the court must take into account any prejudice that the parties in the case may suffer as a result. Zenith Radio Corp. v. Hazeltine Research, Inc., supra, 401 U.S. 330-331, 91 S.Ct. 795.

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Bluebook (online)
58 F.R.D. 9, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wainwright-v-kraftco-corp-gand-1973.