Colon et al v. National Collegiate Athletic Assoc.

Filing 128

MEMORANDUM and ORDER signed by Senior District Judge William B. Shubb on 3/10/2025 DENYING 95 Motion to Exclude Expert Testimony; GRANTING 85 Motion to Certify Class. The certified class consists of: All persons who, from 3/17/2019, to 6/30 /2023, worked for an NCAA Division I sports program other than baseball in the position of "volunteer coach," as designated by NCAA Bylaws. Plaintiffs Shannon Ray, Khala Taylor, Peter Robinson, Katherine Sebbane, and Rudy Barajas are appointed as class representatives. The law firms Gustafson Gluek, Kirby McInerney, and Fairmark Partners are appointed as co-lead class counsel. (Deputy Clerk KEZ)

Download PDF
Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 1 of 27 1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 EASTERN DISTRICT OF CALIFORNIA 10 ----oo0oo---- 11 12 13 14 SHANNON RAY, KHALA TAYLOR, PETER ROBINSON, KATHERINE SEBBANE, and RUDY BARAJAS, Individually and on Behalf of All Those Similarly Situated, 17 18 19 MEMORANDUM AND ORDER RE: PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION AND DEFENDANT’S MOTION TO EXCLUDE EXPERT TESTIMONY Plaintiffs, 15 16 No. 1:23-cv-00425 WBS CSK v. NATIONAL COLLEGIATE ATHLETIC ASSOCIATION, an unincorporated association, Defendant. 20 ----oo0oo---- 21 22 Plaintiffs Shannon Ray, Khala Taylor, Peter Robinson, 23 Katherine Sebbane, and Rudy Barajas brought this putative class 24 action against defendant National Collegiate Athletic Association 25 (“NCAA”), alleging violation of § 1 of the Sherman Antitrust Act, 26 15 U.S.C. § 1. 27 Plaintiffs have moved for class certification. 28 (“Class Cert. Mot.”).) (Second Amended Compl. (Docket No. 84) (“SAC”).) (Docket No. 85 Defendant opposes the motion (Docket No. 1 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 2 of 27 1 94) and moves to exclude plaintiff’s expert evidence (Docket No. 2 95 (“Daubert Mot.”)). 3 I. Factual and Procedural Background 4 The NCAA is an association whose members are colleges 5 and universities competing in intercollegiate athletics. (See 6 Pl. Ex. 7 (Docket No. 85-10); Expert Report of Orley Ashenfelter 7 (“Ashenfelter Rep.”) (Docket No. 113-2) ¶ 16; Expert Report of 8 Jee-Yeon K. Lehmann (“Lehmann Rep.”) (Docket Nos. 119-2, 122-2) ¶ 9 21.) 10 schools. The NCAA governs student athletic competition at its member 11 (See id.) NCAA schools are divided into three divisions: Division 12 I, Division II, and Division III. 13 which are at issue in this litigation, generally “manage the 14 largest athletic budgets and offer the highest number of 15 athletics scholarships.” 16 largest athletics expense for NCAA Division I schools. 17 (Ashenfelter Rep. ¶ 19.) 18 (Id.) (See id.) Division I schools, Coach compensation is the NCAA bylaws limit the number of coaches that Division I 19 schools can hire in a given sport. 20 Ashenfelter Rep. ¶ 26.) 21 than basketball and men’s bowl-division football were permitted 22 to hire a certain number of “unrestricted coaches,” who had no 23 restrictions on compensation, plus one or two “volunteer 24 coaches.”1 25 The bylaw at issue here, NCAA Bylaw 11.01.06 (hereinafter 26 27 28 (Lehmann Rep. ¶ 24; Prior to 2023, Division I programs other (See Lehmann Rep. ¶ 27; Ashenfelter Rep. ¶¶ 26-28.) Most single-gender sports programs were permitted to hire one volunteer coach, while most combined-gender programs were permitted to hire two volunteer coaches. (Lehmann Rep. ¶ 27.) 2 1 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 3 of 27 1 “Volunteer Coach Bylaw” or “the Bylaw”), defined a “volunteer 2 coach” as “any coach who does not receive compensation or 3 remuneration” from the school’s athletics department. 4 Docket No. 85-12 at 62; Lehmann Rep. ¶ 28.)2 5 (See Following the repeal of the Volunteer Coach Bylaw, 6 effective July 2023, the volunteer coach designation was 7 eliminated and the number of unrestricted coaches was increased, 8 typically by the number of volunteer coaches allowed under the 9 prior rule. 10 previously permitted one volunteer coach were allotted one 11 additional paid coach. (Ashenfelter Rep. ¶ 29.) For instance, programs (See Lehmann Rep. ¶ 29.) 12 Plaintiffs brought this putative class action alleging 13 that the Volunteer Coach Bylaw violated § 1 of the Sherman Act. 14 The proposed class consists of “[a]ll persons who, from March 17, 15 2019, to June 30, 2023, worked for an NCAA Division I sports 16 program other than baseball3 in the position of ‘volunteer 17 coach,’ as designated by NCAA Bylaws.” 18 II. (SAC ¶ 19.) Plaintiffs’ Expert Report 19 Plaintiffs’ motion for class certification relies 20 primarily on an expert report authored by Dr. Orley Ashenfelter. 21 (Ashenfelter Rep.) 22 declaration from Dr. Ashenfelter that provides additional Plaintiffs have also provided a supplemental 23 24 25 26 27 28 Volunteer coaches were allowed to receive certain benefits from schools, for example tickets to home games, meals during team events, and compensation for working at sports camps and clinics. (Lehmann Rep. ¶ 28.) 2 The related case Smart v. NCAA, a parallel class action representing baseball coaches, recently settled. (See 2:22-cv02125, Docket No. 70.) 3 3 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 4 of 27 1 explanation of his methodology and updates based on additional 2 data. 3 Defendant seeks to exclude all evidence from this expert, as 4 discussed below. (Ashenfelter Suppl. Decl. (Docket Nos. 115-2, 121-1).)4 5 Dr. Ashenfelter is an emeritus professor of economics 6 at Princeton University and has extensive experience and 7 professional qualifications in the area of labor economics. 8 App. A to Ashenfelter Rep. (Docket No. 85-4 at 49-79).) 9 support of plaintiffs’ motion for class certification, Dr. 10 Ashenfelter created a statistical model to estimate the damages 11 suffered by the members of the proposed class. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (See In To formulate his model, Dr. Ashenfelter relied upon The supplemental declaration was provided as an exhibit to plaintiffs’ opposition to defendant’s Daubert motion to exclude Dr. Ashenfelter’s testimony. Defendant filed an evidentiary objection in which it argues that the court should not rely upon the supplemental declaration in ruling on class certification, instead limiting the court’s consideration of the new material to its ruling under Daubert. (See Docket No. 104.) Defendant argues that it would be unfair for the court to rely upon the supplemental declaration because defendant has not been given a chance to respond to it in its class certification briefing, as the declaration was filed following defendant’s filing of its opposition to class certification. Alternatively, defendant seeks leave to file an additional brief in opposition to the motion for class certification addressing the supplemental declaration. (See id.) Contrary to defendant’s objection, defendant has had a chance to address Dr. Ashenfelter’s supplemental declaration in its reply brief in support of its Daubert motion, and indeed has done so at length. (See Docket No. 111.) Defendant has also deposed Dr. Ashenfelter concerning his supplemental declaration. (See id. at 2 n.1.) Further, the supplemental declaration does not change the underlying methodology or reasoning plaintiff relies upon in arguing the class certification requirements are met. Because defendant has had a fair opportunity to respond, the court may rely on the supplemental Ashenfelter declaration in ruling on both the Daubert and class certification issues. Defendant’s objection (Docket No. 104) is therefore OVERRULED. 4 4 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 5 of 27 1 wage data and other documentation from hundreds of NCAA Division 2 I schools, focusing on those that expanded their coaching staff 3 beyond the prior limits on the number of unrestricted coaches 4 following the repeal of the Volunteer Coach Bylaw. 5 Ashenfelter Rep. ¶ 61; Ashenfelter Suppl. Decl. ¶¶ 11, 21.) 6 focuses on this subset of schools because they “provide the best 7 currently-available evidence of what a competitive market will 8 look like” in the absence of the repealed Bylaw. 9 Suppl. Decl. ¶ 21.) 10 following the Bylaw repeal as a “benchmark” to estimate the “but- 11 for” compensation class members would have received. 12 Ashenfelter Rep. ¶ 40.) 13 practice in antitrust cases of calculating classwide damages 14 based on what class members’ economic position would have been 15 absent the alleged antitrust violations (i.e., in the world that 16 would have existed but for the alleged violation). 17 Corp. v. Behrend, 569 U.S. 27, 36 (2013); ABA Section of 18 Antitrust Law, Proving Antitrust Damages: Legal and Economic 19 Issues § II.4.B (2d ed. 2010). (See He (Ashenfelter The model uses actual coach salary data (See “But-for” analysis refers to the See Comcast 20 Dr. Ashenfelter’s analysis proceeds in two steps. In 21 the first step, Dr. Ashenfelter categorizes sports programs 22 according to how many unrestricted coaches each program was 23 permitted to have under NCAA rules beginning July 1, 2023 (i.e., 24 following the repeal of the Bylaw). 25 ranks coaches within each “program” (each sport within each 26 school, broken down by gender if applicable) according to their 27 actual annual pay. (Ashenfelter Rep. ¶ 66.) He (See id. ¶ 67; Ashenfelter Suppl. Decl. ¶ 22 28 5 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 6 of 27 1 n.39.) He then employs a regression analysis5 to calculate the 2 “step-down” -- i.e., degree of difference -- in pay between the 3 lowest-paid and second-lowest-paid coaches. 4 67-68.) 5 available data that for sports with a three-coach limit (for 6 instance tennis), the lowest-paid coach received pay 45% lower 7 than that of the second-lowest-paid coach. (Ashenfelter Rep. ¶¶ For example, the model concluded based on currently (See id. ¶ 68.) 8 In the second step, Dr. Ashenfelter produces an 9 estimate of the compensation class members would have received in 10 the “but-for” world. 11 school, the model uses the step-down differential identified at 12 step one to calculate a salary value one or more steps lower than 13 the lowest-paid coach. 14 above, the but-for compensation of a volunteer tennis coach based 15 on one “step” down would be 45% lower than the salary of the 16 lowest-paid coach. 17 varies based on school-specific factors for a given sport. 18 id.) 19 given class member based on the step-down level and actual salary 20 data associated with the sports program that employed him or her. 21 III. Defendant’s Daubert Motion (See id. ¶ 70.) Within each sport at each (See id. ¶ 71.) So, in the example The number of steps down that are applied (See The model determines the damages allegedly suffered by a 22 Defendant seeks to exclude the expert report of Dr. 23 Ashenfelter pursuant to Daubert v. Merrell Dow Pharmaceuticals, 24 Inc., 509 U.S. 579, 580 (1993). 25 inquiry focused ‘solely on principles and methodology, not on the 26 27 28 Daubert requires “a flexible A regression analysis models the relationship between the target dependent variable -- here, coach salary -- and one or more independent variables. See Proving Antitrust Damages § II.6.C.1. 6 5 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 7 of 27 1 conclusions that they generate.’” 2 F.3d 1147, 1153 (9th Cir. 2004) (quoting Daubert, 509 U.S. at 3 595). 4 junk science that does not meet Federal Rule of Evidence 702’s 5 reliability standards by making a preliminary determination that 6 the expert’s testimony is reliable.” 7 Corp., 657 F.3d 970, 982 (9th Cir. 2011) (citing Kumho Tire Co. 8 v. Carmichael, 526 U.S. 137, 145, 147–49 (1999)). 9 not require a court to admit or to exclude evidence based on its 10 persuasiveness; rather it requires a court to admit or exclude 11 evidence based on its scientific reliability and relevance.” 12 Id.; see also Primiano v. Cook, 598 F.3d 558, 564 (9th Cir. 2010) 13 (“Shaky but admissible evidence is to be attacked by cross 14 examination, contrary evidence, and attention to the burden of 15 proof, not exclusion.”). 16 United States v. Prime, 431 “[T]he trial court must act as a ‘gatekeeper’ to exclude Ellis v. Costco Wholesale “Daubert does “The manner and extent to which the Daubert framework 17 applies at the class certification stage is an unsettled 18 question.” 19 (9th Cir. 2024) (collecting cases). 20 explained in Lytle that at class certification, where the 21 plaintiff’s expert is relied upon for purposes of the 22 predominance inquiry under Rule 23, “such Daubert factors as peer 23 review of the proffered model may be highly relevant, while 24 others, such as known error rate, may be more applicable to the 25 later-executed results of the test.” 26 ‘full’ or ‘limited’ Daubert analysis should be applied may depend 27 on the timing of the class certification decision.” 28 “If discovery has closed and an expert’s analysis is complete and Lytle v. Nutramax Lab’ys, Inc., 114 F.4th 1011, 1030 7 However, the Ninth Circuit Id. Further, “whether a Id. at 1031. Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 8 of 27 1 her tests fully executed, there may be no reason for a district 2 court to delay its assessment of ultimate admissibility at 3 trial.” 4 Id. But where “an expert’s model has yet to be fully 5 developed, a district court is limited at class certification to 6 making a predictive judgment about how likely it is the expert’s 7 analysis will eventually bear fruit,” and therefore a “full-blown 8 Daubert assessment of the results of the application of the model 9 would be premature.” 10 ongoing and Dr. Ashenfelter is still receiving new data and 11 updating his analysis, which indicates that a full Daubert 12 analysis is “premature” at this stage of the proceedings. 13 id. 14 Id. In the instant case, discovery is See It is undisputed that Dr. Ashenfelter possesses 15 extensive experience and qualifications in the field of labor 16 economics and that he based his analysis on the review of 17 reliable documentation produced by NCAA Division I member 18 schools. 19 “yardstick,” like that employed by Dr. Ashenfelter, is a well- 20 established method of calculating class-wide antitrust impact. 21 See Proving Antitrust Damages § II.4.C. 22 represents that a similar methodology to the one applied here has 23 previously been used to evaluate the class-wide antitrust impact 24 of NCAA coach compensation restrictions. 25 Decl. ¶ 23 n.41 (discussing expert method relied upon in Law v. 26 Nat’l Collegiate Athletic Ass’n, 5 F. Supp. 2d 921 (D. Kan. 27 1998)).) 28 similar statistical analysis in antitrust cases. Regression analysis based on a “benchmark” or Dr. Ashenfelter (See Ashenfelter Suppl. Further, Dr. Ashenfelter has previously performed 8 See, e.g., Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 9 of 27 1 Cason-Merenda v. Detroit Med. Ctr., No. 06-15601, 2013 WL 2 1721651, at *1 (E.D. Mich. Apr. 22, 2013) (denying Daubert motion 3 to exclude Dr. Ashenfelter’s “benchmark” analysis of but-for 4 wages in alleged wage-fixing conspiracy). 5 that his evidence is sufficiently reliable at this stage. 6 Lytle, 114 F.4th at 1031 (expert’s “unchallenged credentials,” 7 “review of documentary evidence and . . . data,” use of a “well- 8 established” methodology, and the fact expert had “successfully 9 performed” similar analyses in prior cases established that 10 expert evidence was admissible under Daubert at class 11 certification). 12 These factors indicate See Defendant argues that Dr. Ashenfelter’s report is 13 nonetheless inadmissible because it fails to account for several 14 key factors. 15 model fails to control for the experience and skill level of 16 coaches because (1) his calculations did not incorporate 17 experience level as a variable, and (2) he did not address 18 potential selection bias in the sample of additional paid coaches 19 hired after the bylaw repeal, who could have higher experience 20 levels and therefore warrant higher wages. 21 factually unfounded, as Dr. Ashenfelter’s analysis does account 22 for experience using both pay ranking within the coaching 23 hierarchy and age as proxies for experience. 24 Rep. ¶ 71; Ashenfelter Suppl. Decl. ¶¶ 32-35). 25 First, defendant contends that Dr. Ashenfelter’s These arguments are (See Ashenfelter Second, defendant argues that Dr. Ashenfelter “excluded 26 evidence from schools that did not add paid coaching positions 27 after the bylaws were amended.” 28 this argument is unfounded. (Daubert Mot. at 21.) Again, (See Ashenfelter Rep. ¶ 71 (“If 9 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 10 of 27 1 . . . a program reports an unrestricted coach who earns no 2 compensation, then the volunteer coach is estimated to also earn 3 no compensation [under the but-for analysis]. 4 is rare: according to my analysis of the schools’ data, more than 5 99% of unrestricted coaches are paid.”).) However, this case 6 Finally, defendant argues that Dr. Ashenfelter’s 7 analysis is based around groupings of dissimilar sports and 8 “tries to estimate market rates of pay for coaches in one sport 9 by using salaries for coaching in other sports that are 10 determined by different supply and demand conditions.” 11 Mot. at 29.) 12 analysis. 13 step one uses groupings of sports based on how many coaches the 14 NCAA permits a school to hire, the damage calculation at step two 15 uses actual salary data from each sports program at each school 16 and therefore accounts for differences across sports. 17 Ashenfelter Rep. ¶ 71.) 18 (Daubert This argument mischaracterizes Dr. Ashenfelter’s While the calculation of the step-down differential at (See To the extent that defendant thinks Dr. Ashenfelter’s 19 analysis inadequately accounts for the variables discussed above, 20 that is not a basis for exclusion under Daubert, but rather goes 21 to the weight of the evidence. 22 691, 695 (9th Cir. 2005) (“[O]bjections to a [statistical] 23 study’s completeness generally go to ‘the weight, not the 24 admissibility of the statistical evidence,’ and should be 25 addressed by rebuttal, not exclusion.”) (quoting Mangold v. Cal. 26 Pub. Utils. Comm’n, 67 F.3d 1470, 1476 (9th Cir. 1995)). 27 Defendant has failed to establish that Dr. Ashenfelter’s 28 “methodology is flawed or that there is a likelihood that he will See Obrey v. Johnson, 400 F.3d 10 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 1 improperly apply that method to the facts.” 2 at 1031. 3 Ashenfelter’s expert report will be denied.6 4 IV. Page 11 of 27 See Lytle, 114 F.4th Accordingly, defendant’s motion to exclude Dr. Class Certification 5 The proposed class consists of “[a]ll persons who, from 6 March 17, 2019, to June 30, 2023, worked for an NCAA Division I 7 sports program other than baseball in the position of ‘volunteer 8 coach,’ as designated by NCAA Bylaws.” 9 (SAC ¶ 19.) To prevail on class certification, plaintiffs must 10 establish “by a preponderance of the evidence” that the proposed 11 class satisfies the requirements of Federal Rules of Civil 12 Procedure 23(a) and 23(b). 13 v. Bumble Bee Foods LLC, 31 F.4th 651, 664-65 (9th Cir. 2022). 14 Olean Wholesale Grocery Coop., Inc. “Rule 23 does not set forth a mere pleading standard.” 15 Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 350 (2011). 16 “[C]ertification is proper only if ‘the trial court is satisfied, 17 after a rigorous analysis, that the prerequisites of Rule 23(a) 18 have been satisfied.’” 19 Sw. v. Falcon, 457 U.S. 147, 161 (1982)). 20 be considered to the extent -- but only to the extent -- that 21 they are relevant to determining whether the Rule 23 22 prerequisites for class certification are satisfied.” 23 v. Conn. Ret. Plans & Tr. Funds, 568 U.S. 455, 466 (2013). 24 A. 25 Id. at 350-51 (quoting Gen. Tel. Co. of “Merits questions may Amgen Inc. Rule 23(a) Rule 23(a) restricts class actions to cases where: “(1) 26 27 28 The court expresses no opinion at this time as to whether any evidence would be admissible or inadmissible at trial. 11 6 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 12 of 27 1 the class is so numerous that joinder of all members is 2 impracticable [numerosity]; (2) there are questions of law or 3 fact common to the class [commonality]; (3) the claims or 4 defenses of the representative parties are typical of the claims 5 or defenses of the class [typicality]; and (4) the representative 6 parties will fairly and adequately protect the interests of the 7 class [adequacy of representation].” 8 See Fed. R. Civ. P. 23(a). Defendant appears to concede that the numerosity, 9 commonality, and typicality requirements are satisfied, as its 10 brief does not address them. 11 factors as part of its “rigorous” analysis. 12 U.S. at 350-51. The court nonetheless addresses all See Wal-Mart, 564 13 1. Numerosity 14 “Although ‘no specific minimum number of plaintiffs 15 asserted’ is required to obtain class certification, ‘a proposed 16 class of at least forty members presumptively satisfies the 17 numerosity requirement.’” 18 422 (E.D. Cal. 2020) (England, J.) (quoting Nguyen v. Radient 19 Pharmaceuticals Corp., 287 F.R.D. 563, 569 (C.D. Cal. 2012)). 20 Here, plaintiffs present evidence that the putative Alger v. FCA US LLC, 334 F.R.D. 415, 21 class has thousands of members (see Ashenfelter Rep. ¶ 63), which 22 defendant does not dispute. 23 satisfies the numerosity requirement. The proposed class therefore 24 2. Commonality 25 Commonality requires that the class members’ claims 26 “depend upon a common contention” that is “capable of classwide 27 resolution -- which means that determination of its truth or 28 falsity will resolve an issue that is central to the validity of 12 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 13 of 27 1 each one of the claims in one stroke.” 2 350. 3 satisfy the rule,” and the “existence of shared legal issues with 4 divergent factual predicates is sufficient, as is a common core 5 of salient facts coupled with disparate legal remedies within the 6 class.” Hanlon v. Chrysler Corp., 150 F.3d 1011, 1019 (9th Cir. 7 1998). “So long as there is even a single common question, a 8 would-be class can satisfy the commonality requirement of Rule 9 23(a)(2).” 10 (9th Cir. 2013) (internal citation and quotation marks omitted). 11 Wal-Mart, 564 U.S. at “[A]ll questions of fact and law need not be common to Wang v. Chinese Daily News, Inc., 737 F.3d 538, 544 The question of whether the Volunteer Coach Bylaw 12 violated antitrust law is common to the entire class. “Antitrust 13 liability alone constitutes a common question that will resolve 14 an issue that is central to the validity of each class member’s 15 claim in one stroke, because proof of an alleged conspiracy will 16 focus on defendants’ conduct and not on the conduct of individual 17 class members.” 18 Supp. 2d 1167, 1180 (N.D. Cal. 2013) (internal quotation marks 19 and citations omitted). 20 has been alleged, courts have consistently held that ‘the very 21 nature of a conspiracy antitrust action compels a finding that 22 common questions of law and fact exist.’” 23 (quoting In re TFT–LCD (Flat Panel) Antitrust Litig., 267 F.R.D. 24 583, 593 (N.D. Cal. 2010)). 25 common question applicable to the whole class, they have 26 satisfied the commonality requirement. In re High-Tech Emp. Antitrust Litig., 985 F. Thus, “[w]here an antitrust conspiracy See id. at 1181 Because plaintiffs have identified a 27 3. Typicality 28 Typicality requires that named plaintiffs have claims 13 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 14 of 27 1 “reasonably coextensive with those of absent class members,” but 2 their claims do not have to be “substantially identical.” 3 Hanlon, 150 F.3d at 1020. 4 other members have the same or similar injury, whether the action 5 is based on conduct which is not unique to the named plaintiffs, 6 and whether other class members have been injured by the same 7 course of conduct.” 8 508 (9th Cir. 1992) (citation omitted). The test for typicality “is whether Hanon v. Dataproducts Corp., 976 F.2d 497, 9 Here, each class representative -- like each class 10 member -- worked as a volunteer coach at an NCAA Division I 11 school, was subject to the NCAA’s Volunteer Coach Bylaw 12 precluding them from receiving compensation, and alleges 13 antitrust injury under the Sherman Act. 14 this uniformity of class members’ injuries, claims, and legal 15 theory is typically sufficient to satisfy Rule 23(a)(3).” 16 re NCAA Student-Athlete Name & Likeness Licensing Litig. (“NCAA 17 Name & Likeness Litig.”), No. 09-cv-1967 CW, 2013 WL 5979327, at 18 *5 (N.D. Cal. Nov. 8, 2013) (finding typicality requirement 19 satisfied for class consisting of all Division I men’s football 20 and basketball players subject to an NCAA policy alleged to 21 violate antitrust law). 22 “any unique defenses which threaten to become the focus of the 23 litigation” that would cut against these similarities, see Hanon, 24 976 F.2d at 508, plaintiffs have satisfied the typicality 25 requirement. 26 4. 27 To resolve the question of adequacy, the court must 28 “In antitrust cases, See In Because defendant has not identified Adequacy of Representation consider two factors: (1) whether the named plaintiffs or their 14 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 15 of 27 1 counsel have any conflicts of interest with other class members, 2 and (2) whether the named plaintiffs and their counsel will 3 vigorously prosecute the action on behalf of the class. 4 Hyundai & Kia Fuel Econ. Litig., 926 F.3d 539, 566 (9th Cir. 5 2019). 6 7 a. In re Conflicts of Interest The first portion of the adequacy inquiry “serves to 8 uncover conflicts of interest between named parties and the class 9 they seek to represent.” 10 Cir. 2023) (quoting Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 11 625 (1997)). 12 interest and suffer[ed] the same [alleged] injury as the class 13 members,” indicating that their interests are “aligned.” 14 Amchem, 521 U.S. at 625–26. 15 Kim v. Allison, 87 F.4th 994, 1000 (9th Here, the class representatives “possess the same See Defendant argues that each class member would need to 16 prove that a given school would have added paid positions for 17 their sport, creating a conflict with other class members who 18 coached for a different sport at the same school. 19 in greater detail below, this argument is premised on a merits- 20 based dispute between the parties’ experts about how but-for 21 damages should be calculated. 22 expert expressly reject defendant’s contention that they will 23 need to prove what hiring decisions would have been made by each 24 school, instead relying on a different method of calculating 25 antitrust injury. 26 presents only a “speculative conflict” that is not “fundamental 27 to the suit.” 28 F.3d 934, 942 (9th Cir. 2015). As discussed Further, plaintiffs and their The issue identified by defendant therefore See In re Online DVD-Rental Antitrust Litig., 779 Accordingly, there are no 15 Case 1:23-cv-00425-WBS-CSK 1 2 3 Document 128 Filed 03/11/25 Page 16 of 27 conflicts of interest precluding class certification. b. Vigorous Prosecution The second portion of the adequacy inquiry examines the 4 vigor with which the named plaintiffs and their counsel have 5 pursued the class’s claims. 6 standards by which ‘vigor’ can be assayed, considerations include 7 competency of counsel.” 8 150 F.3d at 1021). 9 “Although there are no fixed Kim, 87 F.4th at 1002 (quoting Hanlon, Plaintiffs are represented by the firms Gustafson 10 Gluek, Kirby McInerney, and Fairmark Partners. The extensive 11 experience and strong qualifications of plaintiffs’ counsel in 12 litigating complex antitrust cases, including litigation against 13 the NCAA concerning allegedly anticompetitive restrictions on 14 coach compensation, are undisputed. 15 (Docket No. 85-1); Decl. of Robert Gralewski, Jr. (Docket No. 85- 16 2); Decl. of Michael Lieberman (Docket No. 85-3).) 17 counsel represents that they have expended thousands of hours and 18 considerable resources in litigating this case thus far. 19 Class Cert. Mot. at 19.) 20 plaintiffs’ filings supports this conclusion. 21 no indication that the named plaintiffs will fail to vigorously 22 prosecute this case. 23 (describing named plaintiffs’ efforts to support this litigation, 24 including responding to interrogatories, searching for responsive 25 documents, sitting for depositions, and consulting with counsel 26 about case strategy and discovery).) 27 their counsel satisfy the adequacy requirement. (See Decl. of Dennis Stewart Plaintiffs’ (See The court’s review of the docket and Further, there is (See Decl. of Michael Lieberman ¶ 8 28 16 Accordingly, plaintiffs and Case 1:23-cv-00425-WBS-CSK 1 B. 2 Document 128 Filed 03/11/25 Page 17 of 27 Rule 23(b) After fulfilling the threshold requirements of Rule 3 23(a), the proposed class must satisfy the requirements of one of 4 the three subdivisions of Rule 23(b). 5 Inc., 716 F.3d 510, 512 (9th Cir. 2013). 6 certification under Rule 23(b)(3), which provides that a class 7 action may be maintained only if the court finds that (1) 8 “questions of law or fact common to class members predominate 9 over questions affecting only individual members,” and (2) “a 10 class action is superior to other available methods for fairly 11 and efficiently adjudicating the controversy.” 12 23(b)(3). 13 is satisfied, but does not address superiority. Leyva v. Medline Indus. Plaintiffs seek Fed. R. Civ. P. Defendant disputes that the predominance requirement 14 1. Predominance 15 “The predominance inquiry asks whether the common, 16 aggregation-enabling, issues in the case are more prevalent or 17 important than the non-common, aggregation-defeating, individual 18 issues.” 19 Bouaphakeo, 577 U.S. 442, 453 (2016)). 20 central issues in the action are common to the class and can be 21 said to predominate, the action may be considered proper under 22 Rule 23(b)(3) even though other important matters will have to be 23 tried separately, such as damages or some affirmative defenses 24 peculiar to some individual class members.” 25 U.S. at 453 (cleaned up). 26 Olean, 31 F.4th at 664 (quoting Tyson Foods, Inc. v. “When one or more of the Tyson Foods, 577 “‘Considering whether questions of law or fact common 27 to class members predominate begins, of course, with the elements 28 of the underlying cause of action.’” 17 Olean, 31 F.4th at 665 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 18 of 27 1 (quoting Erica P. John Fund, Inc. v. Halliburton Co., 563 U.S. 2 804, 809 (2011)) (cleaned up). 3 of the Sherman Act are “(i) the existence of an antitrust 4 violation; (ii) ‘antitrust injury’ or ‘impact’ flowing from that 5 violation (i.e., the conspiracy); and (iii) measurable damages.” 6 Id. at 666. 7 antitrust laws were intended to prevent and that flows from that 8 which makes defendants’ acts unlawful.” 9 Corp. v. Pueblo Bowl-O-Mat, Inc., 429 U.S. 477, 489 (1977)). 10 The elements of a claim under § 1 Antitrust impact is “injury of the type the Id. (quoting Brunswick Accordingly, “to prove there is a common question of 11 law or fact that relates to a central issue in an antitrust class 12 action, plaintiffs must establish that ‘essential elements of the 13 cause of action,’ such as the existence of an antitrust violation 14 or antitrust impact, are capable of being established through a 15 common body of evidence, applicable to the whole class.” 16 (quoting In re Hydrogen Peroxide Antitrust Litig., 552 F.3d 305, 17 311 (3d Cir. 2008)). 18 be “capable of answering a common question for the entire class 19 in one stroke” and of “reasonably sustain[ing] a jury verdict in 20 favor of the plaintiffs, even though a jury could still decide 21 that the evidence was not persuasive.” 22 Tyson Foods, 577 U.S. at 453; Halliburton Co. v. Erica P. John 23 Fund, Inc., 573 U.S. 258, 276 (2014)). 24 Id. In other words, plaintiffs’ evidence must See id. at 668 (citing “In determining whether the ‘common question’ 25 prerequisite is met, a district court is limited to resolving 26 whether the evidence establishes that a common question is 27 capable of class-wide resolution, not whether the evidence in 28 fact establishes that plaintiffs would win at trial.” 18 Olean, 31 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 19 of 27 1 F.4th at 666-67. 2 overlap with the merits of the plaintiff’s underlying claim,’ the 3 ‘merits questions may be considered [only] to the extent [ ] that 4 they are relevant to determining whether the Rule 23 5 prerequisites for class certification are satisfied.’” 6 (quoting Wal-Mart, 564 U.S. at 351; Amgen, 568 U.S. at 466) 7 (alterations in original). 8 “While such an analysis may ‘entail some Id. It is undisputed that there are common questions 9 concerning the existence of an antitrust violation. 10 question of whether an antitrust violation under Section 1 exists 11 naturally lends itself to common proof, because that 12 determination ‘turns on defendants’ conduct and intent along with 13 the effect on the market, not on individual class members.’” 14 re Coll. Athlete NIL Litig. (“House”), No. 20-cv-03919 CW, 2023 15 WL 8372787, at *8 (N.D. Cal. Nov. 3, 2023) (quoting In re 16 Glumetza Antitrust Litig., 336 F.R.D. 468, 475 (N.D. Cal. 2020)). 17 See also Law v. Nat’l Collegiate Athletic Ass’n, No. 94-2053-KHV, 18 1998 U.S. Dist. LEXIS 6608, at *15-16 (D. Kan. Apr. 17, 1998) 19 (requirements of Rule 23(b)(3) satisfied where “the NCAA adopted 20 a scheme to fix salaries for restricted earnings coaches . . . 21 the purpose and effect of [which] was to make coaching salaries 22 unresponsive to forces that would normally prevail in a 23 competitive marketplace,” and the “plaintiff class members were 24 employed in the restrained market and . . . subjected to 25 defendant’s illegal scheme”). 26 “The In Defendant argues that despite the presence of common 27 questions, individual issues predominate because plaintiffs have 28 not proffered a viable form of common evidence on the issue of 19 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 20 of 27 1 antitrust impact. 2 contends that Dr. Ashenfelter’s model is incapable of providing 3 common proof because it does not address (1) whether each school 4 would have added an additional paid coaching position in the 5 absence of the Bylaw rather than choosing to provide zero pay, 6 and (2) whether each class member would have been hired for that 7 additional paid position. 8 differently, defendant argues that if the Volunteer Coach Bylaw 9 had not been in place, NCAA schools could have nonetheless chosen 10 to provide zero compensation to the additional coaches; and even 11 if they did decide to pay the additional coaches, it is not a 12 given that the proposed class members would have been hired for 13 those positions. 14 effect,” so called because other individuals could have been 15 substituted for the class members in the but-for world. 16 Defendant’s expert, Dr. Jee-Yeon Lehmann, (See Lehmann Rep. ¶¶ 31, 33, 77.) Put Defendant refers to this as the “substitution Plaintiffs contend that the “substitution effect” is 17 not grounded in accepted economic theory or binding case law and 18 instead, the proper focus in constructing the but-for world is on 19 what competitive wages would have been for plaintiffs’ coaching 20 positions absent the Bylaw. 21 analysis uses the proper framing of the but-for world and that in 22 prior wage-fixing cases he has worked on, he has never been 23 required to show that the class members would also have been 24 hired in the but-for world. 25 n.14.)7 26 27 28 Dr. Ashenfelter avers that his (See Ashenfelter Suppl. Decl. at 6 Plaintiffs argue that this court already took a position on the merits of the “substitution theory” in its order denying defendant’s motion to dismiss. (See Docket No. 38.) The court did not do so. (See Docket No. 50 (explaining that the 20 7 Case 1:23-cv-00425-WBS-CSK 1 Document 128 Filed 03/11/25 Page 21 of 27 This issue comes down to a merits-based dispute between 2 the parties’ experts concerning the appropriate method for 3 measuring impact. 4 Indeed, some authorities support plaintiffs’ position,8 while Both positions strike the court as plausible. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 court’s order on the motion to dismiss “did no more nor no less than dispose of the motion which was before the court”).) See House, 2023 WL 8372787, at *8 (Antitrust “injury and damages are determined by comparing, on the one hand, the payments that each class member . . . received in the real world with, on the other hand, the payments that that same class member would have received in the but-for world,” and “the identity of the class members does not change between the real world and the but-for world . . . Accordingly, the so-called substitutions or displacements that may or may not take place in a hypothetical but-for world are irrelevant.”); Law v. Nat’l Collegiate Athletic Ass’n, 185 F.R.D. 324, 330 n.6 (D. Kan. 1999) (rejecting the merits of NCAA’s “substitution theory” argument that plaintiffs suffered no damage because they would not have been hired at all absent the rule at issue, which “was not anchored in established case law”); Tawfilis v. Allergan, Inc., No. 8:15-cv-00307 JLS JCG, 2017 WL 3084275, at *11–12 (C.D. Cal. June 26, 2017) (“[A]n antitrust impact analysis for direct purchasers need not consider downstream substitution effects that could have affected the amount of the product purchased in the but-for world.”); Kamakahi v. Am. Soc’y for Reprod. Med., 305 F.R.D. 164, 192–93 (N.D. Cal. 2015) (rejecting argument that “substitution theory” defeated predominance and noting that “[t]o allow the specter of substitution to defeat class certification, without evidence that substitution would actually occur, would have wide ranging effects on the ability to resolve antitrust claims as class actions”). Plaintiffs’ position also aligns with authorities discussing the but-for analysis more generally. See Comcast, 569 U.S. at 36 (After determining “a ‘but for’ baseline -- a figure that would show what the competitive prices would have been if there had been no antitrust violations” -- damages are “determined by comparing to that baseline what the actual prices were during the charged period.”) (emphasis added); ABA Section of Antitrust Law, Econometrics: Legal, Practical and Technical Issues § 13.B.1.c (2d ed. 2014) (“A test of classwide impact requires the estimation of ‘but-for prices’ (i.e., prices that would have prevailed but for the alleged anticompetitive act).”) (emphasis added); Proving Antitrust Damages § II.4.B (“[I]t is 21 8 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 22 of 27 1 others support defendant’s.9 It is not for the court to engage 2 in a “battle of the experts” over the merits at this juncture. 3 See In re NCAA I-A Walk-On Football Players Litig., No. C04- 4 1254C, 2006 WL 1207915, at *11 (W.D. Wash. May 3, 2006) 5 (declining to take a position on the “fundamental difference 6 between Plaintiffs’ expert and the NCAA’s expert” concerning the 7 appropriate “frame” of the but-for analysis, which was a merits 8 issue not suited for consideration at class certification). 9 also Comcast, 569 U.S. at 35 (plaintiffs’ damage model must 10 measure damages attributable to the theory advanced by 11 plaintiffs); Dolphin Tours, Inc. v. Pacifico Creative Serv., 12 Inc., 773 F.2d 1506, 1512–13 (9th Cir. 1985) (noting 13 “deficiencies” in plaintiff’s damages model which did not See 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 not relevant that the defendant . . . could theoretically have caused the same harms through lawful means,” for instance by choosing to fix prices individually rather than as part of a cartel.). See NCAA Name & Likeness Litig., 2013 WL 5979327, at *8 (crediting the NCAA expert’s “substitution theory” model and denying class certification because plaintiffs failed to “provide[] a feasible method for determining which members of the [proposed class] would still have played for Division I teams -and, thus, suffered the injuries alleged here -- in the absence of the challenged restraints”); Rock v. Nat’l Collegiate Athletic Ass’n, No. 1:12-cv-01019 TWP DKL, 2016 WL 1270087, at *14 (S.D. Ind. Mar. 31, 2016) (denying class certification in challenge to NCAA rule that limited athletic scholarships because “the facts do not support [plaintiffs’ expert’s] extreme position that all members of the [proposed class] would have received a [scholarship] in the absence of the challenged rules”). See also Walk-On Football Players Litig., 2006 WL 1207915, at *1 (denying class certification because plaintiffs failed to provide method of proving their own theory that the class members would have received scholarships absent the NCAA rule at issue, but taking no position on whether plaintiffs’ or the NCAA’s conception of the but-for world was appropriate). 22 9 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 23 of 27 1 sufficiently address competitive behavior in the but-for world, 2 but reversing grant of summary judgment and allowing the issue of 3 damages to proceed to trial). 4 “Rule 23 grants courts no license to engage in [such] 5 free-ranging merits inquiries at the certification stage.” See 6 Amgen, 568 U.S. at 466. 7 1067-68 (9th Cir. 2023) (individual issues predominated where 8 court and parties agreed that presence of individual discounts 9 defeated claim for relief, and defendants provided evidence of 10 individual discounts that would “bar recovery,” which raised “the 11 spectre of class-member-by-class-member adjudication of the 12 issue”). Cf. Van v. LLR, Inc., 61 F.4th 1053, 13 Defendant presents a litany of other critiques of Dr. 14 Ashenfelter’s analysis -- for instance, that it does not account 15 for benefits that class members received by virtue of their 16 volunteer coach positions that could reduce their damages, and 17 does not sufficiently control for variations across different 18 sports and schools in different regions -- arguing that these 19 issues would necessitate individual damage inquiries that would 20 predominate. 21 plaintiffs’ evidence as applied to merits issues. 22 Foods, 577 U.S. at 457 (arguments that an expert study is 23 “unrepresentative or inaccurate” go to the merits and do not 24 defeat class certification). These critiques similarly speak to the weight of See Tyson 25 Further, the Ninth Circuit has repeatedly held that 26 individualized damage calculations alone do not defeat class 27 certification. 28 no per se rule that a district court is precluded from certifying See, e.g., Olean, 31 F.4th at 681–82 (“there is 23 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 24 of 27 1 a class if plaintiffs may have to prove individualized damages at 2 trial”) (citing Halliburton, 573 U.S. at 276); Leyva, 716 F.3d at 3 514 (“the amount of damages is invariably an individual 4 question,” and “the potential existence of individualized damage 5 assessments does not detract from the action’s suitability for 6 class certification”) (quoting Blackie v. Barrack, 524 F.2d 891, 7 905 (9th Cir. 1975); Yokoyama v. Midland Nat. Life Ins. Co., 594 8 F.3d 1087, 1089 (9th Cir. 2010)). 9 that individualized inquiries into damages would predominate over 10 the common issues already identified. 11 679–80 (“While individualized differences among the [actual 12 damages of each class member as compared to the regression 13 model’s estimates] may require a court to determine damages on an 14 individualized basis, such a task would not undermine the 15 regression model’s ability to provide evidence of common 16 impact.”). 17 Defendant has not established See Olean, 31 F.4th at As discussed in detail above, Dr. Ashenfelter has 18 provided a model that estimates but-for wages for each proposed 19 class member based on extensive documentation produced by NCAA 20 Division I schools. 21 a benchmark, a widely accepted form of expert evidence, and Dr. 22 Ashenfelter avers that his analysis provides “a reasonable 23 methodology by which to estimate damages using data” and employs 24 “methods that are common to the class.” 25 10.) 26 “capable of showing that the [proposed class] members suffered 27 antitrust impact on a class-wide basis, notwithstanding [Dr. 28 Lehmann’s] critique,” which is “all that [is] necessary at the His model uses regression analysis based on (See Ashenfelter Rep. ¶ Plaintiffs have established that Dr. Ashenfelter’s model is 24 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 25 of 27 1 certification stage.” See Olean, 31 F.4th at 681 (emphasis 2 added); see also id. at 683 (“a regression model . . . may be 3 capable of showing class-wide antitrust impact, provided that the 4 district court considers factors that may undercut the model’s 5 reliability”). 6 common questions of law and fact predominate. Accordingly, plaintiffs have established that 7 2. Superiority 8 The second part of the inquiry under Rule 23(b)(3) asks 9 whether “a class action is superior to other available methods 10 for fairly and efficiently adjudicating the controversy.” 11 “Generally, the factors relevant to assessing superiority include 12 ‘(A) the class members’ interests in individually controlling the 13 prosecution or defense of separate actions; (B) the extent and 14 nature of any litigation concerning the controversy already begun 15 by or against class members; (C) the desirability or 16 undesirability of concentrating the litigation of the claims in 17 the particular forum; and (D) the likely difficulties in managing 18 a class action.’” 19 F.3d 1168, 1175 (9th Cir. 2010) (quoting Fed. R. Civ. P. 20 23(b)(3)). 21 Wolin v. Jaguar Land Rover N. Am., LLC, 617 The proposed class contains thousands of individuals, 22 and the parties have not identified any competing litigation 23 involving members of the proposed class. 24 that the amount of damages each coach suffered is high enough to 25 make individual litigation an efficient method of resolving their 26 claims, especially given the complexity of antitrust litigation 27 and the presence of several common legal and factual questions. 28 “Forcing individual [class members] to litigate their cases, 25 It appears unlikely Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 26 of 27 1 particularly where common issues predominate for the proposed 2 class,” would be “an inferior method of adjudication.” 3 Wolin, 617 F.3d at 1176. 4 of ‘common issues will reduce litigation costs and promote 5 greater efficiency,’” and the superiority requirement is 6 satisfied. 7 97 F.3d 1227, 1234 (9th Cir. 1996)). 8 Accordingly, “class-wide adjudication See id. (quoting Valentino v. Carter–Wallace, Inc., For the foregoing reasons, the class certification 9 requirements of Rules 23(a) and 23(b)(3) are satisfied. 10 V. 11 See Appointment of Class Counsel “An order that certifies a class action . . . must 12 appoint class counsel under Rule 23(g).” 13 23(c)(1)(B). 14 “(i) the work counsel has done in identifying or investigating 15 potential claims in the action; (ii) counsel’s experience in 16 handling class actions, other complex litigation, and the types 17 of claims asserted in the action; (iii) counsel’s knowledge of 18 the applicable law; and (iv) the resources that counsel will 19 commit to representing the class.” 20 discussed above, plaintiffs’ counsel has considerable knowledge 21 and experience in antitrust litigation and has dedicated 22 significant effort and resources to litigating this action. 23 Accordingly, the court will appoint Gustafson Gluek, Kirby 24 McInerney, and Fairmark Partners as co-lead class counsel. 25 Fed. R. Civ. P. In appointing class counsel, the court considers Fed. R. Civ. P. 23(g)(1). As IT IS THEREFORE ORDERED that defendant’s motion to 26 exclude expert testimony (Docket No. 95) be, and the same hereby 27 is, DENIED. 28 IT IS FURTHER ORDERED that plaintiffs’ motion for class 26 Case 1:23-cv-00425-WBS-CSK Document 128 Filed 03/11/25 Page 27 of 27 1 certification (Docket No. 85) be, and the same hereby is, 2 GRANTED. 3 March 17, 2019, to June 30, 2023, worked for an NCAA Division I 4 sports program other than baseball in the position of “volunteer 5 coach,” as designated by NCAA Bylaws. 6 The certified class consists of: All persons who, from Plaintiffs Shannon Ray, Khala Taylor, Peter Robinson, 7 Katherine Sebbane, and Rudy Barajas are hereby appointed as class 8 representatives. 9 and Fairmark Partners are hereby appointed as co-lead class 10 counsel. 11 Dated: March 10, 2025 The law firms Gustafson Gluek, Kirby McInerney, 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 27

Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.


Why Is My Information Online?