Noerr Motor Freight, Inc. v. Eastern Railroad Presidents Conference

166 F. Supp. 163, 1958 U.S. Dist. LEXIS 3513, 1958 Trade Cas. (CCH) 69,085
CourtDistrict Court, E.D. Pennsylvania
DecidedJuly 22, 1958
DocketCiv. A. 14715
StatusPublished
Cited by23 cases

This text of 166 F. Supp. 163 (Noerr Motor Freight, Inc. v. Eastern Railroad Presidents Conference) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noerr Motor Freight, Inc. v. Eastern Railroad Presidents Conference, 166 F. Supp. 163, 1958 U.S. Dist. LEXIS 3513, 1958 Trade Cas. (CCH) 69,085 (E.D. Pa. 1958).

Opinion

CLARY, District Judge.

This case is presently before the Court for entry of final judgment. The problems presented are (1) what in *166 junctive relief shall be granted; (2) a proper assessment of damages, and (3) fixing a reasonable attorney’s fee to be awarded the successful litigants, the plaintiffs. Considering point 2 first, there is no doubt, as is set forth in the body of the Opinion in this case handed down on October 10, 1957 (D.C., 155 F. Supp. 768), that plaintiff Pennsylvania Motor Truck Association (PMTA) has sustained damages as a result of the illegal conspiracy found in this case. As in nearly every case involving violation of the antitrust statutes, there is, and the Court is fully aware of the problem involved, great difficulty in determining the exact amount of damages sustained by the plaintiff association. Bigelow v. RKO Radio Pictures, 1946, 327 U.S. 251, 66 S.Ct. 574, 90 L.Ed. 652; Story Parchment Co. v. Paterson Parchment Paper Co., 1931, 282 U.S. 555, 51 S.Ct. 248, 75 L.Ed. 544; Eastman Kodak Co. of New York v. Southern Photo Materials Co., 1927, 273 U.S. 359, 47 S.Ct. 400, 71 L.Ed. 684. The Court is also fully cognizant that damages may not be based upon sheer conjecture. Story Parchment Co. v. Paterson Parchment Paper Co., supra; Kobe, Inc., v. Dempsey Pump Co., 10 Cir., 1952, 198 F.2d 416, certiorari denied 1952, 344 U.S. 837, 73 S.Ct. 46, 97 L.Ed. 651. However, the fact that there is difficulty in determining an exact amount from the proofs adduced is a risk of which the wrongdoer defendants may not complain. The Court, under the Eastman Kodak Co.; Story Parchment Company and Bigelow cases, is entitled to award damages based upon reasonable inferences to be drawn from the testimony adduced. As against that there is the cautionary statement in Homewood Theatre, Inc., v. Loew’s, Inc., D.C. Minn.1952, 110 F.Supp. 398, 412, that “the purpose of the Sherman Act and the protection granted therein to those who have been damaged by wrongdoers in violation thereof, should not be thwarted by making the act a haven for those who attempt to transform their actual damage into a fortuitous windfall”. With these principles in mind we proceed to an examination of the claimed damages on the part of the Pennsylvania Motor Truck Association (PMTA).

The claim of the plaintiff Pennsylvania Motor Truck Association (PMTA) is based principally upon the total of all monies it paid to Allied Public Relations Associates, Inc. from May of 1952 to 1957. Included in these charges are not only its public relation activities but all expenditures in connection with the present suit. Certain other direct payments to individuals, printing houses and other organizations are also included, the details of which need not be outlined. Also claimed are a series of direct payments by PMTA for public relation purposes from 1949 to 1957 independently of the Allied charges and based upon the increase in PMTA’s direct public relations program over and above the average of its direct expenditure for that purpose for the years 1942 to 1949, the date when the Court found the conspiracy was formed. These sums aggregate $866,-482.62 which, if allowed in full, would mean treble damages in the amount of $2,599,447.86.

The Court in its opinion, particularly in reference to the counterclaim, has characterized certain of the activities of the truckers as not proving a conspiracy in violation of the Sherman and Clayton Acts, 15 U.S.C.A. §§ 1-7, 15 note, 12 et seq. but, on the contrary, has characterized some of them as falling within the realm of fair competition in the light of the competitive situation then existing. The Court further stated categorically that such activities did not in and of themselves establish a conspiracy on the part of the truckers against the railroads. Because of these statements in the opinion, counsel for the plaintiffs have argued that all costs outlined above are reimbursable in a treble amount. This conclusion, of course, does not follow and the Court rejects the imposition of damages based upon that assumption. While many of these factors were not found to be sufficient to convince the Court of the existence of a truckers’ conspiracy, it does not follow as a matter *167 of course that the Court is obligated to find that they were defensive measures. There were many activities of the truckers and Allied which had no connection with the present suit, were extremely beneficial to the truckers, and which could not possibly be classified as appropriate defensive measures of the conspiracy found to be existing in this case.

Another premise upon which counsel for the plaintiffs have argued that they should be awarded damages is the finding of the Trial Judge in the opinion that he believed the testimony of Noerr and Charnay that the purpose for the hiring of Allied was primarily to make an investigation of the activities of the railroads and, if sufficient evidence was adduced, to institute a law suit to compel cessation of illegal activities. The Court reiterates its finding in that regard but also finds that the activities of Charnay went far and beyond purely defensive measures. Charnay in the years of 1953 and 1955 expended large sums of money for public relation activities on behalf of the truckers over and beyond amounts necessary to counteract the previous activities of the railroadByoir conspiracy and for many purposes entirely disassociated with the railroad-truckers’ fight. Insofar as these independent activities can be segregated, no allowance will be made therefor. Where the activities were in the main directed at defensive measures, even though there may be some incidental benefit to the truckers along other lines and cannot be separated, allowance will be made therefor. Examples of the type of activities that will not be allowed are as follows: Reimbursement to Allied for legal expenses without showing the necessity therefor and some connection with the obligations of Allied to PMTA. The only suggestion made as to the necessity for these expenses is that Charnay consulted certain lawyers not connected with the present litigation as to whether there might be a right of action under the antitrust laws. Expenses of this nature have never been held to constitute part of damages awarded in antitrust actions. Another type of expense which has been attempted to be recovered here is that of a fund-raising organization hired to solicit funds from truckers throughout the country in support of the present law suit. Its compensation was based upon a percentage of funds solicited. The Court sees no basis for an allowance of this expenditure as damages in an antitrust action.

The attention of the Court has likewise been' called to certain expense accounts, particularly of Charnay, head of Allied, when he attended conventions of the Teamsters’ Union; on one occasion to help in re-election of Dave Beck as head of the Teamsters’ Union in Los Angeles, and another time in Miami, Florida, to solicit teamsters’ help for PMTA in the prosecution of the present law suit. An analysis of these two accounts indicates a total lack of connection with the present suit as to the Los Angeles trip.

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Bluebook (online)
166 F. Supp. 163, 1958 U.S. Dist. LEXIS 3513, 1958 Trade Cas. (CCH) 69,085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noerr-motor-freight-inc-v-eastern-railroad-presidents-conference-paed-1958.