Joseph Serfecz and First Chicago Trust v. Jewel Food Stores

67 F.3d 591, 1995 U.S. App. LEXIS 27500
CourtCourt of Appeals for the First Circuit
DecidedSeptember 26, 1995
Docket94-3211, 94-4017 and 95-1201
StatusPublished
Cited by137 cases

This text of 67 F.3d 591 (Joseph Serfecz and First Chicago Trust v. Jewel Food Stores) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph Serfecz and First Chicago Trust v. Jewel Food Stores, 67 F.3d 591, 1995 U.S. App. LEXIS 27500 (1st Cir. 1995).

Opinions

RIPPLE, Circuit Judge.

Joseph Serfecz and First Chicago Trust Company of Illinois (“First Chicago Trust”) have ownership interests in the Grove Mall in Elk Grove Village, Illinois. They claim that Jewel Food Stores (“Jewel”), American Stores Properties, Inc. (“American Properties”), and the developers of competing Elk Crossing Mall have conspired to run Grove Mall out of business and to monopolize the retail grocery and shopping center markets in Elk Grove Village. They brought this action alleging defendants violated the Sherman Act, 15 U.S.C. §§ 1, 2. They also alleged supplemental state law claims of malicious prosecution and breach of lease. The district court granted the defendants’ motions for summary judgment witK'reg'ard' to the antitrust and malicious prosecution claims and granted a partial summary judgment with regard to the breach of lease claim. Mr. Serfecz and First Chicago Trust now appeal that judgment.1 For the reasons set forth below, we affirm the judgment of the district court.

I

BACKGROUND

A Facts

In 1963, Jewel entered into a lease for retail space in Grove Mall. Jewel’s lease ran until 1986 and provided Jewel with three five-year options to renew, in 1977, Mr. Serfecz purchased GroviT Mall and assumed all existing leases including the Jewel lease. In 1986, Jewel exercNecTTS”~first option to renew and in 1991 it^exercised'" its second option. Jewel’s currentleaie expires in 1996 and, based upon the remaining five-year option, may be extended until 2001.

From 1963 until 1987, Jewel owned and operated a grocery store in its leased premises at Grove Mall. In October 1987, Jewel vacated the premises and moved its grocery operation across the street to the newly constructed Elk Crossing Mall. Since its move, Jewel has continued to pay rent and has exercised its second option to renew the lease. Jewel has refused to give up its leasehold interest in the premises and its retail space has remained unoccupied. Jewel proposed to sublet the space to United Skates of America (“United Skates”) for use as a roller skating rink. Mr. Serfecz objected to this proposed sublease because he believed occupancy by United Skates would ruin Grove Mall as a retail center and increase his insurance liability. In 1990, Jewel filed an action in state court that sought a declaratory judgment regarding its right to sublet. The Illinois trial court ruled against Jewel; it held that the express provisions of the lease gave Mr. Serfecz the right to refuse any sublet that would increase his insurance rates. The appellate court affirmed.

Mr. Serfecz, joined by First Chicago Trust,2 brought this action against Jewel, [595]*595American Properties,3 United Skates,4 and the developers and operators of the Elk Crossing Mall.5 That complaint claimed that the defendants conspired to devalue and to destroy Grove Mall in order to eliminate competition in the retail groceiy and shopping center markets. The plaintiffs contend that the defendants conspired to keep the Jewel rental space empty, to prevent a major anchor tenant from taking over Jewel’s rental space, to obstruct Mr. Serfecz’s attempt to redevelop Grove Mall, and to coerce Grove Mall tenants to leave and move across the street to Elk Grove Mall. The plaintiffs maintain that the alleged conspiracy is part of an overall marketing strategy of restricting the use of property in order to keep out competitors and to restrain trade. In Counts I and II of their complaint, plaintiffs alleged defendants violated § 1 and § 2 of the "Sherman Act, 15 U.S.C. §§ 1, 2. In Count III plaintiffs allege Jewel’s declaratory judgment action regarding the United Skates sublet was malicious prosecution and in Count IV allege breach of lease by Jewel.

B. The Antitrust Laws: The Relevant Statutory Provisions

Section One of the Sherman Act prohibits anticompetitive activities designed to restrain unreasonably trade and bans “[ejvery contract, combination in the form of trust or otherwise, or conspiracy, in restraint, of trade or commerce_” 15 U.S.C. § 1. Section Two prohibits monopolistic practices and provides sanctions for “[ejvery person who shall monopolize, or attempt to monopolize, or combine or conspire with any other personor persons, to monopolize any part of the trade or commerce_” 15 U.S.C. § '2.

Section Four of the Clayton Act. defines the class of persons who may bring a priyate suit under the antitrust laws. Section Four provides:

[Ajny 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 in the district in which the defendant resides or is found or has an agent, without respect to the amount in controversy, and shall recover threefold the damages by him sustained and the cost of suit, including a reasonable attorney’s fee.

15 U.S.C. § 15. The Supreme Court has held that “Congress did not intend the antitrust laws to provide a remedy in damages for all injuries that might conceivably be traced to an antitrust violation.” Hawaii v. Standard Oil Co., 405 U.S. 251, 263 n. 14, 92 S.Ct. 885, 892 n. 14, 31 L.Ed.2d 184 (1972). The language of § 4 has been construed to limit the parties who may bring an antitrust action to (1) those who have suffered the type of injury that the antitrust laws were intended to prevent and (2) those whose injuries are a result of. defendant’s unlawful conduct. Brunswick Corp. v. Pueblo Bowl-O-Mat, Inc., 429 U.S. 477, 489, 97 S.Ct. 690, 698, 50 L.Ed.2d 701 (1977). The Court, focusing on Congress’ intent to have antitrust laws construed in light of the common law, also has read § 4 to contain a proximate cause element, denying standing to plaintiffs whose injuries are indirect or secondary. Associated Gen. Contractors, Inc. v. California State Council of Carpenters, 459 U.S. 519, 540-46, 103 S.Ct. 897, 909-12, 74 L.Ed.2d 723 (1983). The Court has identified several factors to be considered in determining whether a plaintiff is the proper party to bring a private action under the antitrust laws: (1) the causal connection between the antitrust violation and the plaintif PsTñjury; [596]*596(2) the nature of the plaintiff’s injury and the relationship between the plaintiffs injury and the type of activity sought to be redressed under the antitrust laws; and (3) the speculative nature of the plaintiffs claim for damages and the potential for duplicative recovery or complex apportionment of damages. Associated Gen. Contractors, 459 U.S. at 537-46, 103 S.Ct. at 908-12; see also Nelson v. Monroe Regional Medical Ctr.,

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Bluebook (online)
67 F.3d 591, 1995 U.S. App. LEXIS 27500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-serfecz-and-first-chicago-trust-v-jewel-food-stores-ca1-1995.