M. D. Rutledge v. Electric Hose & Rubber Company

511 F.2d 668
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 3, 1975
Docket71-2840, 71-2841
StatusPublished
Cited by145 cases

This text of 511 F.2d 668 (M. D. Rutledge v. Electric Hose & Rubber Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M. D. Rutledge v. Electric Hose & Rubber Company, 511 F.2d 668 (9th Cir. 1975).

Opinions

OPINION

EAST, Senior District Judge:

THE CASE

This treble damage antitrust action was filed on April 29, 1969. The cause ultimately came on for trial before the District Court sitting without a jury on February 25, 1971 and reached final judgment on June 2, 1971.

Appellants, M. D. Rutledge, doing business as Rubber Hose Supply Company and Industrial Hose and Rubber Company, and Mechanicals, Inc., a corporation, owned and controlled by Rutledge, appeal from an order of the District Court entered on April 22, 1971, granting the appellees’ motion for dismissal pursuant to Rule 41(b) (Fed.R.Civ.P.) and the final judgment in favor of all of the appellees entered on June 2, 1971. We affirm.

THE INDUSTRY

The products involved in this case are hydraulic hose assemblies, which consist [672]*672of hydraulic hose and hydraulic hose couplings. Hydraulic hose is simply a reinforced flexible hose, the primary purpose of which is to carry fluids under relatively high pressures, and have been for many years manufactured and sold by companies generally known as “hose companies.” A hydraulic hose assembly consists of a length of the hydraulic hose with a coupling or fitting attached at each end to make it useful and has been designed and manufactured by specialty companies generally known as “couplers.”

Rutledge is a coupler. Five of the appellees are hose companies and seven are couplers.

PRIOR LITIGATION

This appeal is the latest chapter in a story that goes back over 12 years to April, 1962, when a Federal Grand Jury commenced criminal investigations of companies in the hydraulic hose assembly industry. Following approximately three years of investigation by three Grand Juries, two separate indictments were returned in 1965, one of which charged six hose companies with price fixing. That proceeding ended with pleas of nolo contendere. The other indictment charged the seven coupler appellees and a number of individuals with conspiring in antitrust actions. Following three years of proceedings, that criminal cause succumbed to motions for acquittal and dismissal. United States v. Aeroquip Corporation, 284 F.Supp. 114 (E.D.Mich.1968) (Detroit suit).

Some of the appellees herein were not party to those proceedings.

CLAIMS OF RUTLEDGE TRIED

The record shows that Rutledge failed to cooperate with his counsel’s efforts to arrive at a subscribed agreed pretrial order. Following Rutledge’s refusal to join and after notice and hearing, the District Court on January 5, 1971 settled and entered a pre-trial order setting forth the claims of Rutledge as follows:

(1) Alleged conspiracy in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1;
(2) Alleged discriminatory sales in violation of Sections 2(a) and 2(d) of the Clayton Act, as amended by the Robinson-Patman Act, 15 U.S.C. § 13(a) and (d).
(3) Alleged conduct on the part of the coupler appellees in violation of Section 2(f) of the Clayton Act, as amended by the Robinson-Patman Act, 15 U.S.C. § 13(f).

ASSIGNMENTS OF ERROR

There are numerous assignments of error; however, we are satisfied that a discussion of the following seven assignments is sufficient for an appropriate disposition of this appeal:

“1. Was it reversible error for the District Court to rule that this matter may not be maintained as a class action under Rule 23, [Fed.R.Civ.P.]?”
“2. Was it reversible error for the District Court to terminate plaintiffs’ discovery rights only one month after defendants’ answers were filed?” and to refuse “to grant a continuance [of trial] for purposes of discovery”?
“5. [Which we paraphrase as follows: Was it reversible error for the District Court to deny appellants their constitutional right to a jury trial under Rule 38 (Fed.R.Civ.P.)?
b. Is Local Rule 13 invalid and unreasonable because it is inconsistent with Rule 38(b)?
d. Did the court abuse its discretion in declining to determine that the issues in the case may be tried to a jury under Rule 39(b) (Fed.R. Civ.P.)?]”
“7. Was it reversible error for the District Court to rule that the witnesses who had testified at the government’s criminal trial and who resided beyond the 100 mile subpoena power of the Court, were not ‘unavailable’ within the meaning of California Evidence Code Section 240 thus precluding the use of their former testimony against the couplers?”
“8. Was it reversible error for the District Court to exclude from evidence the copy of the ‘Rogge-Fischer’ letter [Exhibit 19] proffered by plaintiffs?”
“9. Was it reversible error for the District Court to grant defendants’ [673]*673Motions to Dismiss under Rule 41(b) [Fed.R.Civ.P.]?”
“12. Was it reversible error for the District Court to rule that the former testimony given at the Detroit trial may be used against the couplers only in connection with Sherman Act claims but not as to Robinson-Patman claims?”

We find no abuse of judicial discretion on the part of the District Court in any other aspect of the pretrial or trial proceedings, and conclude all other assignments of error to be without merit.

DISCUSSION

Assignment of Error No. 1:

The appellees moved the District Court pursuant to Rule 23 for an order determining that the action could not be maintained as a class action, asserting therein that under the circumstances of the case, the class device was not superi- or to other available methods within the meaning of Rule 23(b)(3) and that Rutledge was not an adequate class representative within the meaning of Rule 23(a)(4). The District Court granted the motion.

It is now recognized that the failure of any one of Rule 23’s requirements destroys the alleged class action. Eisen v. Carlisle & Jacquelin, 391 F.2d 555, 561 (2d Cir. 1968).

In deciding whether to allow a class action, a primary determination to be made is whether the class action is superior to, and not just as good as, other available methods for handling the controversy, and such a determination lies in an area where the trial court’s discretion is paramount. City of New York v. International Pipe & Ceramics Corp., 44 F.R.D. 584, 587 (S.D.N.Y.1968), app. dismissed 410 F.2d 295 (2d Cir. 1969); Buford v. American Finance Company, 333 F.Supp. 1243, 1250 (N.D. Ga.1971); Alameda Oil Co. v. Ideal Basic Industries, Inc., 326 F.Supp. 98, 105 (D.Colo.1971); cf. Amendments to Rules of Civil Procedure, Advisory Committee’s Notes, 39 F.R.D. 69, 103 (1966).

Also, “as a result of the sweeping changes in Rule 23, a court must now carefully scrutinize the adequacy of representation in all class actions.” Eisen v. Carlisle & Jacquelin, supra 391 F.2d at 562.

We conclude that the District Court’s order disallowing the class action was correct and its reasons therefor were sound.

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Bluebook (online)
511 F.2d 668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/m-d-rutledge-v-electric-hose-rubber-company-ca9-1975.