Bruce v. Bohanon

436 F.2d 733, 14 Fed. R. Serv. 2d 1144, 168 U.S.P.Q. (BNA) 333, 1970 U.S. App. LEXIS 5768
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 29, 1970
DocketNo. 435-70
StatusPublished
Cited by13 cases

This text of 436 F.2d 733 (Bruce v. Bohanon) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bruce v. Bohanon, 436 F.2d 733, 14 Fed. R. Serv. 2d 1144, 168 U.S.P.Q. (BNA) 333, 1970 U.S. App. LEXIS 5768 (10th Cir. 1970).

Opinions

McWilliams, circuit judge.

Bruce and Martin, petitioners in this court and plaintiffs in the trial court, filed with us a “Petition for Writ of Mandamus and/or Prohibition,” naming as respondents therein the Honorable Luther Bohanon, a United States District Judge, the Marathon Oil Company, an Ohio corporation, and the individual members of a New York investment banking copartnership doing business as Lehman Brothers.

From the record before us it is learned that Bruce and Martin, as plaintiffs, filed in the trial court a complaint [734]*734against Marathon, and that by amended complaint added Lehman Brothers as an additional party defendant.

The central issue in the instant proceeding concerns the propriety of the trial judge’s determination that Count I of the amended complaint presents only so-called equitable issues which would be tried by the court, and not a jury. A review of this determination necessarily involves a rather in depth consideration of plaintiffs’ lengthy amended complaint in an effort to ascertain the true nature of the proceeding. Hence, reference with at least a degree of detail must be made to the various allegations contained in the amended complaint.

Respondents (not including Judge Bo-hanon, who makes no appearance) in their brief characterize Count I as being “an action against Marathon alone for the alleged wrongful appropriation in January 1960 of so-called confidential information which plaintiffs claim was disclosed to Marathon under an oral agreement of trust and confidence.” Elaborating a bit, plaintiffs in Count I allege, among many other things, that they formed a joint venture with Lehman Brothers for “the purpose of detailed research, analysis, and development of the substantial Japanese market for LNG [liquefied natural gas]”; that Martin and an experienced gas engineer associated with Lehman Brothers then went to Japan and “conducted a comprehensive market survey and cost analysis concerning the Japanese energy market, cost estimates of manufactured gas and the price under which LNG would have to sell in order to be economically feasible in the Japanese market”; and that while in Japan their negotiations with officials of certain Japanese utility companies culminated in a verbal agreement that in consideration for further studies to be made by the plaintiffs they would be, and were, granted a first right of refusal as regards supplying LNG to the Japanese market.

It is further alleged in Count I that following Martin’s return from Japan the plaintiffs undertook a study to determine possible sources of LNG adequate to supply the Japanese market requirements and that in the course of the study plaintiffs learned that Marathon had recently developed and had access to extensive natural gas reserves in the Kenai Peninsula of Alaska, for which there was seemingly no Alaskan market.

It was in this general factual setting, according to the allegations in Count I, that Martin then contacted Marathon and informed their representative that he “wanted to present a business proposal to defendant Marathon upon a confidential basis.” It is further alleged that after being assured that all disclosures made by Martin would be treated by Marathon in strictest confidence, Martin thereafter revealed the general nature and history of plaintiffs’ proposed LNG project, and disclosed to Marathon plaintiffs’ data, information, computations, market surveys, cost analyses, and their business contacts with appropriate Japanese officials.

Plaintiffs then go on to allege, and all in Count I, that Marathon and Lehman Brothers thereafter conspired and agreed that Marathon alone, and to the complete exclusion of the plaintiffs, would proceed to develop the Japanese methane market. Specifically, it is alleged that Marathon violated its fiduciary duty to the plaintiffs and appropriated to its own use plaintiffs’ confidential information and wrongfully excluded plaintiffs from the Japanese LNG project, all of which came to fruition when Marathon and its associates, but not the plaintiffs, entered into contracts with the Tokyo Gas Company and Tokyo Electric Power Company.

It is on these several allegations that plaintiffs prayed for judgment on Count I, seeking by way of relief a determination of an equitable right to participate with Marathon in their Japanese LNG project and for an accounting in connection therewith.

[735]*735As above indicated, Count II, unlike Count I, is directed at both Marathon and Lehman, but each and every allegation contained in Count I is incorporated in Count II by appropriate reference thereto. Additionally, and quite like certain of the allegations in Count I, it was alleged in Count II that Marathon and Lehman Brothers “conspired and joined together to exclude the plaintiffs from further participation in the Japanese methane market, to facilitate and permit the defendant Marathon to usurp and wrongfully use the confidential information previously imparted to it by plaintiff Martin * * By way of relief, but in the alternative and in the event the court did not grant the relief prayed for in Count I, plaintiffs sought joint and several judgment against Marathon and Lehman in the sum of $10,-000,000.

By answer Marathon and Lehman denied any conspiracy on their part or wrongful appropriation of any confidential business information imparted to either by plaintiffs.

By pretrial order, the Honorable Luther Bohanon proposed, among many other things, to try the issues posed by Count I and Marathon’s answer thereto before any possible trial of Count II. Additionally, and this is the heart of the present controversy, he determined that the trial of Count I would be to the court and not a jury, even though plaintiffs had filed a demand for trial by jury before any answer was filed. The trial judge gave as his reason therefor the fact that in his considered view Count I presented “equitable” issues, and not “legal” issues, at the same time indicating, however, that if, as, and when there was a trial of Count II, such would be to a jury. It was in this setting and at this juncture that plaintiffs, as petitioners in this court, filed a petition seeking, among other things, that the respondent judge be directed to grant plaintiffs a trial by jury on Count I of their amended complaint.

Initially, it is contended by counsel for Marathon and Lehman Brothers that mandamus is not the proper vehicle for obtaining review of the trial judge’s ruling that Count I would be tried to the court, and that petitioners should have sought such review by interlocutory appeal under 28 U.S.C. § 1292(b) or by appeal after final judgment. Counsel apparently concede that under certain circumstances a writ of mandamus may be a proper method for obtaining review of an interlocutory order of the trial court, but argue that such relief is not available in the “ordinary situation,” and that the present proceeding is just an “ordinary situation.” We do not agree.

In Dairy Queen, Inc. v. Wood, 369 U.S. 469, 82 S.Ct. 894, 8 L.Ed.2d 44, in commenting upon Beacon Theatres, Inc. v. Westover, 359 U.S. 500, 79 S.Ct. 948, 3 L.Ed.2d 988, the United States Supreme Court declared that the Beacon case emphasizes the responsibility of Federal Courts of Appeal to grant mandamus where necessary to protect the constitutional right to trial by jury.

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Bluebook (online)
436 F.2d 733, 14 Fed. R. Serv. 2d 1144, 168 U.S.P.Q. (BNA) 333, 1970 U.S. App. LEXIS 5768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bruce-v-bohanon-ca10-1970.