Winn-Dixie Stores, Inc. v. Dolgencorp, LLC

862 F. Supp. 2d 1322, 2012 WL 1882209
CourtDistrict Court, S.D. Florida
DecidedApril 17, 2012
DocketCase Nos. 9:11-cv-80601-DMM, 9:11-80638-DMM, 9:11-80641-DMM
StatusPublished
Cited by1 cases

This text of 862 F. Supp. 2d 1322 (Winn-Dixie Stores, Inc. v. Dolgencorp, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winn-Dixie Stores, Inc. v. Dolgencorp, LLC, 862 F. Supp. 2d 1322, 2012 WL 1882209 (S.D. Fla. 2012).

Opinion

OMNIBUS ORDER CONCERNING EXPERT TESTIMONY OF DR. PATRICIA PACEY

DONALD M. MIDDLEBROOKS, District Judge.

THIS CAUSE comes before the Court upon the following motions filed in these consolidated eases: (1) Dolgencorp, LLC’s Motion to Strike and Exclude Proffered Expert Testimony of Patricia Pacey, Ph.D. (“Dr. Pacey”) Pursuant to Federal Rules of Evidence 702 and 703 (DE 56 in Case No. 11-cv-80601) filed on November 21, 2011; (2) Dollar Tree Store, Ine.’s Motion to Exclude Proffered Testimony of Patricia Pacey (DE 83 in Case No. 11-cv-80638) filed on December 5, 2011; and (3) Big Lots Stores, Inc.’s Motion to Strike and Exclude Proffered Expert Testimony of Patricia Pacey, Ph.D. Pursuant to Federal Rules of Evidence 702 and 703 (DE 131 in Case No. 11-ev-80641) filed on January 17, [1324]*13242012 (collectively “Motions”). A Daubert hearing was held to discuss Defendants’ Motions on February 29, 2012. (DE 255). At the hearing I heard testimony from Dr. Pacey, her colleague Dr. McNulty, as well as Dr. Frederick Raffa, Dollar General and Big Lots’ expert witness, and Dr. Andrew Abere, Dollar Tree’s expert witness. After the hearing the parties submitted post-hearing memorandums outlining their arguments for and against excluding Dr. Pacey’s testimony. (DE 301, 303, and DE 313). I have reviewed the matter and am advised in the premises.

I. BACKGROUND

Dr. Pacey was hired by Plaintiffs to prepare an Economic Damage Appraisal Report (collectively the “Reports”) for three different cases in this consolidated action: (1) Winn-Dixie Stores, Inc. v. Dolgencorp, Inc. (DE 56-1 in Case No. 11-cv-80601); (2) Winn-Dixie Stores, Inc. v. Dollar Tree, Inc. (DE 83-1 in Case No. 11-cv-80638); and (3) Winn-Dixie Stores, Inc. v. Big Lots, Inc. (DE 131-1 in Case No. 11-cv-80641).1 The Reports attempt to describe and analyze the damages arising from Dollar Tree’s, Dollar General’s, and Big Lots’ violations of Winn-Dixie’s grocery exclusives. (Reports at 3).

A. THE DATA

All of Dr. Pacey’s Reports utilize the same data. Dr. Pacey’s Reports:

• Consider sales data from June 26, 2003 through May 4, 2011 from 482 of the 484 Winn-Dixie grocery stores currently operating. (Id. at 6).
• Identify over 12,000 stores as competitors located within three miles of a Winn-Dixie store and over 700 competitors located within 0.2 miles of a Winn-Dixie store. (Id. at 7).
• Aggregate Winn-Dixie’s competitors into five categories: supermarkets, other supermarkets, variety stores, drug stores, and others. (Id.).
• Consider Dollar Tree, Dollar General, and Big Lots separately from the other variety stores in some of the analyses. (Id.).
• Identify 73 Dollar General stores, 42 Dollar Tree Stores, and 24 Big Lots stores within 0.2 miles of a WinnDixie. (Id. at 8).
• Identify 145 to 207 other variety stores (depending on which of the Defendants is separated in the analysis), 52 supermarkets, 26 other supermarkets, 241 drug stores, and 154 others within 0.2 miles. (Id.).
• Identify 829 Dollar General stores, 440 Dollar Tree Stores, 194 Big Lots stores, 1,485 to 2,120 other variety stores (depending on which of the Defendants is separated from the analysis), 1,307 supermarkets, 1,166 other supermarkets, 2,384 drug stores, and 4,866 others within three miles of a Winn-Dixie store. (Id. at 9).

Dr. Pacey’s analysis considers four broad categories of data: Winn-Dixie store characteristics;2 demographics surrounding each Winn-Dixie store;3 com[1325]*1325petitors by type and distance;4 and Defendant store characteristics.5 (Id.). Dr. Pacey notes that:

Presently, information on [Defendant stores’] square footage and sales, whether total store and/or grocery allocated, are not complete and, as such, cannot be included in the analysis at this time. A supplement to this report will be provided if and when this data becomes available. Of note, it is anticipated square footage ... could assist in sorting lost profits across stores ... as it is understood from industry experts ... that the larger the store and/or the larger the amount of space within a store assigned to “grocery products,” the greater the store sales.

(Id. at 12).

B. FORMULATING THE MODELS

Dr. Pacey’s Reports rely upon data obtained from the annual American Community Survey and the Nielsen Company, which “provide basic information regarding Winn-Dixie sales and store characteristics, area demographics, and type and prevalence of competitors within the Winn-Dixie trading area.” (Id.). Dr. Pacey used this data to determine “the proper specification of the econometric model____” (Id.). This data showed that the typical Winn-Dixie store is approximately 45,000 square feet with annual grocery sales of approximately $12.5 million. (Id.). The data also showed that most store characteristics, such as store age, and area demographics, such as per capita income, were fairly symmetrical, with the exception of the distribution of population densities, since Winn-Dixie stores are heavily located in more rural areas. (Id. at 13). Dr. Pacey argues that this data indicates Winn-Dixie stores with a variety store within 0.2 miles have, on average, lower grocery sales than their similarly sized counterparts without a competitor. (Id. at 15-17). Dr. Pacey states that the descriptive statistics in her Reports “provide insight and reasonable crosschecks of the data and are often times used to assist in the measurement of economic damages.” (Id. at 18).

C. REGRESSION MODEL

Dr. Pacey used a cross-sectional regression analysis in attempting to determine Winn-Dixie’s damages from Defendants’ alleged violations of the terms of their leases. (Id.). The cross-sectional analysis examines the sales of many Winn-Dixie stores at a single point in time. (Id.). Dr. Pacey’s Reports account for differences in substitutability by grouping competitors into five separate categories: variety stores, supermarkets, other supermarkets, drug stores, and others. (Id. at 20). Dr. Pacey then isolates Dollar General, Dollar Tree, and Big Lots from the other variety stores depending on which Defendant she is estimating damages for. (Id.). Proximity is accounted for by using three different distance classifications: less than 0.2 miles, 0.2 to 1.0 miles, and 1.0 to 3.0 miles. (Id.). Dr. Pacey’s Reports do not take into account store-specific size data because it is only available for a few of the competitors and is not expected to have an overall [1326]*1326material impact on the aggregate lost profits. (Id.). Dr. Pacey’s Reports also use a fresh meat covariate. Dr. Pacey states that the meat covariate is:

included to account for location conditions (e.g.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
862 F. Supp. 2d 1322, 2012 WL 1882209, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winn-dixie-stores-inc-v-dolgencorp-llc-flsd-2012.