Dovberg v. Dow Chemical Company

195 F. Supp. 337
CourtDistrict Court, E.D. Pennsylvania
DecidedJune 24, 1961
DocketCiv. A. No. 25351
StatusPublished
Cited by3 cases

This text of 195 F. Supp. 337 (Dovberg v. Dow Chemical Company) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dovberg v. Dow Chemical Company, 195 F. Supp. 337 (E.D. Pa. 1961).

Opinion

195 F.Supp. 337 (1961)

Ike DOVBERG and Maurice Dovberg, Individually and t/a Paste Company of America, Plaintiffs,
v.
DOW CHEMICAL COMPANY et al., Defendants.

Civ. A. No. 25351.

United States District Court E. D. Pennsylvania.

June 24, 1961.

*338 Tom P. Monteverde, Schnader, Harrison, Segal & Lewis, Philadelphia, Pa., for plaintiffs.

Philip Price and Arthur E. Newbold, III, Philadelphia, Pa., for defendant, Dow Chemical Co.

Herman J. Obert, Cushman & Obert, Philadelphia, Pa., for defendant, Pennsylvania Paste Co.

William L. Matz, Zoob, Cohan & Matz, Philadelphia, Pa., for defendant, Samuel Schultz & Co.

Jerome Lipman, Robinson, Greenberg & Lipman, Philadelphia, Pa., for defendant, Reba Spivak, i/t/a Atlas Wallpaper & Paint Co.

Judah Zelitch, Philadelphia, Pa., for defendant, Samuel Milkis, i/t/a Empire Wallpaper and Paint Co.

This is an action under Sections 1 and 2 of the Sherman Act,[1] and Sections 2, 3 and 4 of the Clayton Act[2] as amended by the Robinson-Patman Act. Plaintiffs, until 1957, were manufacturers of dry and cellulose based wallpaper paste and wall size eliminator. Pennsylvania Paste, a defendant, also manufactures wallpaper paste and related products. Samuel Schultz & Co., Empire Wallpaper & Paint Co., and Atlas Wallpaper & Paint Co. are all retailer defendants who, among other things, retail paste products in Philadelphia. Defendant Dow Chemical manufactures methyl-cellulose and sodium ortho-phenolphenate which it supplied to plaintiffs and which constituted the principal ingredients of plaintiffs' cellulose paste.

Plaintiffs' basic contention is the Pennsylvania Paste Co. conspired with all the other defendants to destroy plaintiffs' business and thereby preserve Pennsylvania Paste Co.'s dominant position in the wet paste manufacturing business in the Philadelphia area and Dow's control of the use of methyl-cellulose and sodium ortho-phenolphenate.

This case has a protracted history of pretrial discovery,[3] and pretrial conferences.[4] All defendants now move for summary judgment pursuant to F.R. 56 of the Federal Rules of Civil Procedure, 28 U.S.C.A. Defendants contend (1) that taking the pleadings of the plaintiffs, their admissions, depositions, *339 interrogatories, and Pre-Trial Statement of Contentions there is no factual basis to support the allegation of a conspiracy between the defendants; (2) that the alleged conspiracy was neither in restraint of trade nor did it affect interstate commerce within the meaning of the Sherman or Clayton Acts; (3) that plaintiffs' cause of action is barred by the applicable four-year statute of limitations.

Plaintiffs argue (1) that defendants cannot, in the face of the paper record and contentions, establish that the alleged conspiracy did not exist; (2) that such a showing is required by the apposite law upon a motion for summary judgment; (3) that plaintiffs have demonstrated an ability to prove the conspiracy, as alleged, affected interstate commerce within the meaning of the anti-trust laws; and (4) that the statute of limitations is not applicable because it was a "continuing" conspiracy, and because it was concealed from the plaintiffs until 1954, within the four year period provided by the statute.

LEAHY, Senior District Judge.

1. Courts, in this circuit, have applied the broad rule of Frederick Hart & Co., Inc. v. Recordgraph Corporation, 3 Cir., 169 F.2d 580, to summary judgment motions.[5] The rule of the Hart *340 opinion severely limits the Court's discretion to grant such a motion.[6] On at least one occasion, it would seem the Court of Appeals deviated from this approach.[7] The extent to which the rule in Hart has been eroded by such deviations cannot be determined. However, I do not think that the Court here is now required to resolve this question, for, as will appear, determination of the issues raised by the motions for summary judgment is controlled by specific authorities.

2. Conspiracy raises a question of fact or, at least, a question of factual inference. As such, it may not be properly disposed of on summary judgment.[8]*341 Bragen v. Hudson County News Company, 3 Cir., 278 F.2d 615.[9] In Bragen, the Court of Appeals, in reversing the district court's grant of summary judgment in a Sherman Anti-Trust Act Case, through Judge Kalodner, stated: "The impact of particular circumstances upon an inference arising from an admittedly existing factual situation calls for a factual determination which is the function of the trier of facts and not * * * the court in disposing of a motion for summary judgment." At page 618. "Here, in the instance cited, the District Court `found' from the deposition, that an inference of monopolistic practice existed by reason of the unchallenged `tie-in-sales' and then proceeded to make the factual finding that the existing inference was `negatived' by other `facts'.

"As we earlier stated, `Documents filed in support of a motion for summary judgment are to be used for determining whether issues of fact exist and not to decide the fact issues themselves.'" At page 618.[10]

In the case at bar, plaintiffs allege[11] and in their depositions set forth, at least, a scintilla of facts which might constitute a violative conspiracy. Defendants, by denials[12] and allegations *342 of negativing facts[13] move for summary judgment. In the face of the Court of Appeals' admonition in Bragen, defendants' motions cannot be granted.[13a] Moreover, where, as here, a jury trial has been demanded, it is necessary to be cautious in granting summary judgment and not to decide issues which should be left to the province of the jury. Bragen v. Hudson County News Company, 3 Cir., 278 F.2d 615.

3. In support of their motions for summary judgment, defendants further argue plaintiff's cause of action, in whole or in part,[14] is barred by the applicable four-year statute of limitations.[15] Plaintiffs counter that under the case of United States v. Kissel, 218 U.S. 601, 31 S.Ct. 124, 54 L.Ed. 1168, a conspiracy to monopolize continues until the conspiracy succeeds; and that in the instant case the conspiracy continued until plaintiffs were forced out of business in 1957; and that, under Kissel, while the conspiracy still exists, the statute of limitations is tolled. Since plaintiffs brought their action in 1958, they argue it is timely. Further, plaintiffs contend the statutory period does not run until plaintiffs "discover" the conspiracy, which such discovery, according to their allegations, did not occur until 1954, within the statutory limit. For this second proposition, plaintiffs cite Moviecolor Limited v. Eastman Kodak Co., 2 Cir., 288 F.2d 80, which concerns the law of concealment in anti-trust litigation. Concealment is different from a failure to discover.[16]

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Bluebook (online)
195 F. Supp. 337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dovberg-v-dow-chemical-company-paed-1961.