I’m shocked, SHOCKED . . .

. . . to see class action plaintiffs’ counsel accused of engaging in procedural gamesmanship to seize control of litigation against a defendant with deep pockets.  Alas, if Gibson Dunn has told the Panel the entire sordid saga of litigation against its client Frito-Lay, that is exactly what has happened.

By way of background, the Panel’s dockets have recently reflected what at first glance appeared to be a veritable crime spree by Frito-Lay.  On consecutive business days, plaintiffs initiated 1407 proceedings in MDL 2413, now captioned In re Frito-Lay Bean Dip Marketing and Sales Practices Litigation, and MDL 2414, In re Frito-Lay Tostitos & Sun Chips Marketing & Sales Practices Litigation.

Frito-Lay recently shed some light on the mystery, detailing how litigation as to all of its delicious and nutritious snack items has been proceeding apace in the E.D.N.Y., and seeking to centralize both MDLs there.  But, says its counsel, a bevy of plaintiffs’ firms, led by San Francisco’s Law Offices of Howard W. Rubinstein, P.A., have “file[d] multiple duplicative lawsuits [in other districts] in order to obtain a stake in earlier-filed litigation.”  The details, which are consolidated on the penultimate page of Frito-Lay’s submission, are not pretty.  Says Gibson Dunn: “All of this has to stop. The judicial system is not designed to work this way.”

Those are fightin’ words, at least by Panel standards.  Fortunately, plaintiffs in both MDLs have an opportunity to defend their honor in reply briefs.  imPaneled looks forward to that, as well as a lively discussion in Dallas next month.

Davids v. Goliaths

No, that does not reference litigation involving underfunded little guys represented by small firms going up against corporate behemoths represented by white-shoe counsel.  That would be trite.  In MDL 2406, In re Blue Cross Blue Shield Antitrust Litigation, it references the battle between small plaintiffs’ firms and big plaintiffs’ firms for control of the case.  And defendants’ counsel are surely watching (and running the meter) with great amusement as it develops.

Let’s recap.  imPaneled reported last month that class action titans Boies Schiller and Cohen Milstein were contesting leadership in seven antitrust actions against Blue Cross entities consolidated in the N.D. Ala.  Later that week, plaintiffs represented by Montgomery firm Davis & Taliaferro (“D & T”) petitioned the Panel to centralize two arguably similar cases from other districts in that court–one that Boies Schiller had filed in the W.D.N.C., and one that Ball & Scott had filed in the W.D. Tenn.

Evidently unbeknownst to D & T, Ball & Scott also had a case pending against the Blues in the M.D. La.  Sensing an opportunity to grab a seat at a larger table, Ball & Scott’s local counsel told the Panel that centralization is appropriate, but pressed the E.D. La., where, by virtue of an astonishing coincidence, another firm had filed a complaint that very day.

Boies Schiller and Cohen Milstein predictably opposed the disruption of their carefully laid plans (though BSF threw in a plug for the W.D.N.C., so that it might maintain control of the proceedings even if the Panel acts).  As for the Blues?  Well, most Panel observers know that, all things being equal, when centralization is in doubt (as it is here), most defendants oppose it–obviously for reasons of justice and efficiency, but perhaps also because it enables underfunded plaintiffs and their firms to pool their resources for the common benefit.

But all is not equal in this case.  Defendants are faced with two possibilities as to the N.D. Ala. actions: (1) plaintiffs led by united counsel, with high-powered firms in the lead; or (2) bickering among plaintiffs’ counsel over leadership, followed by some degree of additional bickering over the course of the proceeding if firms from more than one group are given co-lead positions.  Option (2), of course, falls into each of the two broad categories that form the pillars of defense strategy: Obstruction and Delay (cue singing angels).

That’s a long way of saying the Blues favor centralization.  The ones represented by Kirkland & Ellis were the most verbose about it.  There will likely be little further excitement before the Dallas Panelpalooza in late November.  But imPaneled will be all over it if there is.

 

  • About the blogmaster

    Bart Cohen is the principal of the Law Office of Bart D. Cohen, where he represents his clients in class actions and other complex litigation, and Winning Briefs, where he polishes, edits and drafts written work product for overextended lawyers.

    His unnatural appetites for rules and research of all kinds have made him an expert on proceedings before the Judicial Panel on Multidistrict Litigation. He feeds those appetites and chronicles the battles to land lead counsel appointments that are fought in part before the Panel on imPaneled.

    You can contact Bart here or connect with him here.

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