Filco v. Amana Refrigeration, Inc.

709 F.2d 1257
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 10, 1983
DocketNo. 81-4604
StatusPublished
Cited by52 cases

This text of 709 F.2d 1257 (Filco v. Amana Refrigeration, 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
Filco v. Amana Refrigeration, Inc., 709 F.2d 1257 (9th Cir. 1983).

Opinion

WALLACE, Circuit Judge:

Filco sued alleging that Amana Refrigeration, Inc. (Amana), Boulevard T.V. & Appliance, Inc. (Boulevard) and Lamco Appliance, Inc. (Lamco) conspired to fix prices in violation of section 1 of the Sherman Act, 15 U.S.C. § 1, and California’s Cartwright Act, CaLBus. & Prof.Code § 16720 (West 1964). Filco also asserted five other state law claims against Amana. The district court dismissed these latter claims after granting a motion for summary judgment on the Sherman Act and Cartwright Act claims. Filco appeals only from the summary judgment. We have jurisdiction under 28 U.S.C. § 1291. We affirm.

I

Amana manufactures and sells appliances throughout the United States. Filco is a partnership which owns a discount store in Sacramento, California. In 1974, Karad-sheh, a partner and the manager of Filco, began ordering Amana products from Dusa, Amana’s field representative. Filco claims, and Amana denies, that Filco became an official Amana dealer in January 1976. A retailer need not be an authorized dealer to receive merchandise from Amana. Regard[1260]*1260less of whether it ever became an official dealer, Filco ordered Amana products from Dusa until his death in March 1976. In the following seven months, business between Filco and Amana apparently slowed but Filco continued to order products directly from Amana.

In October 1976, Amana sent Casimir, its new Sacramento representative, to solicit an order from Filco. Although what occurred at this meeting is substantially in conflict, all agree that despite Casimir’s irritation with the presence of representatives of rival manufacturers, he initially took an order from Karadsheh for Amana products. When one of the other representatives began to mimic him, however, Casimir allegedly tore up the order and stormed out of the store. Amana’s version differs only in that it claims that Casimir canceled the order because he was directed to leave the store by Karadsheh. Filco’s Saca later telephoned Casimir’s superiors in an effort to ameliorate the dispute, but was informed that Amana would stand by Casimir’s refusal to sell products to Filco. Although the argument between Casimir and Karadsheh severed direct relations between Filco and Amana, Filco has continued to order Amana products from a dealer in Southern California.

Filco claims that it was terminated because of complaints made to Amana by two of its competitors, Lamco and Boulevard, concerning Filco’s discount pricing policies. The record supports a finding that Coppin, the owner of Lamco, made such a complaint, but no such finding can be made as to Boulevard’s owner, Rich. Both Casimir and his supervisor admit that Amana was aware of dealer complaints about Filco’s discounting practices.

In his deposition, Karadsheh testified that Casimir told him “I don’t want Amana to be discounted. I don’t want to make a K-Mart out of Amana, you know, with the low prices.” Karadsheh also testified that Casimir stated: “If you want to have Ama-na, you have to do so and so. You have to maintain the price. You cannot discount it.”

II

If no material facts are disputed, we view the record in the light most favorable to the party opposing the motion for summary judgment and determine whether the movant is entitled to prevail as a matter of law. Fristoe v. Reynolds Metals Co., 615 F.2d 1209, 1213 (9th Cir.1980). We consider only alleged facts that would be admissible in evidence. Fed.R.Civ.P. 56(e).

Of course, “summary procedures should be used sparingly in complex antitrust litigation where motive and intent play leading roles .... ” Poller v. Columbia Broadcasting System, Inc., 368 U.S. 464, 473, 82 S.Ct. 486, 491, 7 L.Ed.2d 458 (1962); Chisholm Brothers Farm Equipment Co. v. International Harvester Co., 498 F.2d 1137, 1139 (9th Cir.), cert. denied, 419 U.S. 1023, 95 S.Ct. 500, 42 L.Ed.2d 298 (1974) (Chisholm Brothers). Nevertheless, if there is no genuine issue of material fact, and if the resisting party does not present a record sufficient to support a reasonable finding in his favor, a district court has a duty to grant the motion for summary judgment. Cf. 498 F.2d at 1139—40 (directed verdict).

Distributors terminated due to competitor complaints have provided a considerable amount of recent litigation, as well as scholarly commentary. See, e.g., Piraino, Distributor Terminations Pursuant to Conspiracies Among a Supplier and Complaining Distributors: A Suggested Antitrust Analysis, 67 Cornell L.Rev. 297 (1982); Note, Vertical Agreements to Terminate Competing Distributors: Oreck Corp. v. Whirlpool Corp., 92 Harv.L.Rev. 1160 (1979); Note, Vertical Agreement as Horizontal Restraint: Cernuto, Inc. v. United Cabinet Corp., 128 U.Pa.L.Rev. 622 (1980). In the case before us, our focus is relatively narrow. The complaints to Amana concerned Filco’s pricing practices and Filco alleges that this was the reason it was terminated. Therefore, the per se rule1 is implicated. [1261]*1261Continental T.V., Inc. v. GTE Sylvania Inc., 433 U.S. 36, 51 n. 18, 97 S.Ct. 2549, 2558 n. 18, 53 L.Ed.2d 568 (1977) (dictum); United States v. Parke, Davis & Co., 362 U.S. 29, 46-47, 80 S.Ct. 503, 512-513, 4 L.Ed.2d 505 (1960); Dr. Miles Medical Co. v. John D. Park & Sons Co., 220 U.S. 373, 407-08, 31 S.Ct. 376, 384, 55 L.Ed. 502 (1911); see also California Retail Liquor Dealers Association v. Midcal Aluminum, Inc., 445 U.S. 97, 102, 100 S.Ct. 937, 941, 63 L.Ed.2d 233 (1980) (dictum). Before we can apply the per se rule, however, we must first determine whether there is sufficient evidence to establish a combination or conspiracy.

Section 1 of the Sherman Act provides that any “combination ... or conspiracy, in restraint of trade ...” is illegal. 15 U.S.C. § 1. This phrase has been roughly translated to mean that a plaintiff must prove that a defendant engaged in “concerted action.” L. Sullivan, Handbook of the Law of Antitrust § 109 (1977). Thus, in a case like the one before us, a plaintiff cannot overcome a motion for summary judgment without alleging sufficient facts to raise a reasonable inference of an illegal combination or conspiracy. Filco advances three theories of concerted action: a vertical conspiracy to fix prices between Lamco, Boulevard and Amana; an Albrecht conspiracy on the part of Amana to fix prices; and a horizontal conspiracy to fix prices between Lamco and Boulevard. We will examine each of these three theories in order.

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Bluebook (online)
709 F.2d 1257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/filco-v-amana-refrigeration-inc-ca9-1983.