Jenkins v. Waste Management of Louisiana, Inc.

709 So. 2d 848, 97 La.App. 3 Cir. 823, 1998 La. App. LEXIS 239, 1998 WL 75657
CourtLouisiana Court of Appeal
DecidedFebruary 25, 1998
DocketNo. 97-823
StatusPublished

This text of 709 So. 2d 848 (Jenkins v. Waste Management of Louisiana, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jenkins v. Waste Management of Louisiana, Inc., 709 So. 2d 848, 97 La.App. 3 Cir. 823, 1998 La. App. LEXIS 239, 1998 WL 75657 (La. Ct. App. 1998).

Opinion

| LAUNDERS, Judge.

Plaintiff, a class representative of all small business owners in a certain region of this state, has sued defendant, a waste company doing business in the region, alleging monopolization in violation of Louisiana R.S. 51:123.

Plaintiff alleges that the penal provisions inserted by defendant in its contracts with similarly affected small business consumers unlawfully stifles competition to the detriment of plaintiff and other similarly affected enterprises.

The trial court granted defendant’s exception of no cause of action, apparently persuaded by defendant’s argument that plaintiff could state no relief in view of ^defendant’s willingness to decline to enforce the contract’s provisions against the class representative.

For the following reasons, we reverse the trial court’s judgment and remand for further proceedings. In doing so, however, we uphold the trial court’s exclusion of certain evidence.

FACTS

The Petition

The petition filed by plaintiff d.b.a. Monju-ni of Natchitoches maintains that he purchased waste hauling services from defendant Waste Management of Louisiana, Inc. (“Waste Management”) pursuant to a contract with defendant whose terms, according to plaintiff, prevent new competition from engaging in the waste hauling business. According to plaintiff, defendant’s contract with consumers stifled competition by making it unduly burdensome for defendant’s present customers to switch to competing haulers. The result, according to plaintiff, is that the cost of hauling small solid waste containers is artificially fixed by defendant rather than by market forces, and at a price higher than would be the case in the absence of defendant’s anticompetitive conduct. Plaintiff further maintains that he personally was injured by defendant’s anticompetitive conduct because he was forced to pay more for the waste hauling services than he would have had to pay otherwise.

The Contract

The contract of which plaintiff complains gives defendant the right to collect and dispose of all of his and other consumers’ solid waste and reeyclables for a term of three years, with automatic renewals unless contrary written notice of cancellation is provided by certified mail sixty days from the end of the term; liquidated damages for the months remaining under the three year original or renewed contract; plus ajgclause requiring the customer to give defendant notice of any offers by or to another solid waste hauling firm.

The Law

Plaintiffs suit is made in reliance on La. R.S. 51:123, which contains the following prohibition:

§ 123. Monopolizing trade or commerce prohibited; penalty
No person shall monopolize, or attempt to monopolize, or combine, or conspire with any other person to monopolize any part of the trade or commerce within this state.
Whoever violates this Section shall be fined not more than five thousand dollars, or imprisoned, with or without hard labor, not more than three years, or both.

Citing this statute and La. Power & Light Co. v. United Gas Pipe Line, 493 So.2d 1149, 1162 (La.1986), which states, “The ability to control price, as well as the ability to exclude competition from the market, is part of the traditional definition of monopoly power,” [850]*850plaintiff maintains that the trial court erred in granting defendant’s exception of no cause of action. Plaintiffs argument thus is based on ground of-sweeping public policy.

The Defense

Rather than contest the substantive points of plaintiffs petition, defendants urge that we affirm the trial court’s judgment on the basis of its having decided to decline to enforce the provisions of the contract between it and plaintiff.

OPINION

The laws of this state and nation supporting the preservation of free and fair competition to the extent possible rest on the premise that the unrestrained interaction of competitive forces yields the best allocation of economic resources at the lowest prices and at the highest quality, both to the benefit of consumers. State and Federal ^policies supporting free trade are beyond question, having been “founded on basic American conservatism, which seeks ways to divide, limit, and defuse power, whether it be governmental or not.” La. Power & Light Co. v. United Gas Pipe Line, 493 So.2d at 1152-53 (citation and notes omitted). In the commercial sphere, what this means is that the manipulation of markets by any illegitimate means having the natural tendency or probable effect of excluding competition will not be tolerated. La. Power & Light Co. v. United Gas Pipe Line; Tooke and Reynolds v. Bastrop Ice & Storage Co., 172 La. 781, 135 So. 239 (1931).

This concept is applied broadly to any unlawful means that might restrain free trade. Thus, in Tooke and Reynolds, the monopolist was deterred in its efforts to restrain competition by driving a competitor out of the ice business, notwithstanding that it sought to do so by lowering prices, because without competition the sole ice house would then possess the power to raise prices above competitive levels. La. Power & Light Co. v. United Gas Pipe Line Company, 493 So.2d at 1162, n. 33.

In view of the larger context, therefore, the question before us really is not contractual at all. Rather, in the context of the granted exception of no cause of action, it is whether a monopolist may sidestep the public policy charges leveled against it by declining fo press against a consumer class representative the advantages of which it has availed itself.

Pleadings must be construed reasonably so as to afford litigants their day in court, to arrive at the truth, and to do substantial justice. La.C.C.P. art. 865. Teachers’ Retirement System of Louisiana v. Louisiana State Employees’ Retirement System, 456 So.2d 594 (La.1984); Haskins v. Clary, 346 So.2d 193 (La.1977); Hero Lands Co. v. Texaco, Inc., 310 So.2d 93 (La.1975). When it can reasonably do so, the court should maintain a petition against a peremptory exception so as to afford the litigant an opportunity to present his evidence. Teachers’ Retirement System of Louisiana v. Louisiana State Employees’ Retirement System, supra; Henson v. St. Paul Fire and Marine Insurance Co., 363 So.2d 711 (La.1978). The purpose of an 15exception of no cause of action is to determine the sufficiency in law of the petition and is triable on the face of the papers; for the purpose of determining the issues raised by this exception, the well pleaded facts in the petition and any annexed documents must be accepted as, true. Mayer v. Valentine Sugars, Inc., 444 So.2d 618 (La.1984); Darville v. Texaco, Inc., 447 So.2d 473 (La.1984); Eschete v. City of New Orleans, 258 La. 133, 245 So.2d 383 (1971).

Kuebler v. Martin 578 So.2d 113, 114 (La.1991).

La. Power & Light Co. leaves no room for doubt as to this state’s favor upon free and fair competition, nor its disfavor against anticompetitive behavior. Tooke and Reynolds leaves no question but that restraints to free trade shall not be tolerated under any guise. Today, we extend these rules logically, to hold that an alleged monopolist sued in an antitrust action under La. R.S.

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Related

Mayer v. Valentine Sugars, Inc.
444 So. 2d 618 (Supreme Court of Louisiana, 1984)
Hopkins v. American Cyanamid Co.
666 So. 2d 615 (Supreme Court of Louisiana, 1996)
Henson v. St. Paul Fire & Marine Ins. Co.
363 So. 2d 711 (Supreme Court of Louisiana, 1978)
Kuebler v. Martin
578 So. 2d 113 (Supreme Court of Louisiana, 1991)
La. Power & Light Co. v. United Gas Pipe Line Co.
493 So. 2d 1149 (Supreme Court of Louisiana, 1986)
Hero Lands Company v. Texaco, Inc.
310 So. 2d 93 (Supreme Court of Louisiana, 1975)
Darville v. Texaco, Inc.
447 So. 2d 473 (Supreme Court of Louisiana, 1984)
Eschete v. City of New Orleans
245 So. 2d 383 (Supreme Court of Louisiana, 1971)
Teachers'retirement System v. La. St. Employees Retirement System
456 So. 2d 594 (Supreme Court of Louisiana, 1984)
Haskins v. Clary
346 So. 2d 193 (Supreme Court of Louisiana, 1977)
Tooke Reynolds v. Bastrop Ice Storage Co.
135 So. 239 (Supreme Court of Louisiana, 1931)
Eschete v. City of New Orleans
245 So. 2d 383 (Supreme Court of Louisiana, 1971)

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Bluebook (online)
709 So. 2d 848, 97 La.App. 3 Cir. 823, 1998 La. App. LEXIS 239, 1998 WL 75657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jenkins-v-waste-management-of-louisiana-inc-lactapp-1998.