Balogh's of Coral Gables, Inc. v. Getz

510 F. Supp. 741, 1981 U.S. Dist. LEXIS 9480
CourtDistrict Court, S.D. Florida
DecidedMarch 19, 1981
DocketNo. 79-3765-CIV-JAG
StatusPublished
Cited by1 cases

This text of 510 F. Supp. 741 (Balogh's of Coral Gables, Inc. v. Getz) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balogh's of Coral Gables, Inc. v. Getz, 510 F. Supp. 741, 1981 U.S. Dist. LEXIS 9480 (S.D. Fla. 1981).

Opinion

ORDER

GONZALEZ, District Judge.

THIS CAUSE came on to be heard upon the Motion to Dismiss or in the Alternative for Summary Judgment of defendants, Rolex Watch U.S.A., Inc. (Rolex), and Montres Rolex, S.A. (Montres Rolex); and the Motion to Dismiss or in the Alternative for More Definite Statement of Irving Getz and Mayor’s Jeweler’s Inc. (Mayor’s).1

[743]*743This is an action by four retail jewelers operating under the common name Balogh’s, against a manufacturer of watches and chronometers, (Montres Rolex), its exclusive distributor in the United States (Rolex); and a competing retailer (Mayor’s) and its president and principal operating officer (Getz).

The gravamen of the complaint is that Balogh’s has repeatedly attempted to purchase merchandise from Rolex, but has always been refused. Balogh’s alleges that

the refusal of Rolex to deal with plaintiffs is based on an unlawful combination and conspiracy in restraint of interstate and intrastate trade and commerce, arising out of an agreement between defendants Mayor’s ... (Montres Rolex) and Rolex that Mayor’s shall act as a principal outlet of Rolex in Dade and Broward County, Florida. Such agreement specifically requires the exclusion of plaintiffs, and is contingent upon Rolex’s refusal to deal with plaintiffs. Complaint ¶ 15.

It is further alleged, inter alia, that although Rolex “opened” new distribution outlets in South Florida they are not principal competitors of Mayor’s as are plaintiffs. The alleged conspiracy seeks to exclude only Balogh’s from the market. There is no allegation that these new outlets are part of any agreement to exclude Balogh’s.

Baloghs’ complaint is in four counts. Count I alleges that the defendants violated the Sherman Act, 15 U.S.C. §§ 1-7; Count II alleges violations of the Clayton Act, 15 U.S.C. §§ 12-27; Count III is a pendent state claim under the Florida Deceptive and Unfair Trade Practices Act, Fla.Stat. § 501.201 et seq.; and Count IV is a pendent claim for “common law unfair trade practices.”

The respective defendants assert different grounds as the bases for their respective motions and, accordingly, each will be discussed separately.

Rolex Defendants’ Motion to Dismiss or in the Alternative for Summary Judgment

Montres Rolex raises the preliminary issue of the court’s personal jurisdiction over this foreign corporation. Montres Rolex is a Swiss corporation and manufactures watches and chronometers under the trade name “Rolex”. These products are then sold to Rolex Watch U.S.A., the exclusive “Rolex” distributor in the United States.

Montres Rolex’ response to Baloghs’ first set of interrogatories establishes the following: Montres Rolex has never qualified to do business in the State of Florida; it does not solicit any business in the forum state; and none of its employees have performed any services in Florida.

It is clear that Montres Rolex “has not engaged in any purposeful activity related to the forum that would make the exercise of jurisdiction fair, just, or reasonable.” Rush v. Savchuk, 444 U.S. 320, 100 S.Ct. 571, 577-78, 62 L.Ed.2d 516 (1980). See Kulko v. California Superior Court, 436 U.S. 84, 93-94, 98 S.Ct. 1690,1697-98, 56 L.Ed.2d 132 (1978); Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228,1239, 2 L.Ed.2d 1283 (1952). Indeed, the exercise of personal jurisdiction by this court would “offend ‘traditional notions of fair play and substantial justice’.” International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945), quoting Milliken v. Meyer, 311 U.S. 457, 463, 61 S.Ct. 339, 342, 85 L.Ed. 278 (1940).

The court accordingly will grant Montres Rolex’ Motion for Summary Judgment.

Rolex moves to dismiss Count I, the Sherman Act claim. Although the complaint fails to specify which section of the Act has been violated, it is abundantly clear that this is an alleged violation of section 1.

Every contract, combination ... or conspiracy, in restraint of trade or commerce [744]*744among the several States ... is declared to be illegal.

Rolex submits that this is simply a case of an exclusive distributor exercising its unilateral right to refuse to deal with a particular retailer and hence the complaint fails to allege any violation of the Act.

The starting point of any discussion of a refusal to deal is the seminal case of United States v. Colgate & Co., 250 U.S. 300, 39 S.Ct. 465, 63 L.Ed. 992 (1919). There the Court articulated what is known as the Colgate doctrine:

The purpose of the Sherman Act is to prohibit monopolies, contracts and combinations which probably would unduly interfere with the free exercise of their rights by those engaged, or who wish to engage, in trade and commerce — in a word to preserve the right of freedom of trade. In the absence of any purpose to create or maintain a monopoly, the act does not restrict the long recognized right of trader or manufacturer engaged in an entirely private business, freely to exercise his own independent discretion as to parties with whom he will deal; and, of course, he may announce in advance the circumstances under which he will refuse to sell. Id. at 307, 39 S.Ct. at 468.

In recent years the Colgate doctrine’s protection has been narrowed. See, e. g., Continental T.V., Inc. v. GTE Sylvania, 433 U.S. 36, 67-68, 97 S.Ct. 2549, 2566-67, 58 L.Ed.2d 568 (White, J., concurring) (1977); FTC v. Texaco, Inc., 393 U.S. 223, 89 S.Ct. 429, 21 L.Ed.2d 394 (1968); United States v. General Motors Corp., 384 U.S. 127, 86 S.Ct. 1321, 16 L.Ed.2d 415 (1966); United States v. Parke, Davis & Co., 362 U.S. 29, 80 S.Ct. 503, 4 L.Ed.2d 505 (1960). Today, the unilateral right to determine with whom one will transact business, is limited to the “mere announcement of ... policy and the simple refusal to deal.” Parke Davis, 362 U.S. at 44, 80 S.Ct. at 511.

Rolex contends that the Colgate doctrine is dispositive and for further support, directs the court’s attention to Aladdin Oil Co. v. Texaco, Inc., 603 F.2d 1107 (5th Cir.

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Balogh's of Coral Gables, Inc. v. Getz
510 F. Supp. 741 (S.D. Florida, 1981)

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