Lomar Wholesale Grocery, Inc. v. Dieter's Gourmet Foods, Inc.

824 F.2d 582, 56 U.S.L.W. 2098
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 13, 1987
DocketNo. 86-1167
StatusPublished
Cited by1 cases

This text of 824 F.2d 582 (Lomar Wholesale Grocery, Inc. v. Dieter's Gourmet Foods, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lomar Wholesale Grocery, Inc. v. Dieter's Gourmet Foods, Inc., 824 F.2d 582, 56 U.S.L.W. 2098 (8th Cir. 1987).

Opinion

BOWMAN, Circuit Judge.

Lomar Wholesale Grocery, Inc. (Lomar) appeals from two orders of the District Court granting summary judgment in favor of defendants Dieter’s Gourmet Foods, Inc. (Dieter’s), Gourmet Foods, Inc. (GF) and GF’s president, Art Stone. Lomar brought suit against defendants, seeking damages and injunctive relief for alleged violations of both Section 1 of the Sherman Act, 15 U.S.C. § 1, and Section 2 of the Robinson-Patman Act, 15 U.S.C. § 13. Lo-mar charges GF and Stone (hereafter referred to collectively as GF) with conspiring to engage in a group boycott to deny Lomar access to the products of three different grocery suppliers. The complaint also charges GF with engaging in a vertical price-fixing conspiracy in which the suppliers terminated Lomar as a distributor in an effort to protect GF from price competition. Finally, Lomar charges GF with engaging in price-discrimination and with receiving illegal brokerage in violation of sections 2(a) and 2(c), respectively, of the Robinson-Patman Act. Defendants filed motions for summary judgment as to each of Lomar’s Sherman Act claims, and, after a hearing, the District Court entered an order granting the motions. Lomar Wholesale Grocery, Inc. v. Dieter’s Gourmet Foods, Inc., 627 F.Supp. 105 (S.D.Iowa 1985) (Lomar I). Following additional briefing and argument, the District Court entered an order granting defendants’ motions for summary judgment on the Robinson-Patman claims. Lomar Wholesale Grocery, Inc. v. Dieter’s Gourmet Foods, Inc., 627 F.Supp. 117 (S.D.Iowa 1985) (Lomar II). We affirm each of the orders in all respects.

I.

Lomar and GF are wholesale distributors of specialty food products, selling ethnic, seasonal, dietetic, and other low volume items to retail grocery outlets. Other specialty food distributors and general grocery wholesalers compete with the two firms for sales of the same products, but the effectiveness of this competition is the subject of sharp dispute. Lomar contends that specialty foods distribution forms a separate product submarket in which Lomar and GF are the only significant players. GF urges a broader product market definition that would include many more competitors and encompass a variety of comparable products sold by general grocery wholesalers. There is at least some agreement that the state of Iowa and certain contiguous areas comprise the relevant geographic market.

Lomar’s complaint stems from its inability to purchase and distribute the products of Dieter’s Gourmet Foods, Inc. (Dieter’s), Chicago Dietetic Supply, Inc. (Chicago Dietetic) and Celestial Seasonings, Inc. (Celestial). Lomar charges that in an effort to eliminate its competition in the Iowa market, GF entered into a conspiracy with each of these suppliers to foreclose Lomar’s access to their products. There is no allegation that the three suppliers conspired among themselves, or that any of the suppliers solicited another’s participation in the alleged conspiracy. Rather, Lomar alleges that GF used its substantial national market power as the largest specialty food distributor in the country to coerce each of the suppliers separately into the alleged antitrust violations aimed at Lomar.

The District Court first found that Lo-mar’s Sherman Act claims involving Chicago Dietetic were time-barred. Lomar I, 627 F.Supp. at 109. The court then found that Lomar had failed to present evidence raising genuine issues of material fact in support of its other claims under the Sherman Act.1 Id. at 116. In disposing of the [585]*585Robinson-Patman claims, the District Court held that Lomar had failed to make a sufficient showing of competitive injury from the alleged price discrimination under section 2(a), or of individual injury from the alleged brokerage payments under section 2(c). Lomar II, 627 F.Supp. at 119, 120.

II.

While we generally use summary judgment “sparingly” in anti-trust litigation, Assam Drug Co. v. Miller Brewing Co., 798 F.2d 811, 317 (8th Cir.1986) (quoting Poller v. Columbia Broadcasting System, Inc., 368 U.S. 464, 473, 82 S.Ct. 486, 491, 7 L.Ed.2d 458 (1962)), summary procedures are appropriate where the issues for resolution are primarily legal rather than factual. In reviewing the District Court’s grant of summary judgment in favor of defendants, we apply the same standard as that applied by the District Court. Kegel v. Runnels, 793 F.2d 924, 926 (8th Cir.1986). Accordingly, we must determine whether there are any genuine issues of material fact which would entitle Lomar to a trial of its claims. Fed.R.Civ.P. 56(c). In making this determination, we “view the facts and all reasonable inferences derived therefrom in the light most favorable to the nonmov-ing party.” Green v. United States Dept. of Labor, 775 F.2d 964, 973 (8th Cir.1986). Rule 56 does not require us to submit for trial all those claims about which the parties have some factual dispute. Issues of fact must be material to a resolution of the dispute between the parties; where the only disputed issues of fact are immaterial to the resolution of the legal issues, summary judgment is appropriate. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, -, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). We note that defendants here have supported their motions with “pleadings, depositions, answers to interrogatories ... admissions [and] affidavits” as provided in Rule 56(c). Lomar, which bears the burden of proving its antitrust claims at trial, therefore may not rest merely on the con-clusory allegations contained in its pleadings and legal memoranda. Rather, by affidavits or otherwise, it must point to specific evidence showing that there are genuine disputes of material fact that must be resolved before its claims can be decided. Celotex Corp. v. Catrett, 477 U.S. 317, -, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986). With these considerations in mind, we review the record with respect to each of Lomar’s claims.

Statute of Limitations: Chicago Dietetic Products

Lomar filed this suit against GF on August 30, 1979. In August 1981, Lomar amended its complaint and for the first time alleged a conspiracy between GF and Chicago Dietetic. The amended complaint alleged Sherman Act violations in connection with Chicago’s termination of Lomar as a distributor of its Featherweight line of products on March 5, 1976, and with Lo-mar’s subsequent inability to purchase the products between 1976 and 1980. Defendants moved for summary judgment on the Chicago Dietetic claims, arguing that claims based on the 1976 termination were time-barred by the four-year statute of limitations on private actions contained in 15 U.S.C. § 15(b).

In granting the motions, the District Court rejected Lomar’s argument that the amendment related back, under Fed.R. Civ.P.

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824 F.2d 582, 56 U.S.L.W. 2098, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lomar-wholesale-grocery-inc-v-dieters-gourmet-foods-inc-ca8-1987.