E.W. French & Sons, Inc. v. General Portland Inc.

885 F.2d 1392, 1989 WL 99777
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 31, 1989
DocketNos. 85-6573, 85-6606
StatusPublished
Cited by24 cases

This text of 885 F.2d 1392 (E.W. French & Sons, Inc. v. General Portland Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E.W. French & Sons, Inc. v. General Portland Inc., 885 F.2d 1392, 1989 WL 99777 (9th Cir. 1989).

Opinions

WALLACE, Circuit Judge:

E.W. French & Sons, Inc. (French) supplied ready-mix concrete in Southern California. It purchased some of the cement used to make concrete from General Portland Inc. French brought an action against General Portland and others alleging General Portland violated section 1 of the Sherman Act and California’s antitrust laws in two different conspiracies, violated California’s unfair competition laws, and intentionally interfered with French's prospective business advantage. The district court granted General Portland’s motion for a directed verdict on one of the federal antitrust claims. The jury rejected French’s other antitrust claim, rejected French’s claim of intentional interference, and returned a verdict in favor of French in its unfair competition claim.

Both parties appealed. We have jurisdiction under 28 U.S.C. § 1291. We affirm in part, reverse in part, and remand.

I

French began a ready-mix concrete supplier business in 1954 in Hawthorne, California, and sold concrete throughout Southern California. Ready-mix concrete producers make concrete from cement, sand, and water. French purchased cement at various times from one of six cement producers located in Southern California: General Portland (formerly Pacific Western Industries), Monolith Cement Company, Kaiser Cement & Gypsum Company, Riverside Cement Company, California Portland Cement Company, and Southwest Portland Cement Company. On May 14, 1976, French went out of business.

On May 18, 1978, French filed an action in the district court against General Portland, Consolidated Rock Company (Con-rock), Transit Mixed Concrete Company, and Livingston-Graham, Inc. The action sought damages under sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1, 2 (1982), sections 3 and 7 of the Clayton Act; 15 U.S.C. §§ 13a, 18 (1982), sections 16700-16758 of the California Business & Professional Code, Cal.Bus & Prof.Code §§ 16700-16758 (West 1987) (Cartwright Act), and sections 17000-17101 of the California Business & Professional Code, Cal. Bus. & Prof.Code §§ 17000-17101 (West 1987) (Unfair Practices Act).

French’s amended complaint alleged four theories of liability. First, it alleged that General Portland conspired with other cement producers to eliminate independent concrete producers, such as French. The alleged conspiracy involved fixing a high price for cement and providing fewer discounts than those available to large integrated producers of concrete who were owned or controlled by cement companies. The alleged conspiracy spanned from prior to 1958 through 1978. French maintained the conspiracy violated section 1 of the Sherman Act.

Second, French alleged that General Portland conspired with Conrock, one of French’s competitors, to drive French out of business. This conspiracy involved providing Conrock with cement at a price lower than that charged French, aiding Con-rock in its attempts to obtain business, and granting Conrock secret and discriminatory rebates on cement purchases. French maintained the conspiracy violated section 1 of the Sherman Act.

[1395]*1395Third, as a pendent state claim, French alleged that General Portland and its co-conspirators violated sections 16720, 17045, 17047, and 17048 of the Cartwright Act. French incorporated all of the facts alleged in its two section 1 claims to support this claim. In the same count, French also alleged that General Portland and the co-defendants engaged in unfair competition, thereby violating the California Unfair Practices Act.

Finally, as another pendent claim, French alleged that General Portland intentionally interfered with French’s prospective business advantage in violation of Cal.Bus. & Prof.Code §§ 16727, 17045, 17046, 17047, and 17048 by aiding Conrock in its efforts to obtain the Hawthorne Mall project. General Portland allegedly charged Con-rock less for cement than it charged French, thereby enabling Conrock to obtain the Hawthorne Mall project.

In addition, the complaint alleged that defendants fraudulently concealed the operative facts from French as to all claims. Thus, French argued that each applicable statute of limitations should be tolled.

Prior to trial, French settled with Con-rock, Transit Mixed Concrete Company, and Livingston-Graham, Inc. Other companies not sued in this litigation agreed, in effect, not to collect disputed debts in exchange for releases. General Portland elected to go to trial.

At the close of French’s case, General Portland moved for a directed verdict on (1) the price-fixing claim, (2) the conspiracy claim, (3) the unfair competition claim, (4) the intentional interference with prospective business advantage claim, and (5) the alleged fraudulent concealment of all claims. The district court took the motion under consideration and, at the end of General Portland’s case, General Portland renewed its motion. The district court granted General Portland’s motion for directed verdict on the alleged price-fixing conspiracy under the Sherman and Cartwright Acts and on the fraudulent concealment issue as it related to each claim. The district court denied the motion as to the three other claims, and submitted them to the jury.

Pursuant to interrogatories, the jury found that General Portland and Conrock had engaged in a combination or conspiracy which had the purpose or effect of driving French out of business, but the combination or conspiracy did not unreasonably restrain trade in the ready-mix concrete industry. The jury also found that General Portland had interfered with French’s prospective business advantage in the Hawthorne Mall project, but French would not have obtained the Hawthorne Mall project absent General Portland’s conduct. Finally, with respect to the unfair competition claim, the jury found that General Portland had engaged in unlawful, unfair, or fraudulent business practices which had the purpose or effect of driving French out of business and French suffered resultant damages in the amount of $175,000. The jury declined to award punitive damages.

The district court entered judgment. General Portland filed a motion to set aside the verdict on the unfair competition claim and to enter a judgment notwithstanding the verdict. The district court denied the motion. French timely appealed and General Portland timely cross-appealed.

II

The issues presented in this appeal are (A) whether the cement price-fixing conspiracy violated section 1 of the Sherman Act; (B) whether the Conrock conspiracy violated section 1 of the Sherman Act; (C) whether General Portland engaged in unfair competition in violation of California law; and (D) whether General Portland intentionally interfered with prospective business advantage under California law. French has not argued the state Cartwright antitrust claims in its brief to us. Thus, it has abandoned these issues. See Leer v. Murphy, 844 F.2d 628, 634 (9th Cir.1988); Collins v. San Diego, 841 F.2d 337, 339 (9th Cir.1988).

A.

French argues that the district court erred in directing a verdict in favor of [1396]*1396General Portland on the section 1 price-fixing claim.

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

Related

Powers v. Caroline's Treasures Inc.
382 F. Supp. 3d 898 (D. Arizona, 2019)
Kays v. Commonwealth
505 S.W.3d 260 (Court of Appeals of Kentucky, 2016)
In re Animation Workers Antitrust Litigation
123 F. Supp. 3d 1175 (N.D. California, 2015)
Costello v. Casler
254 P.3d 631 (Nevada Supreme Court, 2011)
Rundgren v. Bank of New York Mellon
777 F. Supp. 2d 1224 (D. Hawaii, 2011)
Union Carbide Corp. v. Montell N.V.
27 F. Supp. 2d 414 (S.D. New York, 1998)
Nicholson v. Marine Corps West Federal Credit Union
953 F. Supp. 1012 (N.D. Illinois, 1997)
Gerald I. Washington v. Honeywell, Inc.
94 F.3d 654 (Ninth Circuit, 1996)
E.W. French & Sons, Inc. v. General Portland, Inc.
62 F.3d 1424 (Ninth Circuit, 1995)
Richardson v. Sport Shinko (Waikiki Corp.)
880 P.2d 169 (Hawaii Supreme Court, 1994)
MAI Systems Corp. v. UIPS
856 F. Supp. 538 (N.D. California, 1994)
Bank of the West v. Superior Court
833 P.2d 545 (California Supreme Court, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
885 F.2d 1392, 1989 WL 99777, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ew-french-sons-inc-v-general-portland-inc-ca9-1989.