Williams Corp. v. Kaiser Sand & Gravel Co.

146 F.R.D. 185, 1992 U.S. Dist. LEXIS 20631, 1992 WL 429993
District Court, N.D. California·Decided December 8, 1992·No. No. C-91-4028 SAW·Published·Cited by 3 cases

Opinion

MEMORANDUM AND ORDER

WEIGEL, District Judge.

Summary of Decision

Plaintiff sued Defendants, alleging conspiracy to fix prices and rig bids in violation of state and federal antitrust laws. The court granted Plaintiff’s Motion for Class Certification on October 8, 1992. Defendants have moved for reconsideration of the October 8, 1992 Order, alleging that Plaintiff is an inadequate class representative. In the alternative, Defendants move for certification of the October 8, 1992 Order for interlocutory appeal. Plaintiff has requested sanctions.

This court denies Defendants’ motions, finding that Plaintiff is an adequate representative and that Defendants have failed to prove exceptional circumstances required for the court to certify an order for interlocutory appeal. The court denies Plaintiff’s request for sanctions on the grounds that Defendants’ motion is not frivolous.

I. Background

Plaintiff is a paving contractor based in Fresno and operating throughout California. Defendants are competitors in the sale of sand, gravel and asphalt products. In April, 1991 Plaintiff purchased asphaltic concrete from Defendant Syar.

Subsequent to the purchase, Plaintiff received a newspaper article discussing a wrongful termination suit filed by Rudy Gonsalves, a former employee of Defendant Kaiser. Gonsalves’ verified complaint [187] alleged that he was terminated when he refused to participate in a scheme for rigging competitive bids on sand, gravel and asphalt products sold in Sonoma County. Based on the allegations in Gonsalves’ Verified Complaint and on the belief that Defendants’ prices had risen significantly since Gonsalves’ termination and had remained at prices that were considerably higher than those in neighboring counties, Plaintiff filed its Complaint. Plaintiff alleges that Defendants engaged in a conspiracy to rig bids on competitively bid jobs, to increase prices and profits on the sale of sand, gravel and asphalt and products in Sonoma County and to fix, maintain, and stabilize those prices at artificially inflated and non-competitive levels. Plaintiff alleges that Defendants have created a trust or combination in restraint of trade in violation of Sections 1 and 2 of the Sherman Antitrust Act, 15 U.S.C. § 1, 2, and in violation of California’s Cartwright Act, Cal.Bus. and Prof.Code § 16720.

On October 8, 1992 the eourt granted Plaintiff’s motion for class certification, certifying a class of purchasers allegedly overcharged for Defendants’ products and designating Plaintiff as class representative. Defendants now move for reconsideration of the October 8, 1992 Order, alleging that this litigation is attorney-directed and that Plaintiff is an inadequate class representative. In the alternative, Defendants request that the court certify its Order granting class certification for interlocutory appeal pursuant to 28 U.S.C. 1292(b). Plaintiff requests sanctions, alleging that Defendants’ motion for reconsideration is frivolous.

II. Discussion

A. Motion for Reconsideration

Defendants contend that, from the beginning, this case has been controlled by Plaintiff’s attorney, rather than by Plaintiff. Plaintiff’s lack of involvement, they contend, makes Plaintiff an inadequate class representative. As proof of Plaintiff’s lack of involvement, Defendants allege that Plaintiff’s President, Mr. Freeman Williams, did not read the complaint carefully enough to notice or correct inaccuracies in Plaintiff’s name in the case caption and inaccuracies in the class definition.1

The requirement of adequacy of representation has two components. The named plaintiff must appear to be able to prosecute the action vigorously through qualified counsel, and the representative’s interests must not conflict with those of the remaining class members. Roberts v. Heim, 670 F.Supp. 1466, 1491 (N.D.Cal.1987); United Nat’l Records, Inc. v. MCA, Inc., 101 F.R.D. 323, 327 (N.D.Ill.1984) (citing Sosna v. Iowa, 419 U.S. 393, 404, 95 S.Ct. 553, 560, 42 L.Ed.2d 532 (1974).

Class certification is properly denied for inadequacy of representation when “the class representatives have so little knowledge of and involvement in the class action that they would be unable or unwilling to protect the interests of the class against the possibly competing interests of the attorneys.” Kirkpatrick v. J.C. Bradford and Co., 827 F.2d 718, 727 (11th Cir.1987) reh’g denied, 832 F.2d 1267 (11th Cir.1987) cert. denied, 485 U.S. 959, 108 S.Ct. 1220, 99 L.Ed.2d 421 (1988). The court may inquire into the knowledge of the class representative “to ensure that a party is not simply lending his name to a suit controlled entirely by the class attorney____” 7A C. Wright, A. Miller & M.K. Kane, Federal Practice and Procedure, § 1766 (2d ed. 1986).

Notwithstanding Plaintiff’s failure to catch or correct inaccuracies in the case caption or class definition, Plaintiff has demonstrated sufficient knowledge of and interest in the case to ensure that Plaintiff will adequately represent the interests of the class. Mr. Williams, has demonstrated his interest in this action by travelling on four occasions from Fresno to San Francisco to participate in his deposition and by producing over 1000 documents for Defendants’ inspection. In addition, Mr. [188] Williams understands the nature of the allegations brought against Defendants, and is able to describe the basic elements of price fixing and of bid-rigging. He further understands who are the members of the class he proposes to represent. Thus, while Mr. Williams may be, as Defendants contend, unfamiliar with some of the details of the case, and while he may not have proofread carefully some of the documents filed, he has not demonstrated the total lack of familiarity with the details of the suit which would lead the court to conclude that Plaintiffs attorney is the de facto Plaintiff. Decertification is not required. Accord, In re MDC Holdings Securities Litigation, 754 F.Supp. 785, 803 (S.D.Cal.1990).

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Williams Corp. v. Kaiser Sand & Gravel Co., 146 F.R.D. 185, 1992 U.S. Dist. LEXIS 20631, 1992 WL 429993 (N.D. Cal. 1992).

146 F.R.D. 185 (Williams Corp. v. Kaiser Sand & Gravel Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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