Dunnivant v. Bi-State Auto Parts

851 F.2d 1575, 1988 WL 77725
CourtCourt of Appeals for the Eleventh Circuit
DecidedAugust 15, 1988
DocketNo. 87-7652
StatusPublished
Cited by23 cases

This text of 851 F.2d 1575 (Dunnivant v. Bi-State Auto Parts) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunnivant v. Bi-State Auto Parts, 851 F.2d 1575, 1988 WL 77725 (11th Cir. 1988).

Opinion

HATCHETT, Circuit Judge:

In this Sherman Act antitrust case, we apply the teachings of Helicopter Support Systems v. Hughes Helicopter, 818 F.2d 1530 (11th Cir.1987) to affirm the district court’s ruling that no violation of the Sherman Act occurred as a result of the proof developed in this case.

FACTS

In October, 1982, Sam Dunnivant, the appellant, opened an automotive parts store (Sammy’s Auto Parts) in Ardmore, Alabama, and continued operation until March, 1985. Three other automotive re[1578]*1578tail businesses were also located in Ard-more: Ardmore Parts, Inc. (Spence), Bi-State Auto Parts, and the Otasco Store. Ardmore has a population of less than 2,000.

S & S Auto Parts (S & S), Auto Electric Service, Inc. (Auto Electric), Don’s Foreign Auto Electric, Inc. (Don’s Foreign Auto), and Mid-State Automotive Distributors, Inc. (Mid-State) are suppliers of automotive parts in the Ardmore area. Dunnivant contacted these suppliers in an effort to stock automotive parts. Initially, Dunni-vant could not find a supplier who delivered in Ardmore to sell him automotive parts. As a result, Dunnivant purchased parts from suppliers in Huntsville, Alabama, and transported the parts to his store in Ardmore.

Dunnivant also sold oxygen and acetylene which he purchased from Thompson Welding and Supply in Gurley, Alabama. Alabama Oxygen provided Thompson Welding with oxygen supplies. Because Dunnivant’s customers brought their empty gas cylinders to Ardmore Parts (Spence), Paul Spence complained to Alabama Oxygen Company. Spence was accountable to Alabama Oxygen for cylinders used in retail sales and sought to avoid liability for cylinders — valued at $200 — purchased from Dunnivant. Spence advised Alabama Oxygen that he would no longer purchase its cylinders because of its business with Dun-nivant. To appease Spence, Alabama Oxygen advised Thompson Welding and Supply that it could no longer sell to Dunnivant.1 Dunnivant then attempted to purchase oxygen from Harris Welding Supply Company. Harris Welding decided against conducting business with Dunnivant because it was also in the retail market; the oxygen market averages only $300 a month; and Spence had promised Harris Welding all of his business. As a result, Dunnivant discontinued oxygen sales.

In March, 1984, Auto Electric, a supplier to the three retail competitors, began selling automotive parts to Dunnivant, but Dunnivant was still required to supplement his inventory through purchases from Huntsville, Alabama. On April 3, 1984, Paul Spence returned parts and accessories to Auto Electric for credit asserting that he could no longer do business with Auto Electric because of its business relationship with Dunnivant. Spence’s purchases from Auto Electric during the three months pri- or to April, 1984 averaged over $1000 per month. Notwithstanding Spence’s actions, Auto Electric remained Dunnivant’s primary supplier for thirteen months after the loss of the Spence account. During this period, Dunnivant never stocked a full line of inventory and purchased goods only as needed, averaging $403 per month in merchandise. Because of Dunnivant’s refusal to stock inventory, Auto Electric terminated business relations with Dunnivant and reestablished a business relationship with Spence. Again, Dunnivant attempted to contact suppliers who delivered automotive parts in Ardmore. The suppliers either advised Dunnivant of existing agreements with retailers in Ardmore or determined that Ardmore’s small market made a business relationship unprofitable. Because it was economically unfeasible for Dunnivant to continue to transport parts from Huntsville, and because suppliers refused to sell parts to Dunnivant, he went out of business.

PROCEDURAL HISTORY

Dunnivant filed this lawsuit alleging violations of sections 1 and 2 of the Sherman Antitrust Act (see 15 U.S.C. §§ 1 and 1px solid var(--green-border)">2) and tort claims against his competitors for interference with business relations. All ap-pellees except Mid-State filed motions to dismiss, and Auto Electric and S & S filed motions for summary judgment. The district court entered summary judgment in favor of all appellees except Mid-State. The district court held that Dunnivant “failed to come forward with specific facts showing that there is a genuine issue for trial ... and that [Dunnivant] has failed to present evidence ... to exclude the possibility that the alleged conspirators wqre acting independently.” Dunnivant failed to [1579]*1579take a default judgment against Mid-State, and the district court dismissed the complaint for lack of prosecution. Dunnivant filed this appeal.

The issues are: (1) whether the district court applied, an improper standard of review in granting summary judgment; (2) whether the evidence shows a concerted refusal to deal; and (3) whether the retailers tortiously interfered with Dunnivant’s business relations.

Section 1 of the Sherman Act provides that “[ejvery contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several states, or with foreign nations is declared to be illegal.” 15 U.S.C. § 1.

STANDARD OF REVIEW

In Helicopter Support Systems v. Hughes Helicopter, 818 F.2d 1530 (11th Cir.1987), this court held that in order to meet a properly supported motion for summary judgment, a plaintiff seeking damages for Sherman Act section 1 violations must present evidence that tends to exclude the possibility that the alleged conspirators were acting independently. Helicopter, 818 F.2d at 1533-34 (citing Monsanto Co. v. Spray-Rite Service Corp., 465 U.S. 752, 764, 104 S.Ct. 1464, 1470, 79 L.Ed.2d 775, reh’g denied, 466 U.S. 994, 104 S.Ct. 2378, 80 L.Ed.2d 850 (1984)); see also Commuter Transportation Systems, Inc. v. Hillsborough County Aviation Authority, 801 F.2d 1286, 1291 (11th Cir.1986) (where this court in a nonprice fixing case applied the Monsanto standard requiring plaintiff to present evidence excluding the possibility of independent action). “The nonmoving party must come forward with specific facts showing that there is a genuine issue for trial." Hillsborough, 801 F.2d at 1291 (citing Matsushita Electric Industrial Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986)). Mere complaints of illegal conspiracy that are equally consistent with permissible competition, without more, do not support even an inference of conspiracy. Monsanto, 465 U.S. at 764, 104 S.Ct. at 1470; Helicopter, 818 F.2d at 1533. There must be “direct or circumstantial evidence that reasonably tends to prove that the [parties] ‘had a conscious commitment to a common scheme designed to achieve an unlawful objective.’ ” Monsanto, 465 U.S. at 764, 104 S.Ct. at 1471 (quoting Edward J.

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

Related

OJ Commerce, LLC v. KidKraft, Inc.
34 F.4th 1232 (Eleventh Circuit, 2022)
Fleischman v. Albany Medical Center
728 F. Supp. 2d 130 (N.D. New York, 2010)
Alakayak v. British Columbia Packers, Ltd.
48 P.3d 432 (Alaska Supreme Court, 2002)
Andrx Pharmaceuticals, Inc. v. Biovail Corp.
175 F. Supp. 2d 1362 (S.D. Florida, 2001)
City of Tuscaloosa v. Harcros Chemicals, Inc.
158 F.3d 548 (Eleventh Circuit, 1998)
Baker's Carpet Gallery, Inc. v. Mohawk Industries, Inc.
942 F. Supp. 1464 (N.D. Georgia, 1996)
Diefenderfer v. Ford Motor Co.
916 F. Supp. 1155 (M.D. Alabama, 1995)
City of Tuscaloosa v. Harcros Chemicals, Inc.
877 F. Supp. 1504 (N.D. Alabama, 1995)
Market Force Incorporated v. Wauwatosa Realty Company
906 F.2d 1167 (Seventh Circuit, 1990)
Market Force Inc. v. Wauwatosa Realty Co.
906 F.2d 1167 (Seventh Circuit, 1990)
BRIDGEWAY COM. INC. v. Trio Broadcasting, Inc.
562 So. 2d 222 (Supreme Court of Alabama, 1990)
Sinkwich v. Texaco Refining & Marketing, Inc.
716 F. Supp. 614 (M.D. Georgia, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
851 F.2d 1575, 1988 WL 77725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunnivant-v-bi-state-auto-parts-ca11-1988.