PHILIP MORRIS, INCORP. v. Grinnell Lithographic Co.

67 F. Supp. 2d 126, 1999 U.S. Dist. LEXIS 15638, 1999 WL 787263
CourtDistrict Court, E.D. New York
DecidedSeptember 28, 1999
Docket0:95-cv-00733
StatusPublished
Cited by8 cases

This text of 67 F. Supp. 2d 126 (PHILIP MORRIS, INCORP. v. Grinnell Lithographic Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PHILIP MORRIS, INCORP. v. Grinnell Lithographic Co., 67 F. Supp. 2d 126, 1999 U.S. Dist. LEXIS 15638, 1999 WL 787263 (E.D.N.Y. 1999).

Opinion

MEMORANDUM AND ORDER

HURLEY, District Judge.

By notice of motion dated January 15, 1999, defendants Grinnell Lithographic Co., Inc. (“Grinnell”) and Oliver Munson (“Munson”), seek the following relief:

1. an order pursuant to Rule 56 of the Federal Rules of Civil Procedure:

(a) dismissing all claims of Philip Morris, Incorporated (“plaintiff’) for failure to prove that it suffered an injury as a result of defendants’ conduct, or, alternatively;

(b) dismissing plaintiffs treble damages claim under Section 2(c) of the Robinson-Patman Act, 15 U.S.C. § 13(c) (“ § 2(c)”), given the absence of proof of “antitrust injury” as required by Section 4 of the Clayton Act, 15 U.S.C. § 15 (“ § 4”);

(c) dismissing plaintiffs claim under Section 180.03 of the New York State Penal Law (“ § 180.03”) on the ground that the statute does not create a private cause of action; and

*128 (d)- dismissing plaintiffs claims against Munson on the ground there is no evidence to indicate his authorization or awareness of payments .made by Les Sutorius (“Suto-rius”) to Louis Cappelli (“Cappelli”).

2. an order, pursuant to Federal Rules of Evidence 104, 401, 403 and/or 702, declaring the report of plaintiffs expert (the “Rapp Report”) to be inadmissible as “irrelevant and unreliable”; and

3. in the event plaintiffs federal claim —i.e., the purported violation of the Robinson-Patman Act —is dismissed, declining to exercise supplemental jurisdiction over the state claims asserted.

As explained below, the relief sought in paragraphs l(a)(b) and (d) above are denied; the relief sought in paragraph 1(c)—pertaining to the cause of action predicated on § 180.03—is granted; the relief sought in paragraph 2—pertaining to the Rapp Report —is granted to the extent a hearing will be held before me immediately prior to jury selection to determine whether the Rapp Report and corresponding testimony of its author passes muster under relevant provisions of the Federal Rules of Evidence, consistent with the holding in Kumho Tire Co. v. Carmichael, 526 U.S. 137, 119 S.Ct. 1167, 143 L.Ed.2d 238 (1999); and the relief sought in paragraph 3 is denied as moot in view of the above determinations.

BACKGROUND

The complaint in this action arises from a bribery scheme participated in by Cap-pelli, the former Graphics Purchasing Manager of plaintiffs Marketing Services Purchasing Department, and Grinnell, a vendor which provided lithographic printing services to plaintiff.

Munson was and is the President, Chair of the Board, and a shareholder of Grin-nell. Sutorius was a salesperson for Grin-nell. For more than ten years, Sutorius, acting for Grinnell, made weekly bribe payments to Cappelli. The weekly sums began at $100 per week in or about 1979, increasing over time to $400 a week for the mid-1988 to 1990 period. In addition, Cappelli was provided with golf vacations, and other gratuities, by Grinnell during the 1980s.

It is alleged in the complaint that “in excess of $150,000 in illegal bribes, kickbacks and gratuities” were paid to Cappelli in return for his manipulating the purchasing process for lithographic printing services to favor Grinnell. (Amended Compl. ¶ 1.) During the time frame involved, plaintiff awarded Grinnell contracts in excess of $54 million. The resulting injury to plaintiff was that “it paid substantially inflated prices” for the services received. Id.

On February 21, 1995, plaintiff filed the present action, alleging a federal claim based on the Robinson-Patman Act, as well as state law claims for fraud, commercial bribery and breach of fiduciary duty.

Extensive pre-trial proceedings occurred thereafter, with the case being placed on the ready trial calendar on October 15, 1998. A week later, defendants successfully sought permission to file a belated summary judgment motion.

DISCUSSION

A. Format

The items of relief requested by defendants 1 shall be discussed seriatim consistent with the sequence set forth in the notice of motion, beginning with the multiple requests for summary judgment. Before doing so, however, the standards for determining a motion for summary judgment will be reviewed.

B. Standards for Summary Judgment

A motion for summary judgment may be granted only when it is shown “that there *129 is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed. R.Civ.P. 56(c); see also Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Donahue v. Windsor Locks Bd. of Fire Comm’rs, 834 F.2d 54, 57 (2d Cir.1987).

The party seeking summary judgment “bears the initial responsibility of informing the district court of the basis for its motion” and identifying which materials “it believes demonstrate the absence of a genuine issue of material fact.” Celotex, 477 U.S. at 323, 106 S.Ct. 2548; see also Trebor Sportswear Co. v. The Ltd. Stores, Inc., 865 F.2d 506, 511 (2d Cir.1989). The substantive law governing the case will identify those facts that are material, and “[o]nly disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

Once the moving party has come forward with support demonstrating that no genuine issue of material fact remains to be tried, including pleadings, depositions, interrogatory answers, and affidavits, the burden shifts to the non-moving party to provide similar support setting forth specific facts about which a genuine triable issue remains. See Fed.R.Civ.P. 56(e); Anderson, 477 U.S. at 250, 106 S.Ct. 2505; Borthwick v. First Georgetown Sec., Inc., 892 F.2d 178, 181 (2d Cir.1989); Donahue,

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67 F. Supp. 2d 126, 1999 U.S. Dist. LEXIS 15638, 1999 WL 787263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/philip-morris-incorp-v-grinnell-lithographic-co-nyed-1999.