Louisiana Farmers Protective Union, Inc. v. Great Atlantic & Pacific Tea Co. of America, Inc.

83 F. Supp. 646, 1949 U.S. Dist. LEXIS 2917
CourtDistrict Court, E.D. Arkansas
DecidedFebruary 12, 1949
DocketCiv. No. L. R.-126
StatusPublished
Cited by4 cases

This text of 83 F. Supp. 646 (Louisiana Farmers Protective Union, Inc. v. Great Atlantic & Pacific Tea Co. of America, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana Farmers Protective Union, Inc. v. Great Atlantic & Pacific Tea Co. of America, Inc., 83 F. Supp. 646, 1949 U.S. Dist. LEXIS 2917 (E.D. Ark. 1949).

Opinion

JOHN E. MILLER, District Judge.

The original complaint in this cause was filed on April 20, 1939. From that date until October 25, 1948, the proceedings in the trial court were before Honorable Harry J. Lemley, United States District Judge for the Eastern and Western Districts of Arkansas, to whom the case was originally assigned.

On October 25, 1948, Judge Lemley filed a “Certificate of Disqualification,” the concluding paragraph of which reads :

“By reason of the actions of the plaintiff acting through its aforesaid counsel, and of its said attorneys, Messrs. McCann and Morrison (Mr. Cameron C. McCann and Hon. James H. Morrison, attorneys of record for plaintiff), and in particular Mr. McCann, as set out and referred to herein, I feel that I cannot in good conscience further sit in this cause. In my mind, the same have rendered it impossible for me to conduct any further proceedings in the case with impartiality and without bias toward the plaintiff. I therefore recuse myself from any further consideration of this litigation.” (Matter in parenthesis supplied.)

Thereafter, on January 19, 1949, the Honorable Archibald K. Gardner, Chief Judge, United States Court of Appeals, Eighth Circuit, designated and appointed the writer to sit in the Eastern District of Arkansas for the purpose of disposing of this case. The assignment was filed in the office of the Clerk on January 20, 1940.

Pending at the time of Judge Lemley’s withdrawal from the case was a motion or request for default judgment filed by the plaintiff on September 21, 1948. A hearing was held on said motion (September 22, 23, and 24, 1948) and the motion was taken under advisement, awaiting preparation and filing of briefs by respective counsel. That is the question now before the Court.

Because of the voluminous record in this case it has been necessary to study the entire record and files to ascertain what has transpired during the ten years this case has been pending before Judge Lemley, and at the risk of drawing out this opinion, it seems necessary that a chronological outline of the material proceedings be set forth herein.

The history of the case from April 20, 1939, the date of the filing of the first complaint, through December 28, 1942, the date of the filing of the mandate of the Court of Appeals, will be found in two opinions by the District Court, 31 F.Supp. 483 and 40 F.Supp. 897, and one opinion by the Court of Appeals for the Eighth Circuit, 131 F.2d 419.

However, in order that this memorandum may be coherent in and of itself, the following brief summary is inserted.

In substance the complaint, which in form is in three counts, charges a violation of various sections of the national antitrust laws (count 1 — sections 1 and 2 of the Sherman Act, 15 U.S.C.A. §§ 1 and 2; count 2 — section 2 of the Clayton Act, 15 U.S.C.A. § 13; count 3 — section 3 of the Robinson-Patman Act, 15 U.S.C.A. § 13a), the same allegations furnishing the basis for the alleged violation in each count.

The trial court on October 1, 1941, dismissed the complaint without leave to amend, upon motion by defendants to dismiss for failure to state a claim upon which relief could be granted, being of the opinion that the complaint as then amended and as amplified by bills of particulars should be dismissed on two grounds: (1) Because plaintiffs had not “ * * * alleged facts showing damage to the business or property of its assignors in an amount susceptible of expression in figures, proximately resulting from the alleged illegal acts;” and (2) because “ * * * the necessary causal relationship between the alleged violations of the statutes and the alleged damage to plaintiff’s assignors, does not appear.”

The Court of Appeals in reversing, 131 F.2d 419, 421, said:

“Taking the complaint in its entirety, the gravamen of appellant’s charge is that ap-pellees, buyers of Louisiana strawberries, agreed with each other to control the price of berries by driving out of the market competing purchasers. This alleged conspiracy was made effective by selling to the consumer at retail prices either below cost or at prices so low as to eliminate competitors of appellees in the retail market, thus compelling other distributors of berries at wholesale who were buyers of Louisiana strawberries in interstate commerce [648]*648for sale to competing retailers, to retire from the Louisiana market or to purchase only at the depreciated price fixed by the appellees; and by these actions the members of the appellant union sustained the damages claimed.”

The Court also said that since the plaintiff was suing as assignee of 8,795 separate claims it was necessary that plaintiff allege the damage, computed upon actual and not average prices, to the business or property of each assignor proximately resulting from the alleged unlawful acts of defendants, yet, this defect in the complaint went only to the amount of damage, and the trial court should have granted plaintiff a reasonable time within which to amend rather than dismiss without leave to amend. As to the second ground of dismissal the Court of Appeals observed that the conclusions drawn by the trial court in connection with that ground were of a character usually to be-drawn from the evidence after a hearing and not from the pleadings, and as such, áre within the exclusive province of the jury to be drawn after evidence is adduced.

The mandate of the Court of Appeals, filed December 28, 1942, read as follows:

“And it is further ordered by this Court that this cause, be, and the same is hereby, remanded to the said District Court with directions to grant the appellant a reasonable time in which to amend the complaint by setting out the amount of damage claimed to have been received by each of the appellant’s assignors and the basis upon which the amount was computed, and for further proceedings in conformity with the opinion of this Court filed herein.”

On December 18, 1942, the attorneys for defendants filed notice that they would apply on January 12, 1943, to the District Judge for an order on the mandate granting plaintiff* a definite, reasonable time within which to comply with said mandate.

Plaintiff filed motion on January 11, 1943, requesting the Court to fix a date not earlier than May 12, 1943, as a time limit for amending- the complaint, giving as grounds therefor that plaintiff’s attorney, Hon. James H. Morrison, was compelled to go to Washington to- serve in Congress; that plaintiff’s attorney, Joseph Sims, had assumed duties of District Attorney at Hammond, Louisiana; that the above named attorneys were the only attorneys for plaintiff familiar with the almost 9,000 assignors; and pointing out that a huge volume of work was necessary in order to comply with the mandate. A hearing wa^ held on January 12, 1943, at which time local counsel for plaintiff filed a motion praying that the hearing be continued until February 8, 1943, and that plaintiff be allowed to amend its motion of January 11, 1943, so as to fix a date certain as the definite date determining a reasonable time within which to amend. On that date, January 12, 1943, an order was filed grantng the continuance and granting 15 days within which to amend said motion of January 11, 1943.

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83 F. Supp. 646, 1949 U.S. Dist. LEXIS 2917, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-farmers-protective-union-inc-v-great-atlantic-pacific-tea-ared-1949.