Car Carriers, Inc. v. Ford Motor Co.

583 F. Supp. 221, 1984 U.S. Dist. LEXIS 18139
CourtDistrict Court, N.D. Illinois
DecidedMarch 28, 1984
Docket83 C 7517
StatusPublished
Cited by9 cases

This text of 583 F. Supp. 221 (Car Carriers, Inc. v. Ford Motor Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Car Carriers, Inc. v. Ford Motor Co., 583 F. Supp. 221, 1984 U.S. Dist. LEXIS 18139 (N.D. Ill. 1984).

Opinion

MEMORANDUM OPINION AND ORDER

SHADUR, District Judge.

In this action (the “1983 Action”) Car Carriers, Inc. and eight related entities (for convenience collectively “Car Carriers,” treated as a singular noun), including controlling shareholder James P. Byrne, have filed a 24-count, 107-page Amended Complaint (the “Complaint” or “1983 Complaint”) accusing Ford Motor Company (“Ford”), Nu-Car Carriers, Inc. (“Nu-Car”) and the Norfolk & Western Railway Company (“N & W”) of racketeering and various unlawful business practices in contravention of federal and state law. Ford and Nu-Car now move for dismissal under Fed. R.CiV.P. (“Rule”) 12(b)(6), claiming Car Carriers is barred from bringing this suit by the res judicata effect of a dismissal with prejudice of its earlier action against them, Car Carriers, Inc. v. Ford Motor Co., No. 82 C 7009 (the “1982 Action”). 1 N & W also moves to dismiss under Rule 12(b)(6), asserting the Complaint discloses no basis on which it could be held liable for the alleged practices of Ford and Nu-Car. For the reasons stated in this memorandum opinion and order, all defendants’ motions are granted and this action is dismissed in its entirety on the terms hereafter specified.

Procedural Profile

Car Carriers’ 1982 Action alleged Ford and Nu-Car ran Car Carriers out of the business of shipping Ford automobiles from Chicago. Many of the relevant facts alleged in that suit are set forth in the Opinion, 561 F.Supp. at 886-87. Six claims were advanced by the Complaint in the 1982 Action (the “1982 Complaint”): one federal law count under Sherman Act § 1, 15 U.S.C. § 1, and five pendent state law *223 counts. This Court’s Opinion dismissed the Sherman Act claim with prejudice because Car Carriers lacked “antitrust standing” to assert its claim — that is, the 1982 Complaint affirmatively showed no competitive harm to Car Carriers because actions attributed to the defendants (561 F.Supp. at 888) constituted “procompetitive rather than anticompetitive activity.” With the Sherman Act claim gone, the state law claims were dismissed without prejudice as not pendent to any valid federal claim {id. at 889).

Car Carriers’ 1983 Complaint also alleges facts surrounding Car Carriers’ termination as a shipper of Ford automobiles. Except for three conspicuous differences, it is substantially similar to the 1982 Complaint:

1. It goes into greater detail: 24 counts and 529 paragraphs, as against the 1982 Complaint’s six counts and 151 paragraphs. 2 Car Carriers’ contention (discussed below) is the 1983 Complaint invokes facts not within the basic fact situation underlying the 1982 Action.
2. It invokes different legal theories. Unlike the 1982 Complaint, which contained only a single federal law count based on the Sherman Act and five Illinois law counts, the 1983 Complaint brings six counts under the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1961-1968, one count under the Elkins Act, codified at 49 U.S.C. §§ 11902-11904, and 17 counts under Illinois law.
3. It joins somewhat different parties. N & W was not a defendant in the 1982 Action and therefore cannot join with Ford and Nu-Car in invoking res judicata. In addition the 1983 Complaint adds two related entities as plaintiffs — Transport Terminals, Inc. (“Transport”) and Selby Transport Co. — but that addition is irrelevant to res judicata because the new plaintiffs are in privity with the plaintiffs in the 1982 Action. Contrast Beard v. O’Neal, 728 F.2d 894, 896-97 (7th Cir.1984).

Ford and Nu-Car Res Judicata Motions

Res judicata bars a lawsuit if three essential elements are present, Lee v. City of Peoria, 685 F.2d 196, 199 (7th Cir.1982):

(1) a final judgment on the merits in an earlier action; (2) an identity of the cause of action in both the earlier and the later suit; and (3) an identity of parties or their privies in the two suits.

N & W does not join in the res judicata motion, and the additional plaintiffs in this action do not deny their obvious privity with the plaintiffs in the 1982 Action. Accordingly only the first two elements of res judicata are at issue.

1. Final Judgment on the Merits

Because the opinion dismissed the 1982 Action for failure to state a claim upon which relief can be granted, it was a disposition of the case on the merits. As our Court of Appeals stated in Bunker Ramo Corp. v. United Business Forms, Inc., 713 F.2d 1272, 1277 (7th Cir.1983) (citations omitted, emphasis in original):

A dismissal for lack of subject matter jurisdiction is not on the merits and consequently will not bar a later suit____ A dismissal for failure to state a claim upon which relief can be granted, however, is a dismissal on the merits and is res judicata. Federated Department Stores, Inc. [v. MoitieJ 452 U.S. [394,] at 398, 101 S.Ct. [2424,] at 2427 [69 L.Ed.2d 103] [ (1981) ]; Harper Plastics, Inc. [v. Amoco Chemicals Corp.], 657 F.2d [939,] at 945 [(7th Cir.1981)]. IB Moore’s Federal Practice ¶ 0.405[1] (2d ed. 1982).

Moreover the Opinion’s language makes clear this Court intended to dispose of the 1982 Action on the merits. In its statement of facts the Opinion assumed as true not only allegations of the 1982 Complaint but also factual assertions in Car Carriers’ *224 memorandum not contained in that Complaint. This Court said it did so (561 F.Supp. at 886 n. 2) to show plaintiffs “confront more than mere pleading deficiencies.” And the Opinion’s “Conclusion” section stated {id. at 889, footnote omitted):

Ford’s and Nu-Car’s motions to dismiss are granted. Because Count I could not possibly be repleaded to withstand Rule 12(b)(6) onslaught, this entire action is dismissed — Count I with prejudice and the other counts without prejudice.

Car Carriers interprets Bunker Ramo as holding any dismissal of a claim for lack of antitrust standing is not on the merits and thus is not res judicata. True enough, Bunker Ramo held Judge Aspen’s dismissal of an earlier complaint in Bunker Ramo Corp. v. Cywan, 511 F.Supp. 531 (N.D.I11. 1981) — a dismissal for failure to allege competitive injury — was not on the merits and had no res judicata effect.

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

Related

Interstate Material Corp. v. City of Chicago
501 N.E.2d 910 (Appellate Court of Illinois, 1986)
Magnus Electronics, Inc. v. Argentine Republic
637 F. Supp. 487 (N.D. Illinois, 1986)
Car Carriers, Inc. v. Ford Motor Co.
789 F.2d 589 (Seventh Circuit, 1986)
Car Carriers, Inc. v. Ford Motor Company
789 F.2d 589 (Seventh Circuit, 1986)
Volckmann v. Edwards
642 F. Supp. 109 (N.D. California, 1986)
Caires v. Kualoa Ranch, Inc.
708 P.2d 848 (Hawaii Intermediate Court of Appeals, 1985)
DeMent v. Abbott Capital Corp.
589 F. Supp. 1378 (N.D. Illinois, 1984)
Teamsters Local 282 Pension Trust Fund v. Angelos
585 F. Supp. 1401 (N.D. Illinois, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
583 F. Supp. 221, 1984 U.S. Dist. LEXIS 18139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/car-carriers-inc-v-ford-motor-co-ilnd-1984.