Empagran, S.A. v. F. Hoffman-La Roche Ltd.Empagran, S.A. v. F. Hoffman-La Roche Ltd.
MEMORANDUM OPINION
Pending before the Court is a Motion for Relief from Final Judgment filed by the foreign Plaintiffs in this case, Empagran, S.A., Winddridge Pig Farm, Nutrición Animal, S.A., and Concern Stirol, on behalf of unidentified direct purchasers of vitamins from the European Union (also referred to as the “EU”). Pursuant to Rule 60(b) of the Federal Rules of Civil Procedure, the Plaintiffs seek relief from the Court’s April 26, 2002, Final Judgment dismissing their Amended Class Action Complaint and thereby refusing to exercise supplemental jurisdiction over claims premised on foreign law and customary international law that were asserted against the Defendants, F. Hoffman-LaRoche, Ltd., Hoffmann-La-Roche, Inc., BASF A.G., BASF Corporation, Aventis S.A., Rhone-Poulenc Animal Nutrition Inc., Hoechst Marion Rousell S.A., Takeda Chemical Industries, Ltd., Takeda Vitamin & Food USA, Inc., Daiichi Pharmaceuticals Co., Ltd., Eisai Co., Ltd., Eisai U.S.A., Inc., Akzo Nobel Chemicals B.V., Alusuisse Lonza Group Ltd., Lonza A.G., Lonza Inc., Bioproducts, Inc., Degus-sa-Huls AG, Degussa Huls Corporation, DuCoa, L.P., DCV, Inc., Mitsui & Co., Ltd., Nepera Inc., Sumitomo Chemical Co., Ltd., Tanabe Seiyaku Co. Ltd., UCB S.A., Chinook Group Ltd., and Cope Investments Limited. Pis.’ Mot. for Relief from Final J. 1 [hereinafter “Pis.’ Mot. _”]. The Plaintiffs argue that “important developments have occurred in the EU that give cause for this Court to reconsider its
BACKGROUND
On June 7, 2001, the Court issued a Memorandum Opinion and Order that dismissed the Plaintiffs’ federal antitrust claims because the Plaintiffs failed to establish that their injuries were caused by conduct resulting in a direct, substantial and reasonably foreseeable effect on United States commerce.
Empagran, S.A. v. Hoffman-La Roche Ltd.,
No. 00-CV-1686,
Plaintiffs cite no caselaw establishing a customary international law of antitrust. Given the absence of any authority establishing such a cause of action, the Court cannot find that there exists a customary international law proscribing the conduct of which plaintiffs complain in this action. Therefore, it is unnecessary for the Court to reach the issue of whether the law requires state action. Accordingly, Count Three of the Amended Complaint should be dismissed for failure to state a claim upon which relief may be granted.
Id.
at
On appeal, the United States Court of Appeals for the District of Columbia Circuit issued a divided opinion reversing and remanding on the ground that “where the anticompetitive conduct has the requisite harm on United States commerce, FTAIA [the Foreign Trade Antitrust Improvements Act] permits suits by foreign plaintiffs who are injured solely by that conduct’s effect on foreign commerce.”
Empagran S.A. v. F. Hoffman-La Roche, Ltd.,
DISCUSSION
Rule 60(b)(6) of the Federal Rules of Civil Procedure authorizes the Court to relieve a party from a final judgment or order for any reason justifying such relief. Fed.R.Civ.P. 60(b). The relief afforded by Rule 60(b)(6) is not freely given, however, and is reserved for those circumstances that are deemed to be “extraordinary.”
See, e.g., Computer Prof'ls for Soc. Responsibility v. United States Secret Serv.,
The Plaintiffs argue that relief is warranted and their request involves a matter of extraordinary circumstance because there is no adequate mechanism for the private enforcement of antitrust laws in the member States of the European Union, in spite of the “unequivocal admonition by EU officials that price fixing cartels are in essence
per se
unlawful and cartel members must be civilly accountable to the market of wronged victims.”
2
Pis.’ Mem. 5. As a result, in the absence of this Court exercising jurisdiction over their claims against the Defendants, the Plaintiffs “will be left with no effective procedural means by which to seek relief’ and the Defendants will be “unjustly rewarded by retain
The Defendants oppose the Plaintiffs’ request to reopen the lawsuit on the grounds that (1) the Plaintiffs lack standing to pursue relief under European Union law because they “never asserted that they are EU entities, purchased vitamins from EU entities or have claims under EU law[,]” (2) the Plaintiffs failed to demonstrate “extraordinary circumstances” entitling them to Rule 60(b)(6) relief, (3) the Court lacks original jurisdiction over this action so there is no basis for exercising supplemental jurisdiction, and (4) the facts implicate several of the factors identified in 28 U.S.C. § 1367(c) that favor declining to exercise jurisdiction. Defs.’ Mem. of P. & A. In Opp’n to Pis.’ Mot. for Relief from Final J. 1-4 [hereinafter “Defs.’ Opp’n _”]. The Defendants further argue that the Court should refuse to exercise jurisdiction over the Merck Settlement “for all the same reasons that the Court should decline jurisdiction over the EU law claims.” Id. at 23.
I.
The Court must first consider whether the Plaintiffs have standing to pursue their Rule 60(b)(6) motion given that they are not direct vitamins purchasers from the European Union.
3
Noting that “[w]e have ‘an obligation to assure ourselves’ of litigants’ standing under Article III” of the United States Constitution, the Supreme Court has observed that “ ‘no principle is more fundamental to the judiciary’s proper role in our system of government than the constitutional limitation of federal-court jurisdiction to actual cases or controversies.’ ”
DaimlerChrysler Corp. v. Cuno,
— U.S. -,
The case-or-controversy requirement thus plays a critical role, and ‘Article III standing ... enforces the Constitution’s case-or-controversy requirement.’ The ‘core component’ of the requirement that a litigant have standing to invoke the authority of a federal court ‘is an essential unchanging part of the case-or-controversy requirement of Article III.’ The requisite elements of this ‘core component derived directly from the Constitution’ are familiar: ‘A plaintiff must allege personal injury fairly traceable to the defendant’s allegedly unlawful conduct and likely to be redressed by the requested relief.’
Id. (citations omitted). Accordingly, although it seems clear that, as a general proposition, the Plaintiffs have standing to pursue Rule 60(b) relief regarding the Court’s April 26, 2002, Order dismissing their Amended Class Action Complaint, the question nevertheless remains whether they have standing to advance the asserted basis for requesting that relief, which is premised on purported violations of European Union antitrust law and the resulting harm to direct vitamins purchasers in the European Union.
The Defendants challenge the Court’s jurisdiction to adjudicate the claims of European Union direct purchasers of vita
In
Bailey,
the appellants initiated a civil rights action “on behalf of themselves and others similarly situated” to enforce their constitutional right to nonsegregated service in transportation.
Similarly, in
Long
the appellant pursued a class action on behalf of himself and other similarly-situated individuals “to enjoin the police from stopping and frisking individuals in any manner not in accord with their constitutional rights” after he was questioned and frisked by police without arrest while shopping in a jewelry store.
Appellant’s attack on the two statutes is not saved by his allegation that he represents a class that has been the subject of police action based upon the statutes. As we have seen, appellant is not a member of the class of people who have been subject to action based upon the statutes. A person simply cannot represent a class of which he is not a member.
Id (emphasis added).
Although the Plaintiffs concede that they are not members of the putative class of European Union direct vitamins purchasers they purport to represent,
4
they nevertheless attempt to distinguish the
Bailey
and
Long
decisions on factual grounds by arguing that the plaintiffs in those cases “never had standing to assert
As an initial observation, the Plaintiffs’ standing to pursue the claims pled in their Amended Class Action Complaint does not appear to have been tested during any prior proceeding, so their mere assertion of standing is not authoritative, particularly with regard to their putative representation of European Union direct vitamins purchasers.
See
Pi’s Reply 5 (stating that “Plaintiffs did have standing to assert the claims pled in their complaint”). Whether the Plaintiffs had standing to pursue their original claims as framed in the Amended Class Action Complaint is not dispositive of the question now before the court, which is whether they have standing to pursue the specific basis for requesting Rule 60(b)(6) relief on behalf of European Union direct vitamins purchasers when they are not themselves European Union direct vitamins purchasers and no other qualifying plaintiff was ever named to represent such a class. The Plaintiffs’ citation to
Deposit Guar. Nat’l Bank v. Roper,
Furthermore, the Supreme Court’s decisions in
Roper
and
Geraghty
hinged on a determination that the named plaintiffs retained a “personal stake” in the class certification decision that did not offend Article III justiciability concerns and therefore properly could be pursued on appeal — in spite of the mootness of the class representatives’ individual claims on the merits.
Roper,
II.
The Court also is unconvinced that it would be appropriate in this case to exercise supplemental jurisdiction over the claims of European Union direct vitamins purchasers for alleged violations of European Union antitrust laws. Whether the Court may exercise supplemental jurisdiction over a legal claim is governed by 28 U.S.C. § 1367(a), which provides that:
(a) Except as provided in subsections (b) and (c) or as expressly provided otherwise by Federal statute, in any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy under Article III of the United States Constitution. Such supplemental jurisdiction shall include claims that involve the joinder or intervention of additional parties.
* * * * * *
(c) The district courts may decline to exercise supplemental jurisdiction over a claim under subsection (a) if—
(1) the claim raises a novel or complex issue of State law,
(2) the claim substantially predominates over the claim or claims over which the district court has original jurisdiction,
(3) the district court has dismissed all claims over which it has original jurisdiction, or
(4) in exceptional circumstances, there are other compelling reasons for declining jurisdiction.
28 U.S.C. § 1367(a). The determination of whether a claim is supplemental to an original claim is guided by the established principle that the claim “must derive from a common nucleus of operative fact” such that the plaintiff “would ordinarily be expected to try them all in one judicial proceeding.”
United Mine Workers of Am. v. Gibbs,
The Plaintiffs contend that exercising supplemental jurisdiction over the European Union direct vitamins purchasers’ claims is proper in this case because the Court “has original jurisdiction over the claims asserted by other plaintiffs against these same Defendants for the same conduct.”
8
Pis.’ Reply 8. The Plaintiffs cite
Lindsay v. Gov’t Employees Ins. Co.,
No. 05-7046,
The Defendants counter that supplemental jurisdiction over the Plaintiffs’ European Union claims is inappropriate because “[t]his Court does not have original jurisdiction over any claim in this action, because all claims that could have supplied a basis for original jurisdiction in this action have long since been dismissed.” Defs.’ Opp’n 15. The Defendants cite
Siegel v. Consol. Edison, Inc.,
As the Defendants correctly note, the claims the Plaintiffs point to in this case to establish original jurisdiction were dismissed some time ago. As a result, there is no claim pending before the Court to establish original jurisdiction and the Plaintiffs cited no case indicating that supplemental jurisdiction may be established based on prior claims no longer before the Court. The Court also is unaware of any cases that support the Plaintiffs’ argument that a completely independent lawsuit pending under a different case number may serve as the basis for original jurisdiction in the instant case 11 — the Plaintiffs’ citation to Brctzinski, Ouedraogo and An-soumana notwithstanding. Contrary to the Plaintiffs’ arguments, those cases do not stand for the broad proposition the Plaintiffs advance, and certainly do not support the exercise of supplemental jurisdiction over claims when original jurisdiction is premised solely on an independent lawsuit, as would be the case if the Court granted supplemental jurisdiction based on original jurisdiction in the other so-called “vitamins cases” that were coordinated by this Court pursuant to the provisions that govern multidistrict litigation.
The Plaintiffs’ citation to
Ortman
suffers from the same infirmity. It is of no consequence that the Court may exercise supplemental jurisdiction over foreign claims that are ancillary to domestic claims if those domestic claims are the subject of a lawsuit that is independent from the actual case in which the foreign claims are being asserted. This result is compelled by the language of 28 U.S.C. § 1367, which states that
“in any civil action
” over which the Court has original jurisdiction it may also
Even if there was authority for the notion that supplemental jurisdiction may relate back to original jurisdiction over claims that no longer exist, it is well-established that “if the federal claims are dismissed before trial, even though not insubstantial in a jurisdictional sense, the state claims should be dismissed as well.”
United Mine Workers of Am. v. Gibbs,
A district court may choose to retain jurisdiction over, or dismiss, pendent state law claims after federal claims are dismissed. ‘In the usual case in which all federal-law claims are dismissed before trial, the balance of factors to be considered under the pendent jurisdiction doctrine-judicial economy, convenience, fairness, and comity-will point toward declining to exercise jurisdiction over the remaining state-law claims.’
Shekoyan v. Sibley Int’l, 409
F.3d 414, 423-24 (D.C.Cir.2005). Thus, in light of the well-established precedent suggesting that the balance of factors typically favors dismissing supplemental state law claims when all federal claims over which the Court exercised original jurisdiction are dismissed before trial, the Court is disinclined to exercise supplemental jurisdiction here, whether pendent-party or otherwise. As the Court indicated in its prior decision refusing to exercise supplemental jurisdiction over foreign-law claims, the factors of judicial economy, convenience and comity require this result, particularly in light of the fact that no European Union direct vitamins purchaser has yet surfaced in this case, the Court’s judicial resources and economy will be burdened by reopening the case to allow the Plaintiffs to pursue claims they acknowledge will involve European witnesses and the application of novel, complex and developing foreign law, and the Plaintiffs concede that “European Courts are finding it acceptable to take jurisdiction over foreign purchaser claims where they arise from a single case or controversy, as in the operation of an international cartel.”
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Pis.’ Mem. 20 (refer
The only factors that arguably weigh in favor of exercising supplemental jurisdiction are deterrence and fairness; 13 however, the significance of these factors is outweighed by the factors of judicial economy, convenience and comity, particularly when the Plaintiffs agree that cases are currently pending in the European Union, European Union courts are amenable to exercising jurisdiction over foreign purchaser claims, there are cases in which damages have been awarded to private plaintiffs, and the Plaintiffs already unsuccessfully litigated their argument that the domestic effects of the Defendants’ conduct are intertwined with the foreign effects of that conduct that allegedly resulted in the European Union direct vitamins purchasers’ injuries. Pls.’ Mem. 25-27, 29-31.
As the Court’s analysis reveals, granting Rule 60(b)(6) relief would be of no avail to the Plaintiffs in this case because the Court lacks supplemental jurisdiction over the very claims the Plaintiffs seek relief to pursue, and the factors of judicial economy, convenience and comity weigh against exercising such jurisdiction even if it were available to the Plaintiffs. There is, therefore, no extraordinary circumstance that warrants Rule 60(b)(6) relief.
III.
With regard to the Plaintiffs’ request that the Court exercise supplemental jurisdiction over the Merck Settlement Agreement — which was a $10 million settlement reached in 2003 and subsequently stayed by this Court in 2004 — the same jurisdictional analysis the Court previously employed applies. The Court lacks original jurisdiction over any claim the Plaintiffs can resort to for supplemental jurisdiction. Although the Plaintiffs point out that the Agreement reportedly “specifically contemplated the possibility that this Court ultimately could be found to lack subject matter jurisdiction over the foreign plaintiffs’ claims” and “the parties have consented to the jurisdiction of this Court for the purposes of settlement administra
CONCLUSION
For the reasons set forth above, the Court will deny the Plaintiffs’ Motion For Relief From Final Judgment. An appropriate Order will accompany this Memorandum Opinion.
ORDER
Pending before the Court is a Motion for Relief from Final Judgment [60] filed by Empagran, S.A., Winddridge Pig Farm, Nutrición Animal, S.A., and Concern Stirol (the “Plaintiffs”). In accordance with the Memorandum Opinion issued herewith, it is hereby
ORDERED that the Plaintiffs’ Motion for Relief from Final Judgment is DENIED.
SO ORDERED.
Notes
. The Supreme Court also invited the D.C. Circuit to determine whether the Plaintiffs properly preserved their argument that the foreign injury was dependent on the domestic conduct.
F. Hoffmann-La Roche, Ltd.., 542
U.S. at 175,
. The Plaintiffs cite several sources to support their claim that European Union officials unequivocally admonish price-fixing cartels as unlawful and recognize that cartel members should be held liable for injuries via private civil lawsuits, the most significant of which, according to the Plaintiffs, is a December 12, 2005 document presented by the Commission of the European Communities that is titled "Green Paper: Damages Actions for Breach of the EC Antitrust Rules” [hereinafter referred to as the "Green Paper”]. E.g., Pis.' Mem. 5-10 (citing a recent decision by an Italian court, statements published on the European Union's official internet web site, and statements by officials of the European Commission's Competition Directorate-General, among other sources).
. The Defendants contend that the Plaintiffs are domiciled in Ecuador, Panama, Australia and Ukraine. Defs.’Opp'n 10. In their reply brief, the Plaintiffs concede that they lack a named plaintiff from the European Union but claim that “an EU plaintiff intends to step forward as a new class representative if the Court grants Plaintiffs' motion.” Pis.' Reply in Supp. of Their Mot. for Relief from Final J. 4 [hereinafter "Pis.' Reply_"].
. See, supra note 3 (citing the Plaintiffs’ reply brief, in which they recognize the lack of a European Union director vitamins purchaser as a named plaintiff); Pis.’ Reply 4 (acknowledging the "absence of a named plaintiff from the EU").
. Nor has any European Union direct vitamins purchaser intervened in this case on behalf of such plaintiffs as a class.
. The Plaintiffs’ citation to
Grace v. Bank Leumi Trust Co.,
. The Supreme Court in
Roper
identified the interests to be considered when evaluating the question of justiciability in the class action context, including the named plaintiffs’ personal stake in the substantive controversy and right to employ Rule 23 certification to pursue their individual claims, the responsibility of the named plaintiffs to represent the class, the rights of putative class members as possible intervenors and "the responsibilities of a district court to protect both the absent class and the integrity of the judicial process by monitoring the actions of the parties before it.”
. The Plaintiffs appear to premise this argument on that fact that, at the time the Court entered final judgment, it had original jurisdiction "over the many actions brought by various plaintiffs alleging that Defendants’ global price-fixing conspiracy violated federal law." Pis.' Reply 10-11. The Plaintiffs further argue that "[s]ome of these actions continue to be pending before this Court” and cite as examples the DuCoa L.P. and DCV post-judgment proceedings and the Court's continuing jurisdiction over their settlement agreements. Id. at 11 n. 9.
. The Exxon case was the first in which the Supreme Court considered "whether a federal court in a diversity action may exercise supplemental jurisdiction over additional plaintiffs whose claims do not satisfy the minimum amount-in-controversy requirement, provided the claims are part of the same case or controversy as the claims of plaintiffs who do allege a sufficient amount in controversy."
.This Court has presided over a number of cases involving vitamins purchasers that were transferred pursuant to an order from the Judicial Panel on Multidistrict Litigation.
. The Plaintiffs argue that "[a]s of the time this Court entered final judgment, it had original jurisdiction over the many actions brought by various plaintiffs alleging that Defendants' global price-fixing conspiracy violated federal law. It therefore certainly had the power, under § 1367, to exercise supplemental jurisdiction.” Pls.’ Reply 10-11. The Plaintiffs cite
Simcox v. McDermott Int’l, Inc.,
No. H-92-3014,
. The Plaintiffs essentially argue that, although private antitrust claims have been litigated in European courts and there have been awards to private claimants as a result, significant procedural and policy hurdles involved in instituting and litigating such suits in Europe make individual litigation impractical and ineffective. Pis.’ Reply 12. The problem with this argument is that it begs the question of whether European Union direct vitamins purchasers are simply shopping for a more favorable forum, which was alluded to by the Defendants. Defs.' Opp'n 12-14. The Plaintiffs submitted several exhibits to their briefs that they assert evidence the lack of adequate relief available to European Union vitamins purchasers in European courts. Pls.’ Mem. Exs. 1-16; Pls.’ Reply Exs. 1-11. Upon review of the exhibits, however, it seems clear that the problem is not the unavailability of an adequate mechanism to obtain relief, but quite simply the procedural differences that make litigating in European courts less favorable from the perspective of the economics of litigation and damages awards, such as the lack of treble damages, the lack of procedures to aggregate plaintiffs as a class, and the lack of expansive discovery that might be available in the United States.
E.g.,
Clifford A. Jones,
Exporting Antitrust Courtrooms to the World: Private Enforcements in a Global Market,
16 Loy. L.Rev. 409, 421 (2004) (comparing the development of private antitrust actions in the
. The Plaintiffs assert that "[flaimess not only allows but compels that Defendants be held accountable for [the] intended injuries to the EU Plaintiffs and that Defendants not be permitted to profit from their illegal conduct.” Pis.' Mem. 25.