Oma H. Hester, Jr. v. Martindale-Hubbell, Inc. American Bar Association and North Carolina State Bar

659 F.2d 433, 1981 U.S. App. LEXIS 17680
Court of Appeals for the Fourth Circuit·Decided September 16, 1981·No. 80-1481·Published·Cited by 17 cases

Opinions

JAMES DICKSON PHILLIPS, Circuit Judge:

Orna H. Hester, a North Carolina attorney, appeals the grant of summary judgment dismissing his several claims of violations by Martindale-Hubbell, Inc., the American Bar Association (ABA) and the North Carolina State Bar (State Bar) of rights secured to him by the federal constitution and federal and state antitrust statutes in connection with his unsuccessful attempt to advertise in Martindale-Hubbell’s general legal directory. Essentially for reasons stated by the district court, we affirm.

I

The facts, as presented to the district court on the summary judgment record, [434] were that the State Bar, with the approval of the North Carolina Supreme Court, had promulgated the North Carolina Code of Professional Responsibility, the provisions of which were substantially identical to the American Bar Association’s Code of Professional Responsibility. At the time the actions that are the subject of this suit took place in late 1973 and early 1974, DR 2-102(A)(6), of the North Carolina Code provided that an attorney could present brief biographical and other specified information in a reputable law list or legal directory and “[a] law list or any directory is conclusively established to be reputable if it is certified by the American Bar Association as being in compliance with its rules and standards.” *

From the late 1930’s until February 1978, the ABA maintained a Standing Committee on Law Lists (Committee) that promulgated rules and standards with which a law list publisher could comply and receive certification by the Committee. Rule and Standard 4 promulgated by the Committee provided that “(t]he publisher of a law list which has received a certificate of compliance from the Committee may rate its listees in a manner not disapproved of by the Committee,” and the Committee also published five rulings to serve as guidelines for any publisher who wished to establish a rating system.

From the inception of this private regulatory scheme, Martindale-Hubbell voluntarily submitted to a review of its publication practices by the Committee and each year received a certificate of compliance from the Committee. In 1977, Martindale-Hubbell’s Legal Directory was listed as one of sixty law lists certified to be reputable by the Committee. It was, however, the only one listed in the category of “general legal directory.”

The Martindale-Hubbell Law Directory is divided into two sections. In the geographical section, Martindale-Hubbell undertakes to list without charge the name of every lawyer, law firm and professional corporation in the United States. In addition to the lawyer’s name, these individual alphabetical listings include, in a coded format in fine print, information such as years of birth and admission to the bar, college and law school attended, address, and firm connection or corporate or government employment. Ratings, based upon a system approved by the Committee, are also included with a large number of the individual and firm listings.

The second section of the directory is a biographical one in which lawyers may pay to have published advertisements that are euphemistically referred to by Martindale-Hubbell as “professional cards.” These “professional cards” appear in boldface print and may include a broad array of biographical data in addition to that found in the geographical section together with information about areas of practice, references and representative clients. In order to subscribe to publication of a “professional card” in the biographical section, however, an attorney must have received a certain rating under Martindale-Hubbell’s system or be associated with a firm that has obtained that distinction.

In August 1973, Hester requested information from Martindale-Hubbell concerning publication of a “professional card” in Martindale-Hubbell’s 1974 edition. The publisher refused to supply this information to Hester, however, because he was ineligible to have a “professional card” published in the directory inasmuch as he had not yet received a rating.

Hester then addressed letters of formal complaint to the State Bar and the ABA in which he alleged that the management and contents of the Martindale-Hubbell Law Directory were in violation of DR2-102(A)(6). The State Bar responded that, since the ABA had issued a certificate of compliance [435] to Martindale-Hubbell, Hester’s complaint was one properly directed to that organization. Hester subsequently received a reply from the Committee stating that Martin-dale-Hubbell had in no way violated the Committee’s rules and standards for law lists in refusing to publish Hester’s “professional card.” Hester then filed the present suit.

In the first count of his complaint Hester alleged that, by effectively sanctioning Martindale-Hubbell’s refusal to publish his “professional card” in the biographical section of its directory, the ABA and the State Bar combined with Martindale-Hubbell to exclude Hester from the market for this form of legal advertising in violation of section 1 of the Sherman Act, 15 U.S.C. § 1. In a second count he alleged that Martin-dale-Hubbell, with the cooperation of the ABA, monopolized or attempted to monopolize the market for advertising in legal directories of Martindale-Hubbell’s comprehensiveness and scope of distribution in violation of section 2 of the Sherman Act, 15 U.S.C. § 2.

In third and fourth counts, incorporating by reference the allegations of concerted anticompetitive activity, Hester alleged that this activity also constituted a violation of N.C.Gen.Stat. § 75-1, the North Carolina analogue of the Sherman Act, and of N.C. Gen.Stat. § 75 — 1.1, the North Carolina analogue of section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45. Finally, in counts five and six of the complaint Hester alleged that the State Bar, by condoning the allegedly discriminatory refusal of Martindale-Hubbell to publish his “professional card” and refusing to consider his complaint against that publisher, had violated his rights to equal protection and due process of law under the fourteenth amendment to the United States Constitution and article 1, section 19 of the North Carolina Constitution.

Following two years of discovery in which Hester received responses to his interrogatories, requests for admissions and requests for production of documents from all three defendants, Martindale-Hubbell and the State Bar moved for summary judgment. Upon review of the summary judgment record, a magistrate recommended denial of the motions. The district court, however, rejected this recommendation, granted the motions and, sua sponte, dismissed the claims against the ABA.

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Oma H. Hester, Jr. v. Martindale-Hubbell, Inc. American Bar Association and North Carolina State Bar, 659 F.2d 433, 1981 U.S. App. LEXIS 17680 (4th Cir. 1981).

659 F.2d 433 (Oma H. Hester, Jr. v. Martindale-Hubbell, Inc. American Bar Association and North Carolina State Bar) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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