Eisen v. Carlisle & Jacquelin case brief

Eisen v. Carlisle & Jacquelin case brief summary
417 U.S. 156 (1974)

CASE SYNOPSIS

Petitioner odd lot trader appealed a decision of the United States Court of Appeals for the Second Circuit that denied class action status to petitioner in an action charging respondent brokerage firms with violations of the antitrust and securities law, §§ 1 and 2 of the Sherman Act, 15 U.S.C.S. §§ 1 and 2.

CASE FACTS
Petitioner was an odd lot trader of securities. Respondents were brokerage firms used by petitioner and others. Alleging that respondents had monopolized odd lot trading and set the differential at an excessive level in violation of §§ 1 and 2 of the Sherman Act, 15 U.S.C.S. §§1 and 2, petitioner filed a class action lawsuit. After disagreement between the lower court as to whether a class action could be maintained, the court granted certiorari.

DISCUSSION

• The court allowed review of the issue of class action because the matter was collateral to the merits of the case. 
• The court held that there was a failure to comply with the notice requirements of Fed. R. Civ. P. 23(c)(2), and the lower court had improperly imposed part of the cost of notice on respondents. 
• Publication notice was insufficient because the names and addresses of the potential beneficiaries were known. 
• In addition, Rule 23(c)(2) required that petitioner bear the cost of notice to the members of his class. 
• Accordingly, the court vacated the judgment of the appeals court and remanded the matter.

CONCLUSION
The court vacated the judgment of the appeals court and remanded the case.

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