Biederman v. FCA US LLC

Summary

The Northern District of California denied plaintiffs’ motion for reconsideration of the dismissal of their civil RICO claim against Cummins. The court held that the Supreme Court’s decision in Medical Marijuana, Inc. v. Horn did not alter its prior conclusion that Illinois Brick bars indirect purchasers from bringing civil RICO claims under 18 U.S.C. § 1964(c). The court granted certification for an interlocutory appeal under 28 U.S.C. § 1292(b), finding a controlling legal question, substantial grounds for difference of opinion, and potential material advancement of the litigation.

Holdings

1. Reconsideration was not warranted because Medical Marijuana, Inc. v. Horn addressed a different civil RICO issue and did not undermine the court's prior application of the Illinois Brick indirect-purchaser rule to plaintiffs' claims.
2. The question whether Illinois Brick applies to civil RICO claims under 18 U.S.C. § 1964(c) is a controlling question of law because its resolution could materially affect the outcome and scope of the litigation.
3. Substantial ground for a difference of opinion existed regarding whether Illinois Brick applies to civil RICO claims under § 1964(c), even though the federal courts of appeals that had addressed the issue had uniformly applied Illinois Brick.
4. An interlocutory appeal may materially advance the litigation because early resolution could simplify case management, conserve judicial and party resources, avoid additional class proceedings, and potentially avoid a retrial.

Questions Presented

1. Whether the court should reconsider its interlocutory order dismissing plaintiffs' civil RICO claim based on Medical Marijuana, Inc. v. Horn.
2. Whether the question whether Illinois Brick applies to claims under 18 U.S.C. § 1964(c) presents a controlling question of law.
3. Whether substantial ground exists for a difference of opinion on the applicability of Illinois Brick to civil RICO claims.
4. Whether an interlocutory appeal may materially advance the ultimate termination of the litigation.

Disposition

other