Lehigh Portland Cement Co. v. Federal Trade Commission

291 F. Supp. 628, 1968 U.S. Dist. LEXIS 12220, 1968 Trade Cas. (CCH) 72,620
CourtDistrict Court, E.D. Virginia
DecidedOctober 24, 1968
DocketCiv. A. 4472
StatusPublished
Cited by14 cases

This text of 291 F. Supp. 628 (Lehigh Portland Cement Co. v. Federal Trade Commission) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lehigh Portland Cement Co. v. Federal Trade Commission, 291 F. Supp. 628, 1968 U.S. Dist. LEXIS 12220, 1968 Trade Cas. (CCH) 72,620 (E.D. Va. 1968).

Opinion

MEMORANDUM OPINION AND ORDER

OREN R. LEWIS, District Judge.

This action for declaratory judgment and injunctive relief was brought by Lehigh Portland Cement Company to permanently restrain the Federal Trade Commission and others from taking any further action in the adjudicative proceeding (Docket No. 8680) charging Le-high with violation of both Section 7 of the Clayton Act, 15 U.S.C. § 18, and Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, other than dismissing it or transferring the proceeding to the Department of Justice for such further action as may be just and consistent with the rights of the parties as interpreted and adjudicated by this Court.

Jurisdiction of this Court to hear the matter is invoked under the provisions of 28 U.S.C. §§ 1337 and 1361, 5 U.S.C. § 1009, and the Declaratory Judgment Act, 28 U.S.C. §§ 2201-2202. Venue is laid under 28 U.S.C. § 1391(e).

The case was submitted and heard on the defendant’s motion to dismiss- or, in the alternative, for summary judgment, and the plaintiff’s cross-motion for summary judgment.

Both sides fully documented the facts by numerous exhibits, affidavits and admissions. Each agrees there are no genuine issues of material fact.

The record as here made discloses that the Federal Trade Commission in April of 1964 publicized its intention to institute an industry-wide study of vertical integration in the cement-concrete industry and formulate an industry-wide policy in the public interest as a more appropriate method of dealing with Section 7 problems in the cement industry than adjudicated proceedings against individual companies.

This announcement was implemented on December 1, 1964 by a Commission resolution directing its Bureau of Economics to institute an economy-based inquiry in the cement industry to—

obtain information concerning such matters as the structure of the cement-producing and principal cement-consuming industries, the nature of the relevant product and geographical markets, the causes and business rea *630 sons underlying such acquisitions, and the probable effects of such acquisitions on competitive conditions of the market and industries involved — which may be of assistance to the Commission in discharging its responsibilities to enforce the laws, in particular Section 7 of the Clayton Act (15 TJ.S.C. 18), applicable to such acquisitions.

In August 1965 the Commission staff learned that Lehigh had acquired ready-mix concrete producers doing business in the Miami, Orlando and Jacksonville areas of Florida. An investigation was begun and Lehigh was mailed a notification on December 15, 1965 of the Commission’s intention to issue a complaint. Lehigh was informed of the opportunity for disposing of the proposed complaint by consent settlement and was requested to advise the Commission whether or not it was interested in such manner of disposition.

Lehigh so advised the Commission on December 27, 1965. A meeting was held on January 14, 1966 to discuss a possible basis for settlement of the complaint.

In February of 1966 Lehigh filed a petition with the Commission urging the Commission, among other things, to take prompt action to institute an industry-wide inquiry into the entire matter of acquisitions of ready-mix concrete producers by cement manufacturers — for the guidance of Lehigh and others similarly situated as well as the Commission officials and staff.

Lehigh, on the same date, filed a petition with the Commission for rescission of the proposed complaint and sought to maintain the status quo of the two Florida ready-mix acquisitions pending the industry-wide action by the Commission after which Lehigh would be governed by the same ground rules as other members of the industry.

In the meantime the Commission’s counsel learned, after the consent negotiations had begun, that Lehigh had also acquired a ready-mix concrete producer doing business in Louisville, Lexington and Frankfort, Kentucky, and that Le-high had acquired a substantial ready-mix producer operating in Alexandria, Arlington and Falls Church, Virginia. Commission counsel then advised Lehigh, to wit, on March 1, 1966, that he was proposing an amended complaint to include the ready-mix acquisitions in Virginia and Kentucky.

On April 1, 1966, the Commission issued a complaint questioning the legality of Lehigh’s vertical ready-mix concrete acquisitions not only in Florida but in Northern Virginia and Kentucky as well.

On April 22, 1966 the Commission announced public hearings on an industry-wide basis concerning vertical acquisitions in the cement industry — to assist the Commission in reaching a determination concerning what action, if any, it should take.

Shortly thereafter Lehigh filed with the hearing examiner a motion to vacate the Commission’s complaint or to stay all proceedings. Further proceedings were stayed pending a ruling by the Commission. The Commission denied Lehigh’s motion to vacate on February 6, 1967.

Thereafter Lehigh filed an application to the Commission for transfer of the administrative proceedings to the Department of Justice. This motion was denied as being wholly without merit.

On March 9, 1967 the Commission counsel moved the hearing examiner to amend the Commission’s complaint, to include an additional acquisition by Le-high, and the motion was granted. On March 20th Lehigh filed another motion to dismiss the complaint. The motion was again denied by the Commission.

This action was then commenced, to wit, on May 17,1967. Extensive pre-trial proceedings then began.

Lehigh’s complaint centers around the alleged extraordinary activities of the Federal Trade Commission during the pendency of the (Lehigh’s) adjudicative proceedings, namely, that the Commission embarked upon a program which at a minimum creates the appearance that the Commission has prejudiced the case against Lehigh (1) by issuing prejudicial publicity adverse to Lehigh’s position in *631

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Bluebook (online)
291 F. Supp. 628, 1968 U.S. Dist. LEXIS 12220, 1968 Trade Cas. (CCH) 72,620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lehigh-portland-cement-co-v-federal-trade-commission-vaed-1968.