PADOVA, District Judge.
Presently before the Court are two Motions filed by Boston Class Plaintiffs. The first Motion seeks to re-transfer these two consolidated cases back to the United States District Court for the District of Massachusetts.
Title 28 U.S.C. § 1404 provides that a District Court may transfer any civil action to any other District where it might have been brought "[f]or the convenience of parties and witnesses, in the interest of justice. . . ." 28 U.S.C. § 1404(a). In deciding whether transfer is appropriate, the court must weigh both "public interest" and "private interest" factors. Jumara v. State Farm Ins. Co., 55 F.3d 873, 879 (3d Cir.1995). The "private interests" established in Jumara include:
Id. (internal citations omitted). The "public" interests identified in Jumara include:
Id. at 879-80 (internal citations omitted). Section 1404(a) "vest[s] district courts with broad discretion to determine, on an individualized, case-by-case basis, whether convenience and fairness considerations weigh in favor of transfer." Id. at 883.
Comcast responds that Plaintiffs' Motion to transfer the case back to the District of Massachusetts is a transparent attempt at forum-shopping. The only purpose of the Motion, it asserts, is to give Plaintiffs the ability to start over with a new judge. Comcast argues that the fact that the Glaberson plaintiffs are attempting a resolution of the their claims is irrelevant. It notes that the original transfer motion that Plaintiffs filed, and successfully litigated in the District of Massachusetts, argued that transfer was appropriate because the federal antitrust claims and the parallel claims under the Massachusetts Antitrust Act were "`based on the same facts and the same alleged conduct of defendants underlying plaintiffs' Sherman Act claims'" in Glaberson. (Def. Transfer Mem. at 3 (quoting Pls.' 2006 Transfer Mot. at 3, 6.).) This motion, it notes, was granted over Comcast's opposition.
Comcast asserts that the December 2006 decision to transfer the cases here is the law of the case and should not be re-litigated absent "unusual circumstances," such as new evidence or a change of law that was not previously available to the prior court. See Hayman Cash Register Co. v. Sarokin, 669 F.2d 162 (3d Cir.1982);
Comcast further argues that the Plaintiffs have failed to meet their burden of showing that the balance of factors favors transfer; they have failed to address most of the relevant factors; while they argue that they and their counsel are located in Boston, they ignore the fact that Comcast is headquartered in Philadelphia, the transactions at issue are national transactions that affected multiple markets and were negotiated in Philadelphia; they fail to identify any witnesses who would be inconvenienced; and whatever "difficult" questions of Massachusetts state law that exist did not dissuade Plaintiffs from originally seeking to transfer the case away from Massachusetts judges. Finally, Comcast argues that the assertion that it will suffer no prejudice from the transfer is wrong since the Plaintiffs themselves argued in the original transfer motion that litigation of claims related to the Philadelphia claims in the same forum would "avoid duplicitous litigation, attendant unnecessary expense and loss of time to courts, witnesses and litigants and to avoid inconsistent results." (Def. Transfer Mem. at 11 (quoting Pls.' 2006 Mot. to Transfer at 6-7).) Plaintiffs also argued in 2006 that transfer was appropriate because discovery materials were located at Comcast's headquarters in Philadelphia.
Applying the Jumara "private" factors, it must be noted that Plaintiffs chose to transfer these cases to the Eastern District of Pennsylvania over Comcast's objection. Their claims arose in Philadelphia when the swap transactions were negotiated and consummated here. The only convenience argument Plaintiffs specifically assert is the convenience of their attorneys, not the convenience of witnesses. Discovery documents are located in Philadelphia. Most of the "public" factors—enforceability of the judgment, practical considerations that could make the trial easy, expeditious, or inexpensive, and the relative administrative difficulty in the two fora resulting from the court congestion—are not argued by Plaintiffs, who have the burden on the Motion. Rather, they only address the factors of local interests in deciding local controversies at home, the public policies of the fora, and the familiarity of the trial judge with the applicable state law in diversity cases.
We conclude that the limited grounds raised by Plaintiffs on the private interests fail to tip the scale in favor of transfer, particularly given the history of the case, where Plaintiffs were the ones who sought to have the cases transferred away from their "home" district in contravention of these factors. This abrogated Plaintiffs' original forum preference. Whether or not the "primary reason for transferring the Massachusetts cases to this Court no longer exists," the pending request to transfer the case back to Massachusetts is unsupported by any substantial argument other than the convenience of Plaintiffs' counsel. Accordingly, we conclude there is no sufficient basis to grant the Motion.
Granting leave to amend is within the discretion of the district court. Zenith
The presently pending version of the Boston Complaint, the Consolidated Amended Class Action Complaint ("CACAC"), asserts per se and rule of reason theories under Section 1 of the Sherman Act, 15 U.S.C. § 1, and Section 4 of the Massachusetts Antitrust Act, M.G.L. c. 93, § 4, for horizontal market division (Count I); monopolization claims under Section 2 of the Sherman Act and Section 4 of the Massachusetts Antitrust Act (Count II); and attempted monopolization under Section 2 of the Sherman Act and Section 5 of the Massachusetts Antitrust Act, M.G.L. c. 93 § 5 (Count IV
In the proposed FAC, the Boston Class seeks to abandon all of its existing federal and state antitrust claims and substitute
(FAC ¶ 47.
Massachusetts uses the definition of the tort of conversion found in the Restatement Second of Torts § 222A.
Money—such as the overpayments for cable television services Plaintiffs allege they paid due to Comcast's conduct, as distinguished from what is usually considered chattel, i.e., tangible personal property,—"can be the subject of a claim for conversion if the money is a specifically identifiable lot of money, which the defendant was obligated to keep intact or deliver." Sweeney v. DeLuca, No. 042338, 2006 WL 936688, at *8 (Mass.Super.Ct. Mar. 16, 2006) (citing 53A Am.Jur. 2D Money § 21 (2005) (citing Garras v. Bekiares, 315 Mich. 141, 23 N.W.2d 239, 241 (1946) (allowing claim for conversion where money is identifiable and defendant had obligation to return the specific money with which he was entrusted), U.S. Fid. & Guar. Co. v. Bass, 619 F.2d 1057, 1060 (5th Cir.1980) (stating that "a cause of action may arise
Where, however, a plaintiff's claim is "not for an identifiable lot of money that the moving party defendants were obligated to keep intact or deliver," there is no legally cognizable claim in Massachusetts for conversion because the claim does not "concern personal property." Sweeney, 2006 WL 936688, at *8; see also Murphy v. Wachovia Bank of Del., N.A., No. MICV200802070F, 2012 WL 1326642, at *5 (Mass.Super.Ct. Jan. 23, 2012) (holding that conversion theory of recovery does not extend to money owed on a debt or to "general damages") (citing Grand Pac. Fin. Corp. v. Brauer, 57 Mass.App.Ct. 407, 783 N.E.2d 849, 857 (2003)); accord Grande v. PFL Life Ins. Co., No. 9663, 2000 WL 1476676, at *4 (Mass.App.Ct. Sept. 27, 2000) (holding, in an action to recover premiums paid on a life insurance policy where plaintiff alleged she had been informed she was paying premiums toward a retirement annuity contract, that where the record was "devoid of any facts suggesting that [defendant] exercised any wrongful control over the monthly payments voluntarily made by [plaintiff], or took any action with respect to such payments other than providing her with the life insurance coverage which the documents establish that she purchased," there was no basis for a claim of conversion).
Courts have held that an identifiable "lot" or sum of money that has been wrongfully converted is a key element of the common law tort if it is premised upon a wrongful taking or control of money. Sweeney, 2006 WL 936688, at *8; see also Grand Pac. Fin. Corp., 783 N.E.2d at 857 (stating that self-dealing by an escrow holder in its unauthorized collection from escrowed funds of a debt owed by a party to the escrow agreement stated claim for conversion of the escrowed funds); accord Holt v. Denholm, No. G045496, 2014 WL 1666128, at *10 (Cal.App.Ct. Apr. 28, 2014) (stating that under California law, money "can be the subject of an action for conversion if a specific sum capable of identification is involved. . . . On appeal, the Holts offer no arguments regarding the court's conclusion they failed to meet their burden of showing Biel possessed property the Trust or the Holts had an immediate right to possess or which was a specifically identifiable sum of money." (emphasis in original)); Singh v. PGA Tour, Inc., 42 Misc.3d 1225(A), No. 651659/2013, 2014 WL 641311, at *9 (N.Y.Sup.Ct. Feb. 13, 2014) (under New York law, "[a]n action for conversion of money may be made out where there is a specific, identifiable fund and an obligation to return or otherwise treat in a particular manner the specific fund in question"); Health Commc'ns, Inc. v. Chicken Soup for the Soul Publ'ng, LLC, No. X05CV084014539S, 2011 WL 2611826, at *6 (Conn.Sup.Ct. June 14, 2011) (holding that, under Connecticut law, "[m]oney can be the subject of [conversion].. . . The plaintiffs must establish, however, legal ownership or right to possession of specifically identifiable moneys. . . . It must be shown that the money claimed, or its equivalent, at all times belonged to the plaintiff and that the defendant converted it to his own use. . . . Thus,
The "chattel" that was allegedly converted here is the "Class members' overpayments," to which Plaintiffs claim Defendant had no right of possession. (FAC ¶ 47.) We conclude that this allegation fails to state a claim for the tort of conversion as a matter of Massachusetts law. The Class does not identify a specific "lot" or sum of money that has been wrongfully converted. Plaintiffs allege no facts upon which it could plausibly claim that Comcast's billing receipts, irrespective of whether they included monopolistic overcharges, are a chattel that is still legally owned by Class members, and which Comcast was obligated to keep intact or deliver, but over which it improperly exercised dominion or control. The factual allegations concerning Comcast's acquisition of the Boston cable cluster do not allege that Comcast's right of possession of the billing receipts was wrongful, in the sense that it took the property of another as its own; rather, the Class alleges only that the manner in which Comcast attained the ability to set the price for non-basic cable services was wrongful. This is not a valid theory of conversion. Essentially, the Class seeks to transmogrify the money damages arising from an alleged antitrust injury into a claim for conversion of those money damages. The clear authorities in Massachusetts require that we reject this attempt. Because "general damages" cannot be considered "tangible property" that may be converted, Murphy, 2012 WL 1326642, at *5, and there is no "specifically identifiable lot of money, which the defendant was obligated to keep intact or deliver," Sweeney, 2006 WL 936688, at *8, the FAC's claim for conversion is not plausible. Accordingly, leave to amend to include this claim is denied as futile.
Count II attempts to state a claim under M.G.L. c. 93A, §§ 2 and 9. Section 2 provides that "[u]nfair methods of competition and unfair or deceptive acts or practices in the conduct of any trade or commerce are hereby declared unlawful." Section 9 provides for a civil action for any person "who has been injured by another person's use or employment of any method, act or practice declared to be unlawful by section two." The Class alleges that the Chapter 93A claim is based on "Defendants' unfair or deceptive acts or practices in overcharging for cable television services." (FAC ¶ 17.) After making introductory allegations concerning the deregulation of the cable industry (id. ¶¶ 30-32), and the subsequent consolidation in the cable industry (id. ¶¶ 33-38), the Class specifically premises liability under Chapter 93A on Comcast's clustering scheme, including, an April 2000 swap between AT & T and Cablevision Systems
Comcast argues that the Chapter 93A claim is futile because the swap transaction relied upon by the Class was approved by regulators. Section 3 of Chapter 93A provides that "[n]othing in this chapter shall apply to transactions or actions otherwise permitted under laws as administered by any regulatory board or officer acting under statutory authority of the commonwealth or of the United States." M.G.L. c. 93A, § 3. Comcast notes that, pursuant to 47 U.S.C. §§ 214(a) and 310(d),
The Massachusetts courts have held that the burden is on the defendant to show that the exemption contained in Section 3 applies to the conduct in question. Cablevision of Boston, Inc. v. Pub. Improvement Comm'n of City of Boston, 38 F.Supp.2d 46, 61 (D.Mass.1999) (citing Bierig v. Everett Square Plaza Assocs., 34 Mass.App.Ct. 354, 611 N.E.2d 720, 728 n. 14 (1993)). "The burden is a difficult one to meet." Bierig, 611 N.E.2d at 728 n. 14 (internal quotation omitted); Commonwealth v. Fremont Inv. & Loan, 452 Mass. 733, 897 N.E.2d 548, 561 (2008). To fall within the exception "a defendant must show more than the mere existence of a related or even overlapping regulatory scheme that covers the transaction. Rather, a defendant must show that such scheme affirmatively permits the practice which is alleged to be unfair or deceptive.'" Bierig, 611 N.E.2d at 728 n. 14 (emphasis in original; internal quotation marks omitted); Fremont Inv. & Loan, 897 N.E.2d at 561 (quoting Bierig). Although the burden is high, the allegations of the FAC show that liability is premised upon Comcast's clustering conduct, which indisputably received governmental approval.
In response to Comcast's arguments, the Class seeks to distinguish the creation of the cluster from the act of charging monopolistic prices, asserting that the "unfair or deceptive acts or practices in the conduct of any trade or commerce" was the overcharge. They argue that, while regulators might have approved the creation of the cluster, they did not approve Comcast's prices. We find this argument meritless since it ignores the central factual allegation pled in the FAC: the ability to charge monopolistic prices is alleged to be a direct result of the clustering activity. (See FAC ¶ 40 ("As a result of such `swapping' agreements and transactions, potential competitors were removed from Comcast's Boston cluster and Defendants were able to raise prices within Comcast's Boston cluster."); ¶ 42 ("Defendants' conduct in imposing market and consumer allocations in the manner alleged in this Complaint has had the following effects, among others: . . . Comcast has increased prices for cable programming services to artificially high, non-competitive levels. . . .")). Since the transactions that created the cluster were approved by regulators, the regulatory scheme "affirmatively permit[ed] the practice which is alleged to be unfair or deceptive." Bierig, 611 N.E.2d at 728 n. 14 (emphasis omitted).
In addition to attempting to state futile claims, the Class's undue delay in seeking to add the two new claims justifies denial of the Motion. "Delay `becomes "undue," and thereby creates grounds for the district court to refuse leave [to amend], when it places an unwarranted burden on the court or when the plaintiff has had previous opportunities to amend.'" Goldfish Shipping, S.A. v. HSH Nordbank AG, 623 F.Supp.2d 635, 640 (E.D.Pa.2009) (quoting Bjorgung v. Whitetail Resort, LP, 550 F.3d 263, 266 (3d Cir.2008)). Comcast argues that the case was actively litigated for four years prior to imposition of the stay, and the Class was not diligent in seeking to add the new claims at any time prior to the April 30, 2007 deadline imposed by the United States District Court for the District of Massachusetts for filing amended pleadings. (Def. Resp. at 11 (citing D. Mass. Docket Entry 100 at ¶ 6).) It also argues that the Class, having already twice amended its pleadings, should not be permitted to do so again when the two new theories are based on the same factual allegations previously pled. (Id. at 11-12.) It contends that the Class seeks to add the new theories at this late stage only now that the currently propounded theories have been rendered questionable by the Supreme Court's decision in Glaberson. The Class responds that, although the case was pending in Massachusetts for four years, a substantial portion of the time was devoted to an interlocutory appeal to the United States Court of Appeals for the First Circuit over the scope of an arbitration clause in Plaintiffs' cable subscription agreement. (Pl. Reply at 4.)
We conclude that Comcast's undue delay argument is meritorious. Even if we accept that litigating the arbitration issues occupied a substantial portion of the parties' efforts while the case was pending in Massachusetts, the factual basis of the new claims is identical to that of the claims originally propounded, and the Class makes no cogent argument why it failed to assert the new theories in a timely manner. As we have stated previously, if a plaintiff has viable alternative theories of recovery, it is obligated to present those theories to the Court and should not be permitted to present them seriatim as the conduct of the litigation renders the original choice of theory problematic. Goldfish Shipping, S.A., 623 F.Supp.2d at 641. Moreover, we see no basis why the litigation over the scope of the arbitration clause created an impediment to Plaintiffs' ability to file the proposed amendment within the time period provided by the Massachusetts court.
1. The Motion of Plaintiffs to Transfer Cases to the United States District Court for the District of Massachusetts (Boston) (Civ. A. 07-218, Docket Entry No. 35; Civ. A. 07-219, Docket Entry No. 22) is
2. The Motion of Plaintiffs for Leave to Amend their Complaint and File a Fifth Amended Class Action Complaint (Civ. A. 07-218, Docket Entry No. 50; Civ. A. 07-219, Docket Entry No. 30) is
3. By consent of the parties, Civ. A. 07-218 and Civ. A. 07-219 are
4. The Clerk is
47 U.S.C. § 214(a). Section 310(d) provides in pertinent part that "No construction permit or station license, or any rights thereunder, shall be transferred, assigned, or disposed of in any manner, voluntarily or involuntarily, directly or indirectly, or by transfer of control of any corporation holding such permit or license, to any person except upon application to the Commission and upon finding by the Commission that the public interest, convenience, and necessity will be served thereby." 47 U.S.C. § 310(d).