Flotken's West, Inc. v. National Food Stores, Inc.

312 F. Supp. 136, 1970 Trade Cas. (CCH) 73,293, 1970 U.S. Dist. LEXIS 12327
CourtDistrict Court, E.D. Missouri
DecidedMarch 27, 1970
DocketNo. 68 C 433(3)
StatusPublished
Cited by2 cases

This text of 312 F. Supp. 136 (Flotken's West, Inc. v. National Food Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flotken's West, Inc. v. National Food Stores, Inc., 312 F. Supp. 136, 1970 Trade Cas. (CCH) 73,293, 1970 U.S. Dist. LEXIS 12327 (E.D. Mo. 1970).

Opinion

MEMORANDUM OPINION AND ORDER

REGAN, District Judge.

This is an action by the operator of a retail grocery supermarket seeking treble damages based on defendant’s alleged violation of the Robinson-Patman Price Discrimination Act (Section 13, Chapter I, Title 15 U.S.C.).

Plaintiff’s store is located at 9643 Olive Boulevard in St. Louis County, Missouri. Defendant is the operator of a chain of self-service retail supermarkets in a number of states including Missouri. One of its 45 stores in the St. Louis Metropolitan area is located across the street from plaintiff’s store. Originally located at 9656 Olive Boulevard, defendant’s store was relocated at 9612 Olive Boulevard. Both parties sell similar grocery commodities.

The complaint alleges that in the course of commerce, defendant “discriminated in the price of commodities of like grade and quality as sold by defendant to different purchasers, to-wit: by the sale of said commodities at lower prices at (its Olive Boulevard location) than prices for the identical commodities at other of” defendant’s locations within the metropolitan St. Louis area, and that “(t)he effect of said discrimination has been or may be substantially to- lessen [137]*137competition or tend to create a monopoly-in a line of commerce and to injure, destroy, or prevent competition with customers of both defendant and plaintiff.”

After extensive discovery conducted by both parties and with the trial setting close at hand, defendant filed a motion for summary judgment on the ground that there is no genuine issue as to any material fact which would entitle defendant to judgment as a matter of law.

The Robinson-Patman Act provides in part:

“It shall be unlawful for any person engaged in commerce, in the course of such commerce, either directly or indirectly, to discriminate in price between different purchasers of commodities of like grade and quality, where either or any of the purchases involved in such discrimination are in commerce * *

It is thus apparent, and plaintiff “fully agrees” 1 that recovery cannot be had under the Robinson-Patman Act unless one or more of the discriminatory sales is in interstate commerce. In this case, the thrust of plaintiff’s complaint is that defendant, one of plaintiff’s competitors in the retail grocery business 2 has discriminated between defendant’s customers by selling from time to time certain items at its Olive Boulevard store at a lower price than that at which it sold the same item to those who patronized others of its stores in the St. Louis Metropolitan area.3 Hence, the basic question posed by the motion for summary judgment is whether, under the uncontroverted material facts, the sales at defendant’s retail self-service St. Louis area stores are “in commerce.” That defendant is engaged in interstate commerce is not controverted. On this issue, we note that defendant purchases in other states large quantities of merchandise which is shipped to its warehouse in St. Louis and from there distributed in smaller lots to defendant’s individual stores.4 At the store, the cases and cartons of merchandise are broken, and the individual cans and other items priced and placed on the self-service shelves or otherwise displayed to customers.

Other background facts, stated in skeletonized general terms, are that during the period involved, defendant advertised, usually by means of newspapers, circulars or “flyers” distributed to residents of the neighborhood in which the Olive Boulevard store is located, selected items of merchandise at prices lower than the prices it charged for the same merchandise at others of its stores in the Metropolitan St. Louis area, for the obvious purpose of attracting neighborhood patronage to that store. It is equally obvious that only a comparatively few of the thousands of items normally stocked in supermarkets were so specially priced at the Olive Boulevard store.

It is not contended that defendant had any specific customer in mind as a purchaser of the “specials.” Under plaintiff’s theory, a customer at the Olive Boulevard store, either lured by the advertised low-price “specials” or seeing [138]*138the bargain-priced merchandise on display while shopping in the store, would take the individual can or package from the shelf or other display area to the checkout counter for bagging and payment, thereby completing the purchase. So, too, random customers in defendant’s other stores would similarly make cash- and-carry purchases of identical articles, but at a higher price.

Plaintiff relies upon such cases as Pevely Dairy Co. v. United States, 8 Cir., 178 F.2d 363 (a criminal prosecution under the Sherman Act for an alleged price-fixing conspiracy) and Foremost Dairies, Inc. v. F.T.C., 5 Cir., 348 F.2d 674. These decisions were premised on the finding that fluid milk, a highly perishable commodity incapable of storage as ordinary merchandise, flows in interstate commerce in a constant stream, with only negligible processing, from the farm to the dairy to be sold and delivered daily to the ultimate consumers. Neither case considered the question of whether an individual retail store sale of milk, much less of another commodity, to a random purchaser was a sale “in commerce.”

So, too, plaintiff’s reliance upon Mitchell v. C & P Shoe Corporation, 5 Cir., 286 F.2d 109, is misplaced. Mitchell was a Fair Labor Standards Act case which involved only the question of whether the employees at the warehouse of a chain shoe store were within the Act. The shoes were shipped to the warehouse from manufacturers outside the state and held there for later delivery to the shoe chain's retail outlets. On the authority of Walling v. Jacksonville Paper Co., 317 U.S. 564, 63 S.Ct. 332, 87 L.Ed. 460, the Court held that there was a “practicable continuity of movement of the shoes through the warehouse to the defendant’s own retail stores, so that the interstate character of the shoes in the course of their journey to the chain stores was not interrupted by their brief pause at the warehouse.” However, nothing in Mitchell supports the proposition that the subsequent purchase of a pair of shoes by a random customer at one of the chain’s retail stores would necessarily be “in commerce.”

Nor did Standard Oil Co. v. Federal Trade Commission, 340 U.S. 231, 71 S. Ct. 240, 95 L.Ed. 239, also cited by plaintiff, involve sales at a retail establishment. There, an interstate producer and refiner sold bulk gasoline to large “jobber” customers in Detroit at a lower price than it sold like gasoline to smaller service station operators in the same area. What the Supreme Court held was simply that Standard’s temporary storage of the gasoline, either at a marine terminal or in nearby bulk storage stations in the Detroit area, did not deprive the gasoline of its interstate character.

Cases such as Moore v.

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Related

Indiana Grocery Co., Inc. v. Super Valu Stores, Inc.
647 F. Supp. 254 (S.D. Indiana, 1986)
Thomas E. Belliston v. Texaco, Inc.
455 F.2d 175 (Tenth Circuit, 1972)

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Bluebook (online)
312 F. Supp. 136, 1970 Trade Cas. (CCH) 73,293, 1970 U.S. Dist. LEXIS 12327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flotkens-west-inc-v-national-food-stores-inc-moed-1970.