Natrona Service, Inc. v. Continental Oil Co., Kerr-Mcgee Corporation, and Meurer, Serafini & Meurer Inc.

598 F.2d 1294, 1979 U.S. App. LEXIS 14931
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 4, 1979
Docket77-1845
StatusPublished
Cited by16 cases

This text of 598 F.2d 1294 (Natrona Service, Inc. v. Continental Oil Co., Kerr-Mcgee Corporation, and Meurer, Serafini & Meurer Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Natrona Service, Inc. v. Continental Oil Co., Kerr-Mcgee Corporation, and Meurer, Serafini & Meurer Inc., 598 F.2d 1294, 1979 U.S. App. LEXIS 14931 (10th Cir. 1979).

Opinion

BARRETT, Circuit Judge.

Natrona Services, Inc. (Natrona) seeks review of an order granting summary judgment to Continental Oil Co. (Continental), Kerr-McGee Corporation (Kerr-McGee) and Meurer, Serafina & Meurer (MSM), defendants below. 1

Natrona filed this anti-trust suit alleging violations of Sections 1 and 2 of the Sherman Act and Wyoming common law of unfair competition and restraint of trade. Natrona specifically alleged that appellees unlawfully combined or conspired to exclude it from engaging in the business of performing uranium claim taking and validation services, and with monopolizing and attempting to monopolize scarce uranium claim areas in Wyoming and elsewhere without complying with the claim location and validation requirements. Predicated thereon, Natrona alleges that “the natural effects of which are to exclude plaintiff from engaging in its business and to restrain plaintiff’s interstate trade and commerce.” A detailed recitation of the allegations, circumstances and facts is set forth in the Memorandum Opinion and Order of the District Court. See: Natrona Service, Inc. v. Continental Oil Company, et al., 435 F.Supp. 99 (D.Wyo.1977).

Natrona is a Wyoming corporation formed in 1967. It was, during the relevant *1296 time periods herein, engaged in the business of providing custom uranium claim location and validation services in the western United States for energy companies as an integral part of their uranium exploration and development programs.

Kerr-McGee and Continental are energy related companies which explore for, develop, and sell energy in various forms, including uranium. MSM is a Colorado engineering firm which was engaged in the claim staking and validation business in late 1974 and 1975. MSM acquired the contracts of Polaris Company, a joint venture of Ken Wickware and Ronald Harris. Prior to the formation of Polaris, Wickware had operated individually in the claim staking business under the trade name of Conrad.

Prior to 1974 Natrona had little, if any, competition in Wyoming in the claim staking and validation business. It had performed virtually all of Kerr-McGee’s and Continental’s claim staking and validation work in Wyoming. It is uncontested that Natrona generally performed its services well.

In the spring of 1974, Natrona announced that it would have to increase its prices for services in order to meet increased overhead, to overcome past losses, and to operate profitably. Natrona’s price increase from $40 to $50 per claim was accepted as reasonable. However, a subsequent announced future rate of $60 per claim was considered too high by Kerr-McGee and Continental. During the period of the price increases, personality conflicts developed between John MacGuire, president of Natrona, and personnel of Kerr-McGee and Continental. Allegations and counter allegations of conflicts of interest, overstaking and unethical conduct ensued. Pressure developed at the same time from the “home” offices of Kerr-McGee and Continental to keep costs down relating to claim staking activities.

Prior to this time Wickware, who owned a surveying business, decided to go into the claim staking business under the name of Conrad. In April 1974, Conrad was awarded a contract by Kerr-McGee. Conrad proved unable to perform its work effectively. Wickware thereafter joined with Harris in a joint venture, Polaris, to complete the Kerr-McGee work. In June 1974, Continental contracted with Polaris for claim staking work. Polaris, just as its predecessor, performed ineffectively. In November, 1974, without knowledge of Kerr-McGee or Continental, MSM acquired the assets and contracts of Polaris. When Kerr-McGee and Continental were informed that MSM had acquired Polaris, both insisted that MSM complete the contracts thus assumed.

In May, 1975, Natrona began systematically overstaking certain claims of Kerr-McGee and Continental which had been contracted to Polaris or MSM. This was undertaken, according to Natrona, only after it was unable to convince Kerr-McGee and Continental that the work being performed by MSM was invalid and “should be turned over to plaintiff [Natrona] who was able to properly validate them.” Natrona contends that activities of appellees at this time were designed to drive Natrona out of business and to circumvent the applicable mining statutes.

Natrona filed its original complaint August 7, 1975. An amended complaint was filed in November, 1975 against Continental, Kerr-McGee, Phillips Petroleum Company, MSM and various John Does. The amended complaint set forth three causes of action against all the defendants, four separate causes of action against Kerr-McGee, and two separate causes of action against Phillips.

Following extensive discovery, a hearing was set for October 18, 1976 on appellees’ motions for summary judgment. Pursuant to a stipulation, all claims against Phillips Petroleum Company were dismissed with prejudice. At the hearing, Natrona also confessed that its second claim for relief *1297 against appellees did not state a claim upon which relief could be granted. Natrona further conceded that there was no justiciable controversy as to certain Exhibit “B” claims and that the complaint should be amended to delete them. (The Exhibit “B” claims were the “Third” and “Fourth” causes of action against Kerr-McGee.)

The trial court’s opinion recognized, in detail, the limited utilization of summary judgment in antitrust litigation. However, the court cited numerous opinions delineating the essential elements of an antitrust action and the manner in which they must be established. In its detailed and comprehensive Memorandum Opinion' and Order the District Court found that: appellees had not conspired, combined or contracted to fix prices in the claim staking and validation business or to boycott Natrona; appellees had not monopolized or attempted to monopolize the claim staking and validation business in violation of Sections 1 and 2 of "the Sherman Act; Natrona’s third claim for damages was without merit; Kerr-McGee and Continental ceased doing business with Natrona and sought the services of another locator for sound business reasons, i. e., both believed that Natrona had raised its prices too high and that Natrona was treating them unfairly by overstaking claims it had originally staked for them; and that Kerr-McGee was not liable to Natrona in damages for allegedly cancelling several contracts, inasmuch as Kerr-McGee had paid the invoices Natrona had submitted to it and Natrona had failed to assert further payment was due and owing.

On appeal Natrona contends that: (1) the amended complaint sets forth activities by appellees which, if proved at trial, would constitute violations of Sections 1 and 2 of the Sherman Act; (2) at trial it will introduce evidence that establishes appellees’ violation of the Sherman Act and the common law of Wyoming regulating unfair competition and anti-competitive conspiracies; and, (3) summary judgment was improperly and prematurely granted by the trial court.

I.

Natrona contends that the amended complaint sets forth activities of appellees which, if proved at trial, would constitute violations of Sections 1 and 2 of the Sherman Act. (As noted, supra,

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Bluebook (online)
598 F.2d 1294, 1979 U.S. App. LEXIS 14931, Counsel Stack Legal Research, https://law.counselstack.com/opinion/natrona-service-inc-v-continental-oil-co-kerr-mcgee-corporation-and-ca10-1979.