Bayshore Ford Trucks Sales, Inc. v. Ford Motor Co.

471 F.3d 1233, 2006 U.S. App. LEXIS 30269, 2006 WL 3542834
CourtCourt of Appeals for the Eleventh Circuit
DecidedDecember 11, 2006
Docket05-14254, 05-14543 and 05-15152
StatusPublished
Cited by87 cases

This text of 471 F.3d 1233 (Bayshore Ford Trucks Sales, Inc. v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bayshore Ford Trucks Sales, Inc. v. Ford Motor Co., 471 F.3d 1233, 2006 U.S. App. LEXIS 30269, 2006 WL 3542834 (11th Cir. 2006).

Opinion

*1236 TJOFLAT, Circuit Judge:

This case was brought as a class action in the United States District Court for the Northern District of Georgia. Bayshore Ford Truck Sales, Inc., Heintzelman’s Truck Center, Inc., LJL Truck Center, Inc., Peach State Ford Truck Sales, Inc., and Valley Ford Truck Sales, Inc. (collectively, the “Bayshore Dealers” or the “Dealers”) sued Ford Motor Company (“Ford”) for breach of their respective franchise agreements with Ford and for violations of federal law. They timely moved the district court to certify a class containing similarly situated Ford truck dealers. The court denied their motion. Thereafter, while the case was being prepared for trial, Westgate Ford Truck Sales, Inc. (“Westgate”), a member of the non-certified class, filed a class action law suit in an Ohio state court (the “Westgate Action”). 1 The complaint contained breach of franchise agreement claims practically identical to the Dealers’ claims pending before the district court. The Ohio court certified a class the district court had refused to certify — a class that, by definition, contained the Bayshore Dealers. The Bayshore Dealers, wishing to litigate their claims as class members in the Ohio case, then moved the district court to permit them to dismiss their case against Ford. The court denied their motion. In a separate order, the court, acting on Ford’s motion, enjoined Westgate from prosecuting the Ohio class action and the Dealers from participating in that action as class members.

The Bayshore Dealers and Westgate now separately appeal the district court’s injunction. 2 The Dealers’ appeal challenges, in addition to the injunction, the district court’s order ruling on Ford’s motion in limine declaring inadmissible a report prepared by the Dealers’ expert, Fred A. Kinder. The Dealers also petition this court for a writ of mandamus, asking us to order the district court to grant their motions voluntarily to dismiss their suit against Ford. 3

After considering the parties’ briefs and entertaining oral argument, we (1) vacate the injunction; (2) deny the Dealers’ petition for writ of mandamus; and (3) dismiss for lack of pendent appellate jurisdiction the Dealers’ appeal of the district court’s order excluding the Kinder report.

We organize this opinion as follows. Part I sets out the factual background and procedural history of this case and the Westgate Action. Part II addresses the threshold question of whether the district court had in personam jurisdiction over Westgate. Part III considers whether, assuming that it had in personam jurisdiction over Westgate, the district court had the legal authority to enjoin the Westgate Action 4 and to enjoin the Dealers from participating in that case as class members. Parts IV and V focus, respectively, *1237 on the Dealers’ petition for a writ of mandamus and the exclusion of the Kinder report. Part VI summarizes our holdings.

I.

A.

The Bayshore Dealers became Ford-authorized medium-duty and heavy-duty truck (“Medium/Heavy Truck”) dealers by entering into various franchise agreements with Ford (the “Franchise Agreements”). 5 Until 1998, Ford sold truck chassis to the Dealers at wholesale prices, which the Dealers would subsequently complete, customize and resell to the public. According to the Dealers, the Franchise Agreements required Ford to publish its wholesale truck prices and discounts to all of its dealers, and to sell its trucks to those dealers only at those published prices and only with those published discounts. 6

In the early 1980s, Ford began a new wholesale pricing system for its trucks called the Competitive Price Assistance *1238 (“CPA”) program. As part of the CPA program, the Dealers allege, Ford dramatically increased its Medium/Heavy Truck wholesale prices above the level at which its dealers could sell them on the retail market. As before, Ford published its prices to all of its dealers, but it also instituted a two-tier discounting structure. The first tier provided a standard discount on the published wholesale truck price, calculated by way of a formula given by Ford to all of its dealers. The second tier provided dealers with the opportunity to appeal to Ford for an additional, ease-by-case reduction in wholesale truck prices. Each dealer could submit to Ford information on the specific transaction for which the dealer sought the appeal-level price reduction. Ford would then grant or deny the request, and give its decision to the appealing dealer by facsimile, e-mail, or telephone. Ford did not send these individual pricing decisions to all of its other dealers. The Bayshore Dealers participated in this new pricing system.

B.

On July 1, 1999, the Dealers, represented by attorney James A. Pikl, challenged the CPA program by filing this law suit against Ford. In a three-count complaint, 7 the Dealers sought damages for breach of contract, i.e., paragraph 10 of the Franchise Agreements, and for violations of the Robinson-Patman Act of 1936 8 and the Automobile Dealers’ Day in Court Act of 1956 9 (the “Bayshore Action”). The complaint also sought the certification of a class of similarly situated dealers.

The Dealers alleged that the Franchise Agreements required Ford to sell its trucks only at those wholesale prices Ford previously published to all of its authorized Medium/Heavy Truck dealers. Through the CPA program, Ford allegedly failed in its publishing obligation by refusing to disclose appeal-level discounts, and resultant price variances, to all dealers. The Dealers also claimed that the Franchise Agreements required Ford to sell trucks of similar grade and quality only in accordance with its previously published prices, an obligation Ford allegedly disregarded by providing its dealers with individualized, appeal-level discounts. According to the Dealers, Ford’s breaches affected virtually every Ford truck dealer in the United States.

The Dealers’ claim under the Dealers’ Day in Court Act accused Ford of controlling dealer profits, coercively and unfairly discriminating in the prices it offered dealers for trucks of similar grade and quality, and of breaching the basic fairness obligations imposed by the Act. 10 Similarly, *1239 the Dealers alleged that Ford’s purported price discrimination was malicious and done in bad faith, thereby violating the Robinson-Patman Act. Again, the Dealers claimed that these violations negatively impacted almost every Ford Medium/Heavy Truck dealer in the United States.

On April 14, 2000, the Dealers, now proceeding on their Second Amended Complaint, 11

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

Related

Grissom v. Baldwin County
S.D. Alabama, 2025
Mesadieu v. Waters
M.D. Florida, 2025
Charalampous v. Lee
W.D. Oklahoma, 2024
United States v. Hames
N.D. Alabama, 2020

Cite This Page — Counsel Stack

Bluebook (online)
471 F.3d 1233, 2006 U.S. App. LEXIS 30269, 2006 WL 3542834, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bayshore-ford-trucks-sales-inc-v-ford-motor-co-ca11-2006.