Paul Kadair, Inc., D/B/A Paul Kadair's Home & Commercial Audio, Plaintiff v. Sony Corporation of America

694 F.2d 1017, 35 Fed. R. Serv. 2d 716, 1983 U.S. App. LEXIS 27903
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 3, 1983
Docket80-3972
StatusPublished
Cited by110 cases

This text of 694 F.2d 1017 (Paul Kadair, Inc., D/B/A Paul Kadair's Home & Commercial Audio, Plaintiff v. Sony Corporation of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paul Kadair, Inc., D/B/A Paul Kadair's Home & Commercial Audio, Plaintiff v. Sony Corporation of America, 694 F.2d 1017, 35 Fed. R. Serv. 2d 716, 1983 U.S. App. LEXIS 27903 (5th Cir. 1983).

Opinion

JERRE S. WILLIAMS, Circuit Judge.

The issue presented by this appeal is a narrow, yet difficult one given the peculiar posture and particular facts of the case as developed in the court below. Specifically: did the district court abuse its discretion in denying appellant’s request for discovery, pursuant to Fed.R.Civ.P. 56(f) affidavits, on the ground of dilatoriness, followed by the dismissal of appellant’s conclusory complaint under Section 1 of the Sherman Act, 15 U.S.C. § 1, alleging an unlawful concerted refusal to deal. Although a partial stay of discovery was in effect for all but one month of the proceedings below, we do not find this fact to signal an abuse of discretion in light of four factors: (1) the limited nature of the stay, (2) the district court’s orders concerning discovery during the litigation, (3) appellant’s repeated inability to provide both specific facts in its complaint and to frame focused discovery requests in its Rule 56(f) affidavits, and (4) appellant’s failure to seek any meaningful discovery for more than a year after filing its complaint.

Proceedings Below

Appellant Paul Kadair, Inc., a stereo retailer, filed this antitrust action on March 2, 1978 against a total of over forty manufacturers, manufacturers’ representatives/distributors and retailers of stereo equipment. 1 *1020 Appellant alleged that the above defendants had engaged in a conspiracy, in violation of Section 1 of the Sherman Act, pursuant to which defendant manufacturers refused to sell their products to appellant. 2 15 U.S.C. § 1. After twice amending its complaint, pursuant to district court order, appellant remained unable to plead any specific facts tending to support its conclusion of conspiracy as alleged.

Defendant-appellees on November 30, 1978, renewed previously-made motions and also made new motions to dismiss or for summary judgment pursuant to Fed.R. Civ.P. 56(e) 3 against the Second Amended Complaint. These motions addressed the legal sufficiency of the complaint and alleged that appellant failed to comply with the court’s orders to plead specific facts concerning the alleged conspiracy. Some defendant-appellees submitted affidavits denying participation in the alleged conspiracy to boycott: the defendant manufacturers and distributors who were manufacturers’ representatives averred that any refusals to deal with appellant were unilateral decisions made for independent business reasons, including the plaintiff’s poor credit status, plaintiff’s failure to complete or submit required applications, the poor appearance of plaintiff’s store, and adequate sales representation of defendant’s products by other retailers. Others submitted affidavits pointing out that they had in fact sold products to appellant, 4 while others noted that they had dealt with and then terminated business dealings with the alleged instigator of the boycott, Kadair’s, Inc. 5

In opposition to these motions, in January, 1979, appellant submitted a Fed.R. Civ.P. 56(f) affidavit 6 which did not come *1021 to the court’s attention until an April 27th hearing on appellees’ motions. 7 At the April 27th hearing appellant’s counsel admitted the lack of specific evidence of conspiracy, 8 and sought a continuance to seek discovery in order to gather such evidence. In response to the court’s invitation to submit additional material by May 4, 1978, appellant filed a supplemental Rule 56(f) affidavit claiming the need for discovery since knowledge and control of the facts underlying the conspiracy claim were largely in the hands of defendants, appellant had been unable to obtain information by means of personal interviews, and it had no other means of refuting appellees’ allegations as made in their affidavits filed pursuant to Rule 56(e). 9

*1022 Thereafter, by order dated July 6, 1979, the court stated that it did “not believe there is sufficient evidence in the record to make a determination of whether the plaintiff should be allowed additional time to take depositions or file affidavits in opposition to defendants’ motions.” It ordered appellant to submit specific information ■ concerning the discovery requested. 10 In response to the court’s order, appellant requested on August 6, 1979, that it be permitted to depose fifteen named individuals, associated with twelve of the defendants, concerning:

a) the nature of the Baton Rouge retail home stereo equipment market; b) the relationships between the manufacturer’s representatives and the retailers in the Baton Rouge area; c) the requirements set by the manufacturer’s representatives in determining whether or not a retailer is capable of distributing a manufacturer’s product; d) the methods utilized by the manufacturer’s representatives in evaluating an applicant/retailer’s ability to adequately market a manufacturer’s product; and e) the nature of communications and contacts between the manufacturer’s representative and the manufacturer which it represents and the retailers in the Baton Rouge market.
(1) The name of each person whose deposition is to be taken, the motion or motions in which the deposition is to be used, and the nature of the testimony sought to be elicited from the deponent.
(2) The names of persons whose affidavits shall be obtained, the motion or motions in which the deposition is to be used, and the nature of the information to be set forth in the affidavit.
(3) The nature of any other discovery to be undertaken, and the purpose for which it is to be used.
(4) The reason why the discovery now being requested was not requested earlier.

Appellant also sought permission to serve interrogatories upon the manufacturers and manufacturers’ representatives, concerning the nature, type and kind of agreements existing within each manufacturer’s distribution scheme and the identity and business qualifications of various members of that scheme. 11 Finally, appellant submitted a *1023 document production request for information as to the manufacturers’ marketing goals and yearly sales.

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Bluebook (online)
694 F.2d 1017, 35 Fed. R. Serv. 2d 716, 1983 U.S. App. LEXIS 27903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-kadair-inc-dba-paul-kadairs-home-commercial-audio-plaintiff-ca5-1983.