Carlo C. Gelardi Corp. v. Miller Brewing Co.

502 F. Supp. 637, 1980 U.S. Dist. LEXIS 9632
CourtDistrict Court, D. New Jersey
DecidedDecember 11, 1980
DocketCiv. A. 76-824
StatusPublished
Cited by28 cases

This text of 502 F. Supp. 637 (Carlo C. Gelardi Corp. v. Miller Brewing Co.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carlo C. Gelardi Corp. v. Miller Brewing Co., 502 F. Supp. 637, 1980 U.S. Dist. LEXIS 9632 (D.N.J. 1980).

Opinion

OPINION

HAROLD A. ACKERMAN, District Judge.

The plaintiff in this suit, Carlo C. Gelardi Corp. (Gelardi), a former distributor of Miller Brewing Co. (Miller) products, brought this suit against Miller after Miller terminated Gelardi’s distributorship agreement. Gelardi’s complaint alleges violations of Sections 1 & 2 of the Sherman Antitrust Act, 15 U.S.C. §§ 1 & 2, the Robinson-Patman Antidiscrimination Act, 15 U.S.C. § 13, and the New Jersey Franchise Practices Act, N.J.S.A. 56:10-1 et seq., as well as breach of contract and tortious interference with business and contractual opportunity. Miller has filed a motion seeking partial summary judgment as to all but the tortious interference claims made by Gelardi. In responding to this motion, Gelardi has decided not to pursue its Sherman Act § 2 claim. It has, however, contested the remaining aspects of Miller’s motion. I have decided to grant Miller’s motion as to Gelardi’s Sherman Act § 1, Robinson-Patman Act, and breach of contractually created exclusive territory claims. The remainder of Miller’s motion has been denied.

Because this case has already been the subject of two scholarly opinions by the late Hon. George H. Barlow, it is unnecessary for me to engage in an extensive discussion of the factual background of this suit. See Carlo C. Gelardi Corp. v. Miller Brewing Co., 421 F.Supp. 233 (D.N.J.1976) (Gelardi I) ; Carlo C. Gelardi Corp. v. Miller Brewing Co., 421 F.Supp. 237 (D.N.J.1976) (Gelardi II) . I will, however, discuss the facts as they are relevant to the issues under discussion in each section of this opinion.

In deciding this motion I have applied the appropriate standards required by Fed.R. Civ.P. 56. These are well-summarized by the following quotations from the Supreme Court:

We look at the record on summary judgment in the light most favorable to . . . the party opposing the motion .... We believe that summary procedures should be used sparingly in complex antitrust *640 litigation where motive and intent play leading roles, the proof is largely in the hands of the alleged conspirators, and hostile witnesses thicken the plot. It is only when the witnesses are present and subject to cross-examination that their credibility and the weight to be given their testimony can be appraised. Trial by affidavit is no substitute for trial by jury which so long has been the hallmark of “even handed justice.”

Poller v. Columbia Broadcasting System, Inc., 368 U.S. 464, 473, 82 S.Ct. 486, 491, 7 L.Ed.2d 458 (1962). However:

To the extent that [it has been suggested] that Rule 56(e) should, in effect, be read out of antitrust cases and permit plaintiffs to get to a jury on the basis of the allegations in their complaints, coupled with the hope that something can be developed at trial in the way of evidence to support those allegations, we decline to accept it. While we recognize the importance of preserving litigants’ rights to a trial on their claims, we are not prepared to extend those rights to the point of requiring that anyone who files an antitrust complaint setting forth a valid cause of action be entitled to a full-dress trial notwithstanding the absence of any significant probative evidence tending to support the complaint.

First National Bank of Arizona v. Cities Service Corp., 391 U.S. 253, 289-90, 88 S.Ct. 1575, 1593, 20 L.Ed.2d 569 (1968). See also Mid-West Paper Products Co. v. Continental Group, Inc., 596 F.2d 573, 579 (3d Cir. 1979). With these standards in mind, I will now discuss the specific issues raised by the defendant’s motion.

I. Sherman Act § 1

In Gelardi II Judge Barlow concluded, in denying an injunction to the plaintiff, that Gelardi had not demonstrated a reasonable probability of success on its Sherman Act § 1 claims. 421 F.Supp. 240-45. In that opinion Judge Barlow discussed three aspects of the plaintiff’s § 1 claim, all of which are still being pressed by the plaintiff:

(1) Miller’s allocation of beer products is an unreasonable restraint of trade, in violation of the Sherman Act, 15 U.S.C. § 1.
(2) Miller’s establishment of a dual distributorship in the plaintiff’s area of primary responsibility manifests a conspiracy to force the plaintiff out of business, in violation of the Sherman Act, id. §§ 1, 2;
(3) Miller’s entire course of conduct toward the plaintiff manifests a conspiracy to force the plaintiff out of business, in violation of the Sherman Act, id.

421 F.Supp. 240-41. (footnotes omitted) In addition to these claims, it appears from the plaintiff’s brief in response to this motion that the plaintiff also contends that Miller engaged in a conspiracy to fix prices, a per se violation of Sherman Act § 1. I will consider all of these contentions.

Although Judge Barlow was considering this case on a motion for a preliminary injunction brought by the plaintiff, while I am presently faced with a motion for summary judgment brought by the defendant, Judge Barlow’s statement of the law remains the law of this case. In view of the differing posture of the case I must draw every factual inference in favor of the plaintiff, while Judge Barlow was required to objectively view the proofs and determine the plaintiff’s likelihood of success. While this difference in posture requires a different approach to the facts, it does not change the applicable law and I am fortunate in having Judge Barlow’s scholarly opinion to guide me through the analysis of some of the issues presented here.

I will, therefore, begin my decision of this case where Judge Barlow began: with a consideration of the plaintiff’s claims regarding Miller’s beer allocation system and particularly whether the plaintiff has set forth sufficient facts to create a genuine issue of fact as to whether a conspiracy existed. In his discussion of the allocation issue Judge Barlow set forth the following basic principle of antitrust law:

*641 “Essential to the violation of the antitrust laws is an agreement or combination, the purpose and effect of which is restraint of trade and suppression of competition.” See Viking Theatre Corp. v. Paramount Film Distrib. Corp., 320 F.2d 285, 293 (3d Cir. 1963), aff’d., 378 U.S. 123, 84 S.Ct. 1657, 12 L.Ed.2d 743 (1964); Martin B. Glauser Dodge Co. v. Chrysler Corp., 418 F.Supp.

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Bluebook (online)
502 F. Supp. 637, 1980 U.S. Dist. LEXIS 9632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carlo-c-gelardi-corp-v-miller-brewing-co-njd-1980.