MATTHEW W. BRANN, District Judge.
Before the Court is Plaintiffs Erika Mendoza and James Hunt's Motion for Retransfer to the United States District Court for the Eastern District of California, or in the alternative, to Consolidate this Action with the Rice/Kukich Consolidated Action. For the reasons that follow, retransfer will be denied. Consolidation of this case with the
On February 18, 2015, Elaine Rice ("Plaintiff Rice") filed a consumer class action in this Court against Electrolux Home Products, Inc. ("Defendant Electrolux") alleging that a microwave handle used in Defendant Electrolux's microwaves is defective ("Rice Action"). Plaintiff Rice specifically alleged that this handle can reach temperatures of over 168°F when the range below is activated, and that this high temperature presents a "risk of serious injury" to anyone who touches it.
Following the transfer of another action based on Defendant Electrolux's alleged defective microwave handles from the District of Maryland to this Court, the parties, by stipulation, proposed both the consolidation of this action ("Kukich Action") with the Rice Action, and the filing of a consolidated amended complaint.
During the pendency of the Rice/Kukich action, two cases were transferred to this court:
While subject to multiple Rule 12(b)(6) challenges, the operative complaint in the Mendoza Action alleges the following causes of action: (1) violation of California's Consumers Legal Remedies Act, (2) violation of California's Unfair Competition Law, and (3) violation of California's Song-Beverly Consumer Warranty Act.
The Mauro Action was commenced in the Northern District of New York and transferred to this Court on March 6, 2018.
Because retransfer of this action would necessarily relieve this Court of merits determination, I will first address the arguments which Plaintiffs advance in their Motion for Retransfer and/or Consolidation.
Retransfer of venue by a transferee court is appropriate where circumstances have changed such that the original purposes of transfer have been frustrated.
Personal jurisdiction exists where the defendant has "certain minimum contacts with [Pennsylvania] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice."
First, I note that both Modesto and Midea America have waived any challenge to the personal jurisdiction of this Court. Indeed, "a party is deemed to have consented to personal jurisdiction if the party actually litigates the underlying merits
More challenging, but similarly unavailing, is the issue of this Court's jurisdiction over SMCA. One way in which consent may be effectuated is through "state procedures which find constructive consent to the personal jurisdiction of the state court in the voluntary use of certain state procedures."
Pennsylvania's long-arm statute reads as follows:
Based on this language, the Third Circuit in Bane v. Netlink, Inc. explicitly held that a defendant who is authorized to do business in Pennsylvania has, under Section 5301(a)(2)(i), consented to the exercise of personal jurisdiction by Pennsylvania courts.
In Daimler, the Supreme Court restricted general personal jurisdiction over a foreign corporation to fora where the corporation was "essentially at home."
This Court therefore remains bound by the Third Circuit's holding in Bane, and thus can exercise personal jurisdiction over SMCA in this matter pursuant to consent evidenced by its registration to do in business in Pennsylvania.
Also encompassed within Plaintiffs' Motion for Retransfer is the argument that, because Defendant Electrolux has not consented to consolidation with the Rice/Kukich and Mauro actions post-transfer, retransfer is appropriate as the underlying impetus for transfer has been frustrated. As an alternative to retransfer, and should this Court find personal jurisdiction over various defendants (as it did above), Plaintiffs request that the Court, over the objection of these same Defendants, exercise its discretion and consolidate these actions. I will first address whether consolidation of this action with Rice/Kukich and Mauro actions is appropriate under Federal Rule of Civil Procedure 42. If I find consolidation is inappropriate, the Court will only then address whether that decision completely frustrates the purpose of transfer so as to mandate retransfer.
Federal Rule of Civil Procedure 42(a) provides that a court may consolidate separate actions that are pending before the court if the actions "involve a common question of law or fact."
Here, as the party moving for consolidation, Plaintiffs bear the burden of demonstrating its appropriateness.
The only Defendant opposing consolidation outright is SMCA. Indeed, SMCA argues that Plaintiffs' claims against it in the instant matter cannot be consolidated with those against defendants in the Rice/Kukich and Mauro actions because this Court lacks jurisdiction. SMCA continues that, because Federal Rule of Civil Procedure 42(a) only allows for consolidation of "actions before the Court," the lack of personal jurisdiction over SMCA in Pennsylvania renders this action not "before the Court" and Rule 42 inapplicable.
Midea America opposes wholesale consolidation of this case, but recommends, in essence, discovery sharing. It specifically argues that, because neither Plaintiffs Rice nor Kukich purchased a purchased a microwave from Midea China, but instead Sharp Thailand, they are not a proper defendant to those plaintiffs, and consolidation would prejudice them. Furthermore, Midea American states that consolidation would result in the addition of claims beyond the California statutory claims characterizing this action, including Pennsylvania, Maryland, and New York statutory claims and Maryland and New York common law tort claims.
Having considered the positions of the parties and the procedural postures of the respective cases, the Court agrees that consolidation at this juncture for purposes of discovery and pre-trial management is appropriate to accomplish the goal of judicial economy envisioned by Rule 42. First, I note that, while the instant matter and the Rice/Kukich and Mauro matters invoke the state law of California, Pennsylvania, Maryland, and New York respectively, they nevertheless involve the same general factual background, i.e. a potentially defective stainless steel microwave handle. That factual dispute concerning defectiveness rests at the heart of all of these matters. The parties agree that discovery in the advanced Rice/Kukich action is relevant to this dispute and should be shared among the parties. Moreover, and as recognized by the transferring courts, these actions contain substantially similar and at times overlapping legal claims. For instance, like the Rice/Kukich action, the Mauro action raised causes of action including violation of the Magnuson-Moss Consumer Products Warranties Act, 15, U.S.C. § 2301, and breach of implied warranty of merchantability.
Given that the same factual background colors the actions before me and the significant overlap of claims, common sense dictates that consolidation of some kind will further the interest of judicial economy. Two concerns, however, temper the extent of consolidation appropriate. First, significant discovery has already taken place in the Rice/Kukich action, and consolidation may, to some extent, slow the continued progress of that case. While this advanced posture of discovery in the Rice/Kukich action as compared to the Mauro and Mendoza actions may recommend against consolidation, it does not "preclude consolidation automatically."
Despite that caveat, the benefits of consolidation for discovery and pre-trial management are considerable. First, rather than determine the common issues to these cases piece meal, consolidated proceedings will allow the Court to educate itself on the facts and complex legal issues common to all actions on one occasion and in one opinion. Second, the parties themselves stand to benefit from sharing of discovery already completed in the Rice/Kukich action and the ability to respond to the opposing parties' arguments in one consolidated pleading rather than across three docket sheets. Third, and perhaps most persuasively, the Court believes consolidation, while potentially slowing the progress of the Rice/Kukich action as it currently stands, will ultimately result in expedited resolution of
Midea America, however, rightly points out the potential for confusion and prejudice at trial given that the Rice/Kukich, Mendoza, and Mauro actions bring claims under Pennsylvania, Maryland, California, and New York law, respectively, as stated above. Midea America is also correct that the potential for juror confusion among the various claims and against differing defendants to those claims does weigh against consolidation.
Having determined that consolidation of discovery and pre-trial management in the interest of judicial economy is appropriate, the Court must next fashion a workable timeline to close the pleadings in this consolidated action and advance this case in an efficient manner. To that end, I find that the most sensible option is to require Plaintiffs to submit a consolidated amended complaint encompassing, but not expanding, the claims within the Rice/Kukich, Mendoza, and Mauro actions.
Accordingly, the parties shall meet and confer concerning the required time to complete discovery and file class certification and dispositive motions in this action. Contemporaneous with the filing of the consolidated amended class action complaint, the parties shall file an amended proposed case management order for this Court's review and potential adoption.
Based on the above reasoning, this Court makes the following case management actions. First, Plaintiffs Motion for Retransfer and/or consolidation is denied to the extent it seeks retransfer, but granted to the extent it seeks consolidation with
To effect this consolidation and to expeditiously progress these cases, Plaintiffs in the now consolidated action are directed to file an Amended Complaint within thirty (30) days of this Order. Because the filing of this Consolidated Amended Complaint would necessarily supersede the complaints of the now separate actions, motions to dismiss in all three actions will be denied as moot without prejudice to the parties refiling in response to the consolidated complaint.
The parties are also directed to meet and confer concerning case management deadlines in this case. Contemporaneous with the filing of a consolidated amended complaint, the parties shall file a proposed case management order for this Court's review and potential adoption which contains deadlines allowing for additional needed discovery and the filing of any class certification motion.