Boise Cascade International, Inc. v. Northern Minnesota Pulpwood Producers Ass'n

294 F. Supp. 1015
CourtDistrict Court, D. Minnesota
DecidedDecember 28, 1968
Docket5-68 Civ. 52
StatusPublished
Cited by7 cases

This text of 294 F. Supp. 1015 (Boise Cascade International, Inc. v. Northern Minnesota Pulpwood Producers Ass'n) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boise Cascade International, Inc. v. Northern Minnesota Pulpwood Producers Ass'n, 294 F. Supp. 1015 (mnd 1968).

Opinion

NEVILLE, District Judge.

Plaintiff, a paper mill and manufacturer of insulite wallboard, is engaged in interstate commerce with a mill and plant at International Falls, Minnesota on the Canadian border. It brings this suit to enjoin defendants, an “ad hoc” unincorporated association and three individuals, said to be officers thereof, (1) from what it claims to be a violation of Section 1 of the Sherman Act, 15 U.S.C. § 1, in the form of a boycott and (2) from inducing other persons to breach their existing contracts with plaintiff. The complaint also seeks treble damages. Plaintiff followed the filing of the complaint with moving papers seeking a preliminary injunction. No answer has yet been filed and the time therefor has not yet expired; nor is the court advised whether either party demands a jury trial on the merits.

Prior to the hearing and the taking of testimony on the question of a preliminary injunction, the court invited the attention of both counsel to Rule 65(a) (2) of the Federal Rules of Civil Procedure relative to consolidating the trial of the action on the merits with the application for preliminary injunction. Neither counsel expressed themselves to this end and no stipulaion was made concerning such a procedure. The court is aware of the last sentence of Subd. (a) (2) that it shall be construed “as to save the parties any rights they may have to trial by jury.” Consequently, since this action involves not only a request for injunctive relief but a prayer for treble damages, it is clear either party is entitled to demand a jury trial. This would seem to prevent the court from making any finding on the merits of the request for injunctive relief since under traditional principles of res adjudicaba, such would deprive either party or both parties of the right to a jury trial. Even should plaintiff waive a jury trial, defendants would seem entitled to have a jury pass on the question of whether they are in violation of law so as to render them liable. None of the parties should be bound as though there had been a trial on the merits at the preliminary hearing had before this court.

It should thus be emphasized that this is a suit for preliminary relief under 15 U.S.C. § 26 and that the court is not passing upon the merits of the controversy in question. Any permanent injunctive relief, if in fact plaintiff succeeds in its case on the merits, can only be granted after a full hearing and specific findings by the trier of fact whether this be by the jury or by the court. See, Beacon Theatres, Inc. v. Westover, 359 U.S. 500, 79 S.Ct. 948, 3 L.Ed.2d 988 (1959); United States v. Munsingwear, Inc., 340 U.S. 36, 71 S.Ct. 104, 95 L.Ed. 36 (1950); and Florists’ Nationwide Telephone Delivery Network, etc. v. Florists’ Telegraph Delivery Ass’n, 371 F.2d 263, 270-271 (7th Cir.), cert. denied, 387 U.S. 909, 87 S.Ct. 1686, 18 L.Ed.2d 627 (1967). Whether *1018 at a full trial on the merits, the evidence heretofore adduced need not be repeated will await a ruling by the court at that time. A general jury term of this court commences at Duluth, Minnesota on January 6, 1969, and this case will be advanced and will stand for trial on the merits on that date or as soon after January 6, 1969 as the case can be reached.

The facts of this case are not seriously in dispute. Plaintiff uses as its raw material a forest product known as pulpwood in its manufacturing processes. It acquires this for the most part locally, that is to say within a radius of 50 miles or thereabouts. Trees employed for this purpose are younger trees— largely second growth — said to be 40 years of age and up. This part of northern Minnesota is a sparsely populated wooded or forest area. Seventy-five per cent of the land in Koochiching County of which International Falls is the county seat was testified to be either state or county owned. Permits to cut timber therefrom must be obtained from proper authorities. In order to obtain pulpwood, plaintiff contracts with what are called loggers, who cut timber growing for the most part if not entirely on land owned or controlled by plaintiff. These loggers and generally the deliverers of wood chips are not involved in this dispute. Plaintiff also traditionally contracts each year with approximately 400 “pulpwood producers” or as plaintiff’s witnesses characterized them “open market operators”. As of date of hearing herein, plaintiff had existing contracts with some 250 such operators. These operators and their recent activities are the subject matter of this action.

Generally the operators enter into individual contracts with plaintiff for the winter season commencing on or about November 1st of each year. The contracts obligate them to deliver a specified quantity of pulpwood in particular lengths for a price for each species or set amount of dollars per cord, deliveries to be completed on or before March 15th of the following year, (or apparently occasionally at an earlier date). There are also summer contracts made with the operators but such are not presently involved in the request for preliminary injunction. The dates for the so-called winter contracts are determined to accommodate weather conditons. Operators cannot easily get into the woods and across the swamps with their equipment to cut timber until the ground is frozen, nor operate successfully at least for a period after the spring “break up”.

The open market operators meet the classic definition of independent contractors. They provide their own saws, loaders, trucks and trailers and other equipment. Plaintiff does not furnish nor finance such. They cut and deliver pulpwood when and as they can and please so long as they have completed their deliveries by the deadline date of mid-March (occasionally earlier). They may, and many do, hire others to assist them. They receive no wages, but merely a price for their product and apparently at the desire of both the plaintiff Company and operators are not considered employees. There was testimony that plaintiff owns and controls some 375,000 acres of land near International Falls, and is re-planting trees on some of its “plantations”. For the most part if not entirely, however, the operators cut trees that were not planted by themselves but are natural growth and are 40 years or more of age. “Cropping” trees undoubtedly is a forward-looking plan, but is as yet obviously in its infancy.

Apparently in 1967, and continuing into the winter 1968-69 season, plaintiff made some changes in the manner of paying for its wood products, basing such on total weight (maintaining a differing winter and summer weight) rather than paying on volume basis, i. e., by the cord. This appears to have caused some unrest among a substantial number of the operators. This and perhaps other grievances resulted in several meetings of the operators and other interested persons and ultimately in a request by the operators to meet jointly with some of plaintiff’s officials to discuss alleged dif *1019 ferences.

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Cite This Page — Counsel Stack

Bluebook (online)
294 F. Supp. 1015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boise-cascade-international-inc-v-northern-minnesota-pulpwood-producers-mnd-1968.