*2 EDWARDS, and also asserted that Federated had violat- Before MILLER KENT, Judges. Act,2 ed the Robinson-Patman but this Circuit 1. 15 2. 13. § § U.S.C. U.S.C. judgment trial, dropped prior The lawsuit claim was commenced was based was case Court submitted sought damages period for the commenc- solely Sec- violation on the issues plaintiffs ing with 1962. Act.3
tions
and 2
Sherman
gross
$26,500,000, and
did
business
ruling upon the
stated in
gross
$33,300,000.
in 1965
business
new
motion for
trial
defendant’s
*3
plaintiffs
The
conceded that Federated
justi-
evidence to
“there was insufficient
fy damages
the
predecessor,
claims under
Rike-Kumler
and its
the
Clayton
However, on
record
Act.”
Company,
completely unsuccessful
were
damages
appears
any award of
it
monopolizing
department
the
in
store
Clay-
by
4 of the
was
virtue of Section
lawsuits,
Dayton.5
the
in
The
business
1 and
of
ton
for
Sections
Act4
violations
of
in
first
which was instituted
of2
the Sherman Act.
forcing
suppliers,
in
the
were successful
has
the
Federated
since 1959
been
willingly
unwillingly,
to sell to Elder-
Rike’s,
leading department
owner of
the
Beerman,
since,
plaintiffs’
in
as stated
generations.
many
Dayton
store in
brief, by
time of trial “all
but
guiding
and
head
Elder-Beerman
agreed
supplier
defendants
had
to
plaintiffs
Beer-
was Arthur
sell to Elder-Beerman
discrimi-
clothing
had
in the
busi-
man who
been
from
nation
the suit
and were dismissed
years
Dayton
ness
a number
and Elder-Beerman
dismissed two other
opened
when
Beerman
before 1945
he
general
Stores,
defendants
in whom had lost
mer-
Inc. for the sale of
(Beerman)
Subsequently the
chandise.
interest.”
grew by
expanded
business
theory
liability
Plaintiffs’ whole
acquisi-
opening
and the
of new stores
conspiracy
was that
there was a
between
existing
Dayton
tion of
storеs
(and/or
predecessor)
Federated
its
During
period
area.
from
suppliers
destroy-
purpose
for the
through 1965,
years
involved
ing
plaintiffs’ ability
compete on
to
question,
lawsuits
the total sales
terms,
purpose
fair
grew
and for
of at-
the Elder-Beerman
Stores
5a
$10,440,000
$33,300,000.
tempting
monopoly
to
to obtain a
3. 15
1 & 2.
U.S.C. §§
claim
that Federated had succeeded
achieving
monopoly,
a
as
would
4. 15
15.
§
U.S.C.
put
business,
Elder-Beerman out of
argument
closing
plaintiffs’
5.
In
fortunately
his
counsel
was
Federated
not suc-
Jury,
to the
“We contend
attempt,
preven-
stated
in its
cessful
due
things. One,
by
in this case several
that Fed-
Arthur
tive measures
taken
Beer-
trying
get monopoly
erated was
to
a
man.”
department
conventional
store business
Thus,
plaintiffs-ap-
it is obvious that the
They
didn’t succeed
area.
but
pellees
any previously
abandoned
claimed
13886).
trying.”
(Tr. pg.
theory that
Bike’s
ob-
defendant
had
appeal plaintiffs-appel-
brief on
department
monopoly
tained a
of the
store
page
lees
state
53:
Dayton.
business
fortunately
“Elder-Beerman
was able
5a.
In order to establish the
existence of
genius
Arthur Beerman’s
and use
conspiracy
absolutely
is
essential
to
capital
prevent
his
tually achieving
Federated from ac-
to
agreement
prove
be-
was an
monopoly
elimi-
conspirators.
tween
named
“A con-
nating
Elder-Beerman
as
traditional
agreement
spiracy
(or
an
understand-
competitor.
store
Evidence
ing)
parties to
between two or more
do an
showing
was directed at
Federated’s at-
thing
thing
to
unlawful
do a lawful
tempt
conspiracy
monopolize
even
manner.”
and Phras-
Words
unlawful
objective
though
its
was
attained.”
es,
Edition,
“Conspir-
Permanent
Vol. 8A
page
And further at
62 :
acy”, pg.
(Emphasis supplied).
monopolization
charge on
“The
could
prejudicial
conspiracy
complete
not have been
to Federated
“The
on the form-
ing
agreement
plaintiff’s
per-
told
of the criminal
and the
because the
least
act in
counsel
Elder-Beerman
did
formance of at
one overt
fur-
presenting
IN
out
show
THE CONSPIRACY
RESTRAINT
per
Rike’s had
fact used coercion to
THEORY
OF TRADE
grant
suppliers to
to Rike’s
such
suade
alleged conspiracy
To establish the
right
suppliers’
the exclusive
to sell the
might
relied
Elder-Beerman
what
thereby
merchandise
include
described
“rimless wheel”
be
alleged conspir
suppliers as
theory.
theory
of Elder-
acy.
Elder-Beerman offered volumes
having
evi-
Beerman
introduced
hearsay testimony,
much
it from
Rike’s,
dence that
AMC
and AWC
employees,
alleged
as to
statements
own
what
to as
used
refers
supposed
by repre
made
have been
persuade
“coercion”
some
including
suppliers,7
some
sentatives
grant
right
exclusive
defendants,
original
not named
involved,
sell the merchandise
that Eld-
interpreted
should
claims
therefore,
had,
er-Beerman
established
Elder
mean that
the refusal
sell to
permitted
and should
*4
of
on
Beerman was
“coercion”
because
regard
put
proofs
in
in
ex-
evidence
part
granted
of
by
the
Federated.7a
suppliers
clusives
other
with-
long
(Emphasis
we
after
supplied).
And
discussion
therance thereof.”
that,
got
shirts,
the
never
Singer
States,
but we never
477,
208
United
F.2d
got
(6th
1953) ;
the merchandise.
Cir.
Poliafico v. United
Now,
budget
the
(6th
1956) ;
that is for
stores?
States,
Q.
Jersey v. 221 U.S. (1911); 1, 7; Beer L.Ed. F.2d Ace 31 S.Ct. Chicago Distribs., Inc., Cir., Kohn, Board of Trade United Inc. v. 283, 286-287; L.Ed. Packard 318 F.2d *7 Railway (1918); Car Pacific Motor Co. Webster Motor 683 Northern Car v. 1, Co., Co., 1957, U.S.App.D.C. 161, al. 100 243 et v. United 356 U.S. 418; Interborough 5, 514, v. 2 F.2d News Co. 78 L.Ed.2d 545 S.Ct. 1955, recognize Publishing Co., Cir., are that certain restraints Curtis 2 We 293; 289, per se, v. F.2d Naif eh Ronson United States 225 v. unreasonable 150, Works, 1954, Socony-Vacuum Cir., Co., 60 Art Metal 10 218 U.S. Oil 310 202, 206-207; 811, (price Launder (1940) 1129 F.2d Bascom 84 L.Ed. S.Ct. Cir., 1953, Broadway-Hale Corp., fixing); Corp. Telecoin 2 Inc. v. v. Klor’s 334-335; 705, Fargo Stores, Inc., 207, 331, 3 F.2d 204 Glass 79 S.Ct. 359 U.S. Hershey readily vendors, largest dis- the three The facts trade tinguishable Hershey ar- because there was forced into a similar case, opinion, rangement.” page There was as stated at 970 of the no (Em- agreement “An between Lamont and situation case. vending operators,” phasis supplied.) three machine 970, keep page further at “To stated
145
tors,
Inc.,
Corp.,
Kohn,
283
Inc. v.
318 F.2d
v.
American
Paint
&
Co. Globe
534, 539-540;
Cir., 1963),
pages
287:
Cir., 1953,
286,
F.2d
said
7
201
Schwing Motor
v. Hudson Sales
Co.
“That,
results
without
899,
Corp., D.Md.,
F.Supp.
1956, 138
by
proscribed
Act, is
the Sherman
curiam, Cir., 1956,
per
4
239 F.
aff’d
A manufacturer
Act.
violation of the
176;
v. Bausch &
2d
United States
right
has a
select
customers
its
S.D.N.Y.,
Co.,
1942,
Optical
45
Lomb
F.Supp.
goods
anyone,
to refuse to sell
387, 398-399,
by
aff’d
United
sufficient to
reasons
itself.
court, 1944,
equally divided
321 U.S.
300,
Colgate &
250 U.S.
Co.,
v.
States
707, 719,
805,
L.Ed. 1024.
64 S.Ct.
88
465,
A refusal
39
nothing
involved than vertical
more is
suppliers
resales must be
and that
the
manufacturer’s
of
‘confinement’
profit.”
at a
select
merchandise
own sales of the
products
competitive
dealers,
if
ed
very
words, by
In
of
nature
others,
re
readily available to
everyone
involved in
al-
business
striction,
alone, would
on these facts
leged conspiracy had to know that other
is
Act.
the Sherman
violate
illegal
persons
performing
would be
acts
boundary
we
lines that
these
within
conspiracy.
To
furtherance
of the
present
analyze
case.”
must
the same effect
States
are United
v.
(2nd
Tramaglino,
Cir.,
any
F.2d 928
197
in the absence
record
On this
States,
1952);
v.
74 F.2d
Lefco
United
the alterna-
more substantial evidence
(3rd Cir., 1934);
suitability
v.
United States
their
tive lines available
(3rd
1960).
Lester,
147 view, single conspir- certainly was e. [i. natives and insufficient “This acy] throughout specifically conspiracy restrain embodied establish the instructions, obviously upon based the confuses trade which Elder-Beerman right purpose single the enter- common to recover. prise several, though similar, with the applicable in this More the facts purposes separate of numerous adven- case is decision of the United States tures of like character.” Supreme Court in Kotteakos v. 750, 1239, words, recognize 90 In other S.Ct. we against (1946). In there L.Ed. 1557 that case this case was tried Federat suppliers being ed evidence of obvious alone in violations without Housing provisions Act, in National volved justify the trial. But this could not 1703, 1715, hearsay 1731. U.S.C. admission evi §§ purpose accomplishing Numerous loans and dence for the were involved activity supplier fraudulent on of a the inclusion of a a co-con persons. describing spirator number of In with Federated first pages demonstrating evidence the Court said at that the in fact page knowledge 66 S.Ct. at had 1243: of such the existence conspiracy. permit To against de “The evidence the other hearsay to use the as a evidence offered fendants cases were whose submitted foundation for a based to the in similar character. theory the “rimless wheel” results They too had transacted business with acceptance damage offer and evidence relating Housing Brown National will the nature which be hereinafter Act loans. But no connection was therefore, We, discussed. hold petitioners, shown between them and this record Elder-Beerman failed of other than that Brown had been probative fer sufficient to es instrument for ob each instance alleged single conspiracy upon tablish the taining many cases the loans. damages. which it bases its claim for any other re defendants did not have Necessarily, conspir- another, since find lationship we with one acy in restraint of trade issue inade- than Brown’s each connection with quately supported, must the verdict transaction. Court of As Circuit Ry. fail. Baltimore and Pos- Appeals said, Ohio Co. v. “at there were least tom, U.S.App.D.C. 207, F.2d eight, more, perhaps separate As stated this Court Vo- independent groups, none of which Lloyd Fry lasco Products Roof- Co. v. any other, connection with ing Co., Cir., though 308 F.2d independently all dealt 1962): agent.” Brown their [United pattern States v. meeting we wheel to enclosethe As the Government was “that of at a common add without Lekacas,] spokes.” 151 F.2d separate spokes the rim center,” though puts [170] of the it, at plicable claims that the ‘two er cause of an error in the submission of “[5-7] The issues jury, Tennessee can properly plaintiff be no issue’ rule submitted to that, reversal be- Volascо if oth- ap- While there is much discussion issue. cites two cas- indicating possi- Circuit, support Kotteakos es decision from the Sixth bility theory. theory that such a “rimless wheel” Louisville & Nashville might though Rochelle, Company be used in a 252 F. civil case Railroad v. appropriate yet, case, 2d a criminal be- C.A. Coastline and Atlantic Company Smith, cause proofs of the Railroad 264 F.2d nature we are forced di- C.A. 6. cases are both conclusion as stated These Supreme versity where the Kotteakos case cases tried in Tennessee at page (Tennessee page prevails two-issue rule 1250: *10 148 Umenstetter, Simpson Company Ry. 155 in Union Oil v. stated v. Central Co. (9th 452) 235, California, 764, and under 311 F.2d
Tenn.
291
767
S.W.
64,
1963):
Tompkins,
Cir.,
304 U.S.
Erie R.
v.Co.
1188,
817,
the Dis
58
82 L.Ed.
S.Ct.
private
the
clear
“[2]
must
substan
trict Court
follow
litigant
suit-charging
in a
violation
Tennessee and
tive
of the state.
law
antitrust
a different
the
position
law stands
only
in the
states
Ohio are the
Sixth
government in an
than the
rule. This case
Circuit to
follow
government
antitrust
In a
ac-
action.
under federal law where
is tried
tion,
present only
need
there
viola-
applicable.
not
‘two
rule is
issue’
damage
indi-
tion of
the laws and
Mining
Wilmington
Co. v. Ful
Star
pri-
need
shown. The
viduals
not be
412,
60,
79,
ton,
78,
27 S.Ct.
205 U.S.
litigant
only
vate
must not
show
708;
R.
Baltimore
O.
51 L.Ed.
laws,
but
violation
the antitrust
330,
329,
Reeves,
v.
10
C.A.
Co.
6; Chicago
F.2d
impact
show also the
of the violations
Ry.
Co. v. Gar
N. W.
damage
result-
him
to him
8;
848, 857,
wood,
C.A.
Roth
167 F.2d
ing from the
antitrust
violations
262, 269,
v.
145
C.A.
Swanson,
F.2d
laws.”
8.”
language
Similar
is found Continental
with the
is in accord
This conclusion
Ore Co. v. Union Carbide
Carbon
by the
States Su-
laid down
rule
Corp.,
(9th
1961).
Cir.,
86,
289 F.2d
90
Growers,
preme
v.
Inc.
Sunkist
(1962),
Winckler & Smith
damage
As to the
issue
fact
pages 29,
plaintiff’s theory
depart
was the
L.Ed.2d 305:
ment store which
unable
obtain the
brands of
merchandise demanded
theory
hold erroneous one
“Since we
public will suffer lost sales both in the
general
liability upon
which
desired brand and
items which
verdict
among
have rested —a
likely
purchase
customers would be
Exchange Lem-
petitioners and
presence in
because of the customers’
unnecessary
explore
us to
on—it is
for
purchase
de
store to
legality
As
of the other theories.
sired brand. Elder-Beerman established
Maryland
was
...
stated
by the evidence
could
obtain
Baldwin,
5 S.Ct.
U.S.
v.
sold
certain brands
merchandise
gen-
(1884),
‘[I]ts
L.Ed.
joined
defend
erality
perceiv-
prevents
us
ants in this suit
and claimed that
ing upon
plea
which
found.
many
could
other brands which it
If,
therefore, upon
one issue
po
not obtain. Elder-Beerman took the
committed,
error
either
having
sition that
established
facts
these
charge
or in the
admission of evidence
damage.
it had established the fact of
court,
up-
cannot be
verdict
ignored
plaintiff’s theory virtually
held .
.
necessity
proof
comparable
for
alternative brands were
available.
DAMAGES
attempting
An
essential element
damage
Though
necessary
find it
establish
because
fact of
we
reverse
sup
specified
judgment
exclusion from a
plaintiff
source
for the
compa
ply
stated, yet
lack
previously
is the
of an alternative
feel
reasons
we
mer
compelled
rable substitute
the desired
manner
to discuss the
Arnold,
damage
presented
v.
chandise. United States
issue
Co.,
Schwinn &
jury.
it is clear
At the outset
Hershey
(1967);
recovery by plaintiff
which we assume
uncertainty
which his
of such
own
sales
merchandise
effect of
wrong
Package
had, during
period
created.
See
has
Clo-
stores which
Sealright Co., Cir.,
Corp.
question,
of mer-
sure
taken on such lines
v.
principle
place
F.2d
That
of or
addition to al-
chandise in
Delamirie,
Armory
one,
previously
ancient
carried.
ternative brands
*12
Strange 505,
not restricted to
and is
recognize
Supreme
the
We
damage
suits,
proof
in antitrust
al-
of
pointed out on
than one
Court has
more
though
is such
fre-
their character
although
proof of
the
occasion that
quently
application.”
to call for
its
damage in a ease such as this
amount of
(Emphasis
supplied.)
uncertain,
may
plaintiff
be somewhat
To the
see Zenith
same effect
Radio
recovery
precluded from
unless the
not
Corporation
Inc.,
Research,
Hazeltine
v.
damage
totally speculative.
amount of
1562,
100,
395 U.S.
23 L.Ed.2d
89 S.Ct.
Story
Company
Paterson
v.
Parchment
(1969); Elyria-Lorain Broadcasting
129
Company,
Paper
Parchment
Co.,
v. Lorain
X51 length regard gressing practices matters cies Elder-Beerman com- issues, response plains policies about standard unrelated questions both direct examination Rike’s which continued under the same managerial personnel and cross-examination. after Federat- purchase. ed The com- alleges plaint conspired CONCLUSION department various store Because of result reached the oth- goods monopo- to restrain and to trade allegations require er error do lize the store market anticipate discussion. We re- Dayton alleged area. The device to have appropri- trial court hold mand the will employed been contract for pretrial ate conferences and enter orders whereby “exclusive” of a pursuant thereto will substantial- highly sup- favored “name” brand would ly necessary trial reduce the time of ply goods to Rike’s but not to this case. Dayton other store area —or at judgment is re- least not to Elder-Beerman. Elder-Beer- *13 and case remanded to the versed is charges large man buying that Rike’s used its proceedings District Court for further (and power larg- later the much opinion. not with inconsistent this power Federated) buying er of to coerce agreements by into such Judge (concur- EDWARDS, Circuit threatening buy not from at them all dissenting ring part part). in in and they complied. unless Elder-Beerman, course, to seek court is claims dam- The tradition this ages opinion possible it a result of the viola- one wherever as antitrust But, principle it without sacrifice tions attributes Rike’s. at the achieve outset, by interesting accommodation to note that dur- years reasonable this, ing period dispute, In the face of all of the views others. writing opinion (and Rike’s) myself find still a third showed a my colleagues steady growth have al- busi- in ease wherein both volume of earnestly profit. ready this labored and ness lengthy complex the im- and record my colleagues’ posi- As I understand legal portant factual and and difficult tion, believe that the factual record both presents. which it issues lengthy developed in six-month trial this case, however, have support The issues of this variety not for of reasons does significance for all American business colleague, Judge jury My verdict. consumers like- for all American by feeling Kent, this result reaches They undeter- with thus far deal wise. proofs con- no one overall there were legal major two mined conflicts between hearsay spiracy, that much inadmissible right of the concepts. is the The first jury ver- was to condition allowed compete freely in the businessman dict, jury allowed take that the was desires. The second is damages market as he computing into account against monopoly and prohibition suppliers as to with some transactions in the anti- of trade contained any straint proof of no there direct which acts. trust illegal all on the at conduct in the instance defendant, Day- suit is an This antitrust (Eld- from were withheld Ohio, department brands ton, where store chain agreement de- bigger, plaintiff between er-Beerman) against older, supplier, no there and the fendant proof chain better established plaintiff damage to (Rike’s). During competitor from which store deduced, plaintiff did since litigation period of de- could be chain a national totally satis- bought (Federated) brands that other partment establish stores marketing factory were available for appears Federated also Rike’s. He reverse poli- would brought as substitutes. suit, the basic law generally gaged selling goods, wares, new trial with the restrictions or mer- selecting inferred above. chandise commerce from their own customers bona fide Judge colleague, Miller, My on the transactions not in restraint hand, devel- that the feels evidence ” trade: . . . conspiracy oped on the claim at trial inadequate policies to The antitrust at set restraint trade was issue are all; Acts, plaintiff Clayton support forth the Sherman and verdict retry applicable opportunity provisions an fol- not have of which should issue, in his view low: since appropriate failed muster evidence (26 1 of the Section Sherman Act given opportunity to do so fair amended) provides in rel- Stat. only trial, first that on remand the part: evant go is that issue which should “Every contract, combination in attempts monopolize. pertaining to otherwise, form of or con- trust Contrary positions, I to these spiracy, in restraint of trade . . . ” beginning felt from the of this case that illegal. is declared to . . . given eminently sides an fair both were 15 U.S.C. 1§ competent judge trial before able and (26 2 of Section the Sherman Act judge’s period, over a six-month that the amended) provides Stat. in rel- rulings under on admission part: evant the liberal rules which characterize “Every person monopolize, who shall appropriate, trial were attempt monopolize, or com- proofs *14 any conspire per- bine or with other conspiracy, found overall could have one any persons, monopolize son or goes brand the substitute issue part of the trade or commerce damage than to the more the issue of among the several . . . States liability, of af- issue and that we should guilty of shall be deemed a misde- jury liability firm the as far as verdict ” meanor. . . . 15 U.S.C. § is concerned. (1970). damages of is con- As far as the issue Clayton (38 Act Stat. Section of the cerned, however, myself I have found amended) provides in relevant as beginning case in from the this of part: agreement colleagues my as to with any person in- “That who shall be principal mand. Plaintiff’s witness jured property in his business or damage to me to issue have seems anything of in reason forbidden indulged utterly specula- in inadmissible may sue therefor antitrust laws addition, tion. In I think that defend- threefold . . . and shall recover ant entitled to an instruction to the damages by sustained, him jury damages awarded that no could be including suit, the cost a reason- of . which the as to those exclusives attorney’s able fee.” 15 U.S.C. § legal jury found be ones unmotivated (1970). by any practices on the of coercive defendant. THE CONSPIRACY ISSUE impor-
The conflict between the two
policies
mir-
tant
I mentioned above is
disagreement
major points
in
specifically
quite
rored
in
laws of
panel may
in
our
discussed
relation
be
this
United States which underlie
Judge
question
conspiracy.
Mill-
litigation.
enterprise aspect is
The free
er
record of
finds no evidence
this
(1970) as
set forth in
fol-
15 U.S.C. 13§
Judge
any Kent be-
at all and
lows:
testimony
there is
lieves that while
conspir-
“‘providedfurther,
nothing
jury
here-
found
That
which the
could have
prevent
acy, legally
testimony
persons
en-
should be
contained shall
Any
figure
pled guilty.
establishing
indi-
tral
number
as
read
course,
result,
allowed
conspiracies
over-
would have
rather
than one
vidual
persons to
crimes of other
be
conspiracy.
there was
I believe that
individual
all
against
charge
proof
proper-
proved
buttress
from which the
could
Kotteakos
ly
conspiracy.
no
each defendant.
But
found
overall
sup-
precedent
for this
Here the
case.
Although
at
did not
so
I
believe
spokes,
pliers,
are not
court
all
per-
case,
beginning of this
now
am
pro-
and the case
trial,
instant
in the
the most useful model
suaded that
charged
against
party
the central
ceeds
considering
conspiracy is the rimless
par-
conspiracy,
hub
this
with
According to Elder-Beerman’s
wheel.
of the exclu-
Even if all
ticular wheel.
theory,
con-
was the hub of the
found
contracts which
sive
sup-
spiratorial
wheel
exclusive
regarded
individual
should have been
pliers
spokes.
im-
One
conspiracies,
result
separate
portant questions in this case is whether
damages
would have
accumulation
them) agreed
(or any
Hence,
if Kotteakos
the same.
been
Rike’s,
other,
well as with
each
conspir-
total
division of the
commands
My
participate
conspiracy.
(a
many conspiracies
acy
into several
colleagues believe,
believe,
and I
concede) the
I do not
Dis-
result which
there was no such
this
Judge’s
instruct
failure to
favor
trict
short,
no rim to
record.
there was
separation would be harmless.
wheel,
put
or to
it in
more conven-
Berger v.
See
language,
tional antitrust
there was no
L.Ed.
proof
conspiracy.
of a horizontal
appears
the first
instance
This
however,
me,
not seem to
It does
department
suit
antitrust
of a
store
this fact
is fatal either to the immediate
against
general character
another
liability
jury’s
result
terms of the
if
store. There
little
verdict,
to retrial of
this issue.
appears
problem.
on this
law
settled
are,
course, many
There
instances
supplier can
conceded
where
the criminal
unilaterally
law a central con
purposes
economic
his own
spiracy
dispose
goods
exclusives,
long
contraband
grant
so
as the result
*15
selling
through
has been carried out
of trade or
not constitute restraint
does
agents (who
did
Agreements
also
each oth
know
monopolization.
er)
might
regarded
spokes
who
not to consti-
have been held
exclusives
conspiratorial
wheel.
Poliafico v.
laws.
tute
the antitrust
violations
States,
(6th
United
Seagram
suppliers
requests
Inc. v. Hawaiian Oke
&
who resisted
ex-
Ltd.,
Liquors,
utors
their
business
groups.
economy.
small
thrive
tion makes little difference to the
is not to be tolerated
the victim is
can
interstate
at
It interferes with the natural
made available to
selling
“monopolistic
some
the same
businessmen,
to it on
by the elimination
“nature”
driving
is so small that
instances
commerce.
Monopoly
recognition
just
tendency.”
prices
any terms
them out
one
Broadway-Hale
forbids them
merchant
can as
merely
at
“character,”
of this fact
his
clearly has,
whatsoever.
As such
time,
conditions
destruc-
because
flow
surely
whose
large
it
business is
yes.
sers,
you
had motto
which can
Starling,
if
“Be
Q.
Q.
Q.
Q.
[*]
you
pretty
aggressive”
Yes,
insisted
Now,
Now it is
In
And
want
(cid:127)*
sir.
fact,
hard? A. would
they
kind of a hard
you, yourself, at
#
put
get
should be
? A.
fact,
true,
your
ahead
department-store
your
Yes,
the Beerman
merchandisers
the one
you
aggressive?
[*]
merchandi-
expression
sir.
business;
not,
have to
say
Rike’s,
(cid:127)»
thing
Mr.
so,
consistently
going
Act has
started
into
been
Stores when
Sherman
department stores,
all contracts and combi-
because of their
read
forbid
aggressive
part,
‘tend to
a mo-
on their
nations “which
create
attitude
”
tendency
something
nopoly,’
“the
is a
was of concern
whether
which
you
officials,
creeping
proceeds
“one that
one” or
Dayton
and no one
cited
We have not found
lias
salesmen
area knew
testimony
suggests
thing
happening
to us a line of
the same
to others.
*17
against
may
that
the exclusive
whom
It
that
is
that
this is all
needed
boycott.
complains
with
consulted
to constitute
horizontal
But
any
agreed
point
appears
with each other
about
to
gone
case
to have
no
thing.
did,
course,
Each
consult
this far. But see United States v.
agreed
grant
O’Connell,
(2d
1948).
Rike’s.
Some
exclusives
months
could
DAMAGES
I
end of
three months
could
at the
Although
jury’s
I would affirm the
my
place
stock
order
to balance
liability,
verdict as to
I concur in rever-
or-
the end of
and that
be
our
would
damage
sal
award and in remand
And
ders with
and Foster.
Stearns
rehearing
of the case
this issue
(538-539a).
way
that’s
ended.
alone.
interesting
compare
agree
Judge
fully
this testi-
It is
I
Kent
with what
language
damage
mony
aspect
a 1964 Rike’s
with the
has written as
managerial per-
Policy
case,
but I
like to add some
Statement
would
circulated,
emphasis.
statement was
This
sonnel.
beginning
course,
well after
admissibility
expert
witness
period
this case and
covered
testimony
committed
the discretion
significant
may
found
we have
judge
discretion as
of the trial
—a
testimony
there-
tactics
no
coercive
appellate
find
courts are loathe
after :
damage proofs
Further,
on
abuse.
be-
in antitrust
cases
may,
purchase an
courts
liberal
at the time we
We
difficulty plaintiffs
cause
from resource do so on
or line
item
securing
figures.
Story
precise
Parch-
understanding
have an
that we
Paper
strictly
ment
Paterson Parchment
Co. v.
must be
“exclusive”. This
248,
understanding
Co., 282
51 S.Ct.
U.S.
the resource
between
(1931).
as this court
purpose? Let A. buy did not other man stores and hence you. that same visit. that store on items see, you trying to when You again, judgmental employed Here he a through problem situa- or a a think derived a mathematical for- curve and concept, you a come tion like this By it. added mula to fit this method he pictured concept often be can “peripheral for a total lost sales” lost pic- graph ais graph, see. $44,000,000 estimate sales your concept. ture of through years He then un- thinking. Now, this is in creative arbitrary dertook formulae Otherwise, you Q. when Yes. figure profits fi- to lost reduce this formulae, these curves with have all nally up wound estimate arcs, catenary all they represent some million odd dollars of such lost $7 thinking in creative stuff. But profits. you picture, you have jury obviously did not fol- While your mind, thought, concept way tes- low Friedlander all the on this paper piece pictured on a it can be *22 justification timony, I cannot find for you picture it and graph. So go letting theory damage of this you develop describe a formula to then jury. picture finish it off to and get you you way And so want it. long Perhaps if there had been this puts curve, ev- nice, аnd that smooth controversy way relate Eld- no at all to orderly erything an basis. on damages to er-Beerman’s established give imprimatur, facts, opinions it an doesn’t That like those referred even know, holy it, you might make for it doesn’t admissible want to above writ. mind. pretty sir, curve? will I drew the That was A. That’s Q. Q. Q. Q. [*] express that You think? Do Then You close, yes. It substantiates X you is drew rough No. you just right. have [*] picture —That’s curve? said, of A. any X that curve curve first? What I data I had think that what X particular whatever formula X it first. my A. is. is prove course, ing suppliers the direct experience was withheld quent of But Beerman it would closed, Elder-Beerman’s held merchandise from subpoena sired brand was better. while years any these hardly to Rike’s they during result of But before this record Elder-Beerman proofs records except were experience serve which compare with subse- on its contesting liability, securing were available 12. Thus their all a desired brand Federated also. litigation years of the after shelves. Of damages purposes the with- of sales offend- Elder- had de- by damages represent an essential all. And Newton had no data about cen- any plaintiff’s case. sphere, ter of forces in a some- ' body up made him hold the mathemat- possible should be On remand years got ics for he two before it. It sug- proceedings through pretrial it, awas shame. He he knew it knew Judge stipulate gested by Kent way. worked that We all know suggested comparisons above. things. (1487-88a) (Page such num- Appendix.) bers refer to presented appellate con- issue No is Judge cerning of the District the failure Friedlander then undertook to calcu- jury pеripheral could not award late of sales —these instruct loss being arguably sales lost because cus- damages Elder-Beerman granted conspired wholly with one anoth- as were combined lawful exclusives boycott plaintiff. suppliers of their own er to effect a Thus by on basis charged jury: by specifically policies coercion the court unaffected sales restrain intent Rike’s charge plaintiffs also Judge monopolize. The District trade or have Rike’s and refused did, course, give careful instruction plaintiffs have to sell to combined and find jury could not on the fact that plain- conspired boycott effect a ex- liability the basis of Rike’s on tiffs in Act. violation Sherman policies clusives particu- you on instructed entirely responsible. solely is But meaning lar of the words “combina- possible on this record they tion”, “conspiracy” as- illegal conspiracy an between found used in cases. antitrust suppliers and and a dozen coerced boycott The definition of word damages testimony computed still may be stated: lating suppliers. The omission of to 63 agreement boycott “A between point specific on this instruction acting whereby togeth- manufacturers plain damages appears to to be error. me agree them er, that none of will important It is an Fed.R.Civ.P. 51. buyer particular deal retail- with a should be dealt omission which er.” damages. on retrial of boycott particular A is a kind reasons I For these believe conspiracy. It a collective refusal liability affirmed verdict should be agreement among compet- to deal dollar favor among ing buy- competing sellers or judgment damages should be vacated refusal ers. be a collective for retrial. and remanded buy particular from a manufacturer *23 among agreement a an result of ADDENDUM buyers. competing Or it be a my on views affirmance Since particular a refusal to sell to collective liability proved jury to verdict as agreement as a result an customer colleagues, unpersuasive my this case to among competing sellers. intervention) (absent Supreme Court boycott, and What would be what retried. must be would a violation of the Sherman deviating opinions from the Without agreement among Act, would be an above, my expressed vote record now whereby several manufacturers conspiracy restrain include the agree all with each other that none of issue in the new trial. trade particular buyer. them will sell to a agreement among We manufac- call MILLER, Judge Circuit WILLIAM E. agreement, turers a because horizontal dissenting (concurring part among persons who are part). process. same the distribution level naught in this case sets at A reversal instructing you I am that a horizontal presided complex protracted trial a agreement among manufacturers Judge pa- District with over agrees whereby each with the others ability. tience, fairness and Neverthe- buyer particular to sell a would considering less, a whole the record as boycott. be unlawful the theories on which the case explanation I direct presented directions to with guide determining you what should general ap- verdict, a this result return al- whether a kind pears to to be inevitable. me leged by the has been established evi- theory plaintiff’s One such dence. proof of the that the under Sec. 1 claim appeal, a horizontal established Sherman Act On advances the suppliers boycott theory in that Rike’s and the same alternative there was
163
from which the
sufficient
evidence
elimination
Elder-Beerman as a com-
petitor
Dayton
concluded that
there was a
in the
market.
could have
sup-
on the
of the
concert of action
granted by suppliers
Exclusives
together
Rike’s,
boycott
pliers,
per
are not
se
of the
retailer
violative
therefore, argued
is,
Elder-Beerman.
antitrust
laws. United
Arnold
States v.
liability
per
se
with re-
there was a
Company,
388 U.S.
Schwinn &
alleged conspirators
spect
to all of the
(1967).
L.Ed.2d
S.Ct.
ruling
Klor’s,
Inc.
the basis of the
exclu
The mere fact
that a number of
Broadway-Hales Stores,
Inc.,
granted
by separate
sup
sives were
defendant’s motion alleged spect Sec. 1 violation monopolization under the claim of
as to
Sec. 2. the evidence
I believe further of at- take the issue
was sufficient tempt monopolize 2 of under Sec. Act to the
Sherman for re-trial remanded
case should agreed pretrial alone.1 that issue helpful prove should conferences delineating the the District Court during might questions arise
trial. PARKER, Appellant,
Lee Holden Warden, SWENSON,
Harold R. Missouri Penitentiary, Appellee. State
No. 71-1593. Appeals, States Court of Eighth Circuit.
Submitted March 1972. April
Decided 1972.
Rehearing May Denied *25 theory. plaintiff’s monopolization 1. An examination almost in the brief Yet page page plaintiff argues breath in its reveals same position respect monop monopoliza charge with brief the Court’s prejudicial issue tion under and that Sec. Sherman olization was equivocal proof monopoliza Act is at best and ambivalent. there was sufficient misleading. me it To brief tion and of the relevant market. these con quotations agree Judge Judge circumstances, tains the Kent referred to plaintiff opinion clearly Kent his should be held to have theory liability. appears abandoned the abandoned this
