Cheatham's Furniture Co. v. La-Z-Boy Chair Co.

728 F. Supp. 569, 1989 U.S. Dist. LEXIS 15889, 1989 WL 161179
CourtDistrict Court, E.D. Missouri
DecidedDecember 7, 1989
DocketS88-94C (5)
StatusPublished
Cited by6 cases

This text of 728 F. Supp. 569 (Cheatham's Furniture Co. v. La-Z-Boy Chair Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cheatham's Furniture Co. v. La-Z-Boy Chair Co., 728 F. Supp. 569, 1989 U.S. Dist. LEXIS 15889, 1989 WL 161179 (E.D. Mo. 1989).

Opinion

728 F.Supp. 569 (1989)

CHEATHAM'S FURNITURE CO., Plaintiff,
v.
LA-Z-BOY CHAIR COMPANY, Defendant.

No. S88-94C (5).

United States District Court, E.D. Missouri, Southeastern Division.

December 7, 1989.

*570 Stefan J. Glynias, Adrida P. Sulser, Evans & Dixon, St. Louis, Mo., for plaintiff.

Rocque E. Lipford, Miller, Canfield, Paddock & Stone, Monroe, Mich., Timothy F. Noelker, Coburn, Croft & Putzell, St. Louis, Mo., for defendant.

JUDGMENT AND ORDER

LIMBAUGH, District Judge.

Cheatham's has filed a two-count complaint against La-Z-Boy. In Count I plaintiff alleges that defendant conspired with other dealers of defendant's products located in southeastern Missouri and southern Illinois to maintain a minimum resale price on its products. Defendant allegedly terminated Cheatham's when it refused to cooperate in this scheme. In Count II plaintiff contends that defendant conspired to tortiously interfere with a business relationship. This matter is presently before the Court on defendant's motion for summary judgment.

A. Summary Judgment Standards.

Courts have recognized that summary judgment is a harsh remedy which courts should only grant when the moving party has established his right to judgment with such clarity as not to give rise to controversy. New England Life Ins. Co. v. Null, 554 F.2d 896, 901 (8th Cir.1977). Summary judgment motions, however, "can be a tool of great utility in removing factually insubstantial cases from crowded dockets, freeing courts' trial time for those that really do raise genuine issues of material fact." City of Mt. Pleasant, Iowa v. Assoc. Elec. Coop., Inc., 838 F.2d 268, 273 (8th Cir. 1988).

Pursuant to Federal Rule of Civil Procedure 56(c), a district court may grant a motion for summary judgment if all of the information before the court shows that "there is no genuine issue as to material fact and the moving party is entitled to judgment as a matter of law." Poller v. Columbia Broadcasting System, 368 U.S. 464, 467, 82 S.Ct. 486, 488, 7 L.Ed.2d 458 (1962). Summary judgment may be granted against a party who fails to adduce facts sufficient to establish the existence of any element essential to that party's case, for which that party will bear the burden of proof at trial. Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party bears the initial burden of identifying evidence which demonstrates the absence of a genuine issue of material fact. Celotex, 477 U.S. at 323, 106 S.Ct. at 2552. Once that burden is met, the non-moving party must do more than show that there is some doubt as to the facts. Matsushita Elec. Industrial Co. v. Zenith Radio, 475 U.S. 574, 586, 106 S.Ct. 1348, 1355, 89 L.Ed.2d 538 (1986). In fact, the non-moving party then bears the burden of setting forth specific facts showing that there is evidence in its favor to allow a jury to return a verdict for it. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986).

In passing on a motion for summary judgment, the Court must review the facts in a light most favorable to the party opposing the motion and give that party the benefit of any inferences that can logically be drawn from those facts. Buller v. Buechler, 706 F.2d 844, 846 (8th Cir.1983). Furthermore, the Court is required to resolve all conflicts of evidence in favor of the non-moving party. Robert Johnson *571 Grain Co. v. Chem. Interchange Co., 541 F.2d 207, 210 (8th Cir.1976). With these principles in mind, the Court turns to an examination of the facts.

B. Facts.

In 1981, plaintiff Cheatham's became a dealer in La-Z-Boy's products at its original store in Sikeston, Missouri. In 1983 plaintiff opened a second store in Cape Girardeau, Missouri, and was also granted the right to sell defendant's products at that location. In 1985, plaintiff opened a third store in Carbondale, Illinois. Because plaintiff wished to sell defendant's products in its Carbondale store also, it approached defendant before the opening of the Carbondale store and requested that it be made a dealer at its Carbondale location. Defendant approached plaintiff with the request that plaintiff raise its price so that defendant could establish a resale price level to be followed by the other dealers. When plaintiff refused to enter into this agreement to fix prices, plaintiff was terminated as a La-Z-Boy dealer in southeast Missouri and denied access to La-Z-Boy products at its Carbondale, Illinois store.

It is defendant's contention that plaintiff has failed to establish a cause of action against La-Z-Boy because plaintiff cannot prove that there was an agreement on price or price levels as required by Business Electronics Corporation v. Sharp Electronics Corporation, 485 U.S. 717, 108 S.Ct. 1515, 99 L.Ed.2d 808 (1988).

C. Count I: Anti-Trust Violation.

Section 1 of the Sherman Act provides that "[e]very contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal." 15 U.S.C. § 1. To establish a violation of this section in an antitrust claim, plaintiff must present direct or circumstantial evidence that reasonably tends to prove that the defendant and others "had a conscious commitment to a common scheme designed to achieve an unlawful objective." Monsanto Co. v. Spray-Rite Service Corp., 465 U.S. 752, 764, 104 S.Ct. 1464, 1470, 79 L.Ed.2d 775 (1984). Circumstances must reveal "a unit of purpose or a common design or understanding, or a meeting of minds in an unlawful arrangement." Id., Pumps & Power Co. v. Southern States Industries, Inc., 787 F.2d 1252, 1256 (8th Cir.1986).

Ordinarily, § 1 violations are determined by the "rule of reason" standard. It requires the factfinder to weigh all of the circumstances of a case to determine whether "a restrictive practice should be prohibited as imposing an unreasonable restraint on competition." Continental T.V., Inc. v. GTE Sylvania, Inc., 433 U.S. 36, 49, 97 S.Ct. 2549, 2557, 53 L.Ed.2d 568 (1977).

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728 F. Supp. 569, 1989 U.S. Dist. LEXIS 15889, 1989 WL 161179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cheathams-furniture-co-v-la-z-boy-chair-co-moed-1989.