Antitrust Law Daily Wrap Up, ANTITRUST—N.D. Cal.: $4.575M mesquite charcoal price fixing settlement preliminarily approved, (Dec 11, 2014)

By Greg Hammond, J.D.

The federal district court in San Diego gave preliminary approval to a $4.575 million settlement in a class action alleging that mesquite charcoal manufacturers engaged in a price fixing conspiracy. The charcoal manufacturers and purchasers sufficiently addressed all of the concerns expressed by the court in its tentative approval of the settlement (Il Fornaio (America) Corp. v. Lazzari Fuel Company, LLC, December 10, 2014, Alsup, W.).

Mesquite charcoal is typically used by restaurants and individuals to grill meats and fish. Plaintiffs filed a complaint against manufacturers Lazzari Fuel Company, LLC, California Charcoal and Firewood, Inc., Chef’s Choice Mesquite Charcoal, and their individual owners, alleging that the manufacturers engaged in a conspiracy to fix the prices of mesquite charcoal.

In tentatively approving the proposed settlement in this case, the court required that the parties provide additional information regarding: the possibility of double recovery; the costs of administering the settlement fund; average claim amounts; and the possibility of unclaimed amounts. In addition, the court requested a reworded release, as well as revised claim form and proposed class notice.

Pursuant to the tentative approval, the parties: (1) updated the release by limiting it to only the asserted certified class claim; (2) specified that California Charcoal would be responsible for 25 percent of all “anticipated” costs, and Chef’s Choice would be responsible for up to $5,000 in costs; (3) proposed that the entire settlement fund be distributed equally to the class on a claims-made basis; (4) specified that the average estimated recovery is $2,163; and (5) submitted a new notice of class certification, supplemental cover letter, and proposed claim form.

The court was generally satisfied with the changes the parties made to the proposed settlement and related documents, finding the settlement to be fundamentally fair, adequate, and reasonable under Federal Rule of Civil Procedure 23(e). It approved the revised claim form, but required the parties to place a March 31, 2015 deadline and toll-free number on the document. In addition, it provided the parties with a less wordy and more concise proposed supplemental notice that informs consumers that double recoveries are prohibited, and approved the proposed notice of class certification.

The case number is C 13-05197 WHA.

Attorneys: Elizabeth Cheryl Pritzker (Pritzker Levine LLP) for IL Fornaio Corp. David C. Brownstein (Farmer Brownstein Jaeger LLP) for Lazzari Fuel Company, LLC. Jean Pierre Nogues, Jr. (Mitchell Silberberg and Knupp) for California Charcoal and Firewood, Inc. Jeffrey Scott Sanger (Sanger Swysen and Dunkle) for Chef's Choice Mesquite Charcoal.

Companies: IL Fornaio Corp.; Lazzari Fuel Company, LLC; California Charcoal and Firewood, Inc.; Chef's Choice Mesquite Charcoal

Cases: Antitrust CaliforniaNews