Arthur S. Langenderfer, Inc. v. S.E. Johnson Co.

684 F. Supp. 950, 1987 U.S. Dist. LEXIS 13337, 1987 WL 45677
CourtDistrict Court, N.D. Ohio
DecidedAugust 13, 1987
DocketNo. C 76-425
StatusPublished

This text of 684 F. Supp. 950 (Arthur S. Langenderfer, Inc. v. S.E. Johnson Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arthur S. Langenderfer, Inc. v. S.E. Johnson Co., 684 F. Supp. 950, 1987 U.S. Dist. LEXIS 13337, 1987 WL 45677 (N.D. Ohio 1987).

Opinion

MEMORANDUM AND ORDER

JOHN W. POTTER, District Judge:

This matter is before the Court on plaintiffs’ application for injunctive relief, defendants’ opposition, plaintiffs’ reply, defendants’ opposition to plaintiffs’ proposed amendment and defendants’ supplemental opposition. On June 2, 1987, the Court heard oral argument on plaintiffs’ application for injunctive relief.

This case is a private antitrust case which was tried to a jury commencing on August 14,1986 and concluding on October 1, 1986. On October 1, 1986, the jury returned a unanimous verdict for plaintiffs against defendants. The jury unanimously determined that defendants had violated the antitrust laws by monopolizing and attempting to monopolize the bidding on and performing of asphalt paving work on Ohio Turnpike (OTC) and Ohio Department of Transportation (ODOT) highways in a thirteen county area in northwestern Ohio. The jury awarded plaintiffs damages total-ling $2,475,000.00. On October 2, 1986, the Court trebled the actual damages and entered judgment of $7,425,000.00.

Section 16 of the Clayton Act, 15 U.S.C. § 26, gives a private party the right to seek injunctive relief in an antitrust action. Section 16 provides in part that

[a]ny person, firm, corporation, or association shall be entitled to sue for and have injunctive relief, in any court of the United States having jurisdiction over the parties, against threatened loss or damage by a violation of the antitrust laws, ... when and under the same conditions and principles as injunctive relief against threatened conduct that will cause loss or damage is granted by courts of equity, under the rules governing such proceedings.

15 U.S.C. § 26 (Supp.1987).

The purposes of this section are “(1) putting an end to illegal conduct, (2) depriving violators of the benefits of their illegal conduct, and (3) restoring competition in the marketplace.” Arthur S. Langenderfer, Inc. v. S.E. Johnson Co., 729 F.2d 1050, 1059 (6th Cir.), cert. denied 469 U.S. 1036, 105 S.Ct. 510, 83 L.Ed.2d 401 (1984) (quoting In re Multidistrict Vehicle Air Pollution, 538 F.2d 231, 234 (9th Cir.1976). In Zenith Radio Corp. v. Hazeltine Research, Inc., 395 U.S. 100, 89 S.Ct. 1562, 23 L.Ed.2d 129 (1969), the Court held that “the purpose of giving private parties treble-damages and injunctive remedies was not merely to provide private relief, but was to serve as well the high purpose of enforcing the antitrust laws.” Id. at 131, 89 S.Ct. at 1580. Therefore, upon a demonstration of “a significant threat of injury from an impending violation of the antitrust laws or from a contemporary violation likely to continue or recur,” a plaintiff is entitled to injunctive relief. Id. at 130, 89 S.Ct. at 1580. This Court determines that, judged by this standard and the record, an injunction is warranted.

Plaintiffs and defendants have submitted proposed injunctions for the Court’s consideration. Plaintiffs request injunctive relief which would prevent defendants from bidding or supplying materials on every other asphalt paving contract let by ODOT, OTC or any local governmental unit in northwestern Ohio. The Court determines that this relief is not in the public interest. Furthermore, this type of relief may result in less competition thereby resulting in higher prices.

Plaintiffs seek injunctive relief which would prohibit defendants from acquiring any interest in or control of limestone quarries, and/or gravel pits, asphaltic concrete hot mix plants, asphaltic concrete producers, asphalt paving contractors, or bridge building contractors. The evidence established that bridge building contractors is a separate market. Further[952]*952more, there was no evidence that defendants monopolized the bridge construction market. However, prohibition of the acquisition, except those pertaining to bridge building contractors, is warranted. Therefore, the Court determines that an injunction against future acquisitions is necessary to promote free competition and to remedy defendants’ continuing violations of the antitrust laws.

Also, plaintiffs seek injunctive relief requiring defendants to charge the same price for limestone and sand at their quarries in Toledo as they do at their quarries outside of the Toledo area. Since prices in Toledo are competitive, rural prices are distinct and legally variable from Toledo prices, and the evidence at trial does not support this request, this request is contrary to the purpose of the antitrust laws to restore competition. Langenderfer, 729 F.2d at 1059.

Plaintiffs seek injunctive relief prohibiting defendants from refusing to sell stone, sand or asphaltic concrete to plaintiffs or other producers when defendants have the product available for themselves. The Court determines that upon the evidence presented at trial this type of injunctive relief is not warranted.

Plaintiffs seek to have defendants sell its products to third parties and plaintiffs at the same prices defendants sell intracompany. Upon the precedent of Russ’ Kwik Car Wash, Inc. v. Marathon Petroleum Co., 772 F.2d 214, 218 (6th Cir.1985) and prior order of this Court, intracorporation sales are of no real competitive consequence.

Plaintiffs request injunctive relief against certain anticompetitive practices such as charging discriminatory prices, tying sales of asphaltic concrete to purchasers of stone or sand and intimidating or coercing plaintiffs from bidding on highway construction work or from building their own asphalt plants. In an effort to put an end to illegal conduct, deprive defendants of any benefits derived from the illegal conduct and to effectively restore competition to the marketplace, this Court determines these types of injunctive relief are necessary. However, the Court does not agree with plaintiffs’ contentions requiring the circulation of this injunction to actual or potential customers, and compilation of annual list of public paving jobs bid on by defendants to be distributed to the Court, plaintiffs and plaintiffs’ counsel. The Court determines that these methods are not effectively designed to ensure free competition in this marketplace and therefore they are unnecessary.

Therefore, for the foregoing reasons, good cause appearing, it is ORDERED as follows:

I

This Court has jurisdiction of the subject matter of this action and of the parties hereto and venue as to all defendants is proper in this district.

II

As used in this order, the term:

a. “Person” means any individual, corporation, partnership, firm, association, or other business or legal entity;
b. “Asphaltic concrete” means a mixture of limestone, sand, liquid asphalt and other additives;
c.

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684 F. Supp. 950, 1987 U.S. Dist. LEXIS 13337, 1987 WL 45677, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arthur-s-langenderfer-inc-v-se-johnson-co-ohnd-1987.