Fortenbaugh et al v. Classicstar Financial Services, Inc. et al

Filing 38

TRANSFER ORDER from the Judicial Panel on Multidistrict Litigation, pursuant to 28 U.S.C.1407, transferring the case to the Eastern District of Kentucky, Lexington to become part of MDL 1877. (dhm, COURT STAFF) (Filed on 12/4/2008)

Eastern DlstrlCt of Kentucky
F·~L.ED

A CERTIFIED TRUE COpy
ATTEST
By Mecca Thompson on Dec 04, 2008

DEC - 4 2008
;\T LEXIi'JGTOrv l.ESLIE G WHITMER CU'RK U S DISTRICT COURT

UNITED STATES JUDICIAL PANEL ON MULTI D I S T R I C T LITIGATION

mR THE UNITED STATES JUDICIAL PANEL ON MULTlDISTR1CT UT1GATION

UNITED STATES JUDICIAL PANEL on MULTIDISTRICT LITIGATION

Dec 04,2008
FILED CLERK'S OFFICE

IN RE: CLASSICSTAR MARE LEASE LITIGATION Peter Fortenbaugh, et ai. v. ClassicStar Financial Services, Inc., et aI., N.D. California, c.A. No. 5:08-3898

) )

MDLNo.1877

TRANSFER ORDER

Before the entire Panel:" Plaintiffs in an action pending in the Northern District of Cali fomi a have moved pursuant to Rule 7.4, R.P.J.P.M.L., 199 F.R.D. 425, 435-36 (2001), asking the Panel to vacate its order conditionally transferring the action to the Eastern District of Kentucky for inclusion in MDL No. 1877. Defendant GeoStar Corp. (GeoStar) opposes the motion. After considering all argument of counsel, we find that this action involves common questions of fact with the actions in this litigation previously transferred to the Eastern District of Kentucky, and that transfer of this action to the Eastern District ofKentucky for inclusion in MDL No. 1877 will serve the convenience ofthe parties and witnesses and promote the j u s t a n d efficient conduct ofthe litigation. We further find that transfer of this action is appropriate for reasons that we set out in our original order directing centralization in this docket. In that order, we held that the Eastern District of Kentucky was a proper Section 1407 forum for actions in which plaintiffs allege harm from the promotion and operation of the ClassicStar, LLC (ClassicStar) mare lease program, and the subsequent attempt of GeoStar, ClassicStar and/or related entities to substitute the mare lease interests with unsuitable alternatives, such as interests in non-thoroughbreds and/or mining interests or stock options. See In re ClassicStar Mare Lease Litigation, 528 F.Supp.2d 1345 (l.P.M.L. 2007). Plaintiffs argue against transfer that, inter alia, this action should be excluded because it contains facts independent ofMDL No. 1877 and that transfer will delay the progress oftheir action. Based upon the Panel's precedents and for the following reasons, we respectfully disagree with these arguments. Transfer u n d e r Section 1407 has the salutary effect ofplacing related actions before a single j u d g e who can formulate a pretrial program that: (1) allows discovery with respect to any individual issues to proceed concurrently with pretrial proceedings on common issues, In re Ephedra Products Liability Litigation, 314 F.Supp.2d 1373, 1375 (lP.M.L. 2004); and (2) ensures that pretrial proceedings will be conducted in a streamlined manner leading to the just and expeditious resolution~f ~G.tiPJlS to the . overall benefit of the parties. I certify ~ this is atrue ailC!carect cqJJ"Qf the originS filed in my oIIice.

an

lESLIE G. WHI1'MER, a.ERK
Judge Vratil did not participate in the decision of this matter.
By:..J..,.jI~a;;:;.,(~,-'.If.-~~~U~··lW;,::;,,'.!1fl:t:'y~.~""
Date:~

/

I")

J

.

D£_t, _ t~. ; rL1Mf

_

-2-

Should the circumstances regarding any action in MDL No. 1877 develop such that the transferee judge determines that continued inclusion of a claim or action no longer remains advisable, and accordingly the transferee court deems Section 1407 remand of any claim or action appropriate, procedures are available whereby this may be accomplished with a minimum of delay following a suggestion of r e m a n d to the Panel by the transferee judge. See Rule 7.6, R.P.J.P.M.L., 199 F.R.D. at 436-38. IT IS THEREFORE ORDERED that, pursuant to 28 U.S.c. § 1407, this action is transferred to the Eastern D i s t r i c t of K e n t u c k y a n d , w i t h the c o n s e n t of t h a t c o u r t , a s s i g n e d to the H o n o r a b l e Joseph M. Hood for inclusion in the coordinated or consolidated pretrial proceedings occurring there in this docket.

PANEL ON MULTIDISTRICT LITIGATION

J. Frederick Motz Kathryn H. Vratil* W. Royal Furgeson, Jr.

Robert L. Miller, Jr. David R. Hansen