Allen Pen Company, Inc. v. Springfield Photo Mount Company, Inc.

653 F.2d 17, 1981 U.S. App. LEXIS 11942
CourtCourt of Appeals for the First Circuit
DecidedJune 26, 1981
Docket80-1432
StatusPublished
Cited by32 cases

This text of 653 F.2d 17 (Allen Pen Company, Inc. v. Springfield Photo Mount Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen Pen Company, Inc. v. Springfield Photo Mount Company, Inc., 653 F.2d 17, 1981 U.S. App. LEXIS 11942 (1st Cir. 1981).

Opinion

BREYER, Circuit Judge.

This case presents questions similar to those recently decided by the Supreme Court in J. Truett Payne Co. v. Chrysler Motors Corp.,-U.S.-, 101 S.Ct. 1923, 68 L.Ed.2d 442 (1981). Can a private plaintiff, like a government plaintiff, win a Robinson-Patman Act case simply by showing that the Act’s substantive standards have been violated; or must he show more? The government can win a Robinson-Patman Act § 2(a) case, for example, by showing that a defendant seller has “discriminatefd] in price between purchasers of commodities of like grade and quality . . . where the effect of such discrimination may be to lessen competition substantially. . . . ” 15 U.S.C. § 13(a). (Emphasis added). 1 The private plaintiff, however, must also satisfy the test of Clayton Act § 4, which grants private rights of action only to those “who shall be injured in . . . business or property” by a violation of the antitrust laws. 15 U.S.C. § 15. (Emphasis added.) 2 The Supreme Court held that this latter provision imposes a stricter test: A private treble-damage plaintiff “must make some showing of actual injury” attributable to a violation of the Robinson-Patman Act. J. Truett Payne Co. v. Chrysler Motors Corp., - U.S. at-, 101 S.Ct. at 1927. Following Truett Payne, and after reviewing the record, we affirm the district court’s directed verdict for the appellee seller.

I.

Appellant Allen Pen sued appellee Springfield claiming that it was the victim of several instances of unlawful discrimination involving prices, promotional facilities and other services. 3 After all evidence was presented, the district court did not submit the case to the jury, but, instead, directed a verdict for appellee. On appeal, we view the evidence in a light most favorable to appellant, giving it the benefit of all reasonable inferences without neglecting uncontradicted evidence introduced by appellee. Carlson v. American Safety Equipment Corp., 528 F.2d 384, 385-86 (1st Cir. 1976). Our review of the record under this standard indicates the following.

*20 Allen Pen is a wholesaler of stationery and school supplies based in Newton, Massachusetts. Springfield manufactures scrap books, photo albums and other similar items. From 1971 to 1975 Allen Pen bought goods from Springfield and resold them. They accounted for a small share — about IV2% to 2% — of Allen Pen’s total sales.

Springfield used different price lists to sell the same goods. Springfield and its customers usually referred to these price lists by their colors — green, blue, yellow and white. This fact makes the evidence hard to follow, for the colors changed over time, price lists were amalgamated, and sometimes Springfield referred to a list by a geographical name instead of color. Nonetheless, there is ample evidence that ordinarily there were at least three lists, a “low” price list, a “medium” price list, and a “high” price list, from which Springfield sold the same goods to different customers.

There is evidence from which a jury might conclude that Springfield charged Allen Pen a higher price for its goods than it charged some of Allen Pen’s competitors. Before 1970, Allen Pen bought at prices quoted from the low price list — the green list. 4 From 1970 to 1975, however, Springfield quoted Allen Pen prices from its medium list — the blue list. 5 These middle prices were about 5% higher than the low prices. There is evidence that at least two direct competitors of Allen Pen — United Art Company and Economy Paper Company of Rhode Island — received the benefit of lower prices; they may have bought from the low, green price lists between 1971 and 1973. There is testimony that Springfield generally sold from its low price list only to long-established customers and to high-volume purchasers. (And Wool worth’s may have received prices lower than on any list.) There is testimony that Springfield sold to small individual storeowner customers from its high price list — the yellow list — which quoted prices about 5% higher than the middle list.

In addition to the evidence of the different colored lists, there is evidence of other forms of differential pricing. First, Economy and United may have received a 7% discount from their list prices during 1971-1973, while Allen Pen received only a 5% discount from its list price during that period. 6 Indeed, Springfield agreed that it gave a “warehouse allowance” determined on the basis of the volume and frequency of a customer’s orders. Kresge, a very large purchaser, may have received a larger discount than Economy or United.

Second, between 1971 and 1975 Springfield required Allen Pen to buy through its sales agent, Duo; Economy did not have to buy through Duo.

Third, Springfield gave a 1% advertising or. listing allowance to certain customers, including Allen Pen for the years 1971— 1973. During 1974 and 1975, however, Allen Pen did not receive the allowance while its competitors did. This allowance, in the case of its competitor United Art, amounted to $50 for 1974 and $100 for 1975. Other companies received larger allowances, but there is no evidence that they competed with Allen Pen.

There were two other types of unlawful conduct alleged. Allen Pen provided evidence that Springfield gave display racks to some of its competitors but not to Allen Pen. The secretary of one competitor testified that the racks helped it increase its sales of Springfield’s products. There is also testimony that' the racks supplied Zayre’s — whose purchases from Springfield may have dwarfed those of Allen Pen — had a value of $15,000. Finally, Springfield refused to deal with Allen Pen on April 15, *21 1975. Allen Pen claimed that Springfield was retaliating against it because of its price discrimination charges. Springfield claimed that its action was based upon Allen Pen’s payment delinquencies. Regardless, either in July or December, 1975, Springfield resumed sales to Allen Pen.

II.

Construing the evidence in a light most favorable to Allen Pen, we assume that a jury could have found that Springfield violated the Robinson-Patman Act § 2(a) by selling similar goods to some Allen Pen competitors at lower prices. Springfield claims, however, that a directed verdict was proper because Allen Pen produced no evidence from which a jury could conclude that it was injured by whatever price discrimination occurred.

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653 F.2d 17, 1981 U.S. App. LEXIS 11942, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-pen-company-inc-v-springfield-photo-mount-company-inc-ca1-1981.