Dale Hilton, Inc. v. Triangle Publications, Inc.

27 F.R.D. 468, 4 Fed. R. Serv. 2d 913, 1961 U.S. Dist. LEXIS 5866, 1961 Trade Cas. (CCH) 70,005
CourtDistrict Court, S.D. New York
DecidedMay 2, 1961
StatusPublished
Cited by12 cases

This text of 27 F.R.D. 468 (Dale Hilton, Inc. v. Triangle Publications, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dale Hilton, Inc. v. Triangle Publications, Inc., 27 F.R.D. 468, 4 Fed. R. Serv. 2d 913, 1961 U.S. Dist. LEXIS 5866, 1961 Trade Cas. (CCH) 70,005 (S.D.N.Y. 1961).

Opinion

METZNER, District Judge.

This is a private antitrust suit seeking treble damages and an injunction pursuant to the provisions of the Clayton Act and the Sherman Act, 15 U.S.C.A. §§ 1 et seq., 12 et seq.

The plaintiff, a fashion retailer who conducted a nationwide mail order business in wearing apparel and apparel accessories for teen-age girls, alleges that a conspiracy existed among the defendants to restrain competition in mail order fashion advertising in the “under-20 market” and to monopolize this market. More specifically, the plaintiff charges that the defendants conspired to discriminate against the plaintiff in its advertising in the magazine Seventeen through the fixing of space quotas and restrictions on the number of items that could be displayed by plaintiff in the space bought, that merchandise selling below specified prices could not be advertised by plaintiff in the magazine, and that ultimately the magazine refused to accept any advertising from the plaintiff. Finally, the defendants are charged with fixing prices for fashions advertised in the magazine. The defendants in this action are Triangle Publications, Inc., the publisher of Seventeen (a magazine with nationwide distribution), two manufacturers of teen-age feminine apparel and [470]*4709 so-called “prestige” department stores which were among the advertisers in Seventeen.

Defendant Best & Co., one of the department stores, moves, under Rule 56(b) of the Federal Rules of Civil Procedure, 28 U.S.C.A., for an order granting summary judgment in its favor. A note of issue and a statement of readiness have been filed, and extensive pretrial discovery-deposition procedures have been completed by all parties.

The moving party contends that plaintiff has failed to uncover any competent independent evidence establishing a conspiracy or connecting the defendant Best with such a conspiracy. It takes the position that there is no genuine issue of fact as to the issues, and since it would be entitled at the close of the plaintiff’s case to a directed verdict on the state of the evidence as revealed in the papers, it is now entitled to summary judgment.

Contrary to plaintiff’s position that summary judgment is not appropriate in antitrust litigation, especially if a charge of conspiracy is involved, it is abundantly clear that the remedy is available if the moving party satisfies the requirements for granting the motion. Syracuse Broadcasting Corp. v. Newhouse, 2 Cir., 1956, 236 F.2d 522; United States v. Celanese Corp. of America, D.C.S.D.N.Y.1950, 91 F.Supp. 14; United States v. General Instrument Corp., D.C.D.N.Y.1949, 87 F.Supp. 157. The fact that the violation is bottomed on a charge of conspiracy does not change this rule. Morgan v. Sylvester, D.C., 125 F.Supp. 380, affirmed 2 Cir., 1955, 220 F.2d 758, certiorari denied 350 U.S. 867, 76 S.Ct. 112, 100 L.Ed. 768, petition for rehearing denied 350 U.S. 919, 76 S.Ct. 201, 100 L.Ed. 805; Fishman v. Teter, 7 Cir., 1943, 133 F.2d 222.

Summary judgment procedure is intended to permit a party to pierce the allegations of fact in the pleading and to obtain relief where facts set forth in detail in affidavits, depositions and admissions on file show that there are no genuine issues of fact to be tried. Engl v. Aetna Life Ins. Co., 2 Cir., 1943, 139 F.2d 469, 472; 6 Moore’s Federal Practice § 56.04[1] (2d Ed. 1953).

A party moving for summary judgment bears the burden of showing the absence of any genuine issue of fact requiring a trial and also that there is no real question as to the credibility of its evidentiary material. Colby v. Klune, 2 Cir., 1949, 178 F.2d 872; Arnstein v. Porter, 2 Cir., 1946, 154 F.2d 464; 6 Moore’s Federal Practice § 56.15 [3] and [4], (2d Ed. 1953). Opportunity for cross-examination and obtaining “demeanor” testimony, especially where the facts are peculiarly within the knowledge of the moving party, is usually determinative in denying a motion for summary judgment. Arnstein v. Porter, supra; Colby v. Klune, supra; Subin v. Goldsmith, 2 Cir., 1955, 224 F.2d 753. The Court of Appeals for this circuit has stated that where there is the slightest doubt as to the facts the motion for summary judgment should be denied. Doehler Metal Furniture Co. v. United States, 2 Cir., 1945, 149 F.2d 130, 135; Bozant v. Bank of New York, 2 Cir., 1946, 156 F.2d 787.

In support of its motion Best has submitted the affidavit of Rignel, its advertising manager, to the effect that he never heard of the plaintiff nor saw its advertisements in Seventeen, nor did he or any other officer or employee of Best ever participate in any conspiracy directed against the plaintiff, nor complain to Seventeen about plaintiff’s advertising, nor advise Seventeen that restrictions be placed on plaintiff’s advertising. He never met, talked with or corresponded with, the advertising director or the advertising manager of Seventeen or with Koontz,. an employee of the magazine. Rignel states that the advertising agency for Best only places the order for advertisements on Best’s behalf, and neither prepares the copy nor selects the media. Rignel further denies that he ever dis[471]*471cussed the plaintiff with his advertising agency.

Insofar as editorial credits are concerned, the affiant points out that they are a common and established method of advertising with magazines and with such newspapers as the New York Times and the New York Herald Tribune. Editorial credits consist of a picture of an item of apparel with a legend underneath indicating where the merchandise may be purchased and the approximate retail price. The stores referred to are usually scattered throughout the country. Before printing such material in the magazine, the publisher circularizes a number of stores to ascertain if they are interested in having their names associated with the article in question. This is done to make sure that the store has an available supply to meet any demand generated by the editorial credit. The retail price is independently set by each store in its reply to the inquiry from the magazine. A number of- samples of this type of editorial credit from various media are attached to Rignel’s affidavit, along with the form of inquiry sent out by each of the media.

Similar affidavits were submitted by Margolis, the promotion director of Best, and McCausland, the vice president in charge of the merchandise office. Leonard Gussow, the head of the Gussow-Hy-man Advertising Agency, states that the agency handles many accounts, including Best, that placed advertisments in Seventeen. He never discussed with the employees of Seventeen the fixing of price floors by the magazine, except to receive notification thereof, and he never discussed with Best, directly or indirectly, any matter relating to the plaintiff or its advertisements. Best never tried through him to exert any pressure on Seventeen.

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27 F.R.D. 468, 4 Fed. R. Serv. 2d 913, 1961 U.S. Dist. LEXIS 5866, 1961 Trade Cas. (CCH) 70,005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dale-hilton-inc-v-triangle-publications-inc-nysd-1961.