Ward v. Apple, Inc., No. 12-17805 (9th Cir. 2015)
Annotate this CasePlaintiffs filed a putative class action against Apple, alleging that Apple conspired with ATTM to violate federal antitrust laws by entering into an exclusivity agreement in which ATTM would be the exclusive provider of voice and data services for Apple's iPhone. The district court dismissed plaintiffs' claims under F.R.C.P. 19 for failure to join ATTM as a defendant. As a preliminary matter, the court determined that it had jurisdiction over the appeal under 28 U.S.C. 1291 because this is an appeal from a final decision of the district court. On the merits, the court concluded that ATTM's role as an antitrust co-conspirator is not alone dispositive of whether it had interests that warrant protection under Rule 19(a)(1)(B)(i). In this case, the district court erred by failing to specify the interests ATTM claimed or to address how those interests might be impaired if the action were resolved in its absence. The court concluded that Apple has not demonstrated that ATTM has a legally protected interest in this action where Apple has not demonstrated that the risk of regulatory scrutiny gives ATTM a legally protected interest in this action; ATTM’s reputational interests in this action are not legally protected under Rule 19; and Apple has not demonstrated that ATTM currently has any substantial contract rights that may be impaired by resolution of this action. Accordingly, the court reversed and remanded.
Court Description: Antitrust/Appellate Jurisdiction. The panel reversed the district court’s dismissal of an antitrust action for failure to join an alleged co-conspirator as a defendant. Plaintiffs filed a putative class action against Apple, Inc., alleging that Apple conspired with AT&T Mobility (ATTM) to violate federal antitrust law in connection with Apple’s agreement with ATTM that ATTM would be the exclusive provider of voice and data services for Apple’s iPhone. The district court dismissed plaintiffs’ claims under Federal Rule of Civil Procedure 19 for failure to join ATTM as a defendant. The panel held that it had jurisdiction under 28 U.S.C. § 1291 over plaintiffs’ appeal from a final decision of the district court even though the current case, Apple III, had been consolidated with another case, Apple II, in which the district court had dismissed a voice and data aftermarket monopolization claim for failure to join ATTM as a party. The panel held that even though the parties in Apple III had stipulated to submit the Apple II briefs on the Rule 19 issue and had agreed that the district court should grant Apple’s motion to dismiss if it decided to follow the decision in Apple II, the district court’s judgment was adverse to plaintiffs and thus appealable. WARD V. APPLE, INC. 3 On the merits, the panel held that the district court abused its discretion in finding that ATTM, an alleged antitrust coconspirator, was a necessary party under Rule 19. The panel held that although the allegation that an entity is a joint tortfeasor with the defendant does not mean the entity must be joined in one action under Rule 19(a)(1)(A), there may be circumstances in which an alleged joint tortfeasor has particular interests that cannot be protected in a legal action unless it is joined under Rule 19(a)(1)(B). The panel concluded that ATTM was not a required party under Rule 19(a)(1)(A), but the district court abused its discretion by failing to identify ATTM’s interests in this action, or address how those interests, if any, might be impaired if this action were resolved in its absence, as required by Rule 19(a)(1)(B). In addition, the record did not disclose whether ATTM had an interest that was entitled to protection under Rule 19. The panel remanded the case to the district court for further proceedings. Dissenting, Judge Wallace wrote that the court of appeals lacked statutory appellate jurisdiction because the district court’s decision was not involuntary or adverse to plaintiffs. He wrote that even if the court had statutory jurisdiction, he would conclude that plaintiffs waived the Rule 19 issue by inviting the district court to adopt the very analysis they argued against on appeal. 4 WARD V. APPLE, INC.
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