Ford Motor Co. v. Lane

86 F. Supp. 2d 711, 2000 U.S. Dist. LEXIS 2234, 2000 WL 253854
CourtDistrict Court, E.D. Michigan
DecidedFebruary 3, 2000
Docket99-74205
StatusPublished
Cited by3 cases

This text of 86 F. Supp. 2d 711 (Ford Motor Co. v. Lane) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ford Motor Co. v. Lane, 86 F. Supp. 2d 711, 2000 U.S. Dist. LEXIS 2234, 2000 WL 253854 (E.D. Mich. 2000).

Opinion

*712 OPINION & ORDER GRANTING PLAINTIFF’S MOTION TO DISMISS DEFENDANT’S COUNTERCLAIMS (COUNTS I & II)

EDMUNDS, District Judge.

This matter comes before the Court on Plaintiff Ford Motor Co.’s motion to dismiss Defendant Robert Lane’s counterclaims. Lane stipulates to the dismissal of Count I, a SLAPPback claim. Count II alleges an Antitrust violation by Ford in violation of the Sherman Antitrust Act, 15 U.S.C. § 1. Lane seeks treble damages pursuant to section 4 of the Clayton Act, 15 U.S.C. § 15. As discussed below, Lane cannot establish antitrust injury, nor does he otherwise have standing to bring suit *713 under the Clayton Act. Accordingly, the motion to dismiss Count I and II of Defendant’s counterclaim is GRANTED.

I. Facts

Plaintiff Ford Motor Company filed this lawsuit on August 25, 1999 seeking to restrain Defendant Robert Lane from disseminating Ford documents on his website, www.blueovalnews.com. Lane filed an answer and a counterclaim alleging three counts: a SLAPPback claim which he agrees should be dismissed, an antitrust claim, and a claim for invasion of privacy. 1

The antitrust claim alleges a violation of the Sherman Antitrust Act, 15 U.S.C. § 1. Lane asserts that prior to 1984, Ford, General Motors, and Chrysler were bound by a consent decree “to cease their prior collusion on automotive fuel-economy and emissions features.” (Countercl. at ¶ 17). He alleges that the consent decree elapsed in 1984, but that sometime after that executives of the three automakers “reached a ‘gentlemen’s agreement’ to resume their former collusion.” Id. at ¶ 19. In 1997, Lane avers that “[i]t.was widely reported in the media ... that Ford had ‘broken ranks’ with the other autp makers and had decided to stop its collusion with them ...” Id. at ¶ 21. Lane claims that between 1984 and 1997, “Ford had the capability to produce higher-mileage, lower-emissions cars and trucks but chose not to because of their ‘gentlemen’s agreement’ with other auto makers.” Id. at ¶ 23. Because of the alleged collusion, Lane, who owns three Ford vehicles allegedly manufactured during 1984 and 1997, claims to have suffered “higher gasoline costs.” Id. at ¶¶ 22, 24. This, Lane contends, constitutes a violation of the Sherman Antitrust Act. He seeks treble damages for the violation under section 4 of the Clayton Act.

II. Standard for Motion to Dismiss

In considering a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(6) this Court “must construe the complaint in the light most favorable to the plaintiff, accept all factual allegations as true, and determine whether the plaintiff undoubtedly can prove no set of facts ■ in support of his claims that would entitle him to relief.” In re DeLorean Motor Company, 991 F.2d 1236, 1240 (6th Cir.1993). The complaint must include direct or indirect allegations “respecting all the material elements to sustain a recovery under some viable legal theory.” Id. (citations omitted).

A motion to dismiss under Rule 12(b)(6) tests the sufficiency of a complaint. Elliot Co., Inc. v. Caribbean Utilities Co., Ltd., 513 F.2d 1176, 1182 (6th Cir.1975). In a light most favorable to plaintiff, assuming all allegations are true, the court must determine whether the complaint states a valid claim for relief. A motion to dismiss a complaint for failure to state a claim should not be granted “unless it appears beyond doubt that plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Id. (citations omitted).

III.Analysis

The Sherman Antitrust Act declares illegal every contract in restraint of trade. 15 U.S.C. § 1. Section 4 of the Clayton Act broadly defines the class of persons entitled to seek treble damages for an antitrust violation. 15 U.S.C. § 15. The relevant language provides, “any person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws may sue therefor in any district court of the United States ... and shall recover threefold the damages by him sustained, and the costs of the suit, including a reasonable attorney’s fee.” 15 U.S.C. § 15.

Although the language of the statute is sweeping on its face, the United States Supreme Court has limited its scope by setting forth several factors which must be considered before a plaintiff is deemed to have antitrust standing. Associated General Contractors of California, Inc. v. California State Council of Carpenters, 459 *714 U.S. 519, 103 S.Ct. 897, 74 L.Ed.2d 723 (1983). The application of section 4 “has of necessity been judicially confined to limit the remedy available thereunder to particular classes of persons and for redress of particular forms of injury.” Southaven Land Co., Inc. v. Malone & Hyde, Inc., 715 F.2d 1079 (6th Cir.1983); see also Valley Products Co., Inc. v. Landmark, A Division of Hospitality Franchise Systems, Inc., et. al., 128 F.3d 398, 402-03 (6th Cir.1997).

A. Antitrust Injury

As a predicate to standing, the plaintiff must allege to have suffered “antitrust injury,” that is, “injury of the type the antitrust laws were intended to prevent and that flows from that which makes the defendant’s acts unlawful.” Brunswick Corp., v. Pueblo Bowl-O-Mat, Inc., 429 U.S. 477, 489, 97 S.Ct. 690, 50 L.Ed.2d 701 (1977); see also Valley Products Co., Inc. v. Landmark, 128 F.3d 398, 402-03 (6th Cir.1997)(“Without antitrust injury, no private antitrust action will lie at law or in equity.” Id. at 402.); William C. Holmes, AntitRust Law Handbook § 8.03[l][a] (1999). This definition involves “two separate analytical issues. First, the claimed injury must be of a type that the antitrust laws were meant to discourage. And second, the plaintiffs injury must be causally related to the defendant’s anti-competitive acts.” Id. As the Brunswick

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Bluebook (online)
86 F. Supp. 2d 711, 2000 U.S. Dist. LEXIS 2234, 2000 WL 253854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-motor-co-v-lane-mied-2000.