Weisfeld v. Sun Chemical Corp.

210 F.R.D. 136, 2002 U.S. Dist. LEXIS 19876, 2002 WL 31356244
CourtDistrict Court, D. New Jersey
DecidedOctober 17, 2002
DocketNo. 01-CV-2100 (JAP)
StatusPublished
Cited by23 cases

This text of 210 F.R.D. 136 (Weisfeld v. Sun Chemical Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weisfeld v. Sun Chemical Corp., 210 F.R.D. 136, 2002 U.S. Dist. LEXIS 19876, 2002 WL 31356244 (D.N.J. 2002).

Opinion

OPINION

PISANO, District Judge.

I. INTRODUCTION

This is a civil antitrust action based upon allegations of horizontal price fixing and an illegal boycott in the market for employees in the printing ink manufacturing industry. The Plaintiff, Joseph Weisfeld, filed this action on behalf of himself as well as a class of similarly situated persons. This Court has jurisdiction over the federal antitrust claims pursuant to 28 U.S.C. § 1337 and supplemental jurisdiction over Plaintiffs state law claims pursuant to 28 U.S.C. § 1367. Presently before this Court is Plaintiffs motion for class certification pursuant to Fed. R.Civ.P. 23(b)(3). Defendants filed opposition. The Court decides this motion without oral argument pursuant to Rule 78. In ruling on a motion for class certification, the Court does not consider the merits of the case, and takes as true the substantive allegations within the Plaintiffs amended complaint. See Eisen v. Carlisle & Jacquelin, 417 U.S. 156, 177-78, 94 S.Ct. 2140, 40 L.Ed.2d 732 (1974). Accordingly, the facts recited herein are not the Court’s findings of fact.

For the reasons set forth below this Court denies Plaintiffs motion for class certification because he has failed to satisfy the prerequisites for class certification under Fed. R.Civ.P. 23(b).

II. BACKGROUND

Class representative Joseph Weisfeld (“Weisfeld”) was, until May 31, 2000, an employee of Defendant Sun Chemical Corp. (“Sun”). Prior to his retirement, he held the position of Director of Technical and Regulatory Affairs for Defendant Kohl & Madden Printing Ink Corp. (“Kohl”), a division of Sun.1 Compl. f 1, PI. Br. at 3. In the First Amended Complaint, Weisfeld brings this action on behalf of himself as well as a purported class of:

[A]ll persons who were employed by defendants, or any predecessor, affiliate or subsidiary of any defendant, at any time during the period beginning at least as early as May 1, 1997 and continuing through May 1, 2001 inclusive (the “Class Period”), and who suffered damages as a result of [138]*138defendants’ illegal conspiracy and violation of the antitrust laws.

Pl. First Am. Compl. 1f 17, at 4-5.

Plaintiff apparently recognizes that this class definition is overly broad and vague. In a footnote in his brief in support of class certification, Plaintiff seeks to narrow the definition of the class to “reflect the limited definition of the Class [as] set forth in paragraphs 20-28 of the First Amended Complaint.” Pl. Br. at 1, n. 1. However, those cited paragraphs do not offer a class definition, but rather delineate the relevant market Plaintiff proposes to use for his antitrust theory of liability.

Despite the failure of Plaintiff to amend his complaint to reflect the proposed change in the class, this Court will use the modified class definition for purposes of this class certification motion pursuant to Fed.R.Civ.P. 23(c)(4). See, e.g., Robidoux v. Celani, 987 F.2d 931, 937 (2d Cir.1993) (“A court is not bound by the class definition proposed in the complaint and should not dismiss the action simply because the complaint seeks to define the class too broadly.”). Therefore, using the market definition Plaintiff cites as guidance, the new proposed class may be defined as:

[Personnel who provide technical services and who possess specialized knowledge and skills in the manufacture, distribution and sale of printing inks who were employed by defendants, or any predecessor, affiliate or subsidiary of any defendant, at any time during the period beginning at least as early as May 1, 1997 and continuing through May 1, 2001 inclusive (the “Class Period”), and who suffered damages as a result of defendants’ illegal conspiracy and violation of the antitrust laws.

Plaintiff alleges that Defendants Sun, Kohl, Flint Ink Corp. (“Flint Ink”) and INX International Ink Co. (“INX”)2 entered into a conspiracy, in violation of Section One of the Sherman Act, 15 U.S.C. § 1, and New Jersey’s antitrust statute, N.J.S.A. 56:9-3, et seq., to restrain the labor market for technical employees in the printing ink industry.

Plaintiff alleges that Defendants control a dominant market share in the manufacture of printing inks. Pl. Br. at 2. Plaintiff claims that an alleged conspiracy was effectuated by a series of “no hire” agreements3 and/or policies, by which certain Defendants agreed not to solicit or hire the employees of their competitor printing ink manufacturers, in violation of federal and state antitrust laws. Compl. 1125.

Plaintiff alleges anti-competitive agreements between Sun and Flint, beginning with a 1994 agreement that was reached in the settlement of litigation challenging Flint’s solicitation and hire of a Sun employee, Michael Panko. As part of that settlement agreement, Sun and Flint agreed that for a period of five years neither company would solicit the other’s employees, and agreed to notify the other if they were planning to hire an unsolicited employee. Pl. Reply Br. at 3. Plaintiff claims that in addition to the settlement agreement, Sun and Flint (and Sun and INX) later entered into more extensive agreements, in which Defendants promised not to hire each other’s employees at all.

Plaintiff points to an April 23, 1997 memorandum by Sun’s General Counsel as evidence of an unwritten “no hire” agreement between Sun and Flint that substantially enlarged the terms of the 1994 Panko settlement. This enlarged agreement apparently involved Sun and Flint agreeing for the “indefinite future” not to hire or consider hiring any of the other’s employees. Pl. Reply Br. at 4. As further evidence of these restrictive agreements, Plaintiff submits various correspondence between Sun and its personnel managers, advising them of the “no hire” agreement(s).

Plaintiff alleges that despite INX’s non-involvement in the Panko litigation, INX and Sun entered into a “no hire” agreement of their own, sometime between 1997 and 1998. Plaintiff offers internal Sun memoranda as evidence of this agreement, describing “a [139]*139total ban on hiring of individuals by either company ... until further notice.” PI. Reply Br. at 5, Howard Decl. Exs. 4 & 6.

As a result of these agreements, Plaintiff argues that the United States market for personnel who have the “specialized knowledge and skills” in the manufacture, distribution, and sale of printing inks was adversely impacted, resulting in lower salaries for members of that labor market, as well as the loss of the opportunity for Plaintiff and class members to obtain more remunerative employment elsewhere.

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Bluebook (online)
210 F.R.D. 136, 2002 U.S. Dist. LEXIS 19876, 2002 WL 31356244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weisfeld-v-sun-chemical-corp-njd-2002.