In re Plywood Antitrust Litigation, 159.

• Decision Date: 10 June 1974
• Docket Number: No. 159.,159.
• Citation: 376 F. Supp. 1405
• Parties: In re PLYWOOD ANTITRUST LITIGATION.
• Court: Judicial Panel on Multidistrict Litigation

376 F. Supp. 1405

In re PLYWOOD ANTITRUST LITIGATION.

No. 159.

Judicial Panel on Multidistrict Litigation.

June 10, 1974.

Before ALFRED P. MURRAH^*, Chairman, and JOHN MINOR WISDOM, EDWARD WEINFELD, EDWIN A. ROBSON, WILLIAM H. BECKER, JOSEPH S. LORD, III, and STANLEY A. WEIGEL, Judges of the Panel.

OPINION AND ORDER

PER CURIAM.

This litigation involves an alleged conspiracy within the plywood industry to fix the price of softwood plywood. Plaintiffs in each of the eight actions before the Panel are purchasers of softwood plywood and they charge the defendant plywood producers with violations of federal antitrust laws. All the actions contain Rule 23 allegations purporting to represent large classes of direct and indirect purchasers of softwood plywood. Several defendant producers move the Panel for an order transferring all the actions to the Eastern District of Louisiana for coordinated or consolidated pretrial proceedings pursuant to 28 U.S.C. § 1407. The only opposition to the motion comes from plaintiffs in the actions pending in districts other than the Eastern District of Louisiana. On the basis of the briefs submitted and the hearing held, we find that these actions involve common questions of fact and that transfer of these actions to the Eastern District of Louisiana will serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation.

The plaintiffs opposing transfer contend that the allegations in the Louisiana actions are much broader than those contained in their actions because only Louisiana plaintiffs allege violations of the Robinson-Patman Act in addition to violations of Section 1 of the Sherman Act, which permeate all of the actions. And they argue that in order to demonstrate Robinson-Patman Act violations, the Louisiana plaintiffs necessarily named a multitude of local defendants and, as a result, will be seeking discovery which is largely irrelevant to the other actions in this litigation.

The opponents to transfer also contend that because of the Robinson-Patman claims, complicated issues relating to plaintiffs' Rule 23 class allegations are involved in the Louisiana actions but do not exist in any of the other actions. Consequently, they see no reason for transferring their actions to Louisiana where they will become embroiled in class action matters in which they have little or no interest.

These arguments are not sufficient. All the actions contain allegations of violations of Section 1 of the Sherman Act stemming from alleged "phantom freight" charges for softwood plywood produced in the South which supposedly raised prices artificially to the level charged for plywood produced in the Pacific Northwest. And although plaintiffs' overall legal stratagems differ somewhat, they all rest on a common nexus of facts. Thus, transfer of the actions to a single district will prevent the possibility of duplicative discovery concerning defendants' alleged misconduct. And our decision in no way limits or impedes Louisiana plaintiffs' desire to pursue their Robinson-Patman Act claims or threatens to protract the litigation involving alleged violations of Section 1 of the Sherman Act. It, of course, is the responsibility of the transferee judge to determine whether and to what extent the pretrial proceedings involving the Robinson-Patman and Sherman Act claims should be coordinated or consolidated. See, e. g., In re Equity Funding Corporation of America Securities Litigation, 375 F.Supp. 1378, 1384 (Jud.Pan.Mult.Lit., filed February 1, 1974).

Furthermore, the class allegations in those actions are clearly overlapping. A Section 1407 transfer of all actions in this litigation to a single district and assignment of those actions to one judge will eliminate any possibility of inconsistent class determinations...