Jerry L. Rasco & Donna T. Rasco v. Huffy Corporation, Huffy Service First, and William S. Boyce

CourtCourt of Appeals of Texas
DecidedJanuary 19, 1994
Docket03-93-00134-CV
StatusPublished

This text of Jerry L. Rasco & Donna T. Rasco v. Huffy Corporation, Huffy Service First, and William S. Boyce (Jerry L. Rasco & Donna T. Rasco v. Huffy Corporation, Huffy Service First, and William S. Boyce) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jerry L. Rasco & Donna T. Rasco v. Huffy Corporation, Huffy Service First, and William S. Boyce, (Tex. Ct. App. 1994).

Opinion

Rasco
IN THE COURT OF APPEALS, THIRD DISTRICT OF TEXAS,


AT AUSTIN




NO. 3-93-134-CV


JERRY L. RASCO AND DONNA T. RASCO,


APPELLANTS

vs.


HUFFY CORPORATION, HUFFY SERVICE FIRST,
AND WILLIAM S. BOYCE,


APPELLEES





FROM THE DISTRICT COURT OF TRAVIS COUNTY, 201ST JUDICIAL DISTRICT


NO. 493,688, HONORABLE W. JEANNE MEURER, JUDGE PRESIDING




Jerry L. and Donna T. Rasco, appellants, brought suit against Huffy Corporation, Huffy Service First, William S. Boyce (collectively, "defendants"), appellees, and others alleging violations of the Texas Free Enterprise and Antitrust Act of 1983 ("the Texas Antitrust Act"), Tex. Bus. & Com. Code Ann. §§ 15.01-.52 (West 1987 & Supp. 1994), common law boycott, and tortious interference with existing and prospective business relationships. (1) Defendants moved for summary judgment on all causes of action. The trial court granted the motion and rendered a final judgment that the Rascos take nothing by their suit. We will affirm.



FACTUAL AND PROCEDURAL BACKGROUND

In 1972 the Rascos opened a store in Austin called "The Pedaler," through which they sold bicycles and offered bicycle repair services to the public. The Pedaler also assembled new bicycles for KMart, Best Products, and Joske's. Although The Pedaler went out of business in 1974, the Rascos continued to assemble bicycles in their home for KMart and Best Products. In 1978 they began doing business as "Bicycle Systems." In 1980, as Bicycle Systems, they began performing assembly and warranty repair services for one of the Target stores in Austin. Bicycle Systems' business expanded to include another Target store in Austin in 1981 and two KMart stores in the Temple-Killeen area in 1983.

In 1983 Target and Huffy Service First ("HSF") entered into a national contract for HSF to provide assembly and repair work for Target. Bicycle Systems' services were discontinued at the Target stores until 1984, when two Targets in Austin and one Target in Waco requested that Bicycle Systems provide their assembly and repair services. In 1986 Bicycle Systems also began servicing two Target stores in San Antonio.

In 1986 the Waco and San Antonio Target stores discontinued the use of Bicycle Systems' services. In 1988 the Austin Target stores also stopped using the services of Bicycle Systems. Bicycle Systems was unable to replace the Target accounts and was forced out of business.

The Rascos filed suit on November 13, 1990, for violations of the Texas Antitrust Act, common law boycott, and tortious interference with existing and prospective business relationships. In their brief to this Court, they describe their contentions as follows:



(1) HSF and Target entered into an agreement and combination (2) pursuant to which HSF granted hidden discounts to Target and other mass merchandisers, (3) in exchange for which Target ceased doing business with all independent companies, including Bicycle Systems, providing in-store assembly and repair of bicycles and other products, and (4) through similar contracts and combinations with other mass merchandisers which amount to restraints of trade, boycott, and use of monopoly power, HSF has excluded competition and controlled the pricing structure for sales of in-store assembly, repair and warranty services to mass merchandising retailers in Texas.



The Rascos further assert that

[d]ocuments produced through discovery establish (1) that HSF performed work or offered to perform it cheaper than Bicycle Systems in order to eliminate Bicycle Systems from the business of servicing Target stores or other mass merchandisers, and (2) that HSF went up on its price after eliminating Bicycle Systems as a competitor.



The Rascos contend that HSF exercised its dominance in the market to restrict competition by Bicycle Systems and others.

Defendants filed a motion for summary judgment, along with supporting summary judgment evidence, on September 24, 1992. Their motion addressed all of the causes of action asserted by the Rascos. As to some of the causes of action, defendants asserted several independent grounds for summary judgment.

First, defendants alleged that there was no contract, combination, or conspiracy in restraint of trade. In support of this allegation, they asserted that (1) no boycott or exclusive arrangement existed; (2) even if a boycott or exclusive arrangement existed, changing exclusive contractors is not a violation of the antitrust laws; (3) there was no harm to competition; and (4) the Rascos had not suffered an antitrust injury.

Second, defendants alleged that the Rascos had no claim for monopoly or attempt to monopolize. In support of this, they asserted that (1) there existed no monopoly or conspiracy or attempt to monopolize, and (2) the Rascos had not suffered an antitrust injury.

Third, defendants alleged that the Rascos had no exclusive-dealing claim. In support of this, they asserted that the claimed violation concerned services provided by HSF and that section 15.05(c) of the Texas Antitrust Act does not apply to services. (2)

Fourth, defendants argued that the conduct alleged by the Rascos did not make economic sense. Defendants contended that it did not make economic sense for Target, a consumer of bicycle repair and assembly services, to conspire to create a monopoly in HSF.

Fifth, defendants argued that there was no common-law cause of action for boycott. Accordingly, they asserted the Rascos' common-law claim of boycott was without merit as a matter of law.

Sixth, defendants argued that they did not tortiously interfere with the Rascos' business relations. They asserted that the Rascos had no existing or prospective contract with Target, that HSF's actions with respect to Target were motivated purely by a legitimate business interest, and that HSF acted to protect a legitimate business interest and did not employ any means beyond the bounds of fair competition.

Finally, defendants argued that the Rascos' common-law boycott claim and tortious-interference-with-business-relations claims were barred by the statute of limitations.

The Rascos responded to the motion on December 9, by asserting that material issues of fact existed as to their antitrust claims and by filing supporting summary judgment evidence. Also included in their response was a motion seeking additional time to complete discovery. Defendants filed numerous objections to the Rascos' summary judgment evidence on December 15. The objections were that some of the summary judgment evidence was hearsay, not the best evidence, conclusory, speculative, and too general and vague.

A hearing on the motion for summary judgment was held on December 17 and 23, 1992. On December 21, defendants filed supplemental objections to the Rascos' summary judgment evidence, objecting that certain summary judgment evidence was not timely and, in addition, was hearsay, conclusory, and not the best evidence. On December 30, the Rascos filed a supplemental response to the motion for summary judgment, attaching the summary judgment evidence apparently objected to by defendants on December 21.

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Jerry L. Rasco & Donna T. Rasco v. Huffy Corporation, Huffy Service First, and William S. Boyce, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jerry-l-rasco-donna-t-rasco-v-huffy-corporation-hu-texapp-1994.