Forces Action Project, LLC v. California
Forces Action Project, LLC v. California
Opinion of the Court
MEMORANDUM
Plaintiffs, a class of “consumers of tobacco products,” allege that the states of California and Utah, the city of San Francisco, and several tobacco companies (collectively, Defendants) violated their rights to equal protection and due process when Defendants entered into the Master Settlement Agreement (MSA). The district court dismissed the action, holding that Plaintiffs do not have standing. The court also denied Plaintiffs’ motion to amend their complaint. We affirm in part and reverse in part. Standing
Plaintiffs argue that the M.S.A. § is a taking of their property without due process, because it requires the tobacco companies to “pass through” their monetary penalties in the form of higher prices for their consumer products. Plaintiffs lack standing to bring this claim because they have not alleged an injury in fact. Table Bluff Reservation v. Philip Morris, Inc., 256 F.3d 879, 885-886 (9th Cir. 2001) (dismissing a similar claim because the argument that a party must “pay increased tobacco prices does not allege an injury in fact”).
Next, Plaintiffs contend that the M.S.A. § insulates the tobacco companies from claims that Plaintiffs otherwise could bring. Plaintiffs do not, however, refer to any claims that were actually dismissed or to any claims that they plan to file. The assertion of a mere hypothetical future injury is not sufficient to confer standing. Lujan v. Defenders of Wildlife, 504 U.S. 555, 564, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992); Thomas v. Anchorage Equal Rights Comm’n, 220 F.3d 1134, 1140 (9th Cir. 2000) (en banc), cert. denied, 531 U.S. 1143, 121 S.Ct. 1078, 148 L.Ed.2d 955 (2001).
Last, Plaintiffs argue that California and Utah violated certain of their own statutes by not providing notice to Plaintiffs of their right to intervene in the underlying actions that were settled by the MSA. Again, Plaintiffs have not established an injury in fact. There is no evidence that either California or Utah instituted an action under any of the cited statutory provisions or that the M.S.A. § is a settlement of such statutory claims. Indeed, California’s and Utah’s complaints prove just the opposite.
Motion to Amend
The district court denied Plaintiffs’ motion to amend their complaint to add an antitrust claim on the ground that the proposed amendment was “clearly futile.” The court noted that, under the “direct purchaser” doctrine, indirect purchasers of products lack standing under the antitrust
The district court was correct to the extent that Plaintiffs seek antitrust damages from the tobacco companies. However, this court has distinguished between an antitrust claim that seeks damages and one that seeks injunctive relief, noting that the “direct purchaser” doctrine applies only to the former. Lucas Auto. Eng’g, Inc. v. Bridgestone/Firestone, Inc., 140 F.3d 1228, 1235 (9th Cir. 1998) (observing that “indirect purchasers are not barred from bringing an antitrust claim for injunctive relief against manufacturers”).
Because Plaintiffs seek both damages and injunctive relief, the district court erred as a matter of law. Defendants assert that there are other reasons, however, why Plaintiffs should be denied leave to amend to add an antitrust claim seeking injunctive relief. See Ascon Props, v. Mobil Oil Co., 866 F.2d 1149, 1160 (9th Cir. 1989) (“The district court’s discretion to deny leave to amend is particularly broad where plaintiff has previously amended the complaint.”). We remand this determination to the district court.
AFFIRMED in part, REVERSED and REMANDED in part. Each party will bear its own costs on appeal.
This disposition is not appropriate for publication and may not be cited to or by the courts of this circuit except as provided by 9th Cir. R. 36-3.
Reference
- Full Case Name
- FORCES ACTION PROJECT, LLC, a California limited liability company Freedom of Choice, a Utah corporation Smokers of the World Unite, an unincorporated association Hawaii Smokers Rights, an unincorporated association Consumers LLC, a California limited liability William H. Steinbarth Enoch A. Ludlow, Jr. Raymond Sasso Dan Cracraft Tee Allen Ada A. Venturelli Angelo Venturelli, Jr. Patricia J. Moore Daniel Moore Jeanette Harris Stephen Gerling Harry H. Knapp Sean O'Heathrim Mary L. Herrin Kimberly M. Sanders Phyllis Lindbloom Karen J. Miller David Steinberg Alice Buller Yvonne Hester Jean A. Levinson Marianne Tavelli Steve George Michael W. Richter James C. Gordon Louise Blake Benita Chestnut Gloria A. Pacheco Gerald Francis Pacheco Cheyenne Rothman Kristen D. Risbeck Carl Risbeck Tammy L. Gayler Larry Mikel Cvitkovich Nancy C. Hughes Mary Jane Van Wagoner Grant E. Denham Naydeen Lamoreaux Dustin L. Bixby Susan M. Burton Connie Jean Rippon Michael Lepore Craig N. Russell Timothy A. Gibson Mic Bourell Chelnisha Marie Edgeman Mark S. Kuchenbecker Daniel M. Blood Jennie M. Featherstone Lyle Anne Blackett Michael W. Blackett Jimmy L. Gileson Greg C. Gafa William Holt David Alan Eliason Peggy Joanne Broadhead Charles Thomas Featherstone David J. Green John P. Hunter Kevin W. Robertson Mark Leroy Petersen Edward Gene Haggard William Theodore Servis Ray Green Helen W. Moser Richard Kent Erickson Evelyn Carolyn Timpe Al Pacheco Paula Nafus Pat Neeley William Grenek Pauline L. Nafus Kelly Hemenway Earl F. Roche Robert Cobarrubias Bernadette Cobarrubias Eddie Joe Martinez Francis Martinez Dotilde Medina Ronald R. Hanks Cynthia Jean Clark Steve Duran Regina Leah Rodgers Tommy James Pistone Robert Neal Wilcock Douglas M. Hunter James Waters Calvin Boyd Smith Joseph Michael Smith Dawn Marie Scott Anthony Alan Scott Robert Wilson Kenneth T. Terry Kent Swenson Sarah Collazzi Sanchez Margaret Sanchez Arthur P. Sanchez Frances Strickland Melanie D. Hoyt Jodie Stevenson Betty N. Hendrickson Jerrad L. Sroufe Gayle R. Burnham Cheryl Johnson Wesley D. Sager Brenda L. Russell James Jonathan Parker A. Brent Dee Ayman Girgis Dennis Somerville Michael Evans Kellie Lee Robertson Joanne Washer Robert W. Lasvich Randall D. Hill Chase Dee Johansen Wade E. Todd Gregory Leon Hincks Steve Camlott Tammy L. Buhler Jeffrey T. Kerr Shauna Rae Rowley Jayne Stephens Ann B. Longshaw Donald Carlisle Clay Burn Hendrickson Robert Hay Lorrie Ockey Larry J. Murdock Vaughn Peart Rodney N. Forbush James Russell Clendenon Deborah K. Thompson Douglas C. Roberts Delroy E. Mark G. Allan Kempton Rhonda Adams Brad Lee Harrison Sheila Brackett Cher Bailey John T. Morgan Robert Wayne Blevins Kathleen Miyasato Robert Thomas Adams Diane Waters Artamae Milligan Curtis Allen Stacie Ann Trujillo Cynthia O'Hara Brian James Bryson Robert Ray Cromwell Eric Pease Justin Earl Larsen Bradley Charles Gingell Viroque Kunz Bobbi Jo Bailey David A. Richards Sherry Johnson (Sherry L. Beck) Wyatt Walker David J. Holbrook Mike Marvidakis Anthony Wade Thompson Denise Louato Becky Lee Thompson Kay Melis Tucker Thompson Snarr Megan Allen Willahan Kami Melis Scott Rosander Kim Gibson William G. Yates Vickie Hunt Cary A. Dotson Lori L. Weber Jason Scott Isbell Margie Louise Pickoudou Benny L. Bellon Daniel Ewing Ola Ewing Joan Veronica Jensen Lynnann Day David B. Day Jimmy Michael Jensen Shawn Eric Fillingim Robert R. Owens Benjamin Lee Gibson Kenneth L. Gibson Bruce Davenport Douglas C. Norberg Joseph R. Wiley, Jr. David Lee Hunter Jeremy Kevin Landers Daniel Ray Christensen Robert J. McPherron Joshlyn Marie Isom James L. Dunn Michael A. Bertot Marci Joy Renzfro Kari Trina Walker Danielle Pelletier Adam Welch Angela Regan Kami Dawn Higgins David J. Bertot Jared A. Gollinger James R. Nielsen Larry Glenn Young Ann V. Young Dustin Roy Vincent Brenda K. Quick Cory Nielsen Jessica Joan Jafari Steve John Walton Noble L. Smith Carin Elizabeth Hamilton Terry Allen Birch Keith J. Westwood Carl H. Roberts Ron Gibbs Joan Allen Justin Schiffman Harold E. Burgoyne Michael T. Murphy Donald J. Graham Max Smith Jason P. Smith Alan G. Herron EDA Lee Herron Diana L. Ness Darla Jimenez Bryan Hilborn Bobbie Joe Sessons Kevin W. Silcox Raymond Allen Hughes Ruth Ann Graham Bruce R. Graham Robin M. Cook Brent M. Barfuss Willis J. Knight Clifford Ray Milburn Ralph E. Williams Joanna Parker Patricia L. Luce Lynn A. Meier William J. Meier Kathleen Seedle Louis D. Rosenberg Sonja Massingill Judith M. Rosenberg Erna Mueksch Jack Little John P. Sullivan Otto J. Mueksch Jack Bowers Carol Jensen Rick Eng John D. Jacoby Lisa Redmond Lynn Kahn Valerie L. Lee Vicki J. Bessette Thomas G. Muller Robert F. Ainsworth Lynelle A. Cole Francisco D. Flores Richard H. Gingrich Helen J. Evans Ronald Gorence Paul Plakosh, Jr. Thompson G. Hackett John A. Ferguson Reid P. Condit Charles Baranosky Jennifer M. Donlon Rex H. Wallace Michael A. Valdez Eleno E. Rodriguez Albert Papa Frank M. Giesing Mark A. Burns Bryan D. Mann Steven D. Paris-Adams Rodney K. Pope Marc W. Lapointe John B. King Vernon E. Viehe Charlene A. Jobe Martha Ronhovdee Ronald Ronhovdee Elia M. Khoury Alan A. Husby Joseph S. Cusati Sean D. Henderson Christopher B. Rockwood Karen Barney Hilary Sue Wood Arthur T. Hirst Stephen F. Murphy Donald G. Ellis Elizabeth Erickson David A. Doubleday Jacqueline S. Miller Patsy J. Bagdanov James Bagdanov Richard G. Paul Elroy G. Ruhe Jason L. Fillmore Lunie F. Cook Charles W. Holt Louie Welch Edward H. Davis Anita J. Royal Balwick Heaton Randall Shelnutt Charles W. Cox, Jr. Cynthia M. Lowman Barry N. Williamson Jack O. Brady Jerry L. Johnson Garland H. Hale Nancy M. Storey Franklin Hyatt Frances Franklin Ronald W. Bergman Cyrus J. Stow Paul C. Armbruster Helen S. Glover Donald G. Oakley Edward W. Storey Many C. Kimbrough Peggie F. Barnett Dorothy S. Swinderman Robert Lawton Clay F. Garland Guy R. Winderman Cynthia Knight Dorothy L. Hinton Roy A. Colquitt Shane M. Adams Jeffrey J. Folds Linda A. Halstrom Harold S. Folds Roland D. Thornton, Jr. Shirley J. Thornton Geza L. Jozan Joy A. McElwaney Robert J. Speck David J. Staebler C. Richard Ellch James M. Harrell Jacob G. Standsbury, Jr. Roy E. Mbrakmann Mary A. Kudrick Elizabeth Liagin Rosalind Marimont Robert R. Smith Joan B. Anderson Felt E. Lair Archie D. Anderson Henry P. Shotwell Andrew Dilio John E. Susko Kenneth J. Silver Theodore T. Moran Thomas E. Graves Steven Murphy Richard Levine Susan P. Murphy Jesse V. Silverman Margaret V. Boericke Rosa A. Raiman James M. Winton Karol J. Price Elizabeth K. Apperson Bob L. Howard Edward C. Apperson Billie E. Bauer Jorge Larco Lina J. Forrester Stan Forrester Trina Berman Cindy Womer Ralph J. King Barbara Collins James C. Gordon Patrick Ryan Margaret J. Watt Cordelia V. Scoyoc Joseph A. Rohla Fredrick C. Willis, III Albert Ricksecker Ellen Hartz Anthony L. Amorelli James E. Prokop Peter L. Petraki Chris Petersen Kenneth B. Shelton Christine A. Smith Theodore H. Schaar Christopher P. Ragon Carl P. Schoen Kent E. Miller Khali M. Khoury Danny Z. Zeidon Brett Frohwein John D. Seiler Donald Owens Mark J. Welsh Steven Schwartz Mercedes Davis Zachary Baird Walsh Geraldine IMAD Bitar Graylon R. Revels Shiloh F. Miller Steven J. Mill@er Robert W. Breckinridge Lisa L. Lincoln Alan Swanson, Jr. Ruth Phillipe Samantha Phillipe Zena L. Garcia Connie M. Burr Terri L. Newman Paul A. Newman Clayton E. Fassett Lynn P. Christensen Kristopher B. Greier Karyn Kimberling, each individually and on behalf of all others similarly situated v. State of CALIFORNIA, individually and on behalf of all others similarly situated Department of Justice of the State of California Bill Lockyer, Attorney General of the State of California, in his official capacity and on behalf of all others similarly situated Department of Health Services of the State of California Joseph Munso, Chief Deputy Director of the Department of Health Services of the State of California, in his official capacity and on behalf of all others similarly situated City and County of San Francisco, a municipal corporation within the State of California, individually and on behalf of all others similarly situated Louise H. Renne, City Attorney of the City and County of San Francisco, in her official capacity and on behalf of all others similarly situated State of Utah, individually and on behalf of all others similarly situated Jan Graham, Attorney General of the State of Utah, in her official capacity and on behalf of all others similarly situated Lorillard Tobacco Company, Inc., a corporation Phillip Morris, Inc., a corporation R.J. Reynolds Tobacco Company, a corporation Brown & Williamson Tobacco Corporation, a corporation
- Cited By
- 4 cases
- Status
- Published