These cross-appeals by the Haverhill Gazette Company (Gazette) and Union Leader Corporation (ULCo) from a final judgment in Gazette’s favor following the confirmation of a master’s report mark the third time this case has been before us. In Union Leader Corp. v. Newspapers of New England, Inc., 1 Cir., 1960,
The facts, many of which were recited in detail in our first opinion, will be referred to in part as we proceed. The basic fact we now start with is that Gazette entered the damage hearing with comprehensive findings in its favor indicating serious and continuous illegal activity of many sorts by ULCo over a period of years, and “stupendous losses,” whether or not as a result of ULCo’s wrongdoing, and wound up with a finding of damages in an amount of comparative insignificance.
3
Gazette contends, inter alia, that this resulted from the master’s erroneously “compartmentalizing” the issues, citing Continental Ore Co. v. Union Carbide & Carbon Corp., 1962,
Because it has an important bearing on precisely what was before the master and the scope of the inquiry open to him, we must consider the prior proceedings with some particularity. At the time of the referral the posture of the case was superficially usual, but actually highly unusual. The issues initially tried to the court were stipulated to be “every issue pertinent to the granting or refusing of an injunction,” and “every issue of liability.” The trial, exclusive of substantial preliminaries, lasted two weeks. It resulted in an opinion containing a comprehensive summary of findings, pursuant to which the court entered a “Partial Final Decree.” Consistent with the stipulation the decree recited,
“11. Pursuant to Rule 54 of the Federal Rules of Civil Procedure, 28 U.S.C., this Court expressly determines that there is no just reason for delay in entering final judgments on the following claims:
# -Jr VC
all claims for injunctive and declaratory relief. * * * ”
It thereupon entered “final judgments” with respect to all paragraphs of its order except the reserved damage claims. It added,
“However, if an appellate court should regard these orders not as final but as interlocutory, and if the parties would not have the benefit of the appeals available under 28 U.S.C. § 1292(a) (1), this Court, in accordance with 28 U.S.C. § 1292(b), is of the opinion that the orders in paragraphs 1, 2, 3, 4, 5, 8, 9, 10, and 11 involve a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal from the order may materially advance the ultimate termination of the litigation.”
*802 Our first opinion did not discuss the question whether, or to what extent, the partial decree was final or interlocutory. In its order of reference, following our affirmance, the district court stated, “The only issues now being left for adjudication relate to damages. These are precisely analogous to issues of damages which would be raised in patent, copyright, and like cases following an appellate adjudication on issues of liability. Such cases are customarily referred to a Master for the ascertainment of damages.”
It is here that the difficulties, and they are serious, commence. Except for the sometime question of increasing the damages because of the nature of the infringement, 35 U.S.C. § 284 (a matter the statute reserves exclusively for the court in all cases), the issues of patent infringement and damages are separate and clear-cut. Although ascertainment of damages may involve difficult questions of apportionment, see, e. g., Gotham Silk Hosiery Co. v. Artcraft Silk Hosiery Mills, Inc., 3 Cir., 1945,
*803
Thus we have the situation of the district court’s entering not merely a permanent injunction, but a decree of liability which it labelled final, following an apparent finding of damage which, legally, would seem a necessary prerequisite. Yet at the same time the master was thought free to find the damage,
if any,
untrammelled by what went before to the point, as the court put it in its opinion confirming the report, of making an “independent and fresh appraisal on factual issues of causation and damages.” Indeed, so “independent” was the master that the court held that while “he reached findings which do not square with statements made by this Court and by the Court of Appeals,” his findings must be accepted unless “clearly erroneous.” However, there had become applicable, if the decree of liability is to be considered final, the principle of collateral estoppel, Partmar Corp. v. Paramount Pictures Theatres Corp., 1954,
Enough has been said to demonstrate that at least insofar as the court’s partial decree is regarded as final there are serious internal conflicts. While aspects of the decree must be accorded finality we think it preferable under the circumstances to consider the decree of liability as merely interlocutory. This is the usual rule when liability is determined separately; a decree of liability which excludes damages is normally not a final decision. The Palmyra, 1825,
On an interlocutory basis the court’s findings as to damages, whether express or implicit, are subject to revision. However, as to one issue there has been a final judgment, and with respect thereto collateral estoppel must apply. Our decision on the first appeal ordering ULCo’s complaint dismissed was upon the ground that the district court’s finding of substantial advertising discriminations, dealt with on proper principles, amounted, on the court’s subsidiary findings, to legal justification for defensive retaliation in kind by Gazette. This dismissal constituted, inescapably, a final judgment, cf. Smith v. Vulcan Iron Works, 1897,
Although we conclude that with respect to ULCo’s other illegal activities the master was free to find facts overriding the court’s decree of liability construed as interlocutory only,
9
it does not follow that the present report in this regard is to be accepted. In the first place, we do not agree that the “clearly erroneous” rule applies uniquely to the master’s findings. Rather, the prior findings of the court were themselves entitled to consideration, and there was a burden on the master to be met before finding as to any issue embraced in or underlying the earlier decree, even though interlocutory, that the court was wrong, a burden which neither he, nor the court subsequently, recognized.
10
Furthermore, we find it difficult to agree with the court in its opinion confirming the report that the master had not been unduly hard to convince. By this we mean that we are not satisfied that he did not charge himself erroneously. Certainly he did not vocalize our caveat in Momand v. Universal Film Exchanges, Inc., 1 Cir., 1948, 172
F.2d
37, at 43, 42, cert. den.
These other doubts take form because of the master s frequent use of the phrases sole or predominant cause,” and a more substantial cause of harm than any other known cause. ^ While he did this only in connection with rejecting, at the outset of his report, Gazette s interpretation of one particular statement in the court s opinion, and the master s ultimate conclusion was_ correct, 13 his use of an<^ rehance upon this standard of causation was wrong. The fact that he never enunciated another strongly suggests may have employed the same standard throughout his report.
In using this standard the master purported to rely upon the decision of the district court in Momand v. Universal Film Exchanges, Inc., D.Mass.,
1948,
We turn, finally, to Gazette’s largest claim, that ULCo is responsible for all losses caused by the Journal’s very existence because the Journal was founded upon, and continued in, unlawful conduct of a most substantial nature. The master recognized this as a valid issue and defined it at the outset of the report.
“[I]t is conceivable that ULC would not have entered the Haverhill market, or remained there throughout the damage period, had it not enjoyed the benefit of its own wrongdoing. This possibility must be explored in order to make a thorough assessment of damages, for the early departure of the Journal from Haverhill would have materially improved the position of the Gazette.” (Ital. suppl.)
It must be clear that whether any particular unlawful conduct was instrumental in causing the Journal to enter or remain in Haverhill must be determined by the effect that it had upon Loeb, ULCo’s president and policymaker. If, in Loeb’s mind, it was necessary to engage in particular acts in order to warrant remaining in business, then, in the true sense, those acts caused his being in business. This must have been so regardless of whether, in point of fact, he was correct in his appraisal. If, for example, Loeb felt that it was essential to obtain illegal assistance from the union in order to continue in business, it follows that his decision to continue, and hence his continuing, resulted from his success in accomplishing this unlawful act. The question is not whether, viewed from hindsight, the union cooperation did him any essential, or, indeed, any material good. 17 The master made this analysis at the outset, and properly addressed himself to what was Loeb’s state of mind when deciding whether to enter Haverhill initially, finding, on this issue, against Gazette. He then, however, abandoned this approach, and applied a strict benefit-received rule, viewed, moreover, not as he concluded Loeb viewed it at the time, but as it appeared to the master in the light of the damage testimony which he credited. The issue, he stated, was simply whether Loeb would have stayed had he in fact not received the specific advertising benefits which Gazette had succeeded in establishing to the master’s satisfaction.
Passing the extent to which the master erred in finding these benefits too small, the ultimate question must be not what *808 benefits the master found in 1963, but what Loeb thought in 1958 and 1959. Moreover, even if Loeb’s appraisal of the affirmative dollar benefits received coincided exactly with the master’s, it still may have been that he believed that his losses would have been greater but for his illegal activities, or persistently took an optimistic view that matters would improve, which, absent these activities, he would not have entertained. The master’s substantial misinterpretation and limitation of this issue was clear error.
There must be a new trial. Because of several of the matters discussed herein we find it impossible to separate what findings were infected by error. We accordingly vacate the report in its entirety. Furthermore, we believe that the damage issues should be submitted to a new trier. Where a trier of fact has been corrected for a number of serious errors there are bound to be strains on a second trial, conscious or unconscious, irrelevant to the issues, and hence disruptive. One may think one was not really wrong, and hence resist, consciously or otherwise, the new rules, or, conversely, lean over backwards. Alternatively, if one fully accepts the new principles it may be natural to over-emphasize them.
18
Because of this we have sometimes remanded a case for trial before another judge, not as a reflection on the first, but to avoid such complications. This is particularly important where a prior error related to the quantum or burden of proof. Murray v. United States, 1 Cir., 1962,
Judgment will be entered setting aside the judgment of the District Court and ordering the report of the special master to be vacated. Further proceedings to be not inconsistent with this opinion.
Notes
. Since renamed Haverhill Publishing Co., Inc.
. In view of our present disposition, the size of the award of counsel fees becomes moot, as doubtless the court will wish to reconsider that matter at a later date under the new circumstances. With respect to ULCo’s contention as appellant on the merits, this is something that, so far as this litigation is concerned, should have been presented on the original appeal from a judgment, finding no liability and denying relief as to the relevant separate claims, which was specifically stated by the district court, upon the determinations required by F.R.Civ.P. 54 (b), to be final. Cf. Sears, Roebuck
&
Co. v. Mackey, 1956,
. ULCo’s brief describes it as “relatively microscopic.”
. “[A]ny person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws may sue therefor * * Clayton Act § 4, 15 U.S.C. § 15 (ital. suppl.). Private antitrust actions are not founded upon showing of unlawful conduct only, but upon injuries, to the protected interests, which are the legal result of the overt illegal acts.
. There were three principal matters involved in the court’s decree; the improper use of union representatives in connection with calls by ULCo’s advertising solicitors in which advertisers were urged to boycott the Gazette; secret rate and other advertising discriminations, and illegal contracts with the eight merchants, so-called, by which the merchants were to give all of their advertising to the Journal and were, posing as ostensibly disinterested parties, to boost the Journal and disparage the Gazette and persuade other businessmen to advertise exclusively in the former. The master found no damages whatever as a result of the first two illegal activities, and none with respect to the eight merchants except as to their own exclusive use of the Journal. Even as to this last the master carefully examined the evidence and indicated no awareness of any obligation, as the result of the court’s prior findings, to find “substantial damages,” or even any damages. We will deal with these matters later at more length.
. That the judgment disposed of all issues on separate trial under F.R.Civ.P. 42(b) would, of course, affect neither finality nor appealability, Atkins, Kroll (Guam), Ltd. v. Cabrera, 9 Cir., 1960,
. The master felt that although there was a finding that damage was “inflicted” upon Gazette, this was not a finding “that *804 ULC’s -wrongful acts were the sole cause or even the predominant cause of injury.” Passing the question of just what injury this meant, and whether it expressed a proper standard of causation, a matter considered more broadly infra, it cannot be that the court’s finding of substantial harm to Gazette as a result of TJLCo’s discriminations meant harm for which ULCo was not legally responsible.
. We might say, in passing, that quite apart from the binding effect of the court’s finding that Gazette was injured by TJLCo’s discriminatory conduct, we have great difficulty in understanding how the master reached his contrary factual conclusion. To take, as one example, the J. M. Fields matter, which the court has described as “most important,” and a “serious discrimination,” this involved, in part, a discriminatory guarantee not to raise the rate for two years, which the master found was “a substantial factor” in taking the business from Gazette. The master nevertheless found no damage, not merely that he could not measure it. As an “important” reason the master referred to the fact that the guarantee was never exorcised. We do not follow the reasoning, and without going into details, we do not understand the findings. We would ask, inter alia, what was TJLCo’s point, on the master’s analysis, of giving the guarantee at all?
. There are a number of circumstances, notably the reception of new evidence, under which our affirmance of the interlocutory decree would not constitute a bar to redetermination of the question of liability in the court below. See, e. g., Toucey v. New York Life Ins. Co., 8 Cir., 1940,
. One of the fundamental difficulties in this case, which we do not fully reach because the parties did not question the propriety of reference vel non, is the extent to which the master, as a different trier sitting on the damage hearings, not only could take new evidence, but could give different
weight to
evidence or make very different findings of credibility. Where the issues are to some extent interwoven or overlapping in such separate proceedings this may cause grave difficulties. See, e. g., Gasoline Prods. Co. v. Champlin Ref. Co., 1931,
. We do not think it necessary to distinguish to what extent the merchants may have “talked-up” the Journal as opposed to soliciting specific advertising or obtaining actual contracts.
. No mention, either, was made of the court’s finding that the result of this contract was “to intensify * * * zeal * * * to support The Journal by securing advertising for it and to discourage advertising in The Gazette by * * * enterprises subject to their influence,” and Loeb’s significant testimony. “XQ. And they assured you they would get as much advertising business for you as they possibly could, didn’t they? A. Yes. XQ. And thy did that, didn’t they? A. Yes.” If in this vital matter Leob was not merely misled, but totally mistaken, we think it was at least incumbent on the master to explain his mistake.
. 13. The court had stated that Gazette had been put in peril of ms°lvency ™ the seMe as a leso“ of ULC’S at' tempt to monopolize.” Gazette endlessly seeks to magnify this. While, concedbly’ tbe coufs la»gaage was * is obvious that ULCo was not the sole aause f Gazette * difficulties, and that Gazette s construction is not only mconmstent with the facts, but with the entlre balance of tbe eoarts oplmon-
. It is perhaps not altogether clear what the district eourt held. It is true that
*806
it did use the second of the two phrases quoted
supra.
However, the opinion began with a reference to section 912 of the Restatement of Torts to the effect that what was required was “proof that the tortious conduct was a substantial factor in causing such harm,”
. See fn. 17, infra.
. “The degree of certainty required of a plaintiff in proving causation of damage * * * varies with the nature of the ease.” Momand v. Universal Film Exchange, supra,
. Launching a newspaper, as Loeb himself testified, is a very difficult undertaking, particularly at Christmas. Loeb himself was surprised at bis success. The fact that Gazette’s printers were on strike, with Haverhill being a particularly strong union area, was certainly a significant factor. It was not a factor attributable to Loeb. However, under these circumstances Loeb’s subsequent capitalization on Gazette’s union difficulties to the extent of obtaining specific unlawful union assistance (we agree with the master in not holding ULOo responsible for the union’s independent activity on a theory of conspiracy) must have been regarded by him as highly important, if not vital, to his continuance.
. It should be unnecessary to say, but we do out of caution, that nothing stated in this opinion, or omitted therefrom, is indicative of our views on the merits, or is to suggest any particular result.
