Cranfill v. Scott & Fetzer Co.

752 F. Supp. 732, 1990 U.S. Dist. LEXIS 16520, 1990 WL 193633
CourtDistrict Court, E.D. Texas
DecidedNovember 1, 1990
DocketCiv. A. No. S-82-0181-CA
StatusPublished
Cited by1 cases

This text of 752 F. Supp. 732 (Cranfill v. Scott & Fetzer Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cranfill v. Scott & Fetzer Co., 752 F. Supp. 732, 1990 U.S. Dist. LEXIS 16520, 1990 WL 193633 (E.D. Tex. 1990).

Opinion

MEMORANDUM OPINION

COBB, District Judge.

The defendants, The Scott & Fetzer Co., and The Kirby Co. (Kirby), moved for partial summary judgment in this case on Counts I and II of the plaintiffs’, Jerry and Miller Cranfill (The Cranfills) complaint. This motion for partial summary judgment (Kirby’s first motion) was filed December 21, 1984. The Cranfills responded to Kirby’s First Motion on December 31, 1984, filing their response to defendants’ motion for partial summary judgment (The Cran-fills’ First Response).

[734]*734On December 21, 1984, the same day Kirby’s First Motion was filed, the Cran-fills filed a First Amended Complaint, adding eight new counts. Kirby then filed its motion for judgment on the pleadings or partial summary judgment (Kirby’s Second Motion) on January 4, 1985. In Kirby’s Second Motion, Kirby sought judgment on all counts of the First Amended Complaint except Count IX. Additionally, Kirby filed a reply memorandum in support of defendants’ motion for partial summary judgment (Kirby’s First Memorandum).

For the next five years, as the case moved from judge to judge, the parties apparently did nothing. On October 5, 1989, the Cranfills filed plaintiffs’ amended response to defendants’ motion for judgment on the pleadings or partial summary judgment (The Cranfills’ Second Response). This court reviewed all these documents, and decided a hearing was necessary.

On May 3, 1990, this court held a hearing on all pending motions. At that time, the court requested the parties file supplemental briefs on several specific issues. The Cranfills filed their supplemental brief in support of plaintiffs’ amended response (The Cranfills’ First Brief) on June 18, 1990, Kirby filed its supplemental memorandum in support of defendants’ motion (Kirby’s Second Memorandum) on June 22, 1990.

Apparently neither party was yet content with the quantity of paper filed in this case. On June 25, 1990, the Cranfills filed their response to defendant Kirby’s supplemental memorandum (The Cranfills’ Third Response). Kirby then filed its response to plaintiffs’ supplemental brief (Kirby’s First Response) on June 27, 1990. This court has now reviewed all of these materials.

Kirby’s Second Motion effectively incorporates its First Motion, so this court will address only Kirby’s Second Motion for judgment on the pleadings or for partial summary judgment. Obviously, this court has considered substantial documentation beyond the pleadings. Accordingly, this court treats Kirby’s Second Motion as a motion for summary judgment under FED. R.CTV.P. ñfi.

Summary judgment is only appropriate where no genuine issue of material fact exists, and the moving party is entitled to summary judgment as a matter of law. Anderson v. Liberty Lobby, 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Kirby seeks summary judgment on four basic categories of claims found in the first amended complaint: the private right of action under the Federal Trade Commission Act; the federal antitrust claims; the Texas State Antitrust claims; and the Texas state breach of contract, fraud, and conversion claims. The court will address each category in turn.

1. PRIVATE RIGHT OF ACTION UNDER THE FEDERAL TRADE COMMISSION ACT

The Cranfills seek to bring a private right of action under the Federal Trade Commission Act. 15 U.S.C. § 45. The Cranfills allege in Count III of the First Amended Complaint that an implied cause of action exists under that statute.

It is well settled law that no such implied private right of action exists. Fulton v. Hecht, 580 F.2d 1243 (5th Cir.1978); Alfred Dunhill, Ltd. v. Interstate Cigar Corp., 499 F.2d 232 (2d Cir.1974); Holloway v. Bristol-Myers Corp., 485 F.2d 986 (D.C.Cir.1973); Carlson v. Coca-Cola Co., 483 F.2d 279 (9th Cir.1973); Atlanta Brick Co. v. O’Neal, 44 F.Supp. 39 (E.D.Tex.1942). No material question of fact could exist on this claim. Kirby is entitled to summary judgment as a matter of law.

Accordingly, Kirby’s motion for summary judgment is GRANTED as to Count III of the First Amended Complaint. Judgment will be entered by order of this same date.

2. FEDERAL ANTITRUST CLAIMS

The Cranfills bring Counts I, II, IV, V, and VI of the First Amended Complaint under the federal antitrust laws, specifically 15 U.S.C. § 4. Kirby responds that the entry of final judgment in a parens patri-ae action brought against Kirby by the Attorney General of the State of Texas bars these claims. The State of Texas as parens patriae v. The Scott & Fetzer Co., [735]*735et al, Civil Action No. A-80-CA-415 (W.D.Tex. May 3, 1984) (parens action).

Judge Bunton’s final judgment in the parens action contains an injunction prohibiting “[pjlaintiff and those persons on whose behalf this action is brought” from bringing suit against these defendants based on “any alleged violation of the federal antitrust laws.... ” Id. Kirby claims this injunctive provision applies to the Cranfills. Although there is no question that this is a suit based on federal antitrust laws, and that Kirby was a defendant in the parens action, Kirby completely misreads “those persons on whose behalf this \parens\ action is brought....”

States’ attorneys general were authorized to bring parens patriae actions by the Hart-Scott-Rodino Antitrust Improvements Act of 1976. 15 U.S.C. § 15c. The stated purpose of the Hart-Scott-Rodino amendment was to “provid[e] the consumer an advocate in the enforcement process— his state attorney general.” H.R.Rep. No. 94-499, 94th Cong.2d Sess., reprinted in 1976 U.S.Code Cong. & Admin. News 2572, 2574 (House Report). Such an advocate was necessary because “[t]he economic burden of many antitrust violations is borne in large measure by the consumer in the form of higher prices for his goods and services.” Id., 1976 U.S.Code Cong. & Admin. News at 2573. The House Report makes it very clear that “those persons on whose behalf [a parens action] is brought ...” are the consumers of the state, as consumers.

Other courts, when applying various elements of the Hart-Scott-Rodino amendment and the federal antitrust laws, have similarly interpreted the purpose of a par-ens patriae action. Judge Young of Maryland said, in interpreting a venue provision of the Hart-Scott-Rodino amendment, “This interpretation is in keeping with the purposes of the parens patriae amendments, which was to make it easier for consumers to recover damages for violations of the antitrust laws.” In re Mid-Atlantic Toyota Antitrust Litigation, 525 F.Supp.

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752 F. Supp. 732, 1990 U.S. Dist. LEXIS 16520, 1990 WL 193633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cranfill-v-scott-fetzer-co-txed-1990.