Doctor's Hospital of Jefferson, Inc. v. Southeast Medical Alliance, Inc.

897 F. Supp. 290, 1995 U.S. Dist. LEXIS 12207, 1995 WL 505307
District Court, E.D. Louisiana·Decided August 21, 1995·No. Civ. A. 93-2493·Published·Cited by 3 cases

Opinion

*291 ORDER AND REASONS

JONES, District Judge.

Pending before the Court is plaintiffs “Motion for Reconsideration, or, Alternatively for Entry of Final Judgment Under Rule 54(b),” which was taken under submission on a previous date without oral argument. Having considered the memoranda of the parties, the record and the applicable law, the Court GRANTS the motion to the extent that the Court clarifies the basis for its original ruling but REAFFIRMS the grant of partial summary judgment in defendants’ favor. Further, the Court DEFERS ruling on plaintiffs request for entry of judgment pursuant to Fed.R.Civ.P. 54(b).

Background

The background of this matter is set forth at length in an “Order and Reasons” dated April 18, 1995, in which the Court granted partial summary judgment in favor of defendants on plaintiffs federal and state antitrust claims. (R.Doc. 282.) Without repeating the factual situation at length, suffice it to say that plaintiff, Doctor’s Hospital of Jefferson, Inc., sued defendants, Southeast Medical Alliance, Inc. (hereinafter “SMA”) and Jefferson Parish Hospital District No. 2 (hereinafter “East Jefferson Hospital”), alleging violations of Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1 and 1px solid var(--green-border)">2; Louisiana antitrust laws, LSA-R.S. 51:122 et seq.; the Louisiana Unfair Trade Practices and Consumer Protection Act, LSA-R.S. 51:1401 et seq.; and various other state-law based claims, including civil conspiracy, tortious interference with business relations, and breach of contract. Suit was brought pursuant to Sections 4 and 16 of the Clayton Act, 15 U.S.C. §§ 15, 26.

The defendants filed a motion for partial summary judgment, which was based partly on the contention that the plaintiff, Doctor’s Hospital of Jefferson, Inc. (hereinafter “Doctor’s Hospital”), had no standing to proceed because it could not prove that there had been any “antitrust injury.” (“Order and Reasons,” p. 4, R.Doc. 282. See Defendants’ memorandum in support of motion for partial summary judgment, p. 8-24, R.Doc. 247.) The Court agreed with defendants while at the same time rejecting plaintiffs arguments in opposition. (R.Doc. 282.)

Doctor’s Hospital seeks reconsideration of the Court’s decision, or, alternatively, for entry of judgment pursuant to Fed.R.Civ.P. 54(b) on the Court’s ruling. In its 95-page memorandum in support, Doctor’s Hospital argues that the Court committed legal error in numerous ways in granting partial summary judgment. The legal error included:

1) misapplication of the summary judgment standard;

2) misapplication of the requirement of “standing” under antitrust law;

3) improper analysis of its § 2 Sherman Act claim;

4) improper rejection of its argument for applicability of the per se rule of antitrust law; and,

5) improper analysis of its prima facie showing of injury to competition under the “rule of reason” analysis.

In opposition, defendants argue that the Court correctly applied the law to the record in finding that defendants’ failed to establish “antitrust standing” because there was no proof of “antitrust injury.” Defendants alternatively address plaintiff’s other contentions. Finally, as to plaintiffs request for entry of judgment pursuant to Rule 54(b), defendants contend that such entry is premature and/or would be improper.

Law and Application

I. Reconsideration

In addition to providing the standard for entry of partial judgments, Rule 54(b) also sets forth the standard by which the Court may reconsider its grant of partial summary judgment in defendants’ favor. The rule states, in pertinent part, that “any order ... which adjudicates fewer than all the claims ... is subject to revision at any time before entry of judgment adjudicating all the claims.... ” Cf. Zimzores v. Veterans Administration, 778 F.2d 264, 266 (5th Cir.1985) (analogizing Rule 54(b) provision on revision to entry of summary judgment on liability alone under Rule 56(c)).

*292 Clearly, the Court has the power to revise its previous order. However, for the following reasons, the Court declines to exercise its discretion to change or vacate the grant of partial summary judgment.

II. Summary Judgment Standard

Plaintiffs initial argument is that the Court misapplied summary judgment standards. First, plaintiff argues that the Court did not apply the standard “cautiously” as required in an antitrust case. Second, defendant contends that the Court improperly decided issues of motive and intent central to Doctor’s Hospital’s claims.

Doctor’s Hospital is correct that the Supreme Court stated in Poller v. CBS, 368 U.S. 464, 473, 82 S.Ct. 486, 491, 7 L.Ed.2d 458 (1962), that “summary (judgment) procedures should be used sparingly in complex antitrust litigation where motive and intent play leading roles, the proof is largely in the hands of alleged conspirators, and hostile witnesses thicken the plot.” However, as the Fifth Circuit recognized in discussing Poller and finding the foregoing statement to be Obiter dictum, “simply because a case is based upon the antitrust laws does not suspend the application of Rule 56.” Aladdin Oil Company v. Texaco, Inc., 603 F.2d 1107, 1111 (5th Cir.1979). Cf. Little v. Liquid Air Corporation, 37 F.3d 1069, 1075, n. 14 (5th Cir.1994) (en banc) (rejecting any notion that “appropriateness of summary judgment can be determined” by case classification).

Thus, where motive and intent play important roles in determination of factual issues, summary judgment may be inappropriate in antitrust cases. However, where — as here— the Court’s determination of summary judgment was based on the legal issue of “antitrust injury” as part of “antitrust standing” and on plaintiff’s expert’s recitation of that “antitrust injury,” the use summary judgment was clearly appropriate.

Further, as the Court will explain, because the Court did not have to reach the specific elements of the claims under §§ 1 or 2 of the Sherman Act, the Court did not improperly construe any inferences of motive and intent in favor of defendants.

III.

Free access — add to your briefcase to read the full text and ask questions with AI

Doctor's Hospital of Jefferson, Inc. v. Southeast Medical Alliance, Inc., 897 F. Supp. 290, 1995 U.S. Dist. LEXIS 12207, 1995 WL 505307 (E.D. La. 1995).

897 F. Supp. 290 (Doctor's Hospital of Jefferson, Inc. v. Southeast Medical Alliance, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

In Re Terazosin Hydrochloride Antitrust Litigation
352 F. Supp. 2d 1279 (S.D. Florida, 2005)
HTI Health Services, Inc. v. Quorum Health Group, Inc.
960 F. Supp. 1104 (S.D. Mississippi, 1997)