Pacific Seafarers, Inc. v. Pacific Far East Line

48 F.R.D. 347, 1969 U.S. Dist. LEXIS 13882
CourtDistrict Court, District of Columbia
DecidedJune 2, 1969
DocketCiv. A. No. 3088-66
StatusPublished
Cited by7 cases

This text of 48 F.R.D. 347 (Pacific Seafarers, Inc. v. Pacific Far East Line) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Seafarers, Inc. v. Pacific Far East Line, 48 F.R.D. 347, 1969 U.S. Dist. LEXIS 13882 (D.D.C. 1969).

Opinion

MEMORANDUM OPINION

GESELL, District Judge.

This is a treble damage action claiming violations of sections 1 and 2 of the Sherman Act. The general nature of the suit and prior action on a motion to dismiss are fully covered in an opinion in this matter decided September 30, 1968, by the United States Court of Ap[349]*349peals for this Circuit, Pacific Seafarers, Inc. v. Pacific Far East Line, Inc., 131 U.S.App.D.C. 226, 404 F.2d 804 (1968). At least one defendant has requested a jury trial and while a number of answers are yet to be filed the Court is proceeding on the assumption that this is a jury case.

The motions before the Court, which have been briefed and argued, raise questions of service and venue and seek dismissal as to three of the five plaintiffs for lack of standing to sue under the antitrust laws. Since these motions were sent to the Court as Motions Judge in the ordinary course, no request for assignment to a single judge having been made, the motions will be resolved. However, the Court sua sponte has requested the Chief Judge to assign all further proceedings in this case to another judge for all purposes and counsel are requested to cooperate to this end. There is to be no further discovery except as it shall be approved by the judge to whom the case is assigned. In this jurisdiction where civil cases are handled on a master calendar basis, the preferable procedure in a complicated antitrust action is for the parties to request the Chief Judge to assign the case to a single judge for all purposes promptly after the action is filed. Only in this fashion can duplication of judicial effort be avoided and preliminary matters, such as those raised by some of these motions, be scheduled for efficient disposition after appropriate factual discovery has been conducted.

The service and venue motions will be considered first.

ATLANTIC AND GULF AMERICAN FLAG BERTH OPERATORS and WEST COAST AMERICAN FLAG BERTH OPERATORS

Two of the defendants, known as AGAFBO and WCAFBO, are steamship conferences based in New York City and organized in the form of voluntary associations. They each move to quash service of process on the ground that they are voluntary associations and cannot be served outside of this jurisdiction since section 12 of the Clayton Act, considered in the light of Rule 4(f) of the Federal Rules of Civil Procedure, permits service outside the jurisdiction of the Court only upon corporations. These motions are clearly well taken and service will be quashed. McManus v. Tato, 184 F.Supp. 958 (S.D.N.Y.1959).

Each of these defendants also urges that the case be dismissed for improper venue. Normally such a dismissal would not be proper, but under the circumstances of this case the motions will be granted. Following the argument, certified copies of letters dated October 23, 1968, from the Chief, Office of Carrier Agreements of the Federal Maritime Commission, were submitted to the Court. Each of these letters states that the agreements under which AGAFBO and WCAFBO were organized and operating were cancelled effective October 23, 1968, pursuant to section 15 of the Shipping Act of 1916. Accordingly, it does not appear that venue will ever exist here and it will serve the interests of this case to resolve the matter at this time. The files of these organizations, if they still exist, are of course open to appropriate discovery and former personnel may be deposed.

AMERICAN UNION TRANSPORT, INC.; CENTRAL GULF STEAMSHIP CORPORATION and PRUDENTIAL LINES, INC.

American Union Transport, Inc. (hereafter AUT) also moves under Rule 12(b) of the Federal Rules of Civil Procedure to dismiss the complaint for improper venue and to quash service. The parties have stipulated that the disposition of this motion shall govern the disposition of similar motions filed by Central Gulf Steamship Corporation and Prudential Lines, Inc. The .Court will deny the motion and holds that venue is proper and service should not be quashed.

[350]*350AUT is a New York corporation with no offices or employees in the District of Columbia. Venue rests on the relations between AUT and Consolidated Steamship Agencies (hereafter Consolidated). Service was had upon the principal partner of Consolidated which has offices in Washington, D. C. A deposition taken by plaintiffs of N. B. Borden, the principal partner of Consolidated, covers in detail the numerous and varied services which Consolidated has performed for AUT over the last ten or eleven years here in the District of Columbia and the substantial monetary significance of such services. Without considering the matter in detail, it is apparent that Consolidated has negotiated and serviced contracts for AUT; Consolidated has negotiated the leasing of a vessel, handled claims before the Navy, attended conference meetings, participated in rate negotiations, collected money, dealt with foreign embassies, etc., all on behalf of AUT. It has received in the years 1961-1966, inclusive, substantial sums from AUT for these services. Thus, AUT transacts business in the District of Columbia within the meaning of section 12 of the Clayton Act, has an agent in the District of Columbia responsible for the conduct of business in the District, and both service and venue are proper. The decisions on which AUT relies, such as United States v. Scophony Corp., 333 U.S. 795, 68 S.Ct. 855, 92 L. Ed. 1091 (1948) and Eastman Kodak Co. v. Southern Photo Materials Co., 273 U.S. 359, 47 S.Ct. 400, 71 L.Ed. 684 (1927), do not support the motion on the facts of this case. The contacts with the District are not as incidental or as limited as AUT contends and no purpose is served by discussing each of the cases cited on their own specific facts. Here there is a long-standing, substantial, broad relationship sufficient to meet the requirements of venue and support service.

STOCKARD SHIPPING CO., INC.

Stockard Shipping Co., Inc. has moved to quash service. The company has no office, agent or representative in the District of Columbia. Service was made on Consolidated under the mistaken assumption that Consolidated was acting as agent and representative for Stockard. Consolidated had had no contact with Stockard for four or five years. Plaintiffs concede the service is improper and service will be quashed.

GREAT LAKES BENGAL LINES, INC.; MID-AMERICA STEAMSHIP CORP.; and J. J. GEORGELIS„ INC.

The remaining motions are cast in various forms seeking to dismiss from the action three of the five named plaintiffs, that is, Great Lakes Bengal Lines, Inc., Mid-America Steamship Corp. and J. J. Georgelis, Inc., for lack of standing to sue under the antitrust laws. The thrust of these motions is that these three plaintiffs are mere bystanders, not targets of the alleged conspiracy, and that they seek to recover damages because of alleged injury so remote that they have no standing to participate in this action. There has been no discovery on these issues and the motions are tendered on the complaint. The complaint alleges a concerted effort by the defendants to drive Pacific Seafarers, Inc.

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Cite This Page — Counsel Stack

Bluebook (online)
48 F.R.D. 347, 1969 U.S. Dist. LEXIS 13882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-seafarers-inc-v-pacific-far-east-line-dcd-1969.