Laitram Machinery, Inc. v. Carnitech A/S

884 F. Supp. 1074, 1995 U.S. Dist. LEXIS 6431, 1995 WL 289658
District Court, E.D. Louisiana·Decided April 24, 1995·No. Civ. A. No. 92-3841·Published·Cited by 5 cases

Opinion

ORDER AND REASONS

JONES, District Judge.

Pending before the Court is “Plaintiffs Second Motion for Summary Judgment,” which was taken under submission on a previous date without oral argument. After reviewing the memoranda of the parties, the record and the applicable law, the Court GRANTS the motion in part and DENIES the motion in part.

Background

Plaintiff, defendant in counterclaim and third-party defendant Laitram Machinery (hereinafter “Laitram”) moves for summary judgment as to various counts of the eounterclaim/third-party claim of Skrmetta Machinery Corp. and various Skrmetta family members, respectively (hereinafter, collectively, “Skrmetta”).

Laitram filed suit in November 1992 against three defendants, Seafood Equipment Development Corporation, a Florida corporation; Carnitech A/S, a Danish corporation, and - Skrmetta. The lawsuit alleged federal antitrust law violations, Louisiana antitrust law violations, and violations of the Lanham Act, 15 U.S.C. § 1125(a), based upon alleged false representations about Laitram’s products and alleged patent coverage for defendant’s products. The lawsuit also sought declaratory judgment that Laitram was not infringing on a patent allegedly owned (or assigned) to the Florida corporation and, further, alleged claims pursuant to the Louisiana Unfair Trade Practices Law, LSA-R.S. 51:1405 et seq., as well as claims of defamation and conspiracy to defame against the Florida and Danish corporations.

The claims against the Florida and Danish corporations have been settled.

Skrmetta filed a counterclaim/third-party claim against Laitram alleging state and federal antitrust claims, Lanham Act claims, Louisiana Unfair Trade Practices claims, and an abuse of process claim. The counterclaim also sought declaratory judgment of patent invalidity, unenforceability and/or non-infringement of three patents owned by Laitram (hereinafter, the ’794 patent, the ’538 patent and ’265 patent).1 This count sought a declaratory judgment that Skrmetta’s shrimp cooking and/or peeling machines do not infringe on Laitram’s patents for its machines. This count also alleged initially and in subsequent amendments that Laitram or its parent company, The Laitram Corporation, engaged in “inequitable conduct” in obtaining certain patents, including those three noted above as well as the re-issued patent of the ’794 patent, which was reissued as Re. 34,646 (hereinafter “’646”). Skrmetta alleged a lack of candor with the U.S. Patent and Trademark Office and the examining [1078] patent attorneys by Laitram, its parent corporation or their predecessors in interest when those patents were obtained.2

Law and Application

I. Antitrust Allegations

A. Conspiracy under Antitrust Law

The first issue on summary judgment is whether a conspiracy exists under applicable law so as to sustain Skrmetta’s allegations. There is no doubt that the coordinated activities of a parent corporation with a wholly-owned subsidiary or with its employees is not a conspiracy that is actionable under Section 1 of the Sherman Act. Copperweld Corp. v. Independence Tube Corp., 467 U.S. 752, 768-72, 104 S.Ct. 2731, 2740-42, 81 L.Ed.2d 628 (1984).

Laitram contends that there can be no antitrust claim because a conspiracy is legally impossible among Laitram, its employees and wholly-owned subsidiaries. Skrmetta concedes, as it must, that Copper-weld controls in regard to any conspiracy between Laitram and its employees. However, Skrmetta argues that a foreign agent of Laitram, Asgeir Bjarnason, is actually an independent agent, thus precluding summary judgment under Copperweld. Skrmetta relies on the argument of Bjarnason’s- counsel at the motion to dismiss for lack of personal jurisdiction. (R.Doc. 229, Exh. A, pp. 16-18.) Further the Court notes that in his motion to dismiss for lack of personal jurisdiction, Bjarnason stated: “Here, Bjarnason was acting as LMI’s representative in Iceland for sales and servicing activity in Iceland.” (R.Doc. 127, memorandum in support of Motion to Dismiss for Lack of Personal Jurisdiction, p. 8.)

In view of the statements by Bjarnason’s counsel at the oral argument of the motion to dismiss for lack of personal jurisdiction and the statements by Bjarnason in pleadings in support of that motion, the Court finds that there is a genuine issue of material fact whether Bjarnason was an independent agent or employee of Laitram. Thus, there is also a genuine issue of material fact as to whether a conspiracy existed, necessitating a trial in this matter. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510-11, 91 L.Ed.2d 202 (1986).

Laitram contends that even if Bjarnason was its agent, various cases construing Copperweld provide that a corporation cannot conspire with its agents. See Ryko Mfg. Co. v. Eden Services, 823 F.2d 1215 (8th Cir. 1987); The Sample, Inc. v. Pendleton Woolen Mills, Inc., 704 F.Supp. 498, 502 (S.D.N.Y. 1989). However, Laitram fails to understand the true import of those cases. Ryko relies on Pink Supply Corp. v. Hiebert, Inc., 788 F.2d 1313 (8th Cir.1986). In Pink Supply the Court found that if corporate agents, who are even separately incorporated, “function as an integral part of the corporate entity, represent no step in the distribution chain, act for the corporate principal’s benefit and are functionally indistinguishable from other employees, [they] may lack the independent economic consciousness necessary to be considered conspirators separate from their principal.” Id. at 1316.

Similarly, in Pendleton Woolen Mills, the court stated that “assuming the sales agents have limited authority,” agents and a manufacturer cannot conspire for purposes of violation of Section 1 of the Sherman Act. Pendleton Woolen Mills, 704 F.Supp. at 502.

On the present record, Laitram has not shown that Bjamasson is so functionally distinguishable from other Laitram employees that he cannot conspire with Laitram. As a result, there is a genuine issue of material fact necessitating a trial that makes summary judgment inappropriate on the Section 1, Sherman Act, claims. Anderson, supra.3

[1079] B. Predatory Pricing and/or Price Discrimination Claims

1. Alleged Violation of Robinson-Patman Act

Laitram argues that any claims of alleged violations of the Robinson-Patman Act which occurred in foreign countries are not actionable. Further, any claims of violations of the Robinson-Patman Act dealing with services also are not actionable. In that same vein, Laitram also contends that summary judgment is proper on the claims involving Laitram’s lease of machines to Point Adams because the Robinson-Patman Act does not cover leases.

The Robinson-Patman Act, 15 U.S.C. § 18(a) states, in pertinent part:

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Laitram Machinery, Inc. v. Carnitech A/S, 884 F. Supp. 1074, 1995 U.S. Dist. LEXIS 6431, 1995 WL 289658 (E.D. La. 1995).

884 F. Supp. 1074 (Laitram Machinery, Inc. v. Carnitech A/S) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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