1995-1 Trade Cases P 70,875, 41 Fed. R. Evid. Serv. 587 the City of Long Beach, State of California v. Standard Oil Company of California, and Exxon Corporation

46 F.3d 929
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 31, 1995
Docket93-55156
StatusPublished
Cited by21 cases

This text of 46 F.3d 929 (1995-1 Trade Cases P 70,875, 41 Fed. R. Evid. Serv. 587 the City of Long Beach, State of California v. Standard Oil Company of California, and Exxon Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
1995-1 Trade Cases P 70,875, 41 Fed. R. Evid. Serv. 587 the City of Long Beach, State of California v. Standard Oil Company of California, and Exxon Corporation, 46 F.3d 929 (9th Cir. 1995).

Opinion

46 F.3d 929

1995-1 Trade Cases P 70,875, 41 Fed. R. Evid.
Serv. 587
The CITY OF LONG BEACH, State of California,
Plaintiffs-Appellants, Cross-Appellees,
v.
STANDARD OIL COMPANY OF CALIFORNIA, Defendant,
and
Exxon Corporation, Defendant-Appellee, Cross-Appellant.

Nos. 93-55156, 93-55157, 93-55214, 93-55215 and 93-55217.

United States Court of Appeals,
Ninth Circuit.

Argued and Submitted July 14, 1994.
Decided Jan. 31, 1995.

James N. McCabe, Deputy City Atty., Long Beach, CA, Thomas D. Nevins, Broad, Schulz, Larson & Wineberg, San Francisco, CA, M. Brian McMahon and Gary W. Hoecker, Hoecker, McMahon, Jeys & Buck, Los Angeles, CA, Richard N. Light, Deputy Atty. Gen., San Francisco, CA, for plaintiffs-appellants.

Howard J. Privett, David A. Destino, Angela C. Agrusa and Brooke K. Richter, Baker & Hostetler, Los Angeles, CA, Richard P. Delaney and Randall M. Ebner, Houston, TX, for defendant-appellee.

Appeal from the United States District Court for the Central District of California.

Before: REINHARDT and NOONAN, Jr., Circuit Judges and TANNER,* District Judge.

TANNER, District Judge:

The City of Long Beach and the State of California (plaintiffs) appeal from a jury verdict against them and in favor of Exxon. They take issue with four jury instructions given by the trial court and with evidentiary rulings made during the trial. Because we find that the claimed error, if any, in the formulation of the jury instructions was harmless, and because we find that the district court did not err in refusing to admit plaintiffs' proffered evidence, we uphold the jury's verdict in favor of Exxon and AFFIRM. Exxon cross-appeals the district court's denial of their request for attorneys' fees on the plaintiffs' contract claims and upon the district court's grant of the plaintiffs' motion for summary judgment on Exxon's counterclaim. We decide the cross-appeal in a separate memorandum filed concurrently with this opinion.

FACTUAL BACKGROUND1

Plaintiffs own oil fields southeast of Los Angeles and offshore of Long Beach. They entered into a contractors' agreement with various oil companies (who all settled before trial except Exxon) to produce and market the oil. The plaintiffs were paid for the oil by the companies based upon "posted prices"--prices that the purchasers publicly declare they are willing to pay. Posted prices were in turn based upon the "gravity price differential" (GPD) set by the companies. Gravity price differential is a mathematical calculation used to set different prices based upon the weight of the crude. The larger the GPD, the greater the difference in prices between "heavy" and "light" crudes. The "heavier" the crude, the more costly it is to refine and therefore less desirable. The companies will pay less for heavy crude than light crude. The plaintiffs' crude is "heavy."

Plaintiffs' theory is that the companies conspired to maintain artificially low prices for the plaintiffs' crude by setting artificially high GPD's thereby undervaluing the city's oil.2 As evidence of this conspiracy, plaintiffs contend, the companies set up (through secret meetings in 1961-62) and participated in "three-cut exchanges." A three-cut exchange is a mechanism whereby the companies barter oil between themselves and then pay each other or trade other oil based not on the posted prices, but on refinery product yields. The three-cut exchange "price" was higher than the posted price and, plaintiffs argue, closer to the real value of the oil. Therefore, say plaintiffs, the companies have conspired to fix the price of plaintiffs' oil at an artificially low level.

The defendant companies contended that there was no conspiracy, that the economy and price controls in effect at the time were responsible for the price of the plaintiffs' crude, and that the three-cut exchanges were legitimate business practices. The case went to trial only against Exxon.3 After more than 75 days of testimony from over 60 witnesses and the admission of more than 3,000 exhibits between October of 1991 and April of 1992, the jury was given the case. They deliberated for eight days and returned a verdict for Exxon.

DISCUSSION

1. JURY INSTRUCTIONS.

"This court 'review[s] jury instructions to determine whether, taken as a whole, they mislead the jury or state the law incorrectly to the prejudice of the objecting party. So long as they do not, we review the formulation of the instructions and the choice of language for abuse of discretion.' " Reed v. Hoy, 909 F.2d 324, 326 (9th Cir.1989) (internal citation omitted). If the instructions are challenged as a misstatement of the law, they are then reviewed de novo. Caballero v. City of Concord, 956 F.2d 204, 206 (9th Cir.1992); see also Oglesby v. Southern Pacific Transportation Co., 6 F.3d 603, 606 (9th Cir.1993) ("where an appellant claims the trial court misstated the elements to be proved at trial ... [we] review the instructions de novo.") However, this court will not reverse if the error was more probably than not harmless. Caballero, 956 F.2d at 206. It is a less stringent harmless error standard than in a criminal case.

Plaintiffs contend that the district court failed to instruct on a theory of their case and are thus entitled to de novo review of this issue, Stewart v. Ragland, 934 F.2d 1033, 1042 (9th Cir.1991); however, Exxon disagrees and urges only abuse of discretion review as to the formulation of the instructions regarding three-cut exchanges and gravity price differential. See Reed v. Hoy, supra.

Plaintiffs challenge four instructions. They first challenge Instruction 12.4 Their quarrel is with the last sentence of the instruction. The disputed language comes from Matsushita Electric Industrial Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 588, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986) ("But antitrust law limits the range of permissible inferences from ambiguous evidence in a Sec. 1 case."). They argue that this language only refers to summary judgment standards and is inappropriate for jury instructions. They further argue that the district court indicated that it would instruct the jury further as to the limitations, but failed to do so5, thus leaving the jury without any guidance and thereby committing reversible error.

Commentators have discussed the applicability of Matsushita to jury instructions.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Sidibe v. Sutter Health
N.D. California, 2025
Djeneba Sidibe v. Sutter Health
103 F.4th 675 (Ninth Circuit, 2024)
John Smith v. M. Depasquale
Ninth Circuit, 2018
United States v. Salvador Vera
770 F.3d 1232 (Ninth Circuit, 2014)
J.R. Ex Rel. Dickson v. City of San Bernardino
374 F. App'x 755 (Ninth Circuit, 2010)
Cascade Health Solutions v. PeaceHealth
515 F.3d 883 (Ninth Circuit, 2008)
United States v. Solorzano-Calderon
229 F. App'x 614 (Ninth Circuit, 2007)
Transue v. Aesthettech Corp
341 F.3d 911 (Ninth Circuit, 2003)
Transue v. Aesthetech Corp.
341 F.3d 911 (Ninth Circuit, 2003)
Alvarez v. City of Westmorland
119 F.3d 5 (Ninth Circuit, 1997)
Frederick v. City of Portland
98 F.3d 1345 (Ninth Circuit, 1996)
William Smith v. Airborne Freight Corporation
96 F.3d 1451 (Ninth Circuit, 1996)
Teshome Abate v. Walter Walton
77 F.3d 488 (Ninth Circuit, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
46 F.3d 929, Counsel Stack Legal Research, https://law.counselstack.com/opinion/1995-1-trade-cases-p-70875-41-fed-r-evid-serv-587-the-city-of-long-ca9-1995.