IN RE: Great Western Ranches Litigation

Case MDL No. 143 Document 2 Filed 05/04/15 Page 1 of 4
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BEFORE THE JUDICIAL PANEL |
® MULTIDISTRIOY LITIGATION |
IN RE GREAT WESTERN yrs ns
RANCHES LITIGATION ) ~~ DOCKET NO. 143
OPINION AND ORDER
BEFORE ALFRED P. MURRAH*, CHAIRMAN, AND JOHN MINOR WISDOM,
EDWARD WEINFELD, EDWIN A. ROBSON, WILLIAM H. BECKER,
JOSEPH S. LORD, III, AND STANLEY A. WEIGEL, JUDGES OF THE PANEL
PER CURIAM
Great Western Ranches, Inc. filed a petition for
reorganization in the Northern District of California. Shortly
thereafter, one of the original incorporators filed two actions
in that district against Great Western and others, alleging viola-
® tions of the federal securities laws on the ground that he was- fraudulently induced to exchange his real and personal property
for common stock of Great Western. The trustee for Great Western
also filed an action in the Northern District of California
alleging fraud in connection with the offer and sale of securi-
ties of Great Western as well as corporate mismanagement and
breach of fiduciary duty by Great Western's former principals
and agents. |
The First National Park Bank of Montana, one of the
defendants in the trustee action, allegedly committed fraud
in order to insure the repayment of its loans to two of the
principal promoters of Great Western. The California court has
severed the claims against the bank and transferred them to the
o * Although Judge Murrah was not present at the hearing,	wr he has, with the consent of all parties, participated
in this decision.

Case MDL No. 143 Document2 Filed 05/04/15 Page	2 of 4
® District of Montana pursuant to 12 U.S.C. §94. i
The trustee now moves the Panel for an order trans-
ferring the Montana action to the Northern District of Califor-
| nia for coordinated or consolidated pretrial proceedings
pursuant to 28 U.S.€. §1407. First National Park Bank opposes
transfer. We find that these actions involve common questions
of fact and that transfer of the Montana action to the Northern
District of California will best serve the convenience of the
parties and witnesses and promote the just and efficient conduct
of the litigation.
Movant contends that transfer is necessary in order to
avoid duplication of discovery because the factual issues under-
® lying the bank's alleged fraudulent conduct are common to all
actions. The bank, on the other hand, points out that it is
a defendant in only the Montana action and argues that this action
has few factual issues in common with the California actions
since its alleged fraudulent conduct was a single and isolated
act of preparing and delivering a false and misleading letter
concerning the financial condition of Great Western
In order to prevail on his cause of action against the
bank, plaintiff necessarily will seek discovery about Great
Western's financial condition. The factual issues relating to
Great Western's financial affairs are also common to the other
actions in this litigation. Transfer is therefore necessary
1/ The operation of 12 U.S.C. §94 does not preclude transfer
® under 28 u.s.cC. §1407 because the latter is not encumbered	wr by venue considerations. Transfer under Section 1407 is
: only for coordinated or consolidated pretrial proceedings.
oiiaL of this action will still take place in the District

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® in order to prevent duplication of discovery and eliminate the
possibility of conflicting pretrial rulings.
Since all of the actions except the bank action are
already pending in the Northern District of California, that
district is clearly the appropriate transferee forum for this
litigation. In addition, virtually all of Great Western's
documents are located in that district because the bankruptcy
proceeding is also pending there.
IT IS THEREFORE ORDERED that the action listed on
the attached Schedule A pending in the District of Montana
be, and the same hereby is, transferred to the Northern District
of California and, with the consent of that court, assigned to
® the Honorable Alfonso J. Zirpoli for coordinated or consolidated
pretrial proceedings pursuant to 28 U.S.C. §1407 with the actions
already pending there and listed on Schedule A.
®

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SChizDULE A * DOCKET NO. 143
® DISTRICT OF MONTANA
Stuart M. Kaplan, Trustee for Great ' Civil Action
Western Ranches, Inc. V. Snellen No. 2305
. Ms Johnson,	et al. ‘
' NORTHERN DISTRICT OF CALIFORNIA
Stuart M. Kaplan, Trustee for Great . Civil Action
Western Ranches, Inc. V. Snellen "No. C=72=1223~AJ%"
M. Johnson, et al.
Clifton Hildebrand, et al. v. Great. Civil Action
Western Rancnes, et al. No. C=70-L194-A0%
Clifton Hildebrand v. Peat, Marwick Civil Action
Mitchell & Co., et al. NO, C=71=557=404
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