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Photos Etc. Corp. v. Home Depot U.S.A. Inc., 2016 WL 7557579 (2016) 2016 WL 7557579 (U.S.) (Appellate Petition, Motion and Filing) Supreme Court of the United States. PHOTOS ETC. CORP. et al., Petitioners, v. HOME DEPOT U.S.A. INC. et al., Respondents. No. 16 - 710 . December 29, 2016. On Petition for a Writ of Certiorari to the United States Court of Appeals for the Second Circuit Defendants' Brief in Response in Support of Petition for Certiorari Benjamin R. Nagin, Eamon P. Joyce, Sidley Austin LLP, 787 Seventh Avenue, New York, NY 10019, (212) 839-5300. Carter G. Phillips, * Joshua J. Fougere, Christopher A. Eiswerth, Sidley Austin LLP, 1501 K Street, N.W., Washington, DC 20005, (202) 736-8000, [email protected]. David F. Graham, Robert N. Hochman, Sidley Austin LLP, One South Dearborn Street, Chicago, IL 60603, (312) 853-7000, for defendants-respondents Citigroup Inc., Citibank, N.A., and Citicorp. Robert C. Mason, Arnold & Porter LLP, 399 Park Avenue, New York, NY 10022, (212) 715-1000. Richard J. Holwell, Michael S. Shuster, Demian A. Ordway, Holwell Shuster & Goldberg LLP, 750 Seventh Avenue, 26th Floor, New York, NY 10019, (646) 837-5153. Robert J. Vizas, Arnold & Porter LLP, Three Embarcadero Center, 10th Floor, San Francisco, CA 94111, (415) 471-3100. Mark R. Merley, Matthew A. Eisenstein, Arnold & Porter LLP, 601 Massachusetts Ave., N.W., Washington, DC 20001, (202) 942-5000, for defendants-respondents Visa Inc., Visa, U.S.A. Inc., and Visa International, Service Association † . Kenneth A. Gallo, Paul, Weiss, Rifkind, Wharton & Garrison LLP, 2001 K Street, N.W., Washington, DC 20006, (202) 223-7300. Gary R. Carney, Paul, Weiss, Rifkind, Wharton & Garrison LLP, 1285 Ave. of the Americas, New York, NY 10019, (212) 373-3000, for defendants-respondents MasterCard Inc., and MasterCard International Inc. Joseph R. Palmore, Morrison & Foerster LLP, 2000 Pennsylvania, Avenue, N.W., Washington, DC 20006, (202) 887-6940. Mark P. Ladner, Michael B. Miller, Morrison & Foerster LLP, 250 West 55th Street, New York, NY 10019, (212) 468-8000, for defendants-respondents Bank of America, N.A., BA Merchant Services LLC, (f/k/a National Processing, Inc.), Bank of America, Corp., and FIA Card Services, N.A. (f/k/a MBNA, America Bank, N.A., and Bank of America, N.A. (U.S.A.)). © 2017 Thomson Reuters. No claim to original U.S. Government Works. 1 Photos Etc. Corp. v. Home Depot U.S.A. Inc., 2016 WL 7557579 (2016) Andrew J. Frackman, Abby F. Rudzin, O'Melveny & Myers LLP, Times Square Tower, 7 Times Square, New York, NY 10036, (212) 326-2000, for defendants-respondents Capital One, Bank (USA), N.A., Capital One F.S.B., and Capital One Financial Corp. James P. Tallon, Shearman & Sterling LLP, 599 Lexington Avenue, New York, NY 10022, (212) 848-4000, for defendants-respondents Barclays Bank plc (in its individual capacity and as successor in interest to Barclays Financial Corp.) and Barclays Bank Delaware. Richard L. Creighton, Drew M. Hicks, Keating Muething & Klekamp PPL, One East Fourth Street, Suite 1400, Cincinnati, OH 45202, (513) 579-6400, for defendant-respondent Fifth Third Bancorp. John P. Passarelli, James M. Sulentic, Kutack Rock LLP, The Omaha Building, 1650 Farnam Street, Omaha, NE 68102, (402) 346-6000, for defendant-respondent First National Bank of Omaha. David S. Lesser, Wilmer Cutler Pickering Hale and Dorr LLP, 7 World Trade Center, New York, NY 1007, (212) 230-8851, for defendants-respondents HSBC Finance Corp. and HSBC North America Holdings Inc. Jonathan S. Massey, Leonard A. Gail, Massey & Gail, LLP, 1325 G Street, N.W., Suite 500, Washington, DC 20005, (202) 652-4511. Peter E. Greene, Boris Bershteyn, Peter S. Julian, Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, NY 10036, (212) 735-3000, for defendants-respondents JPMorgan Chase & Co., JPMorgan Chase Bank, N.A., Chase Bank USA, N.A., Chase Manhattan Bank USA, N.A., Chase Paymentech Solutions, LLC, Bank One Corp., Bank One Delaware, N.A., and JPMorgan Chase Bank, N.A., as acquirer of certain assets and liabilities of Washington Mutual Bank ‡ . Frederick N. Egler, Jr., Reed Smith LLP, 225 Fifth Avenue, Pittsburgh, PA 15222, (412) 288-3396, for defendants- respondents National City Corp. and National City Bank of Kentucky. Teresa T. Bonder, Valarie C. Williams, Kara F. Kennedy, Alston & Bird LLP, One Atlantic Center, 1201 W. Peachtree Street, NW, Atlanta, GA 30309, (404) 881-7000, for defendants-respondents SunTrust Banks, Inc. and SunTrust Bank. Robert P. LoBue, William F. Cavanaugh, Patterson Belknap Webb & Tyler LLP, 1133 Avenue of the Americas, New York, NY 10036, (212) 336-2000, for defendants-respondents Wachovia Bank, N.A., Wachovia Corp., and Wells Fargo & Co. Jonathan B. Orleans, Adam S. Mocciolo, Pullman & Comley, LLC, 850 Main Street, Bridgeport, CT 06601, (203) 330-2000, for defendant-respondent Texas Independent Bancshares, Inc. *i PARTIES TO THE PROCEEDINGS AND RULE 29.6 STATEMENT Defendants-Respondents, who were defendants-appellees below and counterparties to the settlement with petitioners, are: Citigroup Inc., Citibank, N.A., and Citicorp; Visa Inc., Visa U.S.A. Inc., and Visa International Service Association; MasterCard Inc. and MasterCard International Inc.; © 2017 Thomson Reuters. No claim to original U.S. Government Works. 2 Photos Etc. Corp. v. Home Depot U.S.A. Inc., 2016 WL 7557579 (2016) Bank of America, N.A., BA Merchant Services LLC (f/k/a National Processing, Inc.), Bank of America Corp., FIA Card Services, N.A. (f/k/a MBNA America Bank, N.A., and Bank of America, N.A. (U.S.A.)); Capital One Bank (USA), N.A., Capital One F.S.B., and Capital One Financial Corp.; Barclays Bank plc (in its individual capacity and as successor in interest to Barclays Financial Corp.) and Barclays Bank Delaware; Fifth Third Bancorp; First National Bank of Omaha; HSBC Finance Corp. and HSBC North America Holdings Inc.; JPMorgan Chase & Co., JPMorgan Chase Bank, N.A., Chase Bank USA, N.A., Chase Manhattan Bank USA, N.A., Chase Paymentech Solutions, LLC, Bank One Corp., Bank One Delaware, N.A., and JPMorgan Chase Bank, N.A., as acquirer of certain assets and liabilities of Washington Mutual Bank; National City Corp. and National City Bank of Kentucky; *ii SunTrust Banks, Inc. and SunTrust Bank; Wachovia Bank, N.A., Wachovia Corp., and Wells Fargo & Co.; and Texas Independent Bancshares, Inc. Given their length, corporate disclosures for these entities pursuant to Rule 29.6 are attached as an addendum to this brief. *iii TABLE OF CONTENTS PARTIES TO THE PROCEEDINGS AND RULE 29.6 STATEMENT .......................................... i TABLE OF AUTHORITIES ............................................................................................................. iv INTRODUCTION AND SUMMARY ............................................................................................. 1 ARGUMENT ..................................................................................................................................... 6 I. THE DECISION BELOW CONFLICTS WITH RULE 23 AND CANNOT BE SQUARED 6 WITH PRECEDENT FROM THIS COURT OR OTHER COURTS OF APPEALS ...................... II. THE SECOND CIRCUIT'S RULE RISKS HARMING THE JUDICIAL PROCESS AND 11 OBSTRUCTING CLASS SETTLEMENTS ...................................................................................... CONCLUSION .................................................................................................................................. 17 ADDENDUM: Rule 29.6 Corporate Disclosure Statement ............................................................... 1a *iv TABLE OF AUTHORITIES CASES Amchem Prods., Inc. v. Windsor, 521 U.S. 591 (1997) ........................................ 2, 6, 7 Ass'n of Cmty. Orgs, for Reform Now (ACORN) v. Edgar, 99 F.3d 261 (7th Cir. 13 1996) ................................................................................................................... City P'ship Co. v. Atl. Acquisition Ltd. P'ship, 100 F.3d 1041 (1st Cir. 1996) ....... 13 Dewey v. Volkswagen Aktiengesellschaft, 681 F.3d 170 (3d Cir. 2012) ................ 3, 8, 9 Jeff D. v. Kempthorne, 365 F.3d 844 (9th Cir. 2004) .......................................... 12 In re Literary Works in Elec. Databases Copyright Litig., 654 F.3d 242 (2d Cir. 12 2011) ................................................................................................................... Marisol A. v. Giuliani, 126 F.3d 372 (2d Cir. 1997) ............................................ 16 © 2017 Thomson Reuters. No claim to original U.S. Government Works. 3 Photos Etc. Corp. v. Home Depot U.S.A. Inc., 2016 WL 7557579 (2016) Ortiz v. Fibreboard Corp., 527 U.S. 815 (1999) .................................................. 2, 6, 7 Rufo v. Inmates of Suffolk Cty. Jail, 502 U.S. 367 (1992) ................................... 12 Sullivan v. DB Invs., Inc., 667 F.3d 273 (3d Cir. 2011) ....................................... 16 Uhl v. Thoroughbred Tech. & Telecomms., Inc., 309 F.3d 978 (7th Cir. 2002) ...... 8 Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338(2011) .......................................... 16 In re Warfarin Sodium Antitrust Litig., 391 F.3d 516 (3d Cir. 2004) ................... 12, 13 Williams v. First Nat'l Bank of Pauls Valley, 216 U.S. 582 (1910) ....................... 11 RULES Fed. R. Civ. P. 23 .............................................................................................. 3, 6, 13 *v Fed. R. Civ. P. 23 advisory committee's note on 1966 amendment .............. 6 Fed. R. Civ.