Antitrust Law Daily Wrap Up, ANTITRUST—NDCal: Class Members Held In Contempt For Failure to Appear for Depositions, (Feb 21, 2013)

By Jody Coultas, J.D.

The federal district court in San Francisco held unnamed class members and their attorney in civil contempt for failing to take efforts to comply with a court order issued in a multidistrict antitrust litigation brought against manufacturers of thin-film transistor liquid crystal display (TFT-LCD) panels for allegedly participating in a price fixing conspiracy (In RE: TFT-LCD (Flat Panel) Antitrust Litigation, February 19, 2013, Illston, S.).

As part of the indirect purchaser class action, the unnamed class members were served with deposition notices and document production demands. The class members and their counsel refused to appear and filed objections to a proposed settlement. Counsel then filed objections to a Special Master’s Order compelling the depositions. Indirect purchaser plaintiff (IPP) counsel filed a renewed motion for an order to show cause re finding of civil contempt against objectors and their counsel.

The class members and their counsel argued that the IPP counsel were attempting to conduct needless depositions, that they had not engaged in any sanctionable or improper conduct, and that IPP counsel failed to show any prejudice by the inability to conduct the depositions.

IPP counsel demonstrated that the class members and their counsel violated a court order requiring them to appear for deposition, according to the court. There was no evidence that counsel affirmatively communicated with IPP counsel to schedule deposition after the court order. Also, there was no merit to the class member’s argument that the depositions were “needless.” The Special Master’s order was limited to relevant information.

The court awarded monetary sanctions to compensate IPP counsel for fees incurred pursuing the depositions after the court order, and awarded attorneys’ fees and costs.

The case is No. M 07-1827 SI.

Attorneys: Joseph Darrell Palmer (Darrell Palmer) for Johnny Kessel. Daniel J Mogin (The Mogin Law Firm) for the Indirect Purchaser Plaintiffs.

Cases: Antitrust CaliforniaNews