Opinion
Docket No. 1105, C.A. No. 2:02-2109
August 9, 2002
TRANSFER ORDER
Presently before the Panel is a motion, pursuant to Rule 7.4, R.P.J.P.M.L., 199 F.R.D. 425, 435- 36 (2001), by defendant Metropolitan Life Insurance Company as successor in interest of New England Mutual Life Insurance Company (New England Mutual) in this action (S-G Metals) to vacate the Panel's order conditionally transferring the action to the District of Massachusetts for inclusion in the Section 1407 proceedings occurring there in this docket. The S-G Metals plaintiff favors inclusion of S-G Metals in Section 1407 proceedings in the District of Massachusetts.
On the basis of the papers filed and hearing session held, the Panel finds that S-G Metals involves common questions of fact with the actions in this litigation previously transferred to the District of Massachusetts, and that transfer of this action to that district for inclusion in the coordinated or consolidated pretrial proceedings occurring there will serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation. The Panel further finds that transfer is appropriate for reasons expressed by the Panel in its original order directing centralization in this docket. The Panel held that the District of Massachusetts was the proper Section 1407 forum for actions involving allegations that New England Mutual used deceptive insurance sales practices, including the use of policy illustrations and other sales techniques showing that the premiums would "vanish" after a certain number of years, in order to fraudulently entice plaintiffs to purchase New England Mutual's insurance policies. See In re New England Mutual Life Insurance Company Sales Practices Litigation, MDL- 1105 (J.P.M.L. June 17, 1996) (unpublished order).
We note that i) S-G Metals involves the same type of conduct by New England Mutual which is the subject of the MDL-1105 actions, and ii) an initial question in S-G Metals is whether corporateowned policyholders were embraced for a period of time by the MDL-1105 class, although they were ultimately excluded from the MDL-1105 class settlement. In light of these dynamics, the S-G Metals parties will benefit from the conduct of pretrial proceedings before Judge Keeton who is wellacquainted with the facts and issues involved in this docket. After close scrutiny, Judge Keeton may determine that Section 1407 remand of S-C Metals is appropriate. If so, procedures are available whereby this may be accomplished with a minimum of delay. 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, S-G Metals Industries, Inc. v. New England Life Insurance Co., D. Kansas, C.A. No. 2:02-2109, is transferred to the District of Massachusetts and, with the consent of that court, assigned to the Honorable Robert E. Keeton for inclusion in the coordinated or consolidated pretrial proceedings occurring there in this docket.