Clint Pinder and Dorothy Pinder, D/B/A Clint Pinder Seafood Company v. Hudgins Fish Company, Inc.

570 F.2d 1209, 1978 U.S. App. LEXIS 11863
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 4, 1978
Docket75-4321
StatusPublished
Cited by6 cases

This text of 570 F.2d 1209 (Clint Pinder and Dorothy Pinder, D/B/A Clint Pinder Seafood Company v. Hudgins Fish Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clint Pinder and Dorothy Pinder, D/B/A Clint Pinder Seafood Company v. Hudgins Fish Company, Inc., 570 F.2d 1209, 1978 U.S. App. LEXIS 11863 (5th Cir. 1978).

Opinion

JOHN R. BROWN, Chief Judge:

Plaintiffs-appellants Clint Pinder and Dorothy Pinder filed suit against Hudgins Fish Company, Inc., alleging violations of Sherman Act, Sections One and Two, 15 U.S.C.A. §§ 1-2, and praying for damages under 15 U.S.C.A. § 15. After a three-week trial, a jury returned a general verdict 1 for *1211 Hudgins. The Pinders filed a motion to set aside the jury verdict and enter judgment n. o. v. as to liability, and for a new trial on the issue of damages, or, alternatively, for a new trial on both liability and damages. The District Court denied the Pinders’ motion, and- they have appealed from that denial. Under the standard of review set forth in this Court’s en banc decision in Boeing Co. v. Shipman, 5 Cir., 1969, 411 F.2d 365, we affirm.

Genera] Characteristics Of The Food Fish Industry

Going Fishin’

Some general facts concerning the market structure in the commercial food fish industry in Florida are helpful in understanding this case. Fish have two salient features which leave an indelible mark upon the structure of the food fish industry in Florida. First, they migrate during seasonal runs. The natural result of this is that fish production is much heavier during seasonal runs than at other times, since the fish are much more concentrated during these runs. Another result is that the fisherman must generally follow the fish, even when this takes the fisherman out of his home waters.

The second characteristic of fish important to the food fish industry is that fish spoil very rapidly if not refrigerated or frozen. This piscean characteristic creates an overwhelming need for fish processing, refrigeration, or storage facilities within a few hours of the catch.

During the time 2 and in the five county area of the lower east coast of Florida 3 delineated in plaintiff’s complaint, there were hundreds of commercial fishermen. Historically, each fisherman owned his own boat, nets, and lines, and could fish when, where, and for whom he wanted. Occasionally, however, dealers financed the boats and equipment for certain fisherman, and this created ties between fishermen and dealers. Friendships and price differentials among different dealers undoubtedly fostered other ties between fishermen and dealers. However, these ties were generally ignored during the fish runs. Then the fishermen usually followed the fish wherever they went, and, in order to prevent spoilage, took their catch to the nearest refrigeration and freezer plant that would take the fish, regardless of who operated the plant.

Dealers are the next step in the food production chain. The Pinders and Hud-gins were among nine or ten fish dealers who operated along the lower east coast of Florida between April 1971 and June 1973. The dealers all owned refrigeration facilities, and Hudgins owned, in addition, freezer facilities. The main function of the dealers is to purchase fish from the commercial fishermen and to sell them to various wholesale and retail markets. Dealers generally buy fish at their fish house or “over-the-wall.” 4

After processing the fish, the dealers could either pack and sell the fish fresh, or freeze it to sell later. The major wholesale fresh fish market used by the Florida dealers at this time was the Fulton Fish Market in New York City. Fresh fish were also sold, however, to markets in Philadelphia, Boston, Jacksonville, Miami, and other cities *1212 in the United States and in Puerto Rico. Generally, the dealers did not know in advance the exact prices they would receive for their fish until after they shipped them to market. Even when the retailers or wholesalers would quote a price to the dealer prior to shipment, they would often renege and offer a lower price once the dealer arrived with the fish.

If the supply of fish was particularly heavy, dealers sometimes froze a certain portion of the fish and stored them for resale at a later time, in the hope that prices would rise once the supply of fresh fish slacked off. This form of price speculation carried certain extra burdens — possible damage to the fish during the holding period, the normal market risks accompanying any form of price speculation, and the additional capital requirements necessary to build and maintain a freezing house and its equipment. Because of these extra burdens, the Pinders, as well as most other fish dealers in this area of Florida, did not have freezing equipment and the storage facilities necessary for keeping frozen fish for long periods of time. Hudgins, on the other hand, did have some freezing and storage equipment and facilities.

Also important to an understanding of this case is the method by which the fish prices were set. Commercial fishermen, the dealers, and the wholesalers and retailers all had a hand in setting the price. Wholesalers and retailers helped to set the maximum price by pricing dealers’ fish at the markets. Because of the cost of transportation and storage, it may be presumed that the dealers had little leverage in this phase of the pricing operation, although they might improve their position somewhat by freezing a portion of their fish.

Because the dealer did not know the exact price at which he could sell his fresh fish until he had already shipped them to market, 5 he normally did not pay the commercial fishermen for their fish until after the price had been determined in the retail and wholesale markets. Instead, when the fishermen brought in their fish, the fish were sorted by species and weighed, and the amount and type of fish brought in by each fisherman was recorded. Then, if the fish were to be shipped on the fresh fish market, the fish would usually be gutted, iced down, and shipped on refrigerated trucks to market. After the dealer sold his fish to the wholesaler or retailer, he would calculate the price to pay the fishermen, after deducting his expenses and a profit. Several days after the fish were originally caught, the dealer would prepare a statement for each fisherman who brought fish to him, which stated the fisherman’s name, the type of fish he brought in, the number of pounds per species, dockside price per pound, any deductions for advances, and total amount for all fish weighed in during the preceding week. Fishermen were then paid on Fridays or Saturdays, receiving a copy of this statement with their check.

If the fish were to be frozen for later resale, the fishermen would be paid on the same schedule, but the price paid would be a reflection of the anticipated price (less dealer expenses and profits) which the dealer hoped to sell the fish for during the off-season.

In spite of the apparent impotence of the fishermen in this pricing mechanism, they really possessed the power to set the minimum acceptable price, by their concerted refusal to fish when the price fell below a certain point. 6

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570 F.2d 1209, 1978 U.S. App. LEXIS 11863, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clint-pinder-and-dorothy-pinder-dba-clint-pinder-seafood-company-v-ca5-1978.