International Commodities Corp. v. International Ore & Fertilizer Corp.

30 F.R.D. 58, 5 Fed. R. Serv. 2d 34, 1961 U.S. Dist. LEXIS 5221
CourtDistrict Court, S.D. New York
DecidedDecember 18, 1961
StatusPublished
Cited by8 cases

This text of 30 F.R.D. 58 (International Commodities Corp. v. International Ore & Fertilizer Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Commodities Corp. v. International Ore & Fertilizer Corp., 30 F.R.D. 58, 5 Fed. R. Serv. 2d 34, 1961 U.S. Dist. LEXIS 5221 (S.D.N.Y. 1961).

Opinion

LEVET, District Judge.

This is a treble damage anti-trust suit. The plaintiff charges defendants with a conspiracy to restrain the international and interstate trade in phosphate rock and fertilizers and with monopolizing and attempting to monopolize that trade.

I.

MOTION TO STRIKE PARAGRAPHS TWENTY-SIXTH TO THIRTIETH . OF THE COMPLAINT

Defendants International Ore & Fertilizer Corporation (hereafter Interore), Phosphate Rock Export Corporation, Inter-Ore Shipping Corporation, International Fertilizer Development Corp., H. Lee White, Hugh S. Ten Eyck, Ronald Stanton, Doris Robison, Henry J. Leir, Swift & Company, Armour & Company, W. R. Grace & Co., have moved to strike paragraphs numbered Twenty-Sixth, Twenty-Seventh, Twenty-Eighth, Twenty-Ninth and Thirtieth of the complaint under Rule 12(f) of the Federal Rules of Civil Procedure, 28 U.S.C.A.

The motion is granted. The paragraphs attacked are so interwoven with the immaterial, the remote, and the redundant that the disengagement of any relevant or material areas of appropriate allegation is virtually impossible. Pleading to such assertions should not be imposed upon defendants nor should these allegations form the basis of any depositions sought by the plaintiff.

The ultimate problem as to background of the alleged conspiracy is largely concerned with the admissibility of evidence and should be determined at trial or in the pre-trial procedures before the Rule 2 judge at an appropriate time when plaintiff may submit an outline of its proposals by way of relevant background material.

So ordered.

II.

EXTENSION OF DEFENDANT’S TIME TO ANSWER

The defendant American Agricultural' Chemical Company, Inc. asks for an extension of time to answer until the deposition of plaintiff by such defendant has-been taken.

I have discovered no reason warranting-such extension. Accordingly, the motion is denied. All defendants are to serve and file answers by December 31,. 1961.

III.

PLAINTIFF’S MOTION FOR DISCOVERY AND INSPECTION UNDER RULE 34 OF THE FEDERAL. RULES OF CIVIL PROCEDURE

The plaintiff, by an undated notice of motion, filed September 5, 1961,. returnable September 19,1961, sought an order requiring Interore and certain subsidiaries to produce various books, papers, records and documents at intervals of one month commencing on October 1,. 1961 and continuing through August 1,. 1962.

Specific books, papers, etc. are not enumerated. Item (a) of the notice of motion is as follows:

“(a) On October 1, 1961: (i) all documents which contain descriptions of Interore’s and its subsidiaries’ businesses, the sources of their income, the manner in which they do business, and the persons-(including corporations and associations) with whom they do business; (ii) all profit and loss statements [61]*61and balance sheets of Interore and its subsidiaries; (iii) copies of all contracts concerning the representation of Interore and its subsidiaries and producers of phosphate rock and phosphatic fertilizers; (iv) copies of all contracts and agreements (other than those that refer only to single sales) between Interore and its subsidiaries and all purchasers, distributors and producers of phosphate rock and phosphatic fertilizers; (v) all correspondence, and documents relating to such correspondence, between Interore, its subsidiaries, its managing agents and their attorneys and the Federal Trade Commission.”

The notice of motion in item (b) is as follows:

“(b) On November 1, 1961: all correspondence, instructions, memoranda, orders sheets, worksheets, books, records, invoices, financial statements, including audit reports, memoranda received from internal and independent auditors and employees, balance sheets, profit and loss statements, trial balances, general and subsidiary ledgers, diaries and other papers relating to any business between Interore, its subsidiaries, its managing agents and employees and W. R. GRACE & CO.”

Items (c), (d), (e), (f), (g) and (h) make similar demands as to papers, business, etc. of Interore with American Cyanamid Company (c), American Agricultural Chemical Company, Inc. (d), Armour & Company (e), Gannet Freighting Inc. (f), Smith-Douglas Company, Inc. (g), Swift & Company (h). Items (i), (j) and (k) apparently in effect call for all other papers not referred to in the previous items. In plain language, the demand seems to call for virtually all papers of Interore and its allied subsidiaries.

The demand here appears to be similar to that in Service Liquor Distributors v. Calvert Distillers Corp., D.C.S.D.N.Y., 1954, 16 F.R.D. 344, and the same principles would seem applicable.

Some degree of specificity is essential. The sweeping demands of plaintiff are not bounded by time, by scope, or by a reasonable category. No good cause for such an omnibus production has been shown. The plaintiff’s demand amounts to an insufficient designation which does not indicate within a reasonable degree of certainty what the defendants would be expected to produce.

The plaintiff at this stage of the case may or may not have a greater detail with respect to itemization of papers or of categories. However, after examination of defendants or in the course of such examination, it should be able to secure such information and be in a position to frame a more specific demand.

Accordingly, the motion for discovery and inspection is denied without prejudice to renewal after more definite information is available.

IV.

MOTION WITH RESPECT TO DEPOSITION OF DEPENDENT SMITH-DOUGLASS, etc.

The motions with respect to the deposition of defendant Smith-Douglass and in respect to the motion to quash the subpoena duces tecum are determined as set forth from the Bench on December 8, 1961, and as implemented in orders dated December 15, 1961.

MOTION OF DEFENDANT SMITH-DOUGLASS TO QUASH SERVICE OF SUMMONS AND DISMISS ACTION, etc.

Decision on the motion to quash service of summons is deferred until said deposition has been taken and filed and any necessary hearing had.

V.

PRIORITY OF DEPOSITIONS

On August 24 and 25, 1961, after service of the summons and complaint herein, [62]*62the plaintiff mailed to defendants notices of motion, returnable September 19,1961, asking for an order under Rule 26 of the Federal Rules of Civil Procedure (1) that depositions of Interore and its subsidiaries, by its managing agents, should begin on December 4, 1961 and continue from day to day until they are completed or adjourned by agreement, and (2) that depositions of plaintiff should begin on February 5, 1962 or any later date that the defendants might designate.

Defendants, immediately after being served with the plaintiff’s notice of motion, in return served notices to examine plaintiff, to commence on September 5, 1961, before the return date of plaintiff’s said motions. At the request of counsel for Interore, the plaintiff adjourned this motion to October 19,1961.

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30 F.R.D. 58, 5 Fed. R. Serv. 2d 34, 1961 U.S. Dist. LEXIS 5221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-commodities-corp-v-international-ore-fertilizer-corp-nysd-1961.