Major Mart, Inc. v. Mitchell Distributing Co.

46 F. Supp. 3d 639, 2014 U.S. Dist. LEXIS 122366, 2014 WL 4723599
CourtDistrict Court, S.D. Mississippi
DecidedAugust 14, 2014
DocketCivil Action No. 3:13-CV-942-HTW-LRA
StatusPublished
Cited by1 cases

This text of 46 F. Supp. 3d 639 (Major Mart, Inc. v. Mitchell Distributing Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Major Mart, Inc. v. Mitchell Distributing Co., 46 F. Supp. 3d 639, 2014 U.S. Dist. LEXIS 122366, 2014 WL 4723599 (S.D. Miss. 2014).

Opinion

ORDER

HENRY T. WINGATE, District Judge.

This case features a dispute between plaintiff Major Mart, Inc. (“Major Mart”), and defendants Mitchell Distributing Company, Inc. (“Mitchell Distributing”), and Mitchell Beverage, LLC (“Mitchell Beverage”) (collectively “Mitchell”). Major Mart owns and operates eleven convenience stores in northern Mississippi. Mitchell is an Anheuser-Busch distributor. The core dispute here is whether Mitchell engaged in conduct violative of federal and state antitrust laws, aimed at Major Mart, an accusation that Mitchell denies.

[645]*645Before this court are nine motions: a Motion to Dismiss [docket no. 12], filed by Mitchell under the auspices of Rule 12(b)(6)1 of the Federal Rules of Civil Procedure; a Motion for Summary Judgment [docket no. 86], filed by Mitchell pursuant to the authority of Rule 562 of the Federal Rules of Civil Procedure; a Motion in Limine [docket no. 106], filed by Major Mart, to strike certain expert opinions of Greg Ellis and limit his expert testimony; a Motion in Limine [docket no. 107], filed by Major Mart, to strike certain expert opinions of William C. Myslinski and limit his expert testimony; a Motion in Limine [docket no. 108], filed by Major Mart, to strike certain expert opinions of Ralph J. Stephens and limit his expert testimony; a Motion for Summary Judgment [docket no. 113], filed by Mitchell Distributing as allowed by Rule 56 of the Federal Rules of Civil Procedure; a Motion to Strike Supplemental Trial Report of David C. Sharp [docket no. 118], filed by Mitchell; a Motion to Strike Jimmy Brown as a Potential Trial Witness [docket no. 119], filed by Mitchell; and a Motion in Limine to Exclude All Documents and Testimony Relating to Settlement Discussions [docket no. 121], filed by Mitchell.

Having reviewed the motions and their supporting documents, the court grants in part and denies in part the Motion to Dismiss [docket no. 12]. The court grants the Motion to Dismiss only as to Counts V and VI of the complaint.

The court grants in part and denies in part the Motion for Summary Judgment [docket no. 86]. The court grants the motion only as to the Robinson-Patman Act claim. The court denies the motion as to the Sherman Act claim, the Mississippi antitrust claim, and the tortious interference claim. The court also denies the Motion for Summary Judgment [docket no. 113],

The court grants the Motion in Limine [docket no. 106] to exclude the expert opinion of Greg Ellis; denies the Motion in Limine [docket no. 107] to exclude the expert opinions of William C. Myslinski; denies the Motion in Limine [docket no. 108] to exclude the expert opinion of Ralph J. Stephens; denies the Motion to Strike the Supplemental Trial Report of David C. Sharp [docket no. 118]; grants the Motion to Strike Jimmy Brown as a Potential Trial Witness [docket no. 119], and grants the Motion in Limine to Exclude All Documents and Testimony Relating to Settlement Discussions [docket no. 121],

I. BACKGROUND

Major Mart, is a Mississippi corporation with its principal place of business in Starkville, Mississippi. Its president is Gregory Sharp (“Sharp”). Major Mart owns eleven “B-Quik” convenience stores in the following northeast Mississippi [646]*646towns: West Point, Clay County; Columbus, Lowndes County; Starkville, Oktib-beha County; Saltillo, Lee County; Baldwyn, Lee County; and New Albany, Union County. Major Mart’s B-Quik stores sell, inter alia, tobacco products, gasoline, and light wine and beer.

Mississippi has created a special format for distribution of light wine and beer. Each manufacturer must create sales territories within the state and name one licensed wholesaler to service that territory with the manufacturer’s brand. Miss. Code Ann. § 27-71-349(1).3 The licensed wholesaler must sell the light wine or beer to retailers within the territory “without discrimination in service.” Miss.Code Ann. § 27-71-349(2).4

Mitchell Distributing is a Mississippi corporation with its principal place of business in Meridian, Mississippi. Mitchell Distributing is a beer distributor licensed by the State of Mississippi to sell Anheu-ser-Busch beer in the following Mississippi counties: Winston County, Neshoba County, Kemper County, Scott County, Newton County, Lauderdale County, and Clarke County.

Mitchell Beverage is a Mississippi limited liability company that has its principal place of business in Meridian, Mississippi. Mitchell Beverage is licensed by the State of Mississippi to sell Anheuser-Busch beer in Prentiss County, the southern part of Tishomingo County, Union County, Lee County, Itawamba County, Chickasaw County, Monroe County, Clay County, Lowndes County, Oktibbeha County, and Noxubee County.

Manny Mitchell (“Manny”) owns 30% of Mitchell Beverage. Manny Depo. at 15, docket no. 104, exh. 2. The remaining 70% is divided equally between two trusts held for the benefit of his son and daughter, Adam Mitchell (“Adam”)5 and Emily Mitchell Athanas. Id. Adam serves as the President of Mitchell Beverage and Mitchell Distributing.

Major Mart claims to have sold Anheu-ser-Busch products in its retail stores for over thirty-two years. Prior to November 2008, the Anheuser-Busch wholesaler for the territory in which Major Mart did business was Cash Distributing Company. Major Mart claims it had a good working [647]*647relationship with Cash Distributing Company. In November 2008, Mitchell became the Anheuser-Busch wholesaler in Major Mart’s territory.

In September 2010, Major Mart claims that about 70-75% of its light wine and beer sales were Anheuser-Busch products. Customers, says Major Mart, would come to the B-Quik stores to purchase beer and subsequently would purchase other products such as gasoline, tobacco, and grocery items. Major Mart says that customers often have preferred beer brands, and they will not stay to buy other items if their preferred beer brand is not in stock.

In September 2010, the relationship between Major Mart and Mitchell began to deteriorate. Major Mart says Mitchell sent five different “Every Day Low Price” (“EDLP”) sheets to Major Mart with differing prices. As a result of the confusing price sheets, Major Mart was unable to correctly price the Anheuser-Busch products and lost profit on its beer sales. Major Mart also asserts that Mitchell began overstocking the store with items that Major Mart did not request and charging prices different from prices charged at other stores. Mitchell, in contrast, claims that it gave accurate pricing information to Major Mart, but Major Mart ignored the updated pricing sheet and chose not to redo its pricing. Mitchell refused to compensate Major Mart for the alleged lost profits during this period.

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Bluebook (online)
46 F. Supp. 3d 639, 2014 U.S. Dist. LEXIS 122366, 2014 WL 4723599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/major-mart-inc-v-mitchell-distributing-co-mssd-2014.