Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_07-cv-05944/USCOURTS-cand-3_07-cv-05944-25/pdf.json

Nature of Suit Code: 410
Nature of Suit: Antitrust
Cause of Action: 15:1 Antitrust Litigation

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United States District Court

For the Northern District of California

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

In Re: Cathode Ray Tube (CRT)

Antitrust Litigation

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CRAGO, Inc.,

Plaintiff,

 v.

CHUNGHWA PICTURE TUBES, LTD., et

al.,

Defendants.

 

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No. 07-5944 SC

MDL No. 1917

ORDER APPOINTING

INTERIM LEAD COUNSEL

I. INTRODUCTION

This matter comes before the Court on various motions seeking

appointment of interim lead counsel for the two separate putative

subclasses of direct and indirect purchasers. The motion to

appoint interim lead class counsel for the direct purchasers is

unopposed. Four motions seeking appointment of interim lead class

counsel for the indirect purchasers were submitted to the Court. 

Since that time, however, the group comprised of the Alioto Law

Firm and the Miller Law Firm has withdrawn its motion. See Docket

Nos. 181, 192. Furthermore, the group comprised of the firms of

Ball & Scott and Goldman, Scarlato & Karon has apparently also

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decided not to pursue their motion. The Court draws this

inference from the following: at the status conference held on

April 4, 2008, the Court ordered all parties seeking appointment

of interim class counsel for the indirect purchasers to submit a

letter under seal and in camera containing various information,

including proposed fee arrangements. The Ball and Goldman firms

did not submit this letter and the Court can only conclude that

these firms no longer seek appointment. Thus, two motions remain

pending: the first submitted by the firm Trump, Alioto, Trump &

Prescott ("Trump") and the second submitted by the group comprised

of the firms Zelle, Hofmann, Voelbel, Mason, & Gette and Lovell,

Stewart, Halebian (collectively "Zelle").

II. LEGAL STANDARD 

Pursuant to Federal Rule of Civil Procedure 23(g)(3), the

Court "may designate interim counsel to act on behalf of a

putative class before determining whether to certify the action as

a class action." Although Rule 23(g)(3) itself contains no

guidance for selecting interim counsel, the criteria specified in

Rule 23(g)(1) for the appointment of class counsel shall be used

by the Court in making its determination.

Rule 23(g)(1) states:

In appointing class counsel, the court:

(A) must consider:

(i) the work counsel has done

in identifying or investigating

potential claims in the action;

(ii) counsel's experience in

handling class actions, other

complex litigation, and the

types of claims asserted in the

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action;

(iii) counsel's knowledge of

the applicable law; and

(iv) the resources that counsel

will commit to representing the

class.

Fed. R. Civ. P. 23(g)(1). In addition, a court "may consider any

other matter pertinent to counsel's ability to fairly and

adequately represent the interests of the class." Id.

III. DISCUSSION

At the outset, the Court notes that all of the firms seeking

interim lead class counsel have indicated a preference for co-lead

counsel. The Court is convinced, however, that a single firm will

usually provide more effective and efficient representation than a

group of two or more firms. A single firm is already organized

with internal levels of communication and management structure. A

group of firms, on the other hand, must create these structures. 

This will tend to increase the risk that items may fall through

the cracks. Moreover, as the Advisory Committee Note states, "the

court should be alert to . . . the risk of overstaffing" and the

possibility of "an ungainly counsel structure."

A. Direct Purchaser Subclass

As noted above, the motion to appoint interim lead class

counsel for the direct purchaser subclass was unopposed. The

motion, however, seeks appointment of two firms as co-lead counsel

and, for the reasons stated above, the Court finds that

appointment of one firm is preferable. Therefore, after reviewing

the motion and the attached declarations, the Court appoints Guido

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Saveri and his firm Saveri & Saveri as interim lead class counsel

for the putative nationwide class of direct purchasers. Interim

counsel shall have all of the duties set forth below. There is no

need for an executive committee at this time.

B. Indirect Purchaser Subclass

As various firms submitted competing motions for appointment

of interim counsel for the indirect purchaser class, the Court

analyzes these motions under the Rule 23 framework. 

1. Work in Identifying or Investigating Potential

Claims

This factor does not favor any of the applicant firms. All

of the firms filed actions within one month of each other. 

Although the Lovelle firm filed the first Complaint in the country

on November 13, 2007, there is nothing else to indicate that any

firm has done substantially more in identifying or investigating

potential claims.

2. Counsel's Experience

All of the applicant law firms have excellent track records. 

Nonetheless, while two of the firms indicated that their top

attorneys would be involved, only one firm made it clear that it's

top attorney would lead, rather than merely participate, in his

firm's role as interim lead counsel. For this reason, this factor

favors the Trump firm.

3. Counsel's Knowledge

All of the applicant law firms contain eminently capable

attorneys. This factor favors none of the applicants.

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4. Counsel's Resources

At first blush, this factor would tend to favor either the

Zelle or Lovelle firm, as each is a larger firm with offices

nationwide. Nonetheless, the Court is not convinced that bigger

is necessarily better, especially in light of the fact that only a

handful of attorneys from each firm will be working on this case. 

Thus, for example, a firm of 100 attorneys will not necessarily be

more able to devote the necessary resources to this case than a

firm one tenth that size.

Weighing all the above factors, the Court appoints Mario

Alioto and his firm Trump, Alioto, Trump & Prescott as interim

lead counsel for the putative nationwide class of indirect

purchasers. Interim counsel shall have all of the

responsibilities set forth below. There is no need for an

executive committee at this time. 

IV. RESPONSIBILITIES

All interim counsel shall have the following

responsibilities:

1. To promote the orderly and efficient conduct of this

litigation and to avoid unnecessary duplication and

unproductive efforts;

2. To initiate and conduct all discovery proceedings and

communicate with defense counsel with respect to same on

all issues;

3. To coordinate all motions, requests for discovery,

experts, and other pretrial proceedings regarding the

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position of all Plaintiffs;

4. To meet and negotiate with defense counsel with respect

to settlement and other matters after adequate due

diligence;

5. To record and administer all times and expenses of

counsel and staff;

6. To assess plaintiffs' law firms common litigation costs

and to collect assessments on a regular basis;

7. To monitor the activities of Plaintiffs' counsel and to

implement procedures to ensure that schedules are met

and unnecessary expenditures of time and funds are

avoided;

8. To consult, as necessary in the best interests of the

putative class, with all other Plaintiffs' counsel to

obtain their input concerning strategy and to be the

primary spokesperson for the putative class;

9. To act as interim counsel in any appeal prior to

appointment of class counsel;

10. To otherwise advance and protect the interests of the

putative class in all respects and to honor all of its

responsibilities, including making sure that all

representations and commitments made on its behalf are

honored; and

11. It shall be the responsibility of lead counsel to serve

all parties with all orders and correspondence issued by

the Court.

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V. CONCLUSION

The appointments above shall become effective upon the filing

of a certificate by said counsel accepting the terms of the

appointment, which shall be filed within SEVEN CALENDER DAYS of

the date of this Order. This order finds the following

appointments will best protect the interests of putative class

members. The foregoing appointments are without prejudice to a

fresh examination of who should be class counsel if and when

classes are certified.

IT IS SO ORDERED.

Dated: May 9, 2008

 

UNITED STATES DISTRICT JUDGE

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