Park & Tilford Distillers Corp. v. Distillers Co.

19 F.R.D. 169, 1956 U.S. Dist. LEXIS 4219, 1956 Trade Cas. (CCH) 68,356
CourtDistrict Court, S.D. New York
DecidedMay 22, 1956
StatusPublished
Cited by17 cases

This text of 19 F.R.D. 169 (Park & Tilford Distillers Corp. v. Distillers Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Park & Tilford Distillers Corp. v. Distillers Co., 19 F.R.D. 169, 1956 U.S. Dist. LEXIS 4219, 1956 Trade Cas. (CCH) 68,356 (S.D.N.Y. 1956).

Opinion

LEVET, District Judge.

This is an action for treble damages and injunctive relief against fourteen defendants comprising certain foreign producers of Scotch whiskey and certain domestic distillers and importers. The complaint alleges that by reason of conspiracies in restraint of trade and monopolization by the defendants in violation of the federal anti-trust laws, and as a result of other tortious conduct by certain of the defendants, the plaintiff lost its rights to distribute certain brands of imported distilled spirits in the United States.

The plaintiff asserts that it has effected the service of process on eleven of the defendants named herein. No answer to the complaint has as yet been filed by any of the defendants.

Five motions, jointly argued and all relating to the question of priorities of certain depositions herein, are before this Court for determination.

Suit was commenced on April 3, 1956. On April 11th, the defendants Distillers Company, Ltd. and Gordon’s Dry Gin Co., Ltd., served their notice of appearance and pursuant to Rule 26 of the Federal Rules of Civil Procedure, 28 U.S. C.A., their notice, returnable May 1st, to take the depositions of the plaintiff and of Schenley Industries, Inc., a witness which allegedly owns 87% of the stock of the plaintiff.

On April 16th, the defendant National Distillers Products Corporation served its notice of appearance and its notice to take the depositions of the plaintiff and of Schenley Industries, Inc., on May 1st.

■ The defendants Joseph E. Seagram & Sons, Inc. and Browne-Vintners Co., Inc., appeared herein on April 18th, and on April 20th served their notice to take the depositions of the plaintiff and of Schenley Industries, Inc., on May 2nd.

On April 24th, twenty-one days after the commencement of this action, the plaintiff served notices to take the depositions of all eleven defendants and of three individuals who are not parties to this action. Said notices were returnable April 30th and May 1st.

Pursuant to a show cause order dated April 26, 1956, the plaintiff moved to vacate all the notices to take depositions served by the defendants herein, and for an order directing that the said depositions should not be taken, or in the alternative, staying the taking of each of the said depositions until after the taking of the depositions noticed by the plaintiff. Plaintiff also requests a consolidation of the taking of the depositions of the plaintiff by the defendants.

Thereafter, pursuant to a show cause order dated April 27, 1956, defendants Distillers Company, Ltd. and Gordon’s Dry Gin Co., Ltd., moved to stay the taking by plaintiff of the depositions of the said defendants and other defendants until after the completion of the taking, by the said defendants, of the depositions of plaintiff and Schenley Industries, Inc.

The defendant National Distillers Products Corporation also obtained a show cause order dated April 27th, to postpone the taking by plaintiff of the depositions of the said defendant until after the completion by the defendant of the taking of the depositions of plaintiff and Schenley Industries, Inc.

A similar show cause order dated April 27th was obtained by the defendants Joseph E. Seagram & Sons, Inc. and Browne-Vintners Co., Inc.

The witness, Schenley Industries, Inc., has moved pursuant to a show cause order dated April 30, 1956, to quash the subpoenas duces tecum which were served on it by the aforesaid five defendants and for an order directing that the depositions of Schenley Industries, Inc., [171]*171shall not be taken, or in the alternative, for an order staying the taking of the depositions of Sehenley Industries, Inc., until such time as the depositions of the parties to this action have been completed.

The five motions were consolidated for argument and are jointly decided herein.

The defendants’ notices were served prior to the notices which the plaintiff served. Accordingly, the defendants rely upon the prevailing rule that in the absence of some special and good reason, examinations should proceed in the order in which they are demanded. Sanib Corp. v. United Fruit Co., D.C.S.D.N.Y.1955, 19 F.R.D. 9; Isbrandtsen v. Moller, D.C.S.D.N.Y.1947, 7 F.R.D. 188; Ginsberg v. Railway Express Agency, Inc., D.C.S.D.N.Y.1945, 6 F.R.D. 371; Alderman Tailors, Inc., v. Alderman Tailors, Inc., D.C.S.D.N.Y. 1942, 48 F.Supp. 750; Bough v. Lee, D.C. S.D.N.Y.1939, 28 F.Supp. 673; Grauer v. Schenley Products Co., Inc., D.C.S.D.N.Y.1938, 26 F.Supp. 768.

It appears from the papers before me that there are special circumstances in this case which warrant a departure from the general rule.

The period during which depositions may be taken is governed by Rule 26 of the Federal Rules of Civil Procedure, which is silent on the subject of priority in the taking of depositions which have been properly noticed. Rule 26 provides that depositions may be taken after the commencement of the action without leave of court, except that a plaintiff cannot serve a notice of taking depositions within twenty days after the commencement of the action without first obtaining a court order. It is apparent that the plaintiff acted diligently when it served its notices on the 21st day subsequent to the commencement of this action. Had the plaintiff attempted to obtain leave of court in order to take the defendants’ depositions within twenty days after the commencement of this suit for the sole purpose of obtaining priority in the taking of depositions, it is doubtful that the plaintiff would have succeeded. See Babolia v. Local 456, Teamsters & Chauffeurs Union, D.C.S.D.N.Y.1951, 11 F.R.D. 423; Munson Line v. Green, D.C.S.D.N.Y.1946, 6 F.R.D. 14.

It also appears from the papers before me that there is a likelihood that this Court’s jurisdiction will be challenged! by some of the defendant-corporations herein which have not as yet filed their appearances, namely, The Distillers Company, Limited, Booth’s Distilleries, Ltd., William Sanderson & Son, Ltd., and Distillers Corporation-Seagrams, Limited. For purposes of convenience and expedition, the plaintiff should be entitled to a priority in the taking of depositions so that it may examine as to matters relating to the propriety of venue in this district and the sufficiency of the service of process herein.

Another factor which weighs in favor of granting priority to the plaintiff is the fact that much of the proof which plaintiff will require in order to establish its case must come from the defendants themselves. It does not appear that any of the defendants will be prejudiced by permitting the plaintiff to examine them first with respect to activities and conduct peculiarly within their own knowledge. See Hillside Amusement Co. v. Warner Bros. Pictures, Inc., D.C.S.D.N.Y.1942, 2 F.R.D. 275.

Finally, it appears that the notices which the defendánts served upon plaintiff and Sehenley Industries, Inc., are all patently defective for several reasons.

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Bluebook (online)
19 F.R.D. 169, 1956 U.S. Dist. LEXIS 4219, 1956 Trade Cas. (CCH) 68,356, Counsel Stack Legal Research, https://law.counselstack.com/opinion/park-tilford-distillers-corp-v-distillers-co-nysd-1956.